SHALE Oil & Gas Business Magazine July/August 2017 by SHALE Oil & Gas Business Magazine

SHALE JULY/AUGUST 2017

OIL & GAS BUSINESS MAGAZINE

TRUMP MEANS BUSINESS

THE BLM METHANE RULE WAS FLAWED FROM THE START

WAYNE CHRISTIAN A GOOD MAN FOR A CHALLENGING TIME

THE INFLUENTIAL LEADER:

BALANCE AND DIFFUSION OF POWER: THE 10TH AMENDMENT

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CONTENTS FEATURE

Trump Means Business

COVER STORY

It’s an interesting and challenging time for the Railroad Commission of Texas. Luckily, the newest member of the regulating body, Wayne Christian, is the right man for the job.

INDUSTRY

COVER PHOTO AND TABLE OF CONTENTS PHOTO BY MICHAEL GIORDANO

INDUSTRY 34 The BLM Methane Rule Was Flawed From the Start 36 Regulatory Reform Needed After U.S. Senate Fails to Overturn BLM Methane Rule

POLICY 42 A Brief History of the Special Counsel Statute and Its Abuses 44 Colorado’s Attorney General and State Regulators Stand Firm Against Anti-drilling Activists

46 The Fight for Fair Federal Regulatory Energy Delegation 48 Scattershooting Some Big Public Policy Issues

BUSINESS 52 A Broader Definition of Economic Development 54 The Price of Admission: Business Transformation

LIFESTYLE

60 Explore Downtown

Houston’s Underground Tunnels

62 Reclaimed Land Creates an Outdoor Asset for Everyone

64 5 Surprising Ways to Use Greek Yogurt

SOCIAL 68 STEER Hosts Press

Conference on Eagle Ford Impact Study

70 WEN Holds National

Conference in Houston

South Texas Energy & Economic Roundtable Call for Entries for the 2017 Eagle Ford Excellence Awards

POLICY

Balance and Diffusion of Power

BUSINESS

The Influential Leader: Confident, Competent and Credible

LIFESTYLE

Morgan’s Wonderland: Where Everyone Can Play

SOCIAL

Texas Alliance of Energy Producers’ Houston Wildcatters

in a Digital World

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

ADVISORY BOARD

Omar Garcia Senior Advisor

shana robinson

Thomas Tunstall, Ph.D.

As President and CEO of the South Texas Energy & Economic Roundtable (STEER), Omar Garcia is an expert on business opportunities associated with the Eagle Ford Shale. He works with the oil and gas industry, local officials, community members, regional stakeholders, educational institutions and economic development organizations to ensure that the oil and natural gas industry in South Texas is advancing in a positive way that is beneficial to both the community and the industry. Garcia has more than 12 years of economic development experience, and he spent two years working for Bank of America as Vice President of Business Development for the bank’s treasury management division. He is a certified economic development finance professional through the National Development Council, and he graduated from St. Edward’s University with majors in international business and Spanish. In 2010, Gov. Rick Perry appointed Garcia to the Texas Economic Development Corporation.

Shana Robinson is currently the Chief of Sales & Growth, Baptist Health System (BHS) for the Tenet San Antonio Market. Robinson is a graduate of The University of Texas at San Antonio, receiving her Bachelor of Liberal Arts degree. Robinson joined the Baptist Health System in January 2007. Her years of experience in sales, physician relations, business development, community service and marketing have been fundamental to her success in the development and implementation of wellness programs for the Baptist Health System. Robinson’s most recent challenge and success has been the development and initiation of the business-to-business programs for BHS, which encompass services such as healthcare screenings for athletes and on-site clinics which assist participating employers to reduce healthcare costs by providing on-site health services for employees.

Thomas Tunstall, Ph.D., is the Research Director for the Institute for Economic Development at The University of Texas at San Antonio. Previously, he was a Management Consultant for SME and the Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. Tunstall also served as an Advisor Relations Executive at ACS and was the founding Co-chair for the Texas chapter of the International Association of Outsourcing Professionals. He has published a business book titled Outsourcing and Management (Palgrave, 2007) and was the technical editor for Outsourcing for Dummies (Wiley, 2008). Tunstall has consulted in both the public and private sectors. In 2005, he completed a long-term assignment in Afghanistan, where he was Deputy Chief of Party for a central bank modernization project. In 2006, he taught Ph.D. candidates in a business and government seminar at The University of Texas at Dallas.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

PUBLISHER’S NOTE VOLUME 4 ISSUE 4 • JULY/AUGUST 2017

KYM BOLADO

THIS ISSUE OF SHALE OIL & GAS BUSINESS MAGAZINE IS FOCUSED ON LEADERSHIP AND GOVERNMENT. The timing of this issue couldn’t be more appropriate given the current political climate in the United States. Though not all is calm in our governmental affairs, we are seeing a move in the right direction at least from an energy standpoint. In this issue, you will find expert opinions and figures to explain some of the current public policy issues affecting the oil and gas industry. Speaking of current times, it seems the energy industry is making its comeback in 2017. We at SHALE could not be happier to see the upward swing in production numbers and prices. This is a great time to be in the industry! We are seeing our advertisers and partners picking up business again and finding new customers each day. That’s why I would encourage you to look at SHALE as a new opportunity to reach industry members. If you are looking for a way to market yourself or your business within the energy or business community, I see no better option. Take, for example, our great cover subjects. We meet and speak to highly influential members of the energy community on a regular basis. We share our magazines with them and encourage them to share the magazines with their colleagues, family and friends to spread the word that the energy industry is progressive, inventive and supportive. The downturn hit us all. While SHALE does not work in the industry in a traditional upstream, midstream or downstream fashion, we also felt the affects that burdened our friends in oil and gas. We weathered the storm, thankfully, and have come out stronger. We grew in the downturn. Not many companies were so lucky. Therefore, we are thankful for our continued success and rejoice to hear good news like prices picking up and the positive outcome of the Sunset review of the Railroad Commission of Texas. We would like to thank you, our readers, and all of our supporters as we continue to do great things! Please enjoy this issue and share your thoughts with us on social media. You can find us online on Facebook, Twitter and LinkedIn.

KYM BOLADO

CEO/Publisher of SHALE Oil & Gas Business Magazine kym@shalemag.com

CEO / PUBLISHER CHIEF FINANCIAL OFFICER Deana Acosta EDITOR IN CHIEF Lauren Guerra OIL AND GAS ASSOCIATE EDITOR David Blackmon ART DIRECTOR Elisa G Creative COPY EDITORS Katie Buniak, Maegan Sheppard VICE PRESIDENT OF SALES & MARKETING Kristy Sommers ACCOUNT EXECUTIVES Michelle Mata, Matt Reed, Cheyenne Williams ONLINE CONTENT MANAGER Fernando Guerra SOCIAL MEDIA DIRECTOR Courtney Boedeker CORRESPONDENT WESTERN REGION Raymond Bolado CONTRIBUTING WRITERS David Blackmon, Jean Gould, Jenny Johnson, Bill Keffer, Simon Lomax, Bob McCullough, Kelly Warren Moore, Tom Mullikin, John Tintera, Thomas Tunstall, Ph.D., Danielle Turcola STAFF PHOTOGRAPHER Malcolm Perez CONTRIBUTING PHOTOGRAPHERS Michael Giordano, Robin Jerstad EDITORIAL INTERN LeAnna Castro

PROUD SPONSORS AND PARTNERS:

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com.

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT:

SHALE Oil & Gas Business Magazine is a nationwide publication that showcases the significance of the petroleum and energy market. SHALE’s mission is to promote economic growth and business opportunities that connect businesses with oil and gas companies. The publication supports market growth through promoting industry education and policy, and its content includes particular insight into the current outlook of all the energy plays in the U.S. and the economic impact of domestic energy production. SHALE further connects businesses and oil and gas companies through events and social engagements to promote synergy within the industry and the community.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

For editorial comments and suggestions, please email lauren@shalemag.com. SHALE MAGAZINE OFFICE: 5600 Broadway Ave., San Antonio, Texas 78209 For general inquiries, call 210.240.7188 Copyright © 2017 Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

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JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

 FEATURE

Trump Means Business

oliticians, who promise to stem the seemingly inevitable growth and pervasive presence of government, typically follow one of these three imperfect equations: 1) they profess a certain position or philosophy (for political expediency) but don’t really believe it; 2) they genuinely believe a certain position or philosophy but lack the political courage to profess it openly; or 3) they genuinely believe a certain position or philosophy and have the political courage to profess it, but lack the ability to translate that belief into any meaningful action. None of these, ultimately, is beneficial to the citizens they represent. In short, they are really nothing more than three different flavors of fraud. Not surprisingly, after enough exposure to this frustrating reality, most citizens wax cynical, and the whole subject of politics is relegated to everyone’s dumpster of worthless but necessary evils. Now, take that observation and apply it to the subject of energy policy in the United States — specifically, policies relating to the oil and gas industry. Looking back over the past 50 years, these familiar themes emerge: Democrat presidents and members of Congress pursue policies designed to regulate, disfavor and finally eliminate the ability to explore for, develop and produce the oil

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

With the speed and sweep of actions taken in the first 120 days in office, it’s abundantly clear that President Trump “means business.”

ANDYKATZ/BIGSTOCK.COM

By: Bill Keffer

Donald Trump was inaugurated as the 45th president of the United States on January 20, and his work to prove his word began that day and natural gas resources that are so abundant in this country; while Republican presidents and members of Congress rail against Democratic policies, profess their intentions to undo the damage done and declare their unwavering allegiance to policies designed to throw open the doors of access to the development of these natural resources. The end of the story, however, is always the same. Democrats succeed in their mission and incrementally move the nation in the direction of making it more difficult to realize the inherent advantages of our oil and natural gas reserves. Republicans, on the other hand, routinely disappoint and, with rare exceptions, fail to undo anything — but never stop passionately declaring their preferences. Enter President Donald Trump; Republican, yes — but not in the mold of any of the three personality types described above. In fact, arguably, his victory last November was most likely for the very reason that he was viewed by voters as a clear exception to what had become a painful but chronic reality for those searching in futility for any exit ramp off the highway to self-inflicted decline, including self-imposed energy poverty. Trump certainly caught the attention of those voters who had been wandering in the wilderness during the eight years under President Obama. He was outrageously blunt, to the delight of the crowds that gathered to determine whether he might be worth their vote. But voters had been fooled before — oh, so many times before — by previous candidates willing to whip a crowd into a frenzy, only for those faithful followers to learn later that it was all for show. Enough voters in enough states gave Trump an electoral victory in November, and so the wait and see began. Donald Trump was inaugurated as the 45th president of the United States on January 20, and his work to prove his word began that day. The White House website had prominently featured a page dedicated to fighting climate change during the Obama administration, which was immediately taken down and replaced with a page titled “An America First Energy Plan.” That plan highlighted the objectives of the new Trump administration, which include eliminating unnecessary regulations and policies, reviving the domestic coal industry and discarding the previous administration’s obsession with climate change, in favor of pursuing a policy of promoting U.S. energy and protecting the U.S. economy. President Trump then unleashed a whirlwind of executive orders, including many that were primarily intended to undo previous executive orders issued by President Obama, many of which burdened the oil and gas industry. After eight years of Obama cruelly toying with TransCanada’s Keystone XL Pipeline and finally rejecting its permit, Trump issued an executive order on January 24 approving the pipeline.

After Obama similarly acted to unilaterally block Energy Transfer’s Dakota Access Pipeline, Trump removed the Obama obstacles and also approved that pipeline. Trump made it clear that the U.S., once again, is open for business. On February 28, Trump issued an executive order relating to what has become the bane of many private-property owners across the country: the federal government’s overreach based on its expansive definition of the phrase “waters of the United States.” What had originally meant navigable waterways in the context of interstate commerce had been allowed to mushroom into covering every ditch, pothole and swale on a person’s property, such that the EPA and the Army Corps of Engineers could prevent you from using your property and then fine you into bankruptcy if you did. Trump’s executive order directs the EPA to review its current rule and bring it back into line with the definition handed down by U.S. Supreme Court Justice Antonin Scalia in a decision that has been largely ignored by the federal government up until now. On March 28, Trump signed an executive order to dismantle Obama’s crowning environmental achievement, known as the Clean Power Plan, which would have had the effect of shutting down coal-fired power plants and unnecessarily increasing energy costs across the country — all for the stated goal of slowing the increase in the global temperature by only 0.023 degrees Fahrenheit by the end of this century. On April 26, Trump issued an executive order designed to review the millions of acres in Western states that Obama declared to be national monuments on his way out the door. Instead, Trump has instructed the Department of the Interior to develop plans to open up federal lands for naturalresource development. That order also cancels Obama’s previous ban on new offshore drilling leases in the Atlantic, Pacific and Arctic oceans, as well as the Gulf of Mexico. Trump’s executive orders have also stopped or rescinded previous Obama edicts relating to burdensome regulations on methane emissions at oilfield locations, as well as a massive, comprehensive “information request” served on the oil and gas industry last year, which would have undoubtedly been used eventually to regulate, tax and eliminate oilfield operations with confirmed methane emissions. In the short time he has been in office, Trump’s actions speak volumes. During his economically impressive administration, President Calvin Coolidge famously quipped that “the business of America is business.” With the speed and sweep of actions taken in the first 120 days in office, it’s abundantly clear that President Trump “means business.” What remains to be seen is to what extent these actions will have any lasting effect on the direction of U.S. energy policy. And, in case there’s any question, Russia won’t like any of this.

About the author: Bill Keffer is a contributing columnist to SHALE Magazine. He teaches at the Texas Tech University School of Law and continues to consult. He served in the Texas Legislature from 2003 to 2007.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

cover story

WAYNE CHRISTIAN BY: DAVID BLACKMON

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

PHOTO BY MICHAEL GIORDANO

A GOOD MAN FOR A CHALLENGING TIME

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

PHOTOS COURTESY OF WAYNE CHRISTIAN

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

IN MANY WAYS, THE STORY OF THE RAILROAD COMMISSION OF TEXAS (RRC) IS THE STORY OF THE LAST CENTURY OF AMERICA’S OIL AND GAS INDUSTRY. IN PART, THAT’S BECAUSE 2017 MARKS THE 100TH ANNIVERSARY OF THE RAILROAD COMMISSION’S AUTHORITY TO REGULATE THE OIL AND NATURAL GAS INDUSTRY IN THE STATE. BUT IT’S ALSO BECAUSE THE RRC HAS OFTEN LED THE GLOBE IN FINDING NEW AND INNOVATIVE APPROACHES TO ITS MISSION. On Feb. 20, 1917, the Texas Legislature declared oil and natural gas pipelines to be common carriers and gave the Railroad Commission jurisdiction to regulate them. Two years later, on March 31, 1919, the Legislature passed a new law giving the RRC the authority to enforce a new law requiring the conservation of oil and gas as a precious state resource and forbidding its waste. Though it was originally created in 1891 to regulate the state’s then-booming railroad industry, the RRC quickly became the most recognized and influential oil and gas regulatory body not just in America, but across the globe. Much of that had to do with the fact that, during the 1920s and 1930s, a high percentage of world oil production came from Texas; but also the Commission led the way in the creation of innovative, often heavy-handed regulatory policies. It also did not hesitate to aggressively intervene in oil markets during times when, in its judgment, the state’s resources were being wasted due to depressed prices. Because Texas was the world’s largest oil producer, interventions and policies by the RRC had a global impact, and many came to be copied by regulators in other states and countries. For example, when the RRC became the first regulator to implement a system of prorationing and allowables in August 1930, regulators in Oklahoma and other states quickly followed suit. 

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

a smile on his face — might surprise the casual observer. But to those who know him, it was no surprise at all, since Christian has never been a person to shy away from taking on leadership roles in challenging situations.

This phenomenon of Texas leading the way with new, innovative regulatory policies that are soon emulated in other states has carried forward into modern times. Recent examples include rules governing disclosure of chemicals used in hydraulic fracturing operations and revamps of regulations governing well completions and disposal wells. As the industry has executed its shale revolution over the last decade, the RRC has led the way in the implementation of new, modernized regulations that apply to a constantly and rapidly evolving industry. Since its creation as a regulatory body made up of three elected commissioners who serve staggered six-year terms, the RRC has been led by a constantly evolving set of personalities. The 17 years of the 21st century have seen 11 different people either elected or appointed to serve as members of the RRC. The challenges presented by the introduction of frequent new faces with new priorities and goals have been compounded over the last decade by a reluctance on the part of the Legislature to allocate a significantly higher budget for the RRC, even as the industry has expanded rapidly in the state. As a result, the Commission has found it increasingly difficult to retain high-quality staff, as its salary structure has become increasingly uncompetitive — not just within the industry, but with other state agencies. Due to the lack of funds needed to hire new field inspectors, existing inspectors have had to assume ever-larger areas of responsibility, often driving hundreds of miles in older vehicles to complete their daily work. Just as important as its personnel challenges, the RRC’s computer systems have also become woefully outdated. All of these funding issues have led to increasing criticism of the Commission from the public and anti-oil and gas activists, as well as allegations that it isn’t properly executing its responsibilities. On top of this, the Commission was up for its Sunset review for the third time in the last seven years during the 2017 session of the Texas Legislature. It was into this breach that the newest member of the RRC, former state Rep. Wayne Christian, stepped in January. That he did so voluntarily — even gladly and with

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

“When I was a kid, my dad ran an Exxon — it was Enco back then — station [in] Tenaha, Texas, population 1,097, and it’s from that that I started to appreciate what a difference oil, gas and other fossil fuels can make to the lives of the citizens in Texas.” Commissioner Christian has a habit of ticking off the populations of the small East Texas towns in which he has lived and gone to school during his life. It’s the verbal habit of someone who is proud of his background and never wants to forget where he came from. “So, I came from not the top of the industry, but from the bottom of the industry, if you can call it that.” Christian was born in Center, Texas — or, as he put it in our interview, “Center, Texas, 10 miles from the Louisiana border, population 4,500” — in Shelby County, where his family roots extend back through four generations. His family moved to nearby Tenaha when he was young, when his father purchased that filling station, a move that Christian gives credit for bringing his family closer together: “[That move meant] my dad made a good living, my mom got to go to work there and we as a family got to work there together. I remember my dad, two to three weeks after we got that station, writing checks out for the bills. And he looked up at me and said, ‘Wayne, this is the first time in my life that I can remember being able to pay all these bills.’ So, ultimately, it was because of this industry that I got a college education.” Well, that plus a lot of hard work and study. The fact that Christian graduated from Tenaha High as the valedictorian of his senior class is obviously a big reason why he was able to get into Stephen F. Austin

PHOTOS COURTESY OF WAYNE CHRISTIAN

AN EARLY EXPOSURE TO THE OIL AND GAS INDUSTRY

State University in nearby Nacogdoches, ultimately graduating with a bachelor’s degree in business administration and a minor in marketing. The Commissioner remains close to his alma mater and spent some time talking with us about an oil and gas-related joint venture between Stephen F. Austin and Panola College in Center that he’d recently become aware of. “When I got home right after being sworn in as Railroad Commissioner, I talked to a friend of mine who teaches at a local community college. He introduced me to a program that I did not know existed, a petroleum school there in Center. “Out there, the only industry before oil and gas came in had been growing trees and chickens. So there were not a lot of jobs for people. But I found out that this two-year petroleum school was graduating 200 students each year, and 92 percent were being employed in the industry at an average starting salary of $80,000 per year. But the graduates of this two-year program found they could not expand into the executive branches of these companies, because they didn’t have a four-year diploma. So, Panola College worked out an agreement with Stephen F. Austin under which SFA accepts all the hours from that petroleum school and will even let them take the remaining hours needed for a four-year diploma online, allowing these students to move up in the ranks in different companies. “That is a tremendous pilot program to encourage in our community colleges all over the state of Texas, because when you stop and look at what’s happening now, we’re about to enter an expansion at a time when we’ve also lost a lot of our senior members in the industry. We’ve lost a lot of our experienced workers, and we’re going to have to train individuals in the next few years to fill these positions. And that excites me. That’s something I’m excited to work for, expanding and training those jobs for young people.”

time, with a rising rig count, increasing number of permit filings, and all the job creation and economic development that will represent for the state. When we talked with the Commissioner, the Texas legislative session had just ended. The Sunset process produced a reauthorization of the RRC for another 12-year period, and the Legislature had come through with a very significant budget increase. We asked Christian about the importance of making it through the Sunset process with a new 12-year mission, and with the Commission’s historic name intact: “Well, first and foremost I want to commend the Legislature, especially Chairman Larry Gonzales who led the Sunset Committee, because they were wise enough to keep that [name change] argument out of the Sunset bill. That was an argument that I think would not have been appropriate there. “But of course, I come from a part of the state where we like to say, ‘If it works, don’t fix it.’ If there needs to be a marketing program done to help acquaint the citizens of Texas that the Railroad Commission provides for the regulation of oil and gas, well then, I’m all for getting that idea out there. But with the limited resources that we have, I’d rather see it going to salaries, to regulations, to helping expedite permitting processes. Frankly, there’s a lot of places that I want to see the dollars go right now, versus replacing signs by the thousands out across the state of Texas and signs on buildings, etc., which would be required for changing the name of an organization that is already well-known and respected worldwide.” Speaking of money, we asked the Commissioner if he was happy with the way the budget process had come out, and if he believes the new budget authorization for fiscal year 2018–19 will be adequate to meet the Commission’s need during what looks to be a new boom time in the industry: “Yes, this new money will go toward stabilizing income, hiring more inspectors, more people that do the work,

THE CHALLENGES OF ENTERING A NEW BOOM It does indeed appear that the industry, at least in Texas, is entering into a new boom

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

more processors, computer and equipment upgrades. So that we can meet the needs of a growing industry.” Looking ahead at the prospective landscape in the Texas industry for the next two years, it may not in fact be enough. The national rig count has doubled in just nine months, and half of those active rigs are running in Texas. More than half of all U.S. oil and gas industry jobs are located in Texas. In addition to all the drilling, there are now approved plans for building two new refineries, three new LNG export facilities and a wide array of new pipeline capacity in the coming months, all of which the Railroad Commission must monitor, inspect and regulate. The Commissioner seemed undaunted, in fact, excited by the prospect. “That will be the challenge, but it always has been. And, quite frankly, I think it will be amplified, thank goodness, by the fact that the good Lord has given us the ability to find more oil and gas. “Then you have the pipelines that will be constructed. The international markets now being opened up by the ability to export liquefied natural gas, with three new ports in Texas. Plus, you have Magellan building a processing facility down in the port of Houston. It’s almost unbelievable the expansion, and I just call it — well, we don’t say ‘explosion’ in the oil and gas business — but it’s a tremendous expansion of the business that we’re seeing in the state of Texas. That’s going to require more work from the Railroad Commission, and that’s what we convinced the Legislature that we needed the additional funds for; and I just assure you that the three commissioners, our executive director and our staff will be continuously policing that we are efficient with those dollars. Because we want to help this industry create jobs.”

For many years, Commissioner Christian has owned his own financial planning business located in his hometown of Center. Like so many who serve in government office in Texas, he faces the challenge of keeping his business going while carrying out his official duties in Austin. To do this, he had to put a business continuity plan in place. Lucky for the Commissioner, he and his wife, Lisa, had raised his own business continuity plan from birth. “I’ve been very fortunate. Independent businesspeople, as I’ve been all my life, have to have what we call a business continuity program. Many times in the particular industry that I’m in, people who wish to serve in public office like the Railroad Commission have to sell their business to somebody else, or a part of it. I’m one of the very fortunate ones, because my business continuation program is my daughter Liza,” he says with a laugh.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

PHOTOS COURTESY OF WAYNE CHRISTIAN

RUNNING A BUSINESS WHILE SERVING IN A STATEWIDE OFFICE

“And Liza is more than competent; in fact, Liza went and got her certified financial planner designation, and all of a sudden after 35 years in the business myself, Liza is way smarter than I’ve ever been. I go to the office regularly when I’m not at work here in Austin or out across the state of Texas visiting with different groups and folks that might have some questions about the Railroad Commission. But really, Liza is leading that charge, and I’m honored to have her as my business continuity plan.” THE CHALLENGES OF RUNNING FOR A STATEWIDE OFFICE IN TEXAS Another daunting task Christian faced when deciding to run for his Commission seat? Running for office in a state so geographically large, with half a dozen major media markets. Of course, Christian was no stranger to political campaigning: He represented his home district in the Texas Legislature from 1997–2005, and again from 2007–2013. He also ran for the GOP nomination for the RRC seat that was up in 2014, ultimately losing in the GOP primary to his fellow current Commissioner, Ryan Sitton. We asked Christian to compare the challenges of running for a house district to running a statewide campaign: “Undeniably, the distance geographically you have to reach in a state to talk to as many people as you want to talk to is virtually impossible. Many of us don’t realize and understand how big our state is. So, a lot of the hard decisions are, ‘Do you go here today or do you go there today?’ because you have multiple invitations in different places. “And we had to do it with a limited budget. You try to do as much as you can, and I had [a] young man that basically drove me from place to place as much as we could, because the airfare starts to get very expensive. What was interesting about where I live, trying to run a statewide election, is that Houston is the largest major airport where we could get on a flight. That’s a two-and-a-half-hour drive just to get to the airport. 

THOUGH IT WAS ORIGINALLY CREATED IN 1891 TO REGULATE THE STATE’S THEN-BOOMING RAILROAD INDUSTRY, THE RRC QUICKLY BECAME THE MOST RECOGNIZED AND INFLUENTIAL OIL AND GAS REGULATORY BODY NOT JUST IN AMERICA, BUT ACROSS THE GLOBE

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

PHOTOS COURTESY OF WAYNE CHRISTIAN

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

“Because of that, a lot of times it was more economical in cost and time to just drive to wherever we were trying to go. So, it was maybe a little bit harder for a rural person that distance from a major airport to do that campaign. “In the legislative district where I’d been for the previous 14 years, you have a limited geographic area. Mine was about 180 miles tall. Mostly along Toledo Bend right along the border of the state of Texas. So, while that was a lot of travel, it still was nothing compared to the statewide race. We could cover the legislative district, even go to neighborhoods and knock on doors and meet individuals — but you can’t just knock on every door in the state of Texas. “And of course, the press plays a much larger part in a statewide race. In a legislative district, most of the press over time know you and know your reputation, so you have that, good or bad, going for you. When you run statewide it seems that some folks play what we call negative politics that are different, and maybe there’s some incorrect information out there but there’s no way to counter that unless you have the money to battle that. It takes a lot of dollars to counter false information or inaccurate information that may be put out by your opponents.” He takes a moment to reflect. “But I’m glad I did it. Getting to meet the people of Texas really encourages you at the end, because it’s mostly good folks and you feel really honored that you get the opportunity to represent them.” AND NOW FOR SOMETHING COMPLETELY DIFFERENT ...

IN ADDITION TO ALL THE DRILLING, THERE ARE NOW APPROVED PLANS FOR BUILDING TWO NEW REFINERIES, THREE NEW LNG EXPORT FACILITIES AND A WIDE ARRAY OF NEW PIPELINE CAPACITY IN THE COMING MONTHS, ALL OF WHICH THE RAILROAD COMMISSION MUST MONITOR, INSPECT AND REGULATE

Few readers will know that, before he was an investment advisor, and long before he decided to get into politics, Wayne Christian was the lead singer of a very successful gospel band. He always had a talent for music and a desire to perform. In fact, it was at a summer music camp in Waxahachie that he met his future wife, Lisa Ruth Lemoine. “Lisa and I met when she was a piano player for a small rural church in East Texas. I had a love of gospel music, and we both went to an event at Waxahachie called the StampsBlackwood music school. It was a two-week school, and it’s where I met Lisa. Even though she lived 25 miles from me growing up, I’d never met her. Sure was glad to meet her there, and long story short we’ve been together for 40 years now. We have three beautiful daughters, three beautiful grandkids and two good sons-inlaw right now. So, I’m a blessed man.” That love of gospel music and his participation in the Stamps-Blackwood school led in short order to Christian joining his father and two cousins to form a gospel band, which they named, appropriately enough, The Singing Christians. “At that school, we met The Stamps Quartet and the Blackwood Brothers, who were some of the greats in the business back in the ’70s. I took training with them, and also got to meet a lot of young people from all over the state and JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

PHOTOS COURTESY OF WAYNE CHRISTIAN

“IN THE LEGISLATIVE DISTRICT WHERE I’D BEEN FOR THE PR MINE WAS ABOUT 180 MILES TALL. MOSTLY ALONG TOLEDO SO, WHILE THAT WAS A LOT OF TRAVEL, IT STILL WA 28

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

REVIOUS 14 YEARS, YOU HAVE A LIMITED GEOGRAPHIC AREA. O BEND RIGHT ALONG THE BORDER OF THE STATE OF TEXAS. AS NOTHING COMPARED TO THE STATEWIDE RACE.” JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

FEW READERS WILL KNOW THAT, BEFORE HE WAS AN INVESTMENT ADVISOR, AND LONG BEFORE HE DECIDED TO GET INTO POLITICS, WAYNE CHRISTIAN WAS THE LEAD SINGER OF A VERY SUCCESSFUL GOSPEL BAND the nation who were there. It was a national school for people all over the nation. We eventually got together a group of guys who had all the talent. “My job was pretty much to be the business, promotion and marketing guy, since I had my marketing degree from SFA. So basically, my job was to sell the whole idea, and I became quite enchanted and interested in that. We were very successful for a group of guys from a little place in nowhere USA. We played Disney World several times, the World Fair up in Canada, some great experiences. Then we did the National American College Show Buyers Convention up in Chicago, Illinois, one year. After that, we were then contracted by a group out of Dallas called Bill Fegan Attractions. They did all the community

concert series all across the United States. “That was exciting, because we were able to do recording sessions at that time with literally the greatest musicians in Nashville. We’d have Loretta Lynn go in the session before us, the Gatlin Brothers be the session after us. These names might not be familiar to you, but we got to work with great studio musicians like Sonny Garrish on the steel guitar, Charlie McCoy on the harmonica, Johnny Gimble on the fiddle. “It was just the greats of the industry, and they could make anybody sound good. They just literally could. To this day, when I listen to records, because I’ve been in the business, I’m not listening as much to the singer as I am to the accompaniment that’s filling in and making that singer sound as good as they sing. There

are a lot of good singers, but there are some folks who can’t sing all that well, but they’ve got some great stories that they tell through songs and some tremendous musicians that make them sound good.” After a few years, The Singing Christians band name was changed to the Mercy River Boys. Under this name, the band continued to experience success, at one point being nominated for a Grammy Award. “We were The Singing Christians as a family group when it started, but at some point, it was suggested by the record company that we might change our name because it sounded a little bit too Southern ‘gospel-ly’ for marketing purposes. So, they said we should find another name. Larry Gatlin had written a song called ‘Mercy River,’ and being the good Texas boy that

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SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

he is, he let us use the song and we ended up taking that name. I remember when we first did it was during a time when I didn’t want us to have a contemporary name. So, I said, ‘Well, that sounds a little bit contemporary,’ and thinking of The Oak Ridge Boys, I said, ‘Let’s add the word “boys” to it.’ So, we made it ‘Mercy River Boys’ to keep it kind of country sounding. “But we had a blast, and it’s still my love. It’s still my hobby; it’s something I enjoy doing on the side. My best time of the week more than anything there is, is to sit back and listen to the Grand Ole Opry on Friday nights and Saturday nights.” It’s easy to see why. SOME REFLECTIONS ON THE NATURE OF AND SACRIFICES INVOLVED IN PUBLIC SERVICE Whether it be in the Legislature, executive branch agencies or statewide-elective level, all those who serve in state government in Texas make sacrifices and trade-offs. The hours can be long, budgets are always tight, and the pay is at best non-competitive with the private sector and at worst virtually nonexistent. On top of all of that, elected officials in particular find themselves subjected to an almost unending stream of criticism regardless of the actions they take, with only sporadic interruptions of thanks and even more rarely praise. We asked Commissioner Christian to reflect on his two decades of public service in Austin and any advice he might have for others: “Well, first, that’s where you have to give the credit to my wife. Lisa has been a tremendous mother to my children and covered for a dad that many times wasn’t there. “And this is where I wish people would stop and thank their elected officials, their public officials, especially in the Texas Legislature where the pay is $600 a month. I can remember very clearly during

my time in the Legislature, sitting there late one night during a debate on some issue that Lord only knows what it was about, and getting a call from Liza. I guess it must have been about 10 o’clock at night, and she said, ‘Daddy, I hit my first home run tonight,’ in a T-ball game. And I remember feeling what a jerk of a father I was that night. I can remember that to this day how that just pained me to miss something that important. “So, I think people need to maybe stop and reflect: You get mad at your elected officials a lot of times, but I always tell people that there are jerks in the Legislature and there are good guys and gals in the Legislature. Just like there’s jerks in the church house. There’s jerks in my family, and I may be one of them according to a lot of my relatives. But most of all, the folks in public service are dedicated folks that try to do their best and have a reason for being there. After 14 years in the Legislature, I really have a respect and appreciation for all of that. And I’m just very thankful for them and to our employees here at the Railroad Commission, for their dedication to doing what’s best for Texas.” That’s good advice for everyone.

About the author: David Blackmon is Associate Editor for Oil and Gas for SHALE Magazine. He previously spent 37 years in the oil and natural gas industry in a variety of roles, the last 22 years engaged in public policy issues at the state and national levels. Contact David Blackmon at david.blackmon@shalemag.com.

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JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

INDUSTRY

SOUTH TEXAS ENERGY & ECONOMIC ROUNDTABLE CALL FOR ENTRIES FOR THE 2017 EAGLE FORD EXCELLENCE AWARDS Special to SHALE

he South Texas Energy & Economic Roundtable (STEER), serving the Eagle Ford Shale region in South Texas, is opening its call for nominations for the fifth annual Eagle Ford Excellence Awards. The awards are focused on honoring members of the oil and gas community for diligent efforts to preserve the environment, ensure safety in and around the Eagle Ford Shale region and give back to the community in which they live in and serve. Led by President and CEO, Omar Garcia, STEER works to ensure the development of the Eagle Ford’s energy resources is accomplished in a manner that is mutually beneficial to the industry and communities throughout South Texas. The Eagle Ford Excellence Awards recognize companies and organizations that are acting with consideration to the values that STEER sees as essential for continued advancements that benefit the greater South Texas community. “As we enter the fifth year of the Eagle Ford Excellence Awards, I can’t help but reflect on the changes we have seen in the oil and gas industry during that time. We began shale exploration in the Eagle Ford with unprecedented activity and survived [a] drop [in] rig count and reduction in workforce,” says Garcia. “Throughout the changes we have seen over the last few years,

the one thing that has remained constant is the commitment of the oil and gas industry to the communities of South Texas. Safety, community investment and protecting the environment have always been, and will continue to be, something STEER considers a top priority. STEER is honored to provide the forum to recognize those who share our values.” Eagle Ford Excellence Award categories include: ● Environmental Stewardship: To be considered for an award in this category, entrants must demonstrate elements of innovation in reducing environmental impact through implementation of practices or use of technology benefiting the environment. ● Safety Performance: To win an award in this category, applicants must have developed specific initiatives or products that have reduced the risk to workers and members of the local community. These initiatives should be evident in the company’s culture and safety record. ● Community and Social Investment: To receive an award in this category, the entrant must show true commitment to the community. The applicant should have provided a benefit to deserving individuals or groups, positively impacted the company

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

or organization’s reputation in the communities in which it works, or provided a measurable and positive impact on its surrounding community. ● STEER Impact Award: This category is intended for nonprofit organizations and educational facilities working with the oil and gas industry in the Eagle Ford Shale. For consideration in this category, organizations must demonstrate excellence in education, economic development, workforce development/training, safety performance, community relations or environmental stewardship. Third-party judges will examine the entries to determine the winner for each category. Entries that best demonstrate commitment to the protection of the environment, community involvement and safety — issues that the oil and gas industry considers to be a top priority — will receive recognition from STEER for their efforts. STEER will accept both applications and third-party nominations for the Eagle Ford Excellence Awards. To apply for an award or submit a nomination for other companies, contractors or organizations working in the Eagle Ford Shale area should visit steer.com and complete the necessary forms. STEER will contact nominated entities to complete the application process.

Award entries and nominations must be submitted before the deadline of Friday, Oct. 6 at 5 p.m. CST. Full details on the categories and additional information, including entry forms, can be found at steer.com. Winners will be honored at an event in San Antonio on Tuesday, Dec. 5. 2016 Eagle Ford Excellence Award Winners • Environmental Stewardship For companies or organizations with less than 250 employees: Alphabet Energy For companies or organizations with more than 250 employees: Aggreko • Safety Performance For companies or organizations with less than 250 employees: Predator Pressure Control For companies or organizations with more than 250 employees: Sun Coast Resources • Community and Social Investment For companies or organizations with less than 250 employees: Port of Corpus Christi For companies or organizations with more than 250 employees: Cheniere Energy • STEER Impact Award Falls City Education Foundation Houston Advanced Research Center (HARC)

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

INDUSTRY

The BLM Methane Rule Was Flawed From the Start

n mid-June, the Trump administration moved closer toward rescinding methane rules imposed during the Obama administration that, on paper, would limit the amount of methane released into the atmosphere from oil and gas operations. Also in mid-June, the Environmental Protection Agency (EPA) proposed a two-year ban on the requirement that energy-producing companies monitor methane leaks from their facilities. Meanwhile, the U.S.

Department of the Interior (DOI) announced an indefinite postponement of a separate regulation aimed at forcing those same companies to reduce the amount of methane released into the atmosphere. According to DOI officials, the Obama-era methane rules have imposed “a significant regulatory burden that encumbers American energy production, economic growth and job creation.” And Kathleen Sgamma, president of the Western Energy Alliance, a trade association representing more than 300 companies, said in a statement, “Both rules vastly exceeded federal authority.” Sgamma rightly asserted that the White House is now “correcting that overreach from the prior administration, thereby saving jobs and supporting American energy independence.” But how did we get here in the first place? And why?

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In the final months of the Obama administration, the DOI’s Bureau of Land Management (BLM) issued the Methane and Waste Prevention Rule. Finalized on Nov. 18, 2016, it was the BLM’s final rule on methane waste related to oil and gas production on federal lands. And I have since held that the rule is — and I’m sure Sgamma and others within the alliance would agree — a redundant and unnecessary measure that represents some of the worst tendencies of the previous administration on domestic energy production as it punishes the very industry responsible for substantial reductions in American greenhouse gas emissions. The broader implications of the BLM methane rule are even more troubling as debate over repealing the rule (like what we recently witnessed in Congress) has demonstrated that any sound political discourse on climate change policy is still being shaped by the same misguided responses proposed by many elected leaders in recent decades. Our nation needs and deserves informed leadership on these issues that are critically important to our energy, environmental and national security. The Mineral Leasing Act (MLA) provides the BLM the authority to “use all reasonable precautions to prevent waste of oil or gas developed in the land.” This law, however, does not allow the BLM to regulate air quality and require emissions controls, which is the responsibility of the EPA and the states under the Clean Air Act. The methane rule is an air-quality regulation that is beyond both the jurisdiction and the technical expertise of the BLM. In fact, the EPA recently issued a final rule clarifying its “air permitting rules as they apply to the oil and natural gas industry.” These policies, known as the Oil and Gas New Source Performance Standards for New, Reconstructed, and Modified Sources Rule (NSPS Rule/Methane NSPS/Oil and Gas Rule/0000a), are intended to “curb emissions of methane and volatile organic compounds from additional new, modified and reconstructed sources in the oil and gas industry.” Along with the EPA, states have the authority to regulate emissions;

ZULKIFFLE MOHD KASSIM/BIGSTOCK.COM

By: Tom Mullikin

and a number of states have developed programs that are suited to their unique needs. Major energy-producing states like Colorado, North Dakota, New Mexico, Texas, Pennsylvania, Utah and Wyoming have emissions programs that have been created with stakeholder input and local regulatory expertise. Rather than promoting responsible development of American energy resources, the duplicative BLM methane rule will obstruct the all-of-the-above energy development approach championed by the agency. The prevention of the production of low-carbon natural gas resources should be troubling to those who have celebrated recent reductions in American carbon

According to DOI officials, the Obama-era methane rules have imposed “a significant regulatory burden that encumbers American energy production, economic growth and job creation.”

emissions. Expanded production and use of natural gas (particularly for energy generation) in the U.S. has reduced American greenhouse gas emissions to levels not seen since the early 1990s, while still promoting economic growth and prosperity. Moreover, expanded electrical power generation from natural gas has allowed for the growth of intermittent renewable energy sources such as wind and solar. The BLM methane rule and other similar

punitive measures on American energy producers drives economic activity out of the U.S. and into other countries that have minimal environmental protections in place (for greenhouse gases and other pollutants such as particulate matter). The Senate had an opportunity to repeal the BLM methane rule in May by way of a Congressional Review Act resolution that the House had approved in February. But the Senate vote fell two shy of the number needed to advance debate on the measure. Though the Senate was not successful in its effort to do away with this policy, the BLM can still move to withdraw the rule through the normal agency rule-making process. We also have the shale energy boom of the last decade, which has forever altered the global energy landscape. Incredible technological advances in the energy industry have unlocked oil and gas resources across the country, and have, in turn, according to the London Financial Times,“transformed the outlook for U.S. energy security, created hundreds of thousands of high-paying jobs and rattled the leaders of rival oil-producing countries from Riyadh [Saudi Arabia] to Caracas [Venezuela].” The natural gas boom and other advances have caused American emissions to be flat in recent years. Therefore, the U.S. is responsible for only 12.9 percent of the anthropogenic contribution to global greenhouse gas emissions each year. Of this total, only approximately 2.7 percent may be attributed to methane emissions from oil and gas production. Since roughly one-third of American oil and gas production occurs on federal lands, the amount of methane targeted by the BLM rule amounts to a mere 0.9 percent of total U.S. annual greenhouse gas emissions. American policymakers should celebrate these reductions and seek policies that engage energy producers to reduce methane leakage and flaring in order to promote the continued growth in production of low-carbon natural gas resources. Unfortunately, the BLM methane rule takes the opposite approach. The rule adds costs to energy producers (particularly smaller companies) with minimal benefit to the climate or environment. Fortunately, at least for the time being, we are seeing aggressive steps to halt the misguided overreach of the previous administration.

About the author: Tom Mullikin is an energy and environmental expert who has represented major energy producers, manufacturers and the United Nations in complex matters across the U.S. and the globe. He also serves as Research Professor in the Coastal and Marine Systems Science doctoral program at Coastal Carolina University where he teaches environmental law.

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JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

INDUSTRY

Regulatory Reform Needed After U.S. Senate Fails to Overturn BLM Methane Rule

ne of the oil and natural gas industry’s near-term priorities was passage of a U.S. Congressional Review Act (CRA) resolution overturning the Bureau of Land Management’s (BLM) methane venting and flaring rule. The CRA provides a streamlined process for Congress to disapprove of a federal rule adopted in the final days of the previous presidential administration. While the CRA was enacted more than 20 years ago, it has rarely been used. In regard to BLM’s methane rule, the CRA passed the U.S. House of Representatives in February, but the U.S. Senate voted 51 to 49 to block the CRA passage. As a result, the oil and natural gas industry now looks to work with the Department of the Interior (DOI) in addressing its concerns with the rule. Per a March 28 executive order on promoting energy independence and economic growth, President Donald Trump requested that the DOI review the subject rule for consistency with current policy. If the Secretary of the Interior finds the rule is not aligned with current policy,

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

the DOI is to suspend, revise or rescind the rule. The BLM finalized the rule in December 2016 requiring oil and gas producers on public and tribal land to cut well flaring in half and to limit storage tank venting. The industry’s fundamental position has been that the BLM methane rule is unnecessary since there has been a significant reduction in methane emissions during the past decade despite increased natural gas production. Data from the Environmental Protection Agency’s (EPA) Inventory of U.S. Greenhouse Gas Emissions and Sinks (1990–2015) shows methane emissions from the natural gas industry declined 16 percent during the report period while natural gas production increased 55 percent. Industry-wide successes in reducing emissions as oil and natural gas production has increased dramatically must be recognized. Technologies and innovations by the Petroleum Equipment & Services Association’s (PESA) member companies have been instrumental in providing safer, more efficient and less costly methods of production. Additionally, the industry has argued that the EPA and the states have the authority to regulate air quality, not the BLM. Under the Mineral Leasing Act, the BLM has the responsibility to manage oil and gas development on public lands and to prevent undue waste, but not to regulate air quality and emission controls. The industry has expressed concern that the added cost of compliance could lead to the shutting in of a significant number of wells on federal lands, reducing domestic energy production and decreasing revenues to the U.S. Treasury. The Congressional Research Service reports U.S. federal onshore natural gas production

was down 18 percent from 2010 to 2015 compared to an increase of 55 percent on state and private land. The decrease in production resulted in federal revenue declining from $2.8 billion in 2010 to $2.4 billion in 2015. BLM’s methane venting and flaring rule will only further deter investment and production on federal lands. The effective date for the subject rule was January 17. The BLM rule prohibits operators from venting natural gas except in limited circumstances such as during emergencies or when flaring is technically not feasible. One year from the effective date, the rule requires operators to capture 85 percent of their total gas production each month after accounting for specified volumes of allowed flaring. The percentage increases to 98 percent by 2026. The industry is expected to seek a delay in the compliance date of the rule. Assuming the extension is granted, the industry will work with the DOI to adopt a new rule that is grounded in evidence-based science, adequately considers costs and benefits, and is the product of a transparent and robust rule-making process. As the national trade association for the oilfield service, supply and manufacturing sector, PESA works in partnership with other trade associations to educate policymakers and advance a smart, practical approach to the venting and flaring rule. PESA member companies continue to produce technologies and innovations to help harness our energy resources, while reducing emissions and protecting the environment.

For more information about PESA, visit pesa.org.

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By: Jean Gould, Senior Director of Public Policy, PESA

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POLICY

Balance and Diffusion of Power By: David Porter

ack when U.S. history and civics were taught in schools, citizens learned that an important part of preserving freedom in America is the balance and diffusion of power between the three branches of the federal government — the executive, legislative and judicial. Even less understood in our system is the fact that both state and federal governments have their own spheres of sovereignty. This diffusion of sovereignty between the state and federal government plays a very important role in preserving individual freedom in this country. In 2011, after I was elected a Texas Railroad Commissioner, one of the first large foreign delegations I met with was one from Japan. They had come to the U.S. to research what effect hydraulic fracturing would have on world oil markets and, ultimately, their country. They asked many questions about the Obama administration’s opposition to hydraulic fracturing and if it would ultimately be shut down in Texas. I said no — Texas (the states) in our system had the right to regulate the oil industry. If the federal government tried to substantially reduce or regulate hydraulic fracturing, Texas would sue them. The reaction from the Japanese delegation was very instructive. They were flabbergasted and didn’t comprehend that a state could challenge an edict from the national government. In many countries, only the national government has any sovereign powers. An issue that has been widely misunderstood by many people in Texas — the mainstream media has been instrumental in misleading people on this issue — is that local governments, municipalities and counties are not sovereign but are instruments of the states. The Texas Legislature has been accused of hypocrisy in the last few years because of its pushback against federal laws and regulations while invalidating some local ordinances. What their accusers either don’t understand or choose to ignore is that states are not mere instruments of the federal government. They do have some sovereignty — read the 10th amendment. Also, local governments are instruments of state government and have no power other than what has been delegated by the state government. The 10th Amendment to the Constitution, ratified December 15, 1791, reads as follows: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively or to the people.” The original intent of this amendment is to recognize that some but not all sovereignty was delegated to the national government (the United States) and some was also reserved by the people or the various states.

An issue that has been widely misunderstood by many people in Texas — the mainstream media has been instrumental in misleading people on this issue — is that local governments, municipalities and counties are not sovereign but are instruments of the states While I certainly don’t think we need to turn the state Legislature into a super city council, it does need to exercise sound judgment and discretion when it overrides a local ordinance. However, the Legislature has been on track when it passed such bills as SB 4 (on sanctuary cities) this session

and HB 40 (ban on fracing bans) in the 2015 session. Though it may be a topic not many fully understand or are aware of, it is crucial to know the power each state is provided in the Constitution in order to understand the balance of power in the United States.

About the author: David Porter has served as a Railroad Commissioner (2011–17) and Chairman (2015–16), as well as Vice Chairman of the Interstate Oil and Gas Compact Commission (2016). Prior to service on the Commission, Porter spent 30 years in Midland, Texas, as a CPA working with oil and gas producers, service companies and royalty owners. Since leaving the Commission, Porter works as a consultant for oil and gas companies. He also serves as Chairman of the 98th Meridian Foundation, a nonprofit concerned with water, energy and land issues.

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POLICY

A Brief History of the Special Counsel Statute and Its Abuses By: Kelly Warren Moore

n yet another capitulation in a long line of capitulations, a Republican Attorney General has naively recused himself from an inquiry into an investigation of possible administration wrongdoing and enabled the appointment of a special counsel, independent counsel, special prosecutor — all slightly different names and roles, but, in the end, similar names for distinctly controversial positions that are historically rife with overreach and power grabs by well-connected members of the Justice Department alumni. Oh for heaven’s sake, you say, another crazed conspiracy theorist on the loose! Well, that’s precisely what I said when asked to explore the fairly recent history of a few of the more well-known (or, it could be said, notorious) individuals graced with the special privilege and title of “independent” investigator of the executive branch. That is, until I came across this prophetic bit of wisdom written by the dear departed Supreme Court Justice Antonin Scalia — written all the way back in 1988 as the lone dissenter in a 7–1 ruling that upheld the constitutionality of the Ethics in Government Act: “Nothing is so politically effective as the ability to charge that one’s opponent and his associates are not merely wrong-headed, naive, ineffective, but, in all probability, ‘crooks.’” Scalia went on to posit that the majority’s decision would weaken the presidency and expose the head of the executive branch to “debilitating, constant criminal investigations,” worrying that an independent counsel who was unaccountable (i.e., unable to be removed) could, if so inclined, decide who “deserved”

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

investigation and could then prosecute them for something, anything, in an attempt to prove a political point. Let’s take a look at a few recent “independent” investigators to see if we can predict how this particular story of Robert Mueller, James Comey, Jeff Sessions and Donald Trump might end. Lawrence Walsh was appointed independent counsel in charge of the Iran-

appeal or, in Weinberger’s case, pardoned by President George H.W. Bush in December 1992. Ironically, reminiscent of today’s current events, Walsh came under fire for potentially throwing the 1992 election to Bill Clinton when, on the eve of the election as Bush was widely believed to have been closing the gap with Clinton, Walsh announced that despite having been largely exonerated in multiple previous lines of questioning, he had cause

Let’s take a look at a few recent “independent” investigators to see if we can predict how this particular story of Robert Mueller, James Comey, Jeff Sessions and Donald Trump might end

Contra affair in December 1986. Walsh eventually — to the tune of six years and millions of dollars of taxpayer money spent — was able to indict former National Security Council staffer Oliver North and Vice Admiral John Poindexter, as well as former Secretary of State Caspar Weinberger. All of these indictments were eventually reversed on

to “re-indict” close Bush ally Weinberger in association with his investigation. The indictment was subsequently dismissed in the courts and Bush pardoned Weinberger to ensure no further prosecutorial nonsense against him could be perpetuated. Ironically, after a Supreme Court ruling in 1988 that reaffirmed the constitutionality of

the independent counsel role, Bill Clinton became the first sitting president to endorse his support of it. Clinton and members of his administration then promptly became the targets of no fewer than seven independent counsel investigations. Most renowned of all, Ken Starr was appointed by a three-judge panel to the role of independent counsel to investigate the suicide death of Deputy White House Counsel Vince Foster, and his connection with and knowledge of the Whitewater real estate investments of Bill and Hillary Clinton. Later, the scope of this inquiry expanded to various areas, most well-known, of course, was the affair that Bill Clinton had and was not forthcoming about in sworn testimony with Monica Lewinsky. Because Clinton had not been honest about the affair in a deposition, he was eventually impeached and his law license was suspended for five years. But what of the Whitewater misdeeds, or the death of the White House associate with arguably the most knowledge and closest understanding of those misdeeds, Vince Foster — the original purpose for the multiyear, multimillion-dollar boondoggle of an investigation? Neither Bill nor Hillary Clinton was ever prosecuted because there was never “sufficient evidence” found necessary to do so, despite multiple close connections who were charged with criminal conduct. Susan McDougal, who was held in contempt of court for refusing to answer questions about her former business partners and friends, the Clintons, and sentenced to years in prison, was pardoned by President Clinton shortly before he left office. What of Vince Foster? His death was never actually officially investigated by the independent counsel. The only question was whether the Clinton administration, which had removed documents from Foster’s office and turned them over to their own personal attorneys despite Foster’s death being investigated by the National Park Service (that bastion of tough prosecutorial justice), acted improperly. Again, no charges were filed regarding the actual query that started the investigation. Finally, the appointment of Patrick

Fitzgerald as special counsel in December 2003 to investigate the illegal unmasking of CIA operative Valerie Plame seems to be eerily precedential to today’s current controversy surrounding the special counsel role. Attorney General John Ashcroft had recused himself from the investigation. The Deputy Attorney General at the time, one James Comey, as a matter of fact, appointed his dear friend, Patrick Fitzgerald — U.S. Attorney for the Northern District of Illinois at the time — to investigate anywhere and everywhere in order to bring any wrongdoers to justice. Oh, by the way, Fitzgerald is also the godfather to one of Comey’s children. After nearly two years of investigations which seemed to render nothing at every turn except cries of “where there’s smoke, there’s fire,” Fitzgerald brought an indictment against Scooter Libby for five counts of false statements, perjury and the ever-popular “obstruction of justice.” It had long been rumored that bigger “skins,” high-ranking, close associates of George W. Bush like Karl Rove, were about to be nailed to the wall. Nothing ever happened to that effect, and eventually Bush commuted Libby’s prison sentence. The damage to Plame’s career and personal safety as a result of illegal unmasking was never really mitigated. But, the special counsel, after years and years of investigation and millions of dollars of taxpayer funds lost, had secured an indictment, any indictment at all. Investor’s Business Daily ran an editorial at the time stating that the abuse and prosecutorial overreach demonstrated by Fitzgerald proved that anyone in this role could bend the truth with the best of seasoned politicians. Robert Mueller has a long and distinguished résumé in his field. And he’s also one of Comey’s closest confidants, a mentor and a former boss as well as an employee. We shouldn’t be surprised if Mueller gets a skin, any skin, on the wall at all, regardless of its relevance to Russian interference or collusion with the Trump administration in the 2016 election. It’s what this role is expected to do. Get something. Someone. Anything.

About the author: Kelly Warren Moore has sold clinical research and development software solutions to the pharmaceutical and biotech industry for the past several years. She previously spent 20 years in business development for the pharmaceutical research and development field, focusing on multi-study, global clinical programs. She has a bachelor of arts degree in economics from The University of Texas at Austin. Any opinions expressed in this article are strictly her own and are not meant to represent those of any employer, client or organization with whom she is affiliated.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

POLICY

Colorado’s Attorney General and State Regulators Stand Firm Against Anti-drilling Activists By: Simon Lomax

olorado’s oil and natural gas regulations have been under assault for years by national environmental activist groups. It started with local oil and gas bans, followed by statewide ballot initiatives, and then anti-industry bills in the state Legislature. The activists have also used litigation to support their campaign, and in March, the Colorado Court of Appeals handed them a partial win. In a 2–1 decision, the court ordered regulators to reconsider an activist proposal to indefinitely ban drilling statewide. The ruling generated significant headlines, mostly because the activists used a group of children to serve as the public face of the lawsuit. In May, Colorado Attorney General Cynthia Coffman (R) filed an appeal, and it was the right call. Her action was unanimously supported by the Colorado Oil and Gas Conservation Commission (COGCC), a bipartisan panel that includes senior energy and public health regulators from the Hickenlooper administration. Even Boulder’s Democratic District Attorney, Stan Garnett, called for the case — Martinez v. COGCC — to be appealed to the Colorado Supreme Court. In her appeal, Coffman said the Martinez decision — if left unchallenged — could lead to “rules that would entirely prohibit oil and gas-related activity.” Moreover, the ruling could overturn “comprehensive rules that make Colorado a nationwide leader in oil and gas regulation,” Coffman said. State business leaders supported Coffman’s move, because the appeals court ruling would set a “perilous precedent” for regulation across all industries, not just oil and gas, said Mike Kopp, President and CEO of Colorado Concern, in an article for Western Wire. “[E]very industry in Colorado should now be concerned that economic and property rights considerations have been dangerously superseded. This is a grave threat to Colorado’s economy, the rights of property owners, critically important state revenue and the

future of the nation’s energy renaissance,” Kopp added. Time will tell what the state’s highest court decides. But in the meantime, let’s drop the pretense that a group of children brought this case. Because the children — as sympathetic as they may be — aren’t calling the shots. If you want to know who’s really in charge, check out the lawyers, who have a long history of working with fringe out-of-state activist groups. One of those lawyers is Dan Leftwich. His law firm, MindDrive Legal Services, has spent years working with national “keep-it-in-theground” groups like 350.org, Greenpeace and Food & Water Watch in the campaign for a statewide oil and gas development ban in Colorado. According to the Boulder Daily Camera, Leftwich has also worked as an advisor to the Sierra Club, another member of the keep-it-in-the-ground coalition, which opposes all oil and gas production, no matter how it’s regulated. Then there’s Attorney Julia Olson, based in Eugene, Oregon. According to E&E News, Olson partnered with the Sierra Club and Greenpeace to use children as a front for litigation against the energy sector. The group they created, Our Children’s Trust, has also enlisted children for litigation against the U.S. government and has lawsuits underway or planned against a dozen other countries, including Norway, France and India. Using children in this manner isn’t new for keep-it-in-the-ground groups, however. It’s standard procedure. The Sierra Club, for example, has a tip sheet for activists calling babies “visual aids.” Food & Water Watch has even coached children on lobbying and sent them to the Colorado Legislature to demand a statewide oil and gas development ban, according to Energy in Depth. Those children were being used then, and they’re being used now in the lawsuit to shut down oil and gas drilling across Colorado. It’s a dishonest gimmick to win media attention and public sympathy for activist groups that have been discredited over and over again.

Clearly, this lawsuit is just another attempt to ban oil and gas development, an industry that supports the livelihoods of more than 100,000 Colorado families and generates more than $31 billion in economic activity for the state

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

Anti-drilling activists have even seized on a tragic house explosion in Firestone, Colorado, as a way to promote their lawsuit. Don’t forget: Sierra Club, Food & Water Watch, 350. org and Greenpeace led the campaign that submitted half-empty boxes of petitions to the Colorado Secretary of State’s office last year. It was a show for the cameras, so they could falsely claim to have gathered enough signatures to put two anti-oil and gas measures on the statewide ballot. In reality, they didn’t come close. The debacle even triggered a forgery investigation. Given their track record, the activists need some new faces in Colorado. But using children as a front for a lawsuit — and the anti-drilling agenda in general — shouldn’t fool anyone. In fact, the lead plaintiff in the case accidentally gave the game away in a 2013 television interview when the case was first filed. “I think our chances are really good of getting a statewide moratorium — I mean a statewide ban,” he told Denver CBS4. Clearly, this lawsuit is just another attempt to ban oil and gas development, an industry that supports the livelihoods of more than 100,000 Colorado families and generates more than $31 billion in economic activity for the state. It’s more of the same from national interest groups who have spent years playing political games with the Colorado economy, rebranding themselves each time their agenda is rejected. As the editorial board of the The Denver Post notes, the activists behind the lawsuit are trying to force state regulators “to focus on environmental protections to the exclusion of all else.” They would also subject the decisions of the COGCC to a “third-party organization ... despite the fact [that] the commission is set up to have a diverse board that includes environmental and public health officials.” “If this ruling were allowed to stand, its overly zealous protections could bedevil any number of industries, such as construction and agriculture,” The Denver Post editorial board observes. “We share the fear of many business advocates that, should the appellate rule stand, activists would have a powerful new tool to wield in future legal battles.” Thankfully, Coffman and the COGCC have seen through this latest deception and will take this case to the state’s highest court. They are standing firm against activists who have no interest in oil and gas regulations, just oil and gas bans.

The activists have used litigation to support their campaign, and in March, the Colorado Court of Appeals handed them a partial win

About the author: Simon Lomax is a research fellow with Vital for Colorado, a coalition of state business leaders focused on energy policy. Before going into advocacy, he was a reporter for 15 years and covered energy policy for Bloomberg News and Argus Media. The views expressed are his own. Find him on Twitter at @simonrlomax.

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POLICY

The Fight for Fair Federal Regulatory Energy Delegation By: John Tintera, Executive Vice President of the Texas Alliance of Energy Producers

here is a time for planning and a time for action. As the 85th Texas Legislative Session wound down this past month, it took action and passed Senate Concurrent Resolution (SCR) 26 out of both the House and the Senate in a bipartisan effort to highlight Texans’ concerns about federal regulatory overreach in the energy arena. It now heads to Gov. Greg Abbott’s desk to become law, and a symbol of hope to a beleaguered oil and gas industry that has been frustrated, if not angered, by the manipulative regulatory oversight of the previous federal administration’s energy posture. Texans are proud Americans, and we should also be proud of the sponsors of SCR 26, Sen. Craig Estes, Chairman of the Senate Natural Resources & Economic Development Committee, and Rep. Drew Darby, Chairman of the Energy Resources Committee. Their hard work led to the successful passage of SCR 26, as well as its content. The resolution states that “the executive branch and the Congress of the United States [should] work in conjunction with the State of Texas to identify federal regulations promulgated during the last eight years ... and determine whether they should be revised, delegated to state agencies,

or eliminated in order to ease the overly burdensome regulatory patchwork on the oil and gas industry in Texas ...” Federal agency overreach in our Texas oil fields began in 2010 with the notorious EPA investigation into hydraulic fracturing and the allegation that the practice had contaminated groundwater in Parker County, Texas. This allegation was disproved in a formal hearing at the Railroad Commission of Texas, but that did not stop the EPA from continuing a nationwide hydraulic fracturing study that many in the industry felt was, at best, misguided if not designed to hamstring the industry. National overreach continued on many other regulatory fronts. Federal acronyms abounded, such as ESA, Quad O, GHG, WOTUS, and other federal regulations that were crafted by federal bureaucrats and used to usurp the role of state regulators as federal agencies forced a one-size-fits-all framework onto our Texas oil fields. This culminated with the infamous “midnight regulations” as the outgoing administration threw everything but the kitchen sink at the domestic oil and gas industry. Perhaps the most egregious example of the late regulatory efforts was the methane Information Collection Request (ICR), requiring a vast data

dump by virtually every U.S. oil and gas producer into the coffers of the EPA for a poorly defined purpose. But now, in a carpe diem moment, our state Legislature has seized the opportunity to pass SCR 26. They affirmed that now is the time to set aside partisan political regulatory practices and put Texas first. Sen. Estes stated, “I was proud to sponsor SCR 26, which calls on Congress to bulldoze the thicket of federal regulations that is holding back our nation’s oil and gas industry. We have a historic opportunity for real regulatory reforms right now because we have a pro-energy Congress, a pro-energy President, and a Supreme Court that is wary of regulatory overreach. It is my sincere hope that Congress acts quickly, before the political winds shift and meaningful reform becomes impossible.” Rep. Darby declared, “Despite the onslaught of incoming federal regulations, the Texas oil and gas industry is the world leader in responsible production of our natural resources. I applaud this effort to remain the best by reining in federal overreach and improving regulations for a better value to Texas taxpayers.” This legislative effort parallels an industry initiative, the Federal Regulatory Energy Delegation (FRED) Committee, which is an informal committee consisting of knowledgeable industry regulatory experts who seek to identify and recommend opportunities to review, revise, delegate or remove unnecessary, unfounded and overreaching federal regulations. The FRED Committee, led by the Texas Alliance of Energy Producers, has received the support of other oil and gas associations and has met with all statewide elected officials and key legislative members. FRED was instrumental in highlighting the methane ICR to Texas Attorney General Ken Paxton, and his efforts with the Republican Attorneys General Association to address federal overreach is to be lauded. FRED has also corresponded with EPA Administrator Scott Pruitt to provide him with a list of regulatory concerns. The FRED committee will continue its work during the legislative interim. This is how it is supposed to work, Washington, D.C. Heads up. SCR 26 has arrived.

About the author: John Tintera, Executive Vice President of the Texas Alliance of Energy Producers, is a regulatory expert and licensed geologist (Texas No. 325) with a thorough knowledge of virtually all facets of upstream oil and gas exploration, production and transportation, including conventional and unconventional reservoirs. As a former Executive Director and 22-year veteran of the Railroad Commission of Texas, considered the premier oilfield regulator in the nation, Tintera oversaw the entire regulatory process, from drilling permits to compliance inspections, oil spill response, pollution remediation and pipeline transportation.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

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JULY/AUGUST 2017 ď &#x201C; SHALE OIL & GAS BUSINESS MAGAZINE

POLICY

Scattershooting Some Big Public Policy Issues By: David Blackmon

Texas Railroad Commission Sunset Review and FY 2018–19 Budget If you happen to run into your state Representative or Senator anytime in the near future, take a moment to thank him or her for doing the right thing, at long last, where the Railroad Commission of Texas (RRC) is concerned. This was the third time since 2011 that the Legislature had taken up the subject of whether or not to renew the RRC and its mission for another 12-year term, or to “sunset” it and assign its responsibilities to other government bodies. Where the 2011 and 2013 Legislatures had failed in this task, the 2017 Legislature finally decided to stop playing games with the Commission by leaving it in a state of limbo, and passed a clean reauthorization of the agency through 2029. Silly, illogical issues that sidetracked the Sunset processes in 2011 and 2013 — like changing the Commission’s name, transferring its hearing responsibilities elsewhere or reducing the number of Commissioners from three to

one — were set aside by the bill’s sponsors. The result was passage by overwhelming votes in both chambers of the Legislature and a quick signing into law by Gov. Greg Abbott. Cue the applause now. The RRC also received good news on its requests for a significantly beefed-up budget, one that will make it better able to retain key employees by raising salaries, hire more field inspectors and modernize its aging IT systems. In the end, the Legislature agreed to most of the agency’s requests and authorized a budget for FY 2018–19 that is fully 45 percent higher than the current biennium. This more robust budget — which was strongly supported by the industry itself — will make the Commission better able to carry out its mission and properly police the oil and gas industry. The planned upgrades to its IT systems will also make the data the RRC collects more easily accessible to the public. So again, thank your state Representatives and Senators for doing the right thing where the RRC is concerned. It was long past time, and the actions they took will benefit every Texan.

oil and gas-generated income than Texas and has not had the foresight to create a rainy day fund. Thus, the recent downturn in the industry has created what is becoming an intractable issue in balancing the budget. So, for the second time in the last three years, the Sooner State’s Legislature resorted to raising taxes on the industry. In 2015, the Legislature raised taxes by eliminating and modifying several incentives

Meanwhile, in Oklahoma ... Things are not looking so positive for the industry up in Oklahoma, despite the gigantic contributions taxes and royalties collected from oil and gas development make to the state’s budget. Oklahoma’s state government is far more reliant on

that existed under the state’s gross production tax (GPT), and implementing a two-tiered rate under the GPT. Those incentives had been put in place over the previous decade in efforts to attract capital investment to the state. This year, the Legislature went even further, eliminating the incentives that had remained on the books and raising the GPT rate for a large number of wells. Despite this second large tax increase in just three years, legislative leaders could not commit to industry representatives that they would not be coming back again in 2018 looking for even

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

Oklahoma’s state government is far more reliant on oil and gasgenerated income than Texas and has not had the foresight to create a rainy day fund DOOZYDO/BIGSTOCK.COM

t’s been a very eventful couple of months since our last issue, and much has happened where public policy is concerned related to the oil and gas industry. So rather than pick a single topic for this piece, I’m going to offer some shorter takes on several important issues:

The announcement by President Donald Trump on June 1 that he was pulling the United States out of the Paris Climate Accord came as a surprise to many, but it shouldn’t have

more taxes on the industry, since projections indicate it will face another large deficit when the Legislature convenes again next January. While it is perfectly understandable that tax rates and incentive programs related to any industry are going to change from time to time, this constant monkeying around with the GPT is beginning to reduce companies’ ability to properly plan their drilling programs and other business activities in Oklahoma. For companies who allocate huge drilling budgets between projects in multiple states, predictability is a very important factor. These budgets are allocated mainly based on an anticipated rate of return on capital basis, and a constantly shifting tax burden reduces the willingness of companies to commit the millions of dollars necessary in order to explore for oil and gas. Oklahoma is very fortunate to be the home to the SCOOP and STACK play area, one of the truly world-class oil and gas plays in the United States. It would be a shame if the constantly shifting tax goal posts by the Legislature end up negatively impacting future investments in that resource. Another effort to raise the GPT in 2018 could do just that.

The U.S. Pulls Out of the Paris Climate Accord The announcement by President Donald Trump on June 1 that he was pulling the United States out of the Paris Climate Accord came as a surprise to many, but it shouldn’t have. The commitments made by executive fiat by former President Barack Obama within the Paris Climate Accord stand in direct opposition to the commitments made by Trump during the 2016 campaign, as well as the energy policyrelated actions taken by Trump since assuming office. During his campaign, Trump made his pledge to pull the U.S. out of Paris a centerpiece of his daily stump speech. At

every campaign stop, Trump overtly promised to end U.S. involvement in the agreement, which he regularly referred to as a “terrible deal” made by “stupid” people. Indeed, this was the overarching theme of his entire campaign — that he is a superior negotiator who would be able to negotiate better deals than these for the country. Any expectation that he would now, after being pressured by his European peers, suddenly decide that Paris is a fine “deal” that the U.S. can now live under seems overly optimistic, to say the least. It would be comparable to Sherlock Holmes, after years of demonizing Professor Moriarty as the worst villain on the face of the earth, suddenly deciding he’s a really cool guy with whom he’d love to have a few beers. Then there is the reality that, as President, Trump has already issued a series of executive orders and signed Congressional Review Act resolutions that either reverse outright or order the EPA and Department of the Interior to rescind or rewrite a raft of Obama-era regulations and executive decisions for which the commitments in the Paris Climate Accord serve as the main underpinnings. I detailed those actions for SHALE Magazine readers in the previous issue. Regardless of what one thinks about the wisdom of the commitments Obama unilaterally made on behalf of 330 million Americans related to the Paris Climate Accord, only blind optimism could have led anyone to be surprised by President Trump’s decision. Given his previous promises and actions, it was his only logical move.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

BUSINESS

The Influential Leader: Confident, Competent and Credible By: Danielle Turcola

Sagging Sales A leader’s tardiness of one to four hours causes staff to reschedule appointments or lie repeatedly on their behalf. Customers eventually refuse to take meetings with the sales team if the chronically late principal plans to attend. This leader blames the sales team

every day. Behavior trumps words. There is no greater influence than the example you set for others through your behavior. Influential leaders have the following values and qualities:

rather than their own disregard for one’s time. Their unapologetic, self-important attitude puts stress on the sales team and diminishes its ability to meet forecasts. It’s None of Their Business! The philandering leader forces staff to deceive a spouse while creating a facade of family devotion. Assistants must lie about the leader’s schedule and whereabouts. Employees become resentful of the preferential treatment, trips and bonuses the helpful assistants receive from the leader. Staff is expected to support the leader’s behavior. Why Aren’t They Productive? A condescending business owner has 34 executive assistants in 10 years. He is demeaning and openly uses profanity and a derogatory tone with staff. Narcissistic, he is demanding, impatient and offensive. He built his corporate culture on fear and intimidation. What these leaders fail to understand is that they are compromising their employees’ values

● They have a presence that commands the room before they speak. ● They surround themselves with advisors who have strengths they personally do not possess. ● They are compassionate and generous. ● They elevate corporate culture through their values. ● They make others feel significant by investing time to get to know them. ● They respect, recognize and reward employees who contribute to the success of the organization. ● They give public praise and private admonition. ● They allow subordinates to lead in their respective capacities. ● They are compelling communicators. ● They are open to suggestions for more cost-effective and efficient systems from all employees. ● They mentor and encourage emerging leaders to act like leaders, not followers. ● They welcome innovation and creativity. ● They are trusted and trust others to do the right and honorable thing. ● They have a moral compass and spiritual strength. ● They know their character and integrity influence everyone and everything they do. These qualities are critical for influential leadership. When leaders possess these values, companies flourish because leadership, management and administrative teams create an environment where morale increases and employee productivity and loyalty are paramount.

About the author: Danielle Turcola has been turning leaders and emerging leaders into powerhouses for 28 years. She is president of the consulting firm Professionalism International Inc. as well as founder and CEO of What to Wear to Work Inc. As an expert in executive presence and influence, Turcola is a trusted advisor to corporations, executives and private clients who want to increase their professional influence. Her transformed clients command the room with a presence that is credible, memorable and influential. For global business interactions, she gives executives an immeasurable edge by introducing them to the cultural nuances of their international business partners. For more information on Turcola, call 216-926-3699 or visit askdanielle.com.

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G_PESHKOVA/BIGSTOCK.COM

hen and where does leadership start? It begins in childhood and develops throughout a lifetime. One’s values and belief systems form the behaviors they bring to leadership. Their self-esteem and self-image play a huge role in the confidence they project. Business acumen, critical thinking and experience contribute to their competence. The addition of a credible presence, plus their ability to establish rapport and trust, allows them to influence others. “Influence is either positive or negative — never neutral,” Henrietta Mears once said. Fortunately, I meet and work with great leaders, as well as some who think they are great leaders. The first type of leaders are truly effective and have exemplary personal values and ethics. They respect themselves, their families, their customers and definitely those they lead. The second type believes their personal choices and social misbehavior shouldn’t matter. However, those actions are detrimental and affect employees, reputation and business growth. They often are narcissistic and above reproach. Their decisions and demeanor are self-serving. Their unprofessional behavior has longlasting adverse effects on productivity, sales, morale, business development and retention. They blame their workforce for the decline in business, employee productivity and relationships. They have no credibility, rapport or trust. Here are a few scenarios I’ve come across in my work with less than great leaders:

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

BUSINESS

A Broader Definition of Economic Development By: Thomas Tunstall, Ph.D.

Hypothetical Distribution of Impacts to the Environmental Sink In order to appreciate the path we are currently on, it’s instructive to look back at the broad sweep of history. Significant inventions and mass industrialization in the 20th century set in motion a large number of complicated interactions with the environment that researchers

∞ Time lag: Years between service produced and received

n the field of economic development, the new watchword has become “sustainability” in all of its many manifestations. Even so, most mainstream economists — and their attendant economic models — fail to appreciate the bigger picture of what really makes an economy thrive for the long term. In the quest for a false sense of precision, the models that economists use have become ever more complicated and essentially incomprehensible to most policymakers. Recent work in merging the abstract world of economics and the real world that the rest of us actually live in suggests that the most important environmental concern that countries are likely to face in the future will not be the availability of nonrenewable natural resources (witness the shale revolution) but rather the environmental sink — the ability of the earth to absorb waste and regenerate renewable resources (or ecosystem services). Closely related to this issue is determining what level of ecosystem services can be consumed at or below the regeneration rate of renewable natural capital. Important natural capital and ecosystem services, such as water, continue to be underpriced relative to their long-term value. Part of the challenge from a policy standpoint is a lack of understanding of the full scope of interaction between the economy and the environment. Environmental impacts from industrial activity vary greatly in terms of space and time. Analysis can span several geographical scales: from local to regional to global. By the same token, some environmental impacts can be remediated relatively quickly, while others may require years or decades or even longer for regeneration of ecosystem services. Spatiotemporal scales of this sort are rarely if ever discussed systematically. Yet to simply lump the environment into one big basket is a crude approach that does little to inform practical approaches for policymakers.

1,000

Buried depleted nuclear fuel

Climate change

Gold mining remediation

100

Ocean acidification

1 Watershed

Interwatershed

Global (510 million km2)

Spatial lag: Proximity between producer and consumer of ecosystem services

endeavor to understand. One such area of study involves appreciating the degree to which natural capital and ecosystem services influence not only economic but also social and political activity. The prodigious rise in material prosperity over the 20th century, for example, tends to blind us to the degree to which the environment can still motivate politics and create societal turmoil. A recent example can be seen in the case of Syria. While there is a tendency to associate the civil war in Syria exclusively with the Assad regime and the Arab Spring, the reality is more complicated and tied to the environment more so than generally assumed. Prior to the 2011 uprising in Syria, the Fertile Crescent region experienced the worst drought on record. As a result, farmers and their families were

displaced and forced to move to cities. In essence, what started as an environmental effect — the Syrian drought — soon escalated into civil war, whose proximate causes were a lack of food, loss of livelihood and poor governance. Evidence from investigation into the interaction between economics and the environment suggests that similar issues are likely to spark social upheaval in the future. The linkages between long-term community, economic, social and environmental sustainability require the integration of economic development with ecosystem services. Too often the two still get treated as separate disciplines. Sustainability will be the rallying cry of the 21st century from a public policy framework, and the issue will continue to gain traction in the years ahead.

About the author: Thomas Tunstall, Ph.D., is the senior research director at The University of Texas at San Antonio Institute for Economic Development. He was the principal investigator for numerous economic and community development studies. He has published peer-reviewed articles on shale oil and gas, and has written op-ed articles on the topic for The Wall Street Journal. Dr. Tunstall holds a Ph.D. in political economy and an M.B.A. from The University of Texas at Dallas, as well as a B.B.A. from The University of Texas at Austin.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

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BUSINESS

The Price of Admission: Business Transformation in a Digital World By: Jenny Johnson

ake a seat in a crowded coffee shop and try to find a person who is not digitally connected — easier said than done. Today’s consumer is constantly flooded by streams of information that influence behaviors and provide the ability to instantaneously connect and interact with people, brands and technologies. We are living in a digital world expected to grow 40 percent year over year, with data levels reaching 40 zettabytes by 2020. This equates to nearly 5,200 GB of data for every person on earth. Let’s put that in perspective. Today the average household creates enough data each year to fill 65 (32 GB) iPhones, but by 2020 that number will increase to over 318! This overwhelming access to data is driving a shift in the way brands connect with their customers and is challenging businesses to increase the pace at which they operate. Organizations are making significant investments in technology to support digital transformation, but the changing technology landscape is only one element contributing to the overall value that can be delivered. An organization’s digital business transformation, along with a resulting competitive advantage, hinges on the business evolving in tandem with technology. Striking this balance maximizes profitability, improves overall customer experience and increases speed to market. However, the cultural shift required to enable this balance is extremely difficult to achieve within most organizations. Consider the changing retail landscape. Consumers now have access to products through multiple channels, same-day shipping options and the ability to comparison shop multiple retail outlets within seconds. In response, retailers are challenged with compressing product development cycles and streamlining their supply chains, while continuing to cut costs, optimize inventory and offer an outstanding consumer experience. So how do businesses need to respond?

change course is equally important. Agile development methodologies and fail-fast approaches allow organizations to test an idea, collect feedback and quickly adapt. Reaction time in a digital environment often determines the presence, or lack thereof, of a competitive advantage for a given organization. ● Connect data to desired business outcomes. From interacting with the consumer to forecasting demand and optimizing pricing, data feeds critical decisions across the entire value chain. Maximizing the power of data requires significant business domain expertise, analytic capabilities and clear alignment with strategic goals. By tracking millions of transactions every day and using predictive models, retailers can now anticipate the optimal time to reduce prices, allowing them to increase profits, versus using the

traditional end-of-season markdown approach. Data is powering faster, more intelligent business decisions. Thus, data must be treated as a critical asset of the organization and should be managed with the goal of maximizing the return on this asset. At the core of each of these changes is not just how the technology is evolving, but instead how people are adjusting both their behaviors and views on the operating models within the organization. Leading an organization through a digital transformation requires a coordinated strategy that examines changes to the operating model, structures, processes, people, tools and measurements. Without a holistic approach that examines the end-toend impacts and measures levels of adoption, an organization risks leaving the business and its people behind in its digital journey.

● Speed up decision-making with organizational alignment and feedback loops. Increasing speed to market is critical, but knowing when to

About the author: Jenny Johnson is a Manager with Enaxis Consulting. She has more than nine years of experience in project management, business process optimization, analytics process governance and quantitative analysis. Johnson has Project Management Professional and Prosci certifications.

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SCANRAIL/BIGSTOCK.COM

● Continuously evolve processes to support the digital age. Speed and agility are ingrained in tech start-ups, but many traditional organizations struggle to adapt business processes with the flexibility required to provide real-time feedback. Today’s retail executive must be prepared to approve a virtual product design without seeing or feeling a physical sample. This is an incredible cultural shift, but it’s this kind of innovation that disrupts the market and provides significant lead-time reductions.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

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LIFESTYLE

Morgan’s Wonderland: Where Everyone Can Play By: Bob McCullough Photos by: Robin Jerstad “Like Morgan’s Wonderland, Morgan’s Inspiration Island is not a special-needs park; it’s a park of inclusion,” says Gordon Hartman, founder of The Gordon Hartman Family Foundation.

an Antonio boasts one of the top 25 theme parks in America, according to TripAdvisor respondents. Since it opened in 2010, Morgan’s Wonderland has welcomed more than a million guests from all 50 states and 67 other countries. And it’s the only nonprofit in the TripAdvisor ranking. Morgan’s Wonderland recently added another reason to visit San Antonio — Morgan’s Inspiration Island, the world’s first ultra-accessible splash park where guests of all ages and abilities can cool off and have fun together. “Like Morgan’s Wonderland, Morgan’s Inspiration Island is not a special-needs park; it’s a park of inclusion,” says Gordon Hartman, founder of The Gordon Hartman Family Foundation, which since 2005 has pursued endeavors benefiting the special-needs community. “Both were designed with special-needs individuals in mind and built for everyone’s enjoyment.” Morgan’s Inspiration Island is open daily throughout the summer until mid-August, and then on weekends in August and September. Prospective guests are encouraged to go online in advance at morganswonderland.com to book admissions to the new park. Nonprofit Morgan’s Wonderland admits anyone with special needs free of charge, and the same policy is in effect at Morgan’s Inspiration Island. “Our goal is to provide a great guest experience in an inclusive, safe, comfortable, not overly crowded environment,” Hartman says. “When Morgan’s Wonderland opened in spring 2010, we really didn’t know what to expect, but the park’s popularity has grown tremendously and encouraged us to add Morgan’s Inspiration Island. Now, we have two attractions like none other where everyone — regardless of ability or age — can play.”

Morgan’s Inspiration Island overlooks the theme park’s 8-acre catch-and-release fishing lake. The focal point is a seven-story lighthouse with a rotating beacon on top that can be easily seen from Interstate Highway 35 a half-mile away. Six major elements comprise the $17 million, tropicalthemed island paradise inspired by Hartman and his wife, Maggie’s 23-year-old daughter with special needs, Morgan. “We decided to call it Morgan’s Inspiration Island because Morgan truly has been the catalyst for every project we’ve pursued to help the special-needs community,” Hartman explains. The River Boat Adventure Ride twists and turns for more than five minutes through a jungle setting with bird and animal sounds in the background. Five water play areas — Hang 10 Harbor, Rainbow Reef, Shipwreck Island, Harvey’s Hideaway Bay and Calypso Cove — offer a variety of splashy elements such as rain trees, falls, pools, geysers,

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

jets, water cannons and tipping buckets. Just as is the case with Morgan’s Wonderland, every Morgan’s Inspiration Island element is wheelchair-accessible, and waterproof wristbands with RFID technology are available so parents can go to a Location Station and easily find their children and other members of their party. Other special features include the warmer-temperature water at Rainbow Reef, so guests with sensitivity to cold can still splash and play. “In addition, we recently unveiled with the University of Pittsburgh revolutionary new wheelchairs propelled by compressed air,” Hartman says. “Our guests in expensive batterypowered wheelchairs can’t afford to get them wet, so we have special Morgan’s Inspiration Island PneuChairs available first-come, first-served, along with two other waterproof wheelchair models — a push-stroller type for guests needing assistance from a caregiver for mobility and a rigid-frame,

PHOTO COURTESY OF MORGANS WONDERLAND

manual wheelchair for guests who can push themselves. The first PneuChairs to go into service are prototypes that are already undergoing significant improvements.” Hartman says spacious private areas are available where guests can transfer out of their wheelchairs into Morgan’s Inspiration Island waterproof wheelchairs. Other facilities include the Rusty Anchor Galley Grub and Little Italy Bistro food outlets for snacks and beverages; the Surf Shack Gifts and Gear sundries shop offering items such as sunscreen and souvenirs; a panoramic viewing deck; an air-conditioned party/meeting room; and private cabanas for rent. “Morgan’s Inspiration Island — like Morgan’s Wonderland — concentrates on inclusion and inspires guests with special needs to do things previously thought not to be in their range of capabilities,” he explains. “Those without disabilities and those with, including individuals in wheelchairs, guests with hearing and visual impairments and even guests on ventilators can play alongside each other and gain a greater appreciation of one another. “In many ways, creating Morgan’s Inspiration Island feels a lot like it did when our team designed and built Morgan’s Wonderland with a focus on special-needs individuals — it’s never been done before. For the past three years, we’ve been collaborating with water park consultants from Texas, Arizona, Florida and Canada as well as local doctors, special-needs therapists, special education teachers, parents and caregivers.” Groundbreaking for Morgan’s Inspiration Island occurred in November 2015, construction began in January 2016 and guests started splashing in June 2017.

Detailed information about Morgan’s Inspiration Island as well as the latest updates about Morgan’s Wonderland admissions, days and hours of operation and special events and celebrations can be found at morganswonderland.com. The 25-acre theme park is located in northeast San Antonio at 5223 David Edwards Dr. a half-mile west of Interstate Highway 35 at the intersection of Wurzbach Parkway and Thousand Oaks Drive.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

LIFESTYLE

Explore Downtown Houston’s Underground Tunnels Special to SHALE

» 60

and are closed weekends and holidays. Most businesses close by 3 p.m., especially on Fridays when many employees exit early. These businesses live and die based on the buildings above them that supply most of their patrons. When businesses are closed, the tunnels are closed. One of Houston’s best-kept secrets, the tunnel system is a model for cities throughout the world to adapt. Most of the tunnels are Americans With Disabilities Act (ADA) accessible. However, some buildings built before the ADA was passed by Congress in 1990 do not comply. Thus, those dependent on a wheelchair or walker for mobility might find it difficult to navigate the tunnels. Houston Historical Tours offers three different 2.5-hour tunnel tours or 3.5-hour tunnel tours when including time for a stop for lunch. They range from about 2 to 4 miles of walking. Tunnel Tour A has the least amount of walking and focuses on going inside historic buildings dating to the 1920s, 1930s, and 1940s, and two of the most attractive and recognizable buildings from the 1970s and 1980s. Great architecture is great art. If you like history and art, you will want

The largest collection of underground tunnels without a subway in the United States, the Houston tunnel system boasts airconditioning, waxed floors, marble walls, and virtually no garbage, graffiti or panhandlers

to select this tour. Tunnel Tour B has close to 3 miles of walking with the most variety. It includes skybridges, lots of visual stimuli, and a trip to an observation deck for some groups. Tunnel Tour C has the most walking and goes into hotels and businesses. Prepare to be amazed by what lies just below the surface of downtown Houston. Book a tour and see it for yourself.

Call or write to Houston Historical Tours at 713-392-0867 or houstonhistory@aol.com. Visit houstonhistoricaltours.com for more information. All tours are scheduled by appointment and reserved with a non-refundable deposit of roughly 50 percent.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

BRANDON SEIDEL/BIGSTOCK.COM

id you know that a virtual city exists underneath downtown Houston? Head underground and you’ll find a collection of over 7.5 miles of pedestrian tunnels in the core of the west side and center of downtown. The largest collection of underground tunnels without a subway in the United States, it boasts air-conditioning, waxed floors, marble walls, and virtually no garbage, graffiti or panhandlers. A pleasant, quiet environment awaits you just below the big bustling city. Home to over 500 businesses and some 10 food courts, the tunnel system employs thousands of people. It is bigger than and generates more money than many small towns. Yet, over 90 percent of people in the greater Houston area have never explored them. Over 83 entrances connect to the tunnels, yet only two entrances are identified from the outside. Entering the tunnels can be a challenge. For many people, they are like the lost city of Atlantis. You’ve heard that they exist, but where? With little consistent color-coding of the tunnel section, north pointing in all four cardinal directions on posted maps in the tunnels and exit signs where no exits exist, it is easy to become disoriented and lost down below. However, with all of the restaurants and cafes, you will never go hungry in your pursuit of exploring, and eventually exiting, this underground maze of a mall. Houston has been called the most air-conditioned city in the world and for good reason. It is renowned for its three Hs: heat, humidity and hurricanes. Why would anyone want to be outside in roughly 100-degree weather and higher, with the heat index, for four months of the year or withstand the torrential tropical storms the city experiences from June 1 to November 30? The tunnels offer a wonderful alternative for comfort, convenience and speed. Want to cross town in a flash? You can walk from the west to the east side of downtown in 12 minutes through the tunnels. With Houston’s heat, humidity and car and train traffic, the same walk above ground will take you twice as long. Furthermore, you may be drenched in sweat with your eyes stinging, clothes clinging and hair matted by the time you get there. Houston’s underground labyrinth is busiest between 11 a.m. and 1 p.m., when people venture out of their offices and into the city’s underbelly to grab lunch and power walk. The tunnels are only open weekdays, Monday through Friday, from approximately 6 a.m. to 6 p.m.,

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

LIFESTYLE

Special to SHALE

n the south side of San Antonio, you’ll find a 1,200-acre wildlife refuge. Every year, thousands of visitors from across the world flock to Mitchell Lake Audubon Center to catch a glimpse of the 340 species of birds migrating through. American white pelicans, northern cardinals, painted buntings, black-necked stilts, scissor-tailed flycatchers and black-chinned hummingbirds are just a few of the species you might see. Even with its international appeal, the refuge’s most enthusiastic visitors belong to its surrounding communities. When Mitchell Lake Audubon Center officially opened 13 years ago, no one imagined what a community asset it could be. As the center is owned by the San Antonio Water System and still permitted as a wastewater treatment facility, it might

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

seem far-fetched to develop STEM-focused field trips and family programming. But more than 4,000 students of all ages experience hands-on, outdoor, environmental science in the field there each year. Programming at the center is focused on connecting people to nature, the mission of Mitchell Lake Audubon Center. There’s something for everyone to enjoy: Events this summer include everything from snake safety to native plant uses, from free Wacky Wednesdays in July to photography workshops. On a typical visit to Mitchell Lake Audubon Center, there are many activities to choose from. Explorer Backpacks filled with guides and tools are great for the kids and free to check out (they hold onto your driver’s license so you don’t accidentally walk away). Or check out binoculars to go birding, one of the fastest growing hobbies in the U.S. Geocaching and scavenger hunts are always available and fun for all ages. Usually open to the public from 8 a.m. to 4 p.m., Tuesday to Sunday, the center has shorter summer hours, so visit in the morning while it is still relatively cool.

PHOTOS COURTESY OF MITCHELL LAKE AUDUBON CENTER

Reclaimed Land Creates an Outdoor Asset for Everyone

August 6 Sssnake Sssafety Free with admission; 11 a.m.–12 p.m. Learn how to live in harmony with our native snakes. Program will feature snakebite prevention, treatment, and how to recognize the venomous snakes in our area.

Address and Hours: Mitchell Lake Audubon Center 10750 Pleasanton Road San Antonio, TX 78221 Open Tuesday–Thursday, 7 a.m.–12 p.m. Friday and Saturday, 8 a.m.–4 p.m. Sunday, 7 a.m.–2 p.m. Upcoming Events: July 12, July 19, July 26 Wacky Wednesdays in July Free; 8–11 a.m. Come out for free family fun, nature crafts and exploration, and meet our animal ambassadors! Special recycled art workshop on July 19 with Arts San Antonio. July 22, August 26 Beginner Bird Walk

$8 nonmembers, members free; 8–9:30 a.m. Perfect for the beginning birder, learn the basics of bird-watching and identification while traveling on foot. Register online. July 22, August 26 Backyard Amateur Photography $15 nonmembers, $5 members; 8:30–10:30 a.m. Learn the ins and outs of photography in this series dedicated to the amateur photographer. These techniques will take you to the next level in your hobby. Registration online required. July 23, August 13 Fun With Flora Series $6 children/$2 adult nonmembers, members free; 1–2 p.m. Learn uses of native plants, make crafts, learn survival skills and more! Kid-focused, parents required. Register online.

August 6, September 3 Seeds of Knowledge $15 nonmembers, $5 members; 10 a.m.–12 p.m. Create art and useful objects and nibble or sip on natural refreshments from plants found at Mitchell Lake. Cultivation and conservation will also be explored. Ages 18-plus. Registration required. August 12 Nature at Night: Meteor Madness $6 adults/$3 children nonmembers, members free; 8:30–10 p.m. Explore Mitchell Lake at night during the Perseid meteor shower! The center will also have family-friendly hikes, games, displays, live animals and crafts. Register online.

To learn more about Mitchell Lake Audubon Center and plan your next trip, visit mitchelllake.audubon.org. Find the center on social media including Facebook, Twitter and Instagram. Email MLAC@audubon.org for more information or call 210-628-1639.

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

LIFESTYLE

Surprising Ways to Use Greek Yogurt

Special to SHALE

ecently, Greek yogurt has become an essential household staple. Here’s why: it’s higher in protein, lower in sugar and lower in lactose than traditional yogurts, making it lactose-intolerant friendly and more nutrientdense. H-E-B Select Ingredients Plain Greek Yogurt has a hefty 23 grams of protein per serving! Greek yogurt can be used as a flavorful substitute for mayonnaise, sour cream or cream cheese, and by doing so, you’ll decrease the calories and total fat while dramatically increasing the protein content of your foods. Try one (or all!) of these five surprising ways to swap in Greek yogurt while cooking and baking to reduce calories but not flavor.

In a dip: Spinach Artichoke Dip If you have 30 minutes, you’re well on your way to making a deliciously rich dip! This recipe replaces the mayonnaise and cream cheese used in a traditional spinach artichoke dip with H-E-B Plain Greek Yogurt. Making this swap increases the protein value of the dip while also making it more tolerable for people with lactose intolerance. Pair this dip with some crispy vegetables and now you’ve increased the fiber value of this dish too!

As a sauce: Grilled Asparagus With Yogurt Balsamic Hollandaise We know that vegetables provide us with fiber and a variety of nutrients, but

» 64

it’s always an added benefit if we can make a vegetable dish with added protein. The hollandaise in this recipe calls for a cup of H-E-B Plain Greek Yogurt, which bumps up the protein to 8 grams per serving. Substituting Greek yogurt in sauces like these reduces the total and saturated fat, while increasing the total protein.

In baked goods: Blueberry Peach Pancakes In less than 15 minutes, you can prepare a batch of pancakes that are only 62.5 calories per serving, contain 4 grams of protein per serving and are an excellent source of vitamin C! The combination of whole-wheat flour and Greek yogurt is one

that will keep you feeling fuller and satisfied longer. If you’re not a fan of blueberries or peaches, feel free to substitute with bananas or strawberries.

As a marinade: Spicy Mango and Yogurt Marinated Chicken Breast Who would’ve thought Greek yogurt could also be used as a marinade?! This recipe combines everything from sweet to spicy to savory and is sure to satisfy whatever it is that you’re craving. The chicken combined with the Greek yogurt creates a dish with a hefty 33 grams of protein. To increase the fiber content of this meal, be sure to add some non-starchy vegetables on the side.

For the recipes for the dishes above and more healthy cooking ideas, visit www.HEB.com.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

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In your pasta: Creamy Greek Yogurt Macaroni and Trees This creamy macaroni and cheese with broccoli recipe is not one you’ll feel guilty about after indulging. That’s because this recipe uses plain Greek yogurt to make it creamy, which also increases the protein and calcium value of the dish. This recipe is easy to make in large batches, so make a large quantity and have it throughout the week!

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SOCIAL

Texas Alliance of Energy Producers’ Houston Wildcatters

PHOTOS COURTESY OF SHALE

SHALE Magazine attended the Texas Alliance of Energy Producers’ Houston Wildcatters award reception honoring Cimarex Energy Co. and its President and CEO Thomas E. Jorden on May 15. Attendees enjoyed a buffet dinner and open bar followed by the award ceremony.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

JULY/AUGUST 2017  SHALE OIL & GAS BUSINESS MAGAZINE

SOCIAL

STEER Hosts Press Conference on Eagle Ford Impact Study

PHOTOS COURTESY OF SHALE

On June 21, the South Texas Energy & Economic Roundtable (STEER) and the Port of Corpus Christi co-hosted a press conference at the Congressman Solomon P. Ortiz International Center to share some highlights from “Business Opportunities and the New Normal,” the recent study released by The University of Texas at San Antonio (UTSA) Institute for Economic Development’s Center for Community and Business Research on the impact of the Eagle Ford region. Attendees included members of the press, community leaders, Texas Energy Advocates Coalition members and interested community members. Speakers included Omar Garcia, President and CEO of STEER; Joe McComb, Mayor of Corpus Christi; Jarl Pedersen, Chief Commercial Officer of the Port of Corpus Christi; Wayne Squires, Vice Chair of the Port of Corpus Christi; and Thomas Tunstall, Ph.D., Senior Research Director at the UTSA Institute for Economic Development.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

The time has come to celebrate a Shale Revolution with a toast to excellence! Shale wine celebrates the innovation, creativity, performance and prestige of the energy industry. America now relishes in an era of energy independence thanks to hydraulic fracturing. We salute the individuals that work each day in the energy industry to provide Americans with the products they need to fuel our world. So enjoy your bottle of Shale wine and be thankful for our energy industry powering America.

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SOCIAL

WEN Holds National Conference in Houston

PHOTOS COURTESY OF SHALE

The WEN National Conference took place in Houston at the Marriott Marquis Houston April 26–28. Bringing together more than 500 participants from across the country and from multiple disciplines in the energy industry, the conference showcased relevant topics focusing on the theme Energy Resilience: Refueling Innovation.

SHALE OIL & GAS BUSINESS MAGAZINE  JULY/AUGUST 2017

OIL & GAS BUSINESS MAGAZINE Delivering insight into the development of the Eagle Ford Shale and Permian Basin plays and the businesses affected

SHALE SHALE SHALE SHALE shale SHALE // LOW GAS PRICES COME AT A HIGH COST FOR TEXAS ECONOMY //

AND HOW THEY AFFECT OIL AND GAS NEW PROJECT IN PLANS FOR BIG BROTHERS BIG SISTERS

SKILLS DEVELOPMENT FUND GRANTED TO EMPLOYERS OILFIELD SAFETY IN THE PERMIAN BASIN

J A N U A R Y. F E B R U A R Y 2 0 1 4

PORT OF CORPUS CHRISTI’S

JOHN LaRUE

STEADY AT THE HELM HOUSTON’S DIVERSE ENERGY SYSTEMS

SETTING THE STANDARD

FIRST ANNUAL STEER EAGLE FORD EXCELLENCE AWARDS

OIL & GAS BUSINESS MAGAZINE

BIG CHANGES IN

MEXICO

SEAFOOD, SUSHI AND SURFING

on EFS Economic Boom

SENATOR JUAN “CHUY” HINOJOSA

WOOD GROUP PSN PUTS SAFETY FIRST

ROAD SAFETY WITH STEER // A NEW CHALLENGE FOR PEMEX

NOVEMBER.DECEMBER 2013

GIVING BACK

ConocoPhillips SHAPING TOMORROW

DIGITAL ENGINEERS

CHEMISTRY AND COMMITMENT

THE CREWMEN AT WEATHERFORD

oil & gas business magazine

MAN ON FIRE

BAKER HUGHES: PUTTING VETERANS TO WORK // AFRICA ODYSSEY: SAFARI ADVENTURE

LEADER OF THE PACK  Shale Play Digs Deep in the Permian  Wildcatter Rogers Lacy Remembered  Joshua Creek Ranch Turns 25

MEXICO’S HISTORIC MOMENT: PRESIDENT PEÑA NIETO SIGNS ENERGY REFORM

TEXAS RAILROAD COMMISSIONER

BRAD LOMAX

DAVID PORTER ON THE MOVE MAYOR NELDA MARTINEZ AND THE CITY OF CORPUS CHRISTI SHALE OIL & GAS BUSINESS MAGAZINE

IN THE EAGLE FORD SHALE

OIL & GAS BUSINESS MAGAZINE

M A Y. J U N E 2 0 1 4

URESTI:

DAVID PORTER

Opportunities Abound in South Texas

A BRIGHT FUTURE WITH NATURAL GAS

CATCHING UP WITH KEVIN FOWLER

// PAGE 26

// PAGE 34

REGINA MELLINGER

OF PRIMARY SERVICES Staffing Solutions with Energy

LEADING THE WAY

SEN. CARLOS

COMMISSIONER

TEXAS OLIVES

DAVID BLACKMON

Energy Matters in South Texas

OIL & GAS BUSINESS MAGAZINE

MARCH.APRIL 2014

WTI, BRENT AND THE TEXAS PETRO INDEX

PEMEX:

Innovative and Entrepreneurial

SAFETY AT HEART

GOV. RICK PERRY WELCOMES SHALE MAGAZINE | HALLIBURTON BREAKS GROUND IN SAN ANTONIO

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VOLUME I / ISSUE VIII SEPT/OCT 2014

OIL & GAS BUSINESS MAGAZINE

MARCH/APRIL 2015

LEGISLATIVE COMMITTEES

// THE CE GROUP’S JANET HOLLIDAY: AT THE TOP OF HER GAME //

// MARATHON OIL’S JEFF SCHWARZ: WILDCATTER OF THE YEAR //

GLENN McCARTHY

// PAGE 14

HALLIBURTON’S

PAUL SHEPPARD THE FUTURE OF PEMEX AND MEXICO1

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Living the American Dream

ROD LEWIS

WILDCATTER

AN AMERICAN ORIGINAL // PAGE 62

A WORLD-CLASS LEADER

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ROD SKAUFEL

EXCLUSIVE COVERAGE: WOMEN’S ENERGY NETWORK AT UTSA

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// PAGE 18

// SHALE CELEBRATES ONE-YEAR ANNIVERSARY // 1

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OTHER SERVICES OFFERED BY SHALE MAGAZINE Branding / Web Production / Search Engine Optimization / Ad Design / Social Media Video Production / Public Relations / Email Marketing / Campaign Strategy / Direct Mail SHALE Oil & Gas Business Magazine is a statewide industry publication that showcases the significance of the South Texas petroleum and energy market. SHALE’s mission is to promote economic growth and business opportunities that connect regional businesses with oil and gas companies. The publication supports market growth through promoting industry education JULY/AUGUST  and SHALE OIL & GASaffected. BUSINESS MAGAZINE and policy, and its content includes particular insight into the development of the Eagle Ford Shale and Permian Basin2017 plays the businesses

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