SHALE Oil & Gas Business Magazine Nov/Dec 2013 by SHALE Oil & Gas Business Magazine

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

SHALE NOVEMBER.DECEMBER 2013

CHEMISTRY AND COMMITMENT

THE CREWMEN AT WEATHERFORD

OIL & GAS BUSINESS MAGAZINE

MAN ON FIRE

CATCHING UP WITH KEVIN FOWLER

Living the American Dream

ROD LEWIS

EXCLUSIVE COVERAGE: WOMEN’S ENERGY NETWORK AT UTSA

HEAVEN IN THE HILL COUNTRY FREDERICKSBURG’S ULTRA-EXCLUSIVE BOOT RANCH

shale oil & gas business magazine

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UPSTREAM & MIDSTREAM 4

he San Antonio Pipeliners Association (SAPA) cordially invites you to join and help our industry grow during the most exciting times Texas has seen since Spindletop! Membership is open to companies actively working in the oil & gas upstream and midstream business activities. See how you can help grow our industry and prepare students for careers in the oil and gas industry with scholarships, while networking with others in the industry. The Association meets the second Thursday of each month at the San Antonio Petroleum Club. Funds raised thru charity events provide scholarships for college students majoring in science, technology, engineering, and math. SAPA is a non-profit, tax exempt 501(c)(3) organization.

We hope to see you there! Visit our website http://www.sapipeliners.org.

shale oil & gas business magazine

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We invite you to discover all that Boot Ranch has to offer. Please visit us online or call 830.997.6200. Reference SHALE-92013 with inquiries.

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contents

november/december 2013

Rod Lewis

Consistently coming out on top through teamwork and environmentally friendly production, the founder and CEO of Lewis Energy Group is the embodiment of the American Dream. photo by hanne zak

1 2 Rick Perry welcomes SHALE magazine

feature

14 High trust vs. low trust 16 Working for the wetlands 18 One team, one mission, one family

industry

26 Catching up with STEER 28 Jobs today, jobs tomorrow 30 The heart of the matter 32 Protecting your companyâ&#x20AC;&#x2122;s greatest assets 36 Home away from home 38 Breaking ground

science and technology 40 Firm foundation 42 The letter of the law 46 Win-win

food and entertainment 48 On fire 52 Make your own history

travel and real estate 58 Heaven in the Hill Country 64 Artistic eye 66 Home for the holidays

nonprofit

68 A staple of South Texas

scene

70 Competing for a cause 71 Informative and entertaining 72 First class 74 Bringing the best together 76 Making connections 78 Empowering women in energy 80 Insight and education

in every issue 08 Advisory board 10 Publisherâ&#x20AC;&#x2122;s note

shale oil & gas business magazine

advisory board omar garcia - senior advisor As president of the South Texas Energy & Economic Roundtable (STEER), Omar Garcia is an expert on business opportunities associated with the Eagle Ford Shale who works with the oil and gas industry, local officials, community members, regional stakeholders, educational institutions and economic development organizations to ensure that the natural oil and 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 a major in international business and Spanish. In 2010, Gov. Rick Perry appointed Garcia to the Texas Economic Development Corporation.

Douglas Sterling Cain Douglas Sterling Cain is the president of Lake Truck Lines, which has enjoyed a 300 percent growth over the past two years. Cain links the company’s recent success to a decision to move headquarters from Houston to San Antonio, believing it all happened by “grand design.” The company arrived in San Antonio with 12 trucks, and it is now operating close to 100, quickly becoming the solution for custom oilfield equipment and tank manufacturing, as well as oilfield transportation and logistics. Cain prides himself on being innovative and “staying ahead of the curve.” Out of his desire to make oilfield jobs safer and more effective, he launched subsidiary company Lake Oilfield Services, which already manufactures six different types of oilfield equipment. As Cain sums up in his own words, “honor and integrity are incredibly expensive on Monday, but the dividends show up on Friday.”

OIL & GAS BUSINESS MAGAZINE november/december 2013

Eliot Garza

CEO / NSIDE Media Productions

kym bolado CEO / Publisher

co-publisher Jimmy Perkins

editorial director Kelly Hamilton

executive editor Erin O’Brien

creative director Elisa Giordano

senior graphic designer Cristina Villa Hazar

account executive Liz Massey-Kimmel

administrative assistant Joyce Venema

contributing writers

Mario A. Barrera, Doug Cain, Lorne Chan, Scott Courtney, Dr. Janet M. Cunningham, Omar Garcia, Kelly Hamilton, Tabitha King, Dr. Todd Merendino, Rahul B. Patel, Jimmy Perkins, Dawn Robinette, Hank Rosendfelder, Raquel Stark, Blake W. Stribling, James M. Summers, Frank Zamora

photography

Tim Bartlett Until joining VLG as the CEO, Tim Bartlett was the chief operating officer at the Brooks Development Authority (www.bc-b.com) since 2008. Since 1999, he has completed more than $1 billion in transactions in the multi-family, renewable energy, higher education and public sectors. Bartlett was the original founder of EgovNet who deployed the first online auto registration renewal on a statewide level (www.oplates.com). The company was sold in 2002.

Kym Bolado, Greg Harrison, Michelle Jones, Hanne Zak

chief financial officer Deana Acosta

account manager Dina Ybanez

editorial intern Katrina Torres

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

mark payne Mark Payne is a partner at Burleson LLP, the largest law firm in the nation primarily focused on serving the oil and gas industry. As Payne is a former petroleum geologist and landman, his practice is dedicated to warranty issues, operating agreements, unitization and environmental, including water and air matters. He is on the board of the South Texas Wildcatters, and he is involved in the community with his participation in the San Antonio Chamber of Commerce, Energy and Water Sustainability Section.

continued on page 9 shale oil & gas business magazine

For editorial comments and suggestions, please call 830.377.8573 or email jimmy@shalemagazinetexas.com. to reach us: 18402 U.S. Highway 281 N, Ste. 201 San Antonio, Texas 78259 Phone: 210.298.1761 Fax: 210.568.6630 Copyright © NSIDE Media Productions All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

Serving the Interests of San Antonio, The Eagle Ford Shale and The Permian Basin.

The leader in Oilfield Transportation and logistics

doug Cain is committed to supporting the sustainable growth of the Eagle Ford Shale and ensuring its positive impact on the local economy. lake Truck lines transports oilfield materials to the well site and Lake Oilfield Services sells and services the equipment used to contain and process those materials. All of our trucks are connected to the NexTraq Fleet Tracking System so that our customers are always one click away from the real time status of their delivery and all of the equipment we manufacture is engineered with long-term solutions in mind. We are proud to represent San Antonio and the Eagle Ford Shale during this exciting time of progress and expansion. • San antonio economic development Council • Texas railroad Commission – eagle Ford Task Force • Texas alliance of energy Producers – South Texas Wildcatters • San antonio desk and derrick Club

Member Texas Motor Transport Association | Member American Association of Drilling Engineers

Serving Shippers Since 1949 www.laketrucklines.com eagle Ford Shale: 20474 Spanish Grant Road San Antonio, Texas 78264 210.626.1329 Permian Basin: 2630 E. Pearl Street Odessa, Texas 79761 432.242.1329

shale shale oil oil & & gas gas business business magazine magazine Lake Oilfield Services | Oilfield Solutions with a Partner Perspective | www.lakeoilfieldservices.com

publisher’s note

This month’s issue is truly dedicated to all of the hardworking entrepreneurs and businesses that are thriving due to their hard work. We all know Texas is one of the greatest states in the nation. Our state offers low taxes and massive opportunities for the brightest talent and hardest-working individuals to make their fortunes. While other states are seeing an exodus of population, our great state is seeing a massive invasion of people who dream of prosperity and see their dreams coming true in Texas. Most of this derives from the oil and gas boom that is occurring in our great state. I would like to thank Gov. Rick Perry for extending his welcome letter to SHALE Oil & Gas business magazine. We are honored and humbled to play a part in the shale boom. This issue is also a milestone issue for us, as we are very excited to have interviewed one of the legendary wildcatters, Rod Lewis of Lewis Energy. Lewis Energy’s story should remind all of us that the American Dream is alive and well. SHALE is grateful to Lewis for sharing his compelling story in an exclusive interview, and we are confident our readers will be inspired. I would also like to say thank you to our partners, our business leaders and the community for embracing SHALE magazine and making us the premier magazine covering the shale boom. God bless Texas!

kym bolado

CEO/Publisher of Shale of South Texas Oil & Gas Business Magazine kym@shalemagazinetexas.com

SHALE Oil & Gas business magazine mission statement:

SHALE Oil & Gas business magazine is an 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. It supports market growth through promoting industry education and policy, and its content includes particular insight into the Eagle Ford Shale development and the businesses involved. SHALE’s distribution includes industry leaders and businesses, service workers and entrepreneurs.

shale oil & gas business magazine

PHOTO BY SARAH BROOKE LYONS

Sincerely,

advisory board James M. Summers James M. Summers joined in San Antonio office of Norton Rose Fulbright in 1976 and became a partner in 1985. He received his undergrad from Southern Methodist University and his law degree from the University of Texas Law School, and he has six professional honors. Summers’ legal practice focuses on real estate and oil and gas matters, which involve the representation of an array of clients who deal with complex and sophisticated financial transactions and situations. Summers represents many financial institutions and private equity groups in the securitization, CMBS and other related loan markets. He counsels clients and is involved in major workout and reorganization matters relating to all areas of real estate. His practice focuses on energy and oil and gas transactions with matters in the Eagle Ford Shale industry, representing everything from acquisitions and dispositions to refineries and solar power facilities.

DELSA LOGISTICS LLC PHONE

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Scott Courtney Scott Courtney, P.G., is the president of Premier Hydro, and he has more than 30 years of background, education and experience in oil and gas, water resources, environmental management and business development. He was raised in West Texas, but he has made South Texas his home since 1984 while working around the country in major programs for the Department of Energy, the Department of Defense and the oil and gas industry. Over the last four years, he has focused on the Marcellus, Permian Basin and Eagle Ford Shale plays. He is the 2013 South Texas Wildcatter Committee chairman, and he has made a career of sustainable development and production of natural resources.

WWW.DELSALOGISTICS.COM

OIL & GAS BUSINESS MAGAZINE

Jeffrey a. Webb

FOR ADVERTISING INFORMATION PLEASE CONTACT KYM BOLADO

Jeffrey A. Webb is a senior associate in the San Antonio office of Norton Rose Fulbright, a global legal practice providing the world’s pre-eminent corporations and financial institutions with a full business law service. Recognized for its industry focus, Norton Rose Fulbright is strong across all of the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and health care.

210.240.7188 kym@shalemagazinetexas.com

Kimberly Webb Kimberly Webb is the business development manager for Chemoil Energy, an oilfield service company specializing in frac fuel operations. Webb is in charge of managing and marketing the Texas region, and she is committed to improving the efficiencies of the oil and gas service industry. Chemoil Energy is a division of Chemoil Corporation that sells and markets five-plus billion gallons of commodities worldwide. It is the world’s leading integrated producer and marketer of commodities.

NG SENDERO

RANCH

S HA L E FACTS VS. FICTIO

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AND WATER USE

| SIMPLY AMAZI

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PLEASANTO POLICE RONALD CHIEF OF CHE Z WEIGHS IN SAN

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WRITER CHARL

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shale oil & gas business magazine

Rick Perry Welcomes SHALE Magazine

state of texas office of the governor

Greetings: As Governor of Texas, it is my pleasure to extend greetings to the readers of Shale of South Texas Oil and Gas Business Magazine. Throughout our history, the health of the Lone Star Stateâ&#x20AC;&#x2122;s economy and the strength of the oil and gas industry have been inextricably linked. This fact remains true today with the boom Texas is experiencing in the Eagle Ford along with the growing list of impressive shale plays across our state. This publication aims to be an important resource to the industry and for those wanting to stay informed of all the important happenings in the Eagle Ford Shale. I am excited to introduce Shale magazine to Texas and all of those involved in the oil and gas business in South Texas. First Lady Anita Perry joins me in wishing great success to Shale magazine. Sincerely,

Rick Perry Governor

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High Trust vs. Low Trust

The importance of integrity, intent, capabilities and results in developing trust – the core of every relationship By: Doug Cain

ave you noticed that your relationships, whether they are business, social or family, are all guided by trust? Even things as simple as driving to work and flying out of town are guided by trust. You trust the guy next to you is going to stay in his lane, and you trust the pilot for the airline really knows how to fly the plane. If we did not have that trust, we would all just curl up in a fetal position and not move. I have been reading and teaching our managers a great book called, “The Speed of Trust” by Stephen M. R. Covey. It completely changed how I view not only my relationships with my clients and vendors, but my relationships with family and friends. As I built a training program for our managers, I started thinking about a few things.

Who do you trust, and why do you trust them? As I went through this exercise, I thought about the people in my life I have trusted,

shale oil & gas business magazine

what it took to earn that trust and in some cases, what broke that trust. From there, I started thinking about who trusted me (both singularly and at Lake) and what developed that trust, and then I took a long, hard look at who I have failed and where I broke that trust. This self-examination was both painful and rewarding at the same time.

What is your own personal brand? We all are familiar with logos and slogans of companies that engender trust. Nike stands for extraordinary effort. The McDonald’s golden arches mean consistent quality (well, at least to me). When people think of Douglas Cain or Lake Truck Lines, what do they think? When I look at myself in the mirror, what do I think of my own personal brand? What do people think when they hear my voice, read my name or see our logo? We are all branding ourselves every day. What does your own personal brand say about you? If you don’t like the answer,

pile of hands image Pressmaster/shutterstock.com

feature

“The moment there is suspicion about a person’s motives, everything he does becomes tainted.” – Mahatma Gandhi there are ways to fix it. As Hank Paulson, chairman of Goldman Sachs, said, “trust is established through action.” Start by making and keeping your commitments. Move on to “talking straight in every situation,” and then go to “deliver results.” If you want to establish trust rapidly, out of 13 behaviors that develop and strengthen trust between people, I have found that these three work almost instantaneously. But what I learned most from this book is the business benefit of high-trust relationships. I started thinking about the high-trust versus low-trust relationships I was in. The way they work in your business and your personal life is completely different. Where trust is high, speed

goes up and costs go down. Think about the low-trust relationships you are in with vendors. Does it feel sluggish to work with them, and are you quick to judge? Do you feel like the two of you do not share common goals? Does it feel like the two of you are working from what looks right instead of what works best? We recently fired a vendor because we no longer had any trust in working with them. It was an exhausting and ineffective exercise. Where trust is low, speed goes down and costs go up. I asked you earlier about your own personal brand. Well, I ask you now: Do you exude trust? There are four things that go to the very

core of your credibility: integrity, intent, capabilities and results. I used to feel that trust was based entirely on simple integrity, but I have found that it is more like integratedness. It’s how all elements of your core values work together to make you a person people trust. Is your intent to look out for what is in everyone’s best interests? In expressing that, you make major strides in developing trust. Do you have the capabilities to solve the client’s problems and establish, grow, extend and restore trust? And finally, can you deliver the results the people in your life require? At game time, do you score or fumble? Trust is at the core of every relationship. If you learn how to effectively establish, grow, extend and restore trust, it will change your life. I am writing weekly on the subject of trust in my blog at www.laketrucklines.com, and I welcome your comments and thoughts. Until next time …

Douglas Sterling Cain, is the president and CEO of Lake Truck Lines and Lake Oilfield Services. For more information, visit www.laketrucklines. com.

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feature

Working for the Wetlands Guided by science and dedicated to program efficiency, Ducks Unlimited works to restore and enhance critical wetland habitats. By: Dr. Todd Merendino

ike the flow of oil and gas from production areas to refining areas, waterfowl utilize migratory pathways and corridors between breeding areas in the northern United States and Canadian prairies, the wintering areas in the Mississippi Alluvial Valley and the coastal regions of the East and West Coasts and the Gulf of Mexico. These migration routes provide places for waterfowl to fuel up and rest; thus, it is imperative that habitat conservation and management occur throughout the flyway. Texas is located in the Central Flyway, which extends from the central Canadian provinces

down through the Dakotas, Nebraska, Kansas, Oklahoma and Texas. Depending on habitat and weather conditions along that flyway, the Texas Coast is a terminus wintering area for millions of migrating waterfowl, shorebirds and wading birds. Because waterfowl migrate to and from various areas, it is important to remember that they need a “round trip” ticket. Habitat management programs need to take into account the needs of waterfowl at various regions of the flyway. Research has shown that waterfowl that leave the wintering grounds in good condition generally have better reproductive success and better survival than birds that leave in poorer condition. Thus,

The Texas Gulf Coast is a priority region for Ducks Unlimited’s habitat conservation programs. 16

shale oil & gas business magazine

management and conservation of the wetlands along the Texas Coast and throughout the entire flyway is critical to sustaining waterfowl populations. Similar to the many shale plays that are scattered across the United States, Ducks Unlimited (DU) addresses the needs of waterfowl in “prioritized” regions that occur across the United States. Given its importance to waterfowl in the Central Flyway, the Texas Gulf Coast is a priority region for DU’s habitat conservation programs. DU has a very aggressive and proactive habitat conservation effort on the Texas Gulf Coast, and it works with private landowners, state and federal agencies and other conservation partners to restore and enhance critical wetland habitats. DU had a great habitat year in Texas in 2013. More than 2,200 acres of waterfowl habitat were protected along the Texas coast through the Texas Prairie Wetlands Project (TPWP), bringing the program total to more than 63,000 acres in 20 years. Recent analysis indicates that TPWP habitat projects provide up to 20 percent of the available waterfowl habitat in coastal Texas in some years. TPWP continues to be a model for successful conservation partnership across the nation. More than 1,000 acres of finished projects were completed on public lands in 2013, including projects at Brazos Bend State Park, Sargent Marsh and J.D. Murphree Wildlife Management Area (WMA). More than 90 percent of the public projects DU has worked on in Texas are open to hunting, including (but not limited to) Anahuac National Wildlife Refuge (NWR), J.D. Murphree WMA, Richland Creek WMA, Keechi Creek WMA, McFaddin NWR, North Toledo Bend WMA, Justin Hurst (Peach Point) WMA, Mad Island WMA, Gus Engeling WMA, Guadalupe Delta WMA,

Alazan Bayou WMA, White Oak Creek WMA, Big Lake Bottom WMA and Gene Howe WMA. As DU begins its FY14, another full slate of projects is planned, including 2,300 acres for TPWP and several public land projects totaling more than 2,500 acres. However, that effort isn’t possible without the tremendous investments of time and money from the many volunteers, supporters, landowners, foundations, corporations and agencies that make these great conservation accomplishments possible. DU is the world’s largest nonprofit organization dedicated to conserving North America’s continually disappearing waterfowl habitats.

Established in 1937, DU has conserved more than 13 million acres thanks to contributions from more than a million supporters across the continent. Guided by science and dedicated to program efficiency, DU works toward the vision of wetlands sufficient to fill the skies with waterfowl today, tomorrow and forever.

For more information on our work, how to support DU and how to find a DU event in your area, contact Manager of Conservation (Texas) Todd Merendino, Ph.D., at 832-595-0663 or tmerendino@ducks.org, or visit www.ducks.org. shale oil & gas business magazine

feature

One Team, One Mission, One Family The crewmen at the Weatherford facility in Alice, Texas, strive for excellence in both work and safety, relying on chemistry, commitment and each other. By: Jimmy Perkins

magine overseeing a garage that services and repairs more than 375 vehicles, manages more than 300 employees and stays open 24 hours each day, seven days each week and all 52 weeks each year. If that sounds like a tall order, imagine those 375 vehicles are frac pumps, blenders, frac manifolds, sand movers and more, which spend their days and nights operating in the unrelenting hardscrabble of South Texas. The team at Weatherford in Alice, Texas, does exactly this, and they are able to accomplish this feat with expertise through a commitment to teamwork. One of the largest global providers, Weatherford helps build innovative mechanical solutions, technology applications and services for drilling and production in all sectors of the oil and gas industry. Weatherford operates in more than 100

countries and employs more than 70,000 people worldwide. District Manager Art Maldonado has assembled a team of professionals who strive for excellence in both work and safety. And like any great team, they rely on chemistry, commitment and each other. Maldonado relies on Operations Manager Rudy Espinoza and Maintenance Supervisor Zac Tamez. For Tamez, his right hand is Juan Carbajal, lead mechanic/assistant maintenance supervisor. Tamez and Carbajal rely Weatherford, on their three lead mepictured left to right: chanics, Mark Guerra, Mark Guerra, Leroy Martinez and Juanito Hernandez, Juan Hernandez; their Leroy Martinez, Kym Bolado, warehouse coordinator, Noe Sanchez, Noe Saenz; and their Zac Tamez and iron coordinator, Gilbert Juan Carbajal Martinez. Together, this team keeps the facility running at peak efficiency 24 hours a day. Each man plays a key role in the chain of command at the facility and in the Weatherford family. It is clear that their level of professionalism is only possible because they are indeed a family. They feel they are part of something important, and they take tremendous pride in stepping up. Tamez uses three words to describe the men he leads: available, responsive and dedicated. They are, in fact, on call 24 hours each day, working 11 days on and three days off. Their commitment to the job is what makes them, in Tamezâ&#x20AC;&#x2122;s words, â&#x20AC;&#x153;the best crew possible.â&#x20AC;? Beyond the work, the team regularly gathers for Sunday barbecue and occasional teambuilding fishing trips. Tamez emphasizes the importance of family when he describes their work. In the oilfield, the person you work under is a matter of pride, and it is obvious that the younger men have great pride and respect for Tamez and Carbajal. The three lead mechanics, Mark Guerra, Juanito Hernandez and Leroy Martinez, are all in their mid-20s. Iron Coordinator Gilbert Martinez and Warehouse Coordinator Noe Saenz are both 31. This group of young men is a key ingredient to success at the Weatherford facility in Alice. Their desire for perfection is driven by an appreciation for their role in the oil and gas industry, and that is rooted in their sense of belonging to their Weatherford family. The respect and pride these five young men have for their superiors is authentic and refreshing. And that pride and respect flows the other direction. To hear Tamez speak about the young crew is like listening to

Weatherford operates in more than 100 countries and employs more than 70,000 people worldwide. 18

shale oil & gas business magazine

a father talk about his sons. So imagine overseeing a facility that services and repairs more than 375 vehicles, manages more than 300 employees and stays open 24 hours each day, seven days each week and all 52 weeks each year. It sounds difficult, but Weatherford has a team that makes it look easy. District Manager Art Maldonado has the right formula: one team, one mission, one family. From left: Lead Mechanic/Assistant Maintenance Supervisor Juan Carbajal and Maintenance Supervisor Zac Tamez

For more information about Weatherford, please visit www.weatherford.com.

OPENING DOORS IN SAN ANTONIO SINCE 1974 KING REALTORS is dedicated to helping San Antonio and the oil industry with their real estate needs. If you are looking to buy or sell a property, call us and say you saw it in Shale Magazine!

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TABITHA KING ď&#x192;Ş 210.414.4255 shale oil & gas business magazine

exclusive to shale

from the ground up Fully embodying the American Dream, Rod Lewis continues to focus on safe, environmentally friendly production at Lewis Energy Group. By: kelly hamilton / photography: hanne zak

shale oil & gas business magazine

Doing for others is something that comes intuitively for Lewis.

he tapestry of life is woven from the decisions we make, and upon those decisions are the building blocks that will create our legacy. Andrew Carnegie once said, “Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket.” The American Dream is one to which many aspire – the idea of hard work, a bit of luck and a positive outcome for oneself and family. Since the beginning of time, man has turned to the ground for the possibility of growing that dream, and in many cases, through a lifetime of blood, sweat and tears, the dream becomes reality. Much has been written about the successes of men such as Carnegie, yet few have

equally prospered. The building blocks of society are forged through the perseverance of those who are willing and able to do what it takes to see their aspirations through to fruition. Those individuals are the ones who not only pick themselves up when they have fallen, but quickly recover, redirect and still come out on top. In the late ‘70s, a young man returned to his roots after receiving news that his dream of law enforcement could not be fulfilled. He returned to the land he’d grown up ranching. It was that twist of fate that led him to the path on which he still stands some 30 years later. Barren squares of earth harbored the ghosts of metal skeletons and bones of those to come as a young rancher meticulously cared for gas wells. He learned his craft as a well gauger

and quietly aspired to become more for his young wife and family. The son of an Air Force pilot, he was raised to soar fearlessly among his dreams in relentless pursuit of just beyond the horizon. With an innate appreciation for the family ranch upon which he worked and the gifts it brought forth, the young man combined forces with his father and purchased his first gas well in 1982, unknowingly laying the foundation for an empire to come. On a sunny summer day while flying over Rod Lewis’ Eagle Ford Shale wells, I witnessed production in its various stages. From a bird’s eye view high above, people looked like ants scurrying about in search of a haven from his prying eyes. A quick chuckle from my pilot made its way into my headset as he watched his crew quickly spy the helicopter circling above them like a hawk above its prey. Trucks buzzed around the massive rigs that churned away deep into the earth in search of gas. In an attempt to simply explain his management and production style as we toured the well sites, Lewis elaborated that much unlike those who have come before him, he utilizes the vertical integration concept of management and structure for his privately held company. Through the process of expanding his business into areas that are at different points on the same production path, Lewis is able to reduce costs and improve efficiency by decreasing expenses and reducing turnaround time, among other advantages. Management wise, Lewis encourages each department within the company to have a competitive spirit, yet ultimately work together as a team for the common goal of safe, environmentally friendly production. “Vertical integration has been the life blood of our organization,” Lewis says. “Without the fully integrated vertical business plan we have built, LEG would be exactly like any other E&P company out there today. Instead, we control our own destiny and prosper when other companies cannot control their costs during boom or bust times. We bring the efficiencies and the long-term employment opportunities to our team members that in turn, attract the greatest talent in the industry. “We own the wells, the rigs, the pipelines, shale oil & gas business magazine

the equipment, the fleet – all of it. In the process, we are expanding our workforce and keeping more people employed. Vertical integration allows us to keep production consistent in lean times. While the other companies outsource, we believe our team is the best one to get the job done.” Instilling full faith in the team he has assembled to run one of the largest personal energy empires of our time, Lewis continues to say, “I’m just here as a coach. I’m doing a little directing, watching, understanding – it’s my team that assembles the information that I ultimately decide upon and forges the future of LEG.” So what motivates a man who is willing to start with nothing and pursue the American Dream? “Debt and risk.” Lewis concedes that he has always tried to maintain a certain level of debt and that pushing the limit has made him work harder. “I’m motivated by risk, and I don’t know where it comes from, but I do recognize it is the trait that has gotten me where I am. Many are not willing to go the extra step and put it all on the line and be confident in their abilities. I think that’s where people lose it. If you have $200 in your pocket, then make a wise choice and take a chance.

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I really enjoy the fact that we’ve offered so many good people jobs.”

“As the company has grown, I’ve pulled the reins back a little and not rolled the dice on every single well, but there have been a number of times where if we had lost it, we would’ve lost our ass. If any one of the first 30 wells I drilled would’ve blown out, I would’ve been bankrupt. That’s how close to the edge I played it, and that’s what has kept me growing and excelling.” A natural progression in the conversation led to my questioning his concept of loyalty – Lewis stated that loyalty within his company is extremely important to him. “I need people around me to be concerned about the team. The team we’ve built here is comprised of very dedicated, talented people, and if you don’t

fit that kind of mold, then you don’t last long with me. I learned a lot about team building from Herb Keller and how he built his company – how he went about building his dedicated teams and making sure the people who work for Southwest are a good fit. I think the world of him and consider him one of the brightest men I know.” As I prodded my friend along in the conversation, I inquired as to his foremost mentor. “I’ve had a lot of good mentors. Mr. Barkey hired me as a contract gauger. He took a risk on me and wanted me to work for him as a contractor before I’d ever done it before on my own. I felt like I knew my job well, but now, with Mr. Barkey, I was responsible for myself and

liable to him. He instilled the confidence in me so I would understand the realistic economics of business. I didn’t really have that business sense, so his tutelage was crucial to me.” Well after well, we flew over Lewis’ leases, the vast expanse of land continuing into the horizon until what appeared to be a small city grew larger in front of us. A beaming smile warmed his face as we approached the heart of his business – the heart of it all. Deep in the core of South Texas lies the nucleus of Lewis Energy Group (LEG). What is now the bustling city of Encinal was once just a four-way stop with a café, a couple shops and a meager population. LEG was not much more than a small office and a homestead. Since those

days, Lewis has worked fervently to better the citizens of Encinal and of those within its reach. His passion for the citizens of Encinal, as well as the team members of LEG who live there, was the impetus behind the massive construction of the LEG Center. Completed in 2013, the 17,000-square-foot center was designed to celebrate the natural beauty of the area, as well as the people who live here. The beautiful and spacious LEG Center was built for the benefit of the team members and the entire Encinal community. The center is only a portion of the 100-acre compound consisting of roughly 400,000 square feet that houses all of the equipment and personnel for the company. Doing for others is something that comes shale oil & gas business magazine

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Lewis utilizes the vertical integration concept of management and structure for his privately held company.

intuitively for Lewis, be it through education scholarship, employment or quietly lending an ear to a friend in need. Through challenging times of his own, he has recognized the importance of being present and steadfast for those around him, and that mentality has pushed him to persevere through good times and bad. As we flew over the center and then the LEG supply yard behind it, workers recognized the helicopter and waved us into the distance. We were quiet for a good while, and then Lewis spoke extemporaneously as he effortlessly maneuvered the EC-145. “For the longest time, I didn’t want anyone to know who I was or what I was doing. I thought it would put me at a disadvantage on the business side. I really enjoy the fact that we’ve offered so many good people jobs. I don’t believe in full charity – giving money away. I worked hard for mine, so others need to work for theirs. I do believe in supporting others, though, and giving people a leg up when they’re in need. Education, medical research, aviation… those are a few of the areas that are meaningful to me and I support wholeheartedly. I want to use the wealth that I’ve built to teach people how to work and sustain themselves. “Here in Encinal, I am proud of the opportunities LEG has provided people. There are a

ton of good jobs. I enjoy seeing that. Hopefully we’ve built an organization that will survive any bust that may be impending. We’ve partnered with BP in South Texas to take this process that we’ve developed, this culture, and expand it consistently in a thoughtful manner that will be good for the people, economy and the land that sustains us all.” All was quiet once more as we hovered above his land, his home – his heritage. The sun shone warmly through the windshield and the whirring sound of the chopper blades lulled as we approached the Rio Grande River and followed its snaky path along the border. One of many in a collection of aircrafts, my pilot patiently explained to me the controls and how the precise devices of his helicopter worked. This prompted me to inquire about his aviation history. “I took my first flight when I was 5, and I fell asleep in the plane. It must’ve had an impact, though, because I grew up wanting to fly. You’ve got to sacrifice if you want to learn to fly. A colonel friend of my dad’s took me up in his Bonanza, and we did acrobatics. It wasn’t an acrobatic plane!” Lewis went on to explain that in 1980, he bought his first plane for $4,200, and at that time, that was a shitload of money. “I think I borrowed the money and when dad would

come home from work, we would go fly. He taught me how to fly initially. It took me many years to finally get my license. Once I did, I bought a Cessna 182, and that’s what I flew for a while. The collection and infatuation grew from there.” A short time later, we toured the ranch Lewis cared for as a young man and has now pruned beyond perfection. Exotic game peeked from behind bushes, a baby water buffalo hid beneath its mother and perfectly manicured palm trees swayed in the gentle breeze on that hot day as sunset approached. Sitting under a shady hacienda porch with a kitten purring softly in my lap, Lewis candidly admitted that one of the reasons he was successful early on was that he would listen to his team, take their information, make a decision and then move on. In a demure bravado, he grinned and said, “You can’t be wishy-washy. A lot of people worry about the decisions they’re going to make. It takes me five minutes to make a decision. If it works – fine. If it doesn’t – fine. I’ll deal with it. When it comes to a business decision, I just need the facts. Once I have the facts, I make a call. “Through years of making decisions, knock on wood, the majority of my calls have been good ones. I look at it that way, then move on. But I get a hell-of-a-lot of input from my team before I make those decisions.” My mind wandered as I stared into the distance at a flutter of hummingbirds surrounding a beautifully blooming cactus. What does this man want as his legacy? After all he has accomplished, what is it that he truly wants for his children to remember? Bringing myself back to the present, I posed Lewis with these questions and his answer was simply, “When you are driving around in the vast expanse of South Texas, it inspires you to dream about what could be out there for the taking if you work hard enough for it. I want my kids to love and enjoy the ranches as much as I have. To gain the knowledge of what comes from the dirt – the vast freedom to think, to dream. I want them to work hard and be honest – to learn everything they can about what they love. I want them to never give up and to be happy doing what they love.”

For more information about Lewis Energy Group, visit www.lewisenergy.com. shale oil & gas business magazine

industry

Catching Up With STEER As the past few months alone prove, South Texas Energy and Economic Roundtable continues to live up to its reputation as the leading educational resource on the South Texas oil and natural gas industry. By: Omar Garcia

outh Texas Energy and Economic Roundtable, or STEER, is the facilitator for communication and public outreach surrounding the production of energy resources in South Texas. We are the leading educational resource on the oil and natural gas industry in South Texas. Often acting as a liaison, STEER fosters effective collaboration between industry, local officials, regional stakeholders, academia, area residents and community members. The past few months have been very eventful for STEER, to say the least. In September, we attended the Second Annual Frac Sand Supply & Logistics Conference in San Antonio. This event brought together a variety of groups, from truckers and suppliers to rail companies and technology solutions, to develop a more efficient and effective supply chain in the industry. It was a positive experience for all, and we know the ideas shared are making our industry stronger. On Sept. 24, 2013, I was asked to moderate a panel of industry, government and academic leaders to discuss emerging technologies, innovations and issues surrounding the growth and practice of hydraulic fracturing as it relates to air and emissions. At the end of the panel, we held an enlightening and educational question-and-answer segment, allowing local business the opportunity to ask questions about the oil and gas industry. On Oct. 8 and 9, 2013, STEER attended the Clean Fracking Communication & Technology Conference in Colorado. This conference saw attendance from water management firms, exploration and production companies, well completion and service companies, propane suppliers, construction companies, public relations and communications professionals, government officials and those who provide other

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clean technology solutions to the industry. Advancements in hydraulic fracturing have provided an enormous benefit to the U.S. economy. Recent industry efforts continue to make all aspects of the fracking process more environmentally friendly and are resulting in a cleaner energy source in natural gas. The conference was a great opportunity to showcase many of the emerging techniques and technologies that are helping make the fracking process even cleaner, and it addressed the vital public relations and communications issues surrounding fracking.

and around the workplace. The 2013 Eagle Ford Excellence Award recipients will be recognized as leading organizations throughout the oil and gas industry, as well as the entire Eagle Ford Shale region. All nominees set the standard in being good corporate citizens, and STEER is honored to provide a forum to recognize companies that make it their priority. As we mark our one-year anniversary, at STEER, we are more dedicated than ever to having a strong presence in the industry and to continuing our mission to ensure that activities

STEER is the facilitator for communication and public outreach surrounding the production of energy resources in South Texas. Last, but certainly not least, STEER announced our latest community commitment to host the inaugural 2013 Eagle Ford Excellence Awards. This award is the first of its kind in South Texas, and it provides the opportunity to acknowledge companies in our industry that have showcased efforts in preserving the environment, contributing to the communities in which they work and promoting safety in

and advancements in the industry are cultivated in a responsible and sustainable manner. This will enable the positive progression of the energy sector, as well as continued economic development in South Texas.

For more information on STEER, please visit us online at www.steer.com.

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the entire site. We can uniquely offer a single building or private dining hall as may be necessary. The dining facility, operated by Taylors International, can serve up to 1,000 men per day in four separate dining rooms. •Fully Furnished, Single and Double Occupancy Bedrooms •Executive and VIP Suites •Kitchenettes with Full-Size Refrigerator, Microwave and Coffee Maker •Living Rooms and Bedrooms with Free Satellite Flatscreen TVs and Wi-Fi •Fully-Staffed 24-Hour Dining Facility, with Three All-You-Can-Eat Meals, Snacks and Refreshments Daily

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industry

Jobs Today, Jobs Tomorrow Is the Coastal Bend ready to meet growing employment demands?

hat a great time to live in the Coastal Bend! Jobs are plentiful, and with new industries heading to the area, employment looks promising for years to come. Graduation rates are the highest in years, and education institutions and workforce organizations are collaborating in ways never before seen. For business leaders who ponder whether the area will have the workers necessary to meet employment demands today and in the years to come, the answer is a resounding “yes.” As the executive director of Citizens for Educational Excellence (CEE), a local nonprofit education organization, and Education to Employment Partners (the regional P-16 council), our mission is to ensure that all students are prepared for college and careers. Together, our organizations serve students, parents, educa-

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tors, community members and business leaders in 11 Coastal Bend counties, and it is uplifting to see how all are responding in innovative and unique ways to ensure an educated and skilled workforce. We’re hearing that within the next five years, 65,000 jobs will become available in the Coastal Bend. Not only are workers needed for industries related to Eagle Ford Shale, but also for an influx of new companies such as Cheniere Energy, TPCO America and voestalpine Texas. Add to these the need for workers at existing plants and for traditional jobs in the areas of health care, retail and education, and we can understand the level of concern. While the Coastal Bend is fortunate to have an unemployment rate that is below state and national averages, there are as many as 12,000 people who are seeking work. On the Workforce Solutions website, www.workintexas.com, there

are about 2,400 job openings in the Coastal Bend on any given day, but many of the jobs go unfilled because people lack the necessary education and/or training. The majority of jobs listed on the Target Occupations List for the Coastal Bend area require certificates that can be obtained in two years or less, but getting this information out to the general public has been a challenge. Not only are many citizens unaware of the job opportunities in the area, but they often lack information about the services that can help them get on a career pathway. One example of the region’s efforts to assist Coastal Bend residents is the newly opened Coastal Compass Education and Career Resource Center, located in La Palmera Mall in Corpus Christi. The center is a one-stop shop that provides information and assistance in learning about high-demand jobs and the education and/

group of employees image EDHAR/shutterstock.com

By: Dr. Janet M. Cunningham

or training necessary for those jobs. CEE established the center through partnerships with Coastal Bend College, Corpus Christi ISD, the Corpus Christi Literacy Council, the Craft Training Center of the Coastal Bend, Del Mar College, Education to Employment Partners, Texas A&M University-Corpus Christi, Texas A&M University-Kingsville and Workforce Solutions of the Coastal Bend. The center promotes educational and employment success by 1) providing residents with the education and training information to prepare them for jobs in the area; 2) helping clients enroll in education and/or skills development programs; and 3) eliminating barriers to education and employment. Whether high school students, young people who started postsecondary but did not finish, adults without a high school diploma, veterans seeking to get back in the workforce, the unemployed or the underemployed, advisors from partnering organizations have relocated to the center to offer assistance free of charge. Coastal Compass provides information on all types of education programs and services, including adult literacy, English as a second language, GED, dual enrollment, certification, two- and four-year college and financial aid. Additionally, the center provides assistance with job placement, career exploration, programs for veterans, career-ready certification and summer programs for youths. Our future workforce depends on getting all populations prepared for future jobs through education and/or skills training because increas-

ing educational attainment results in greater job productivity and improved economic well-being for the community. One major group that will benefit from the services at Coastal Compass is those citizens without a high school diploma. Currently, one in five Coastal Bend residents do not have a high school diploma, and estimates are that nearly two-thirds of future jobs will require at least a high school diploma or GED and some post-secondary education, while 45 percent will require at least a bachelorâ&#x20AC;&#x2122;s degree. Low-income individuals often are unfamiliar with educational and employment processes and face challenges in accessing services because they do not know which agencies or institutions will be able to address their needs. Low-income

Our future workforce depends on getting all populations prepared for future jobs through education.

individuals often must overcome barriers to obtaining education or training such as transportation, childcare and health issues, which means they must deal with several agencies. Coastal Compass addresses these issues by providing advisors who can work directly with individuals to get them on the road to a better life. The Coastal Bend has the human capital needed for the growing workforce. With coordinated services designed to meet current and future workforce needs, Coastal Compass represents a long-term investment in aggressively growing and preparing our community for the future. The efforts of this unique partnership will give the Coastal Bend an advantage when competing with other communities to attract new jobs and businesses because workers will be trained in future employment demands based on the areaâ&#x20AC;&#x2122;s projected needs. Coastal Compass will enhance life in the Coastal Bend by helping individuals earn a good living, supporting employers who need skilled workers and creating an economically strong community. Exciting times, indeed. Jobs today, jobs tomorrow â&#x20AC;&#x201C; the Coastal Bend is ready!

Dr. Janet M. Cunningham is the executive director of Citizens for Educational Excellence and Education to Employment Partners. For more information, call 361-242-5980 (office) or 361-813-9946 (home), or email jcunningham@ edexcellence.org. shale oil & gas business magazine

industry

The Heart of the Matter Oil and gas: the arteries feeding the boom in South Texas by: Rahul B. Patel

uch has been written and talked about with regard to the Eagle Ford Shale and the “oil boom” that is transforming South Texas. Economists are estimating that last year alone, the Eagle Ford Shale had an economic impact worth more than $61 billion and brought more than 116,000 jobs to South Texas. Much of what the Eagle Ford Shale has done for Texas cannot be captured in dollars or numbers. To fully understand the impact this “oil boom” has had on South Texas, all one has to do is drive down Interstate 35 toward Laredo or

gas industry. It is these small businesses and industries that provide the fuel necessary to support this aggressive growth. For example, let’s assume that the oil and gas industry is the “heart” of this economic growth. It is well-known that the heart is the vital organ in sustaining life, or in this instance, economic growth. As such, critics often ponder the question, “what happens when the oil and gas industry stops?” I, however, think the more important question is “what happens when the arteries pumping the blood to the ‘heart’ become clogged or blocked?” What happens if local business owners

Many of these owners are investing their own time, money, credit and capital to improve their stores, gas stations, restaurants and motels to support the oil boom. It is these owners who are placing personal bets on the Eagle Ford Shale, and it is important that local municipalities and government double down on these bets as we move into the next phase of the shale growth. The energy industry is here to stay, and its positive impact on South Texas is unquestionable. As Texans, we should encourage local municipalities, government agencies and residents to continue to support the small business

Interstate 37 toward Corpus Christi. It is undisputed that the energy industry – particularly oil and gas – has been at the heart of this boom. Many of the companies fueling this growth, including Baker Hughes, Halliburton, Weatherford and all of the large operators, are pouring hundreds of millions of dollars into Texas. This economic commitment has provided tremendous support and stability to the Texas economy, and it has breathed new life into many small towns and rural areas. However, this new life could not be sustained without the support of the small local businesses that are the backbone of the oil and

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stop building and supplying restaurants, gas stations, motels, apartments and retail stores – the support systems necessary for the large companies to employ thousands of people? If the oil industry were required to also provide these necessary support systems, I believe it would be more than the “heart” could bear. It is, therefore, absolutely critical that these arteries remain clear and open, and that they continue to grow with the energy industry. What is even more compelling is that most of this sub-growth is coming from local Texas business owners who have been located in these small towns and rural areas for years.

owners who are investing capital, labor and credit to help fuel the oil and gas boom across South Texas and keep the arteries flowing to help Texas grow.

Rahul B. Patel is the managing partner of Patel Gaines Attorneys at Law. For more information about the author, call Patel at 210-460-7787 or visit www.patelgaines.com. Note: This article is not intended to provide legal advice, and it does not establish attorneyclient privilege.

oil worker image ded pixto/shutterstock.com

Much of what the Eagle Ford Shale has done for Texas cannot be captured in dollars or numbers.

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industry

Important provisions and considerations in employment agreements By: Mario A. Barrera and Blake W. Stribling

Restrictive covenants: a quick history Restrictive covenants were born out of the logical and understandable concern that employers struggle with on a daily basis: the need to ensure that their most valuable assets, their employees, are maximized, but not vulnerable to being delivered to competitors. Accordingly, restrictive covenants began at the level of corporate executive.

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businessmen and contract image Pressmaster/shutterstock.com

Protecting Your Company’s Greatest Assets

he success or failure of any given company can often be reduced to three critical factors: (1) protecting its name and reputation; (2) attracting and retaining talented personnel; and (3) safeguarding its confidential information. In the context of employees, companies strive to get the most of their workforce while taking steps to ensure that no competitor is in a position to loot their resources – which include their employees – without recourse. The parameters governing the employee-employer relationship are often set forth in an employment agreement. These agreements, which were long thought to be applicable to only the most senior officials within the company, are now frequently being used to protect the employer from certain conduct by former employees in the wake of a separation or termination. Employers may use the agreement to protect their investment in employees, to safeguard trade secrets and confidential information or simply to discourage employees from moving to a competitor. Generally referred to as “restrictive covenants,” these postemployment provisions can take a variety of forms, including (1) non-disclosure provisions; (2) non-solicitation provisions; (3) noncompetition provisions; and (4) non-disparagement provisions.

Such top-level managers would frequently be subject to employment agreements that would ensure they could not walk out with one company’s proverbial “secret recipe” and take it to another company, most likely a competitor. This concept broadened over time to include prohibitions against not only disclosure of confidential information, but also from competing in the same industry; disparaging the former employer; and/ or soliciting the former employer’s employees and/or customers for the benefit of a subsequent employer. The trend of including so-called restrictive covenants in employment

ment agreement. The key is to determine whether the prospective new hire executed, and therefore is bound by, restrictive covenant(s) with his or her former employer. Important provisions and key considerations associated with employment agreements include the following:

■ Non-disclosure Employment agreements often contain provisions dealing with the treatment of confidential employer information that will be provided to the em-

Non-competition provisions are only effective to the extent they are enforceable. agreements steadily moved its way through the ranks, making its way from the executive-level employees to the workforce-level employees of many companies. This movement reflects the reality that often, the “boots on the grounds” personnel have the contacts that are most valuable to an employer – and would be most hurtful if used for the benefit of a competitor.

Restrictive covenants in the shale

ployee in the course and scope of employment. Effective non-disclosure provisions often have multiple key components. First, such provisions frequently define the information considered confidential that is or will be provided to the employee during employment. In this regard, such provisions should take into account the practical realities and job duties associated with the relevant position. For example, certain positions may require that the employee be provided access to drilling plans, seismic data and/or geological and geophysical models and information. If so, employers should consider identifying such information in the definition of what is considered confidential under the employment agreement. Second, non-disclosure provisions often include an explicit obligation to return such information upon termination of employment. An obligation of this nature – although arguably redundant of existing obligations – can be helpful if a dispute arises. Confidential information provisions may also include a term during which the employee agrees to not disclose or use the confidential information. Differing time periods may be appropriate for different types of information and data and employee position. Regardless of the specifics, however, such provisions can operate as a helpful insurance policy that employees will not take a company’s most competitively valuable information to a competitor.

A shale play provides a backdrop and a context that cry out for restrictive covenants to protect employers against potential post-separation conduct of key personnel. Take a drilling team or an all-star geologist or geophysicist, for example. These types of important players usually have access to the company’s most valuable and competitively sensitive information. They often help develop and/or implement strategic plans. Competitors, meanwhile, are constantly looking for any advantage. One good lead can make all the difference. Accordingly, companies should be mindful of the approach they take when dealing with the legal obligations governing their employees. Well-thought-out, carefully crafted employment agreements are important in more than one context. When employers consider hiring a prospective candidate for a key position, they should consider the legal obligations and restrictions that may exist with respect to any previous employers and the legal framework that should be in place to govern the new opportunity going forward. If employers are not aware of and/ or otherwise do not heed the provisions of a potential candidate’s agreement with a prior Mario A. Barrera is a partner specializing in employer, their company may be unwittingly labor and employment law, and Blake W. Stribling inviting litigation. is an associate working in the labor, employment and In such a scenario, the hiring company litigation practice groups in the San Antonio office of may be open to allegations that it aided and Norton Rose Fulbright, a global legal practice providabetted breaches of fiduciary duty, misaping the world’s preeminent corporations and financial propriated trade secrets and/or otherwise institutions with a full business law service. Recognized improperly benefited in connection with for its industry focus, Norton Rose Fulbright is strong breaches of the prospective employee’s across all of the key industry sectors: financial instituemployment agreement. The hiring comtions; energy; infrastructure, mining and commodities; pany may be held liable for any associated transport; technology and innovation; and life sciences damages, including potentially having to pay and health care. the former employer’s attorney’s fees for bringing an action to enforce the employ-

■ Non-solicitation Non-solicitation provisions are another important feature of employment agreements. These provisions can take a variety of forms, but the basic aim is to ensure that an employee is prohibited from, or at least limited with respect to, post-employment efforts to recruit customers and/or fellow employees. Non-solicitation provisions can prove valuable in the sense that they can potentially limit the downside of losing a key employee. If properly crafted, such provisions should limit the potential impact associated with any employee leaving a company. 

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Non-competition provisions are perhaps the most important feature of an employment agreement. Such provisions, which allow an employer to ensure that a former employee does not go to work for a competitor, are only effective to the extent they are enforceable. Time duration and geographic scope are the two key metrics that courts use to evaluate whether a particular non-compete provision is or is not enforceable. For example, a provision prohibiting competition within a shale play for a period of one year may be considered by courts to be reasonable, while a provision seeking to prohibit competition anywhere in the country for a period of five or 10 years may not be seen as reasonable. Finding the right balance is critical.

■ Non-disparagement Employment agreements may also contain non-disparagement provisions. Folks often have a general sentiment that they are somehow protected from others saying or writing unflattering things under the law of defamation. That may or may not be true to one degree or another, but employers can utilize non-disparagement provisions to add an additional layer of protection – one that can go far beyond the law of defamation. For example, a carefully crafted non-disparagement provision can simply prohibit a former employee from casting a prior employer in a negative or pejorative light. Such provisions allow employers an avenue to put to a stop to harmful inputs into the rumor mill and protect its reputation with others in the local community, the industry and beyond.

(i.e., an order to do or not to do something) and/or money damages will be available to the employer in an action to enforce a confidential information, non-solicitation and/or non-competition provision against a former employee.

■ Governing law and venue Although no one ever enters an agreement hoping that litigation will later be necessary to interpret and/or enforce its provisions, employers should think prospectively about contractually addressing the forum for and law applicable to any subsequent lawsuits arising out of or relating to the employment agreement. In this regard, employers should consider the reality that the courts of certain states are more receptive to broadly construing and enforcing non-solicitation and non-competition provisions than other states. Venues also differ in important respects. Contractual provisions establishing the county for any subsequent litigation can be very valuable and should be considered by employers. In sum, employers need to think strategically about how to best guard their corporate names, confidential information and critical members of their workforce. The utilization of restrictive covenants is a valuable resource in this regard. If carefully crafted, restrictive covenants can minimize turnover and keep competitors at bay. On the other hand, they can create potential exposure if prospective employees have existing obligations to their old employers. Either way, employers can stand to benefit from a proactive approach.

■ Remedies Contractual provisions protecting a company from solicitation or competition by a former employee are only as good as the associated remedies available in the event of a breach. Accordingly, employers should consider spelling out the remedies available if the employee violates various provisions of the employment agreement. For example, an employer can specifically state that injunctive relief

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Note: No magazine article alone can provide all of the guidance you need on employment agreements and restrictive covenants. This information is a snapshot of some of the provisions and issues to consider with respect to employment agreements and restrictive covenants, and it should not be construed as legal advice, which of course depends upon the facts of each situation.

industrial engineers image michaeljung/shutterstock.com

■ Non-competition

the ce group 35

shale oil & gas business magazine

event based marketing

industry

Home Away From Home The Studios at Carrizo Springs: setting a new standard for remote accommodations By: Jimmy Perkins

tratton Oilfield Systems (SOS) has introduced a superior housing concept to the Eagle Ford Shale area. Located half a mile off of Highway 83 in Carrizo Springs, The Studios can accommodate almost 500 guests. The fully furnished, apartment-style suites are outfitted with resort-quality furnishings and amenities and are situated on a paved, 25-acre site. The Studios at Carrizo Springs is truly your home away from home. SOS has developed a keen understanding of the needs of oilfield work-

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ers, and the results are a resounding success. A well-rested worker is a safer worker in the field, thus The Studios offers only full- and king-size beds in a quiet, secure environment. Amenities include daily housekeeping, weekly linen service, onsite laundry facilities, keyless building and room entry, DirecTV, complimentary Wi-Fi, a fully equipped exercise facility and private training/conference rooms. The gated grounds are protected by 24-hour security with management and maintenance staff on the premises at all times.

Stratton Oilfield Systems has developed a keen understanding of the needs of oilfield workers. The two-bedroom studios are 770 square feet, with two full-size beds in each bedroom, a kitchenette, a full-size refrigerator, a microwave, a coffee maker, a dining area and a large, comfortable living room. The one-bedroom VIP studios are 322 square feet, with a kitchenette and a spacious, private bedroom featuring a king-size bed and a desk. All of the studios are equipped with flat-screen TVs in the living areas and bedrooms. Recognizing the need for community space, SOS created a large recreation facility on the premises – aka “The Man Cave.” Residents can enjoy gathering around the 82-inch HDTV or the pool/domino/gaming/ping pong tables. Outdoors, guests can enjoy the NBA-quality basketball goal, spacious gazebos and professional horseshoe pits, all set in a grassed, four-acre area. There is also a state-of-the-art dining facility operated by Taylors International. This is a fullservice commercial kitchen capable of serving three meals each day to 1,000 guests in four separate dining rooms, if needed. There are two hot entrées offered at every meal service, and there is always a salad bar and boxed lunches available to go. Guests have access to a complimentary, fully stocked snack and drink area 24 hours a day. With daily rates starting at $69, SOS has catapulted The Studios at Carrizo Springs to

the top of the list for employee housing in the area. It is a safe, clean, comfortable, full-service location that sets a new standard for remote accommodations. Creating this type of model is not easy, but SOS clearly has it mastered. Of particular benefit to smaller companies is the fact that long-term contracts are not required. Stay a night, a week or a month. SOS’s parent company, Stratton Securities Inc., was established in 1987 and has an impeccable record of success working with the U.S. military in providing housing to our servicemen and women. SOS brings that same work ethic, experience, integrity and attention to detail to the oilfield industry to provide remote housing for your business’ most important asset: your employees.

The Studios at Carrizo Springs is located at 909 Munson Road in Carrizo Springs, Texas. For reservations, contact Tom Caufmann at 855-8427799 or thomas@strattonoilfieldsystems.com, or visit www.studiosatcarrizosprings.com.

Plan your next Convention or Vacation here

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industry

Breaking Ground To better serve the growing needs of the Eagle Ford Shale area and the surrounding markets, Halliburton officially opens its new operations center in San Antonio. special to shale / photography: greg harrison

n Sept. 18, Halliburton (HYSE: HAL) announced the official opening of its new San Antonio Operations Center to serve the growing needs of the South Texas Eagle Ford Shale and surrounding markets. “Our new facility enables us to provide a wide range of services and support to our customers along the Eagle Ford corridor, as well as other South Texas fields,” said Paul Sheppard, vice president of Halliburton’s Southeast area. “Whether it’s opening or expanding a facility or creating innovated solutions and technologies, we do what it takes to help our customers effectively and efficiently develop

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their energy resources. The San Antonio area also provides us with a vibrant economy, a diverse workforce, exceptional schools of higher learning and a solid local infrastructure.” The 150-acre, 400,000-square-foot facility is strategically located in southern Bexar County within the Eagle Ford operations area. The facility currently supports five of the company’s product services lines, including Production Enhancement, Boot & Coots, Cementing, Baroid and Wireline and Perforating. The completion tools business line will move to the facility in 2014. The center comprises a 10,000-sqaurefoot, state-of-the-art laboratory and real-time operations center, a 112,000-sqaure-foot truck

maintenance shop, a wireline and perforating facility, a mud plant and a double-sided cement bulk plant. Halliburton broke ground on its San Antonio Operation Center in November 2011 and began recruiting heavily in the area for a diverse workforce, including college graduates, technical school graduates and former military personnel, among others. To date, the company has hired more than 550 employees from the San Antonio area, and has transferred a number of managers, engineers and other employees from its other South Texas and East Texas operations. The center will support about 1,000 employees by the end of 2013. 

About Halliburton Founded in 1919, Halliburton is one of the worldâ&#x20AC;&#x2122;s largest providers of products and services to the industry. With more than 75,000 employees representing 140 nationalities in approximately 80 counties, the company serves the upstream oil and gas industry throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well constructions and completion and optimizing production through the life of the field.

â&#x20AC;&#x153;At Halliburton, we do what it takes to help our customers effectively and efficiently develop their energy resources.â&#x20AC;?

With major facilities in San Antonio, Alice and Victoria, Texas, Halliburton is positioned to better serve customers that are operating across the 400-miles long Eagle Ford Shale, located in 24 counties. Halliburton has operated in South Texas for more than 80 years.

For more information on Halliburton, visit www.halliburton. com. shale oil & gas business magazine

science and technology

Firm Foundation Standing at the forefront of the latest and greatest in developmental technology, UTSA works to help some of the best and brightest students in this generation grow with its entrepreneurship competition. By: Raquel Stark

he entrepreneurship program at the University of Texas at San Antonio (UTSA) is stepping up its game to challenge those Ivy League schools in developing the best and brightest students of our generations and those to come. UTSA is on the forefront of the latest and greatest developmental technology with the generation of the Center for Innovation and Technology Entrepreneurship (CITE) competition. The CITE competition is an up-and-coming event hosted at the end of every semester that unites the engineering and business programs to head in the development of new or improved technology. This competition has allowed students the opportunity to compete for the prize of $100,000 worth of services to put toward the startup of the company and the production of the product being pitched to the judges and investors. The Roadrunner Incubator is another resource for early-stage student companies from the 100K competitions and the entrepreneurship program. It is a room on campus equipped with workstations, dry erase boards and information available to help students run their businesses. The incubator hosts and nurtures new tech ventures on campus, and it has helped with the produc-

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tion of many brilliant and innovative ideas that will help students and even professors further their knowledge. Along with the incubator, UTSA formed the Collegiate Entrepreneurs Organization (CEO). This organization is about creating an environment of innovation and entrepreneurship that helps build and support students from all departments in launching their individual businesses. With the help of CEO, students from all departments, including engineering, the arts, science, etc., have the opportunity to learn about establishing and successfully running their own business. CEO has established a strong and sturdy foundation to provide as many tools and resources for the entrepreneurial spirit as possible. What does this have to do with SHALE magazine, you ask? Good question. It just so happens that one of the teams in this competition has developed a product that will help the oil and pipeline industry. The project? A modified smart pig! The engineers have recognized the growing need for innovation within the pipeline industry and have been working to solve it. Their prototype is currently 4 inches, but they have â&#x20AC;&#x153;proofs of conceptâ&#x20AC;? for bigger and better smart pigs. They obviously cannot divulge their secrets, but they will begin

testing their prototype soon. The team is made up of four business students and four engineers. In order to complete their degrees, the engineers have to invent someLeft to right: Robert thing and the business Hampton, Kasi Holifield, Raquel students have to create Stark, Nick Taylor, a business around that Samantha Block, invention. How innovaCassie Constanzo tive! At the end of their and Nick Goodwin (not pictured: last semester, they will Zachary Moses) pitch it to investors at the competition. Kasi Holifield, Samantha Block, Cassie Constanzo and I are the four business students on the team. We are all seniors in the entrepreneurship program, and in order to graduate, we must enter this competition. As the collaborator, I am in charge of bringing everything together, writing the business plan and making sure everything is running like a well-oiled machine. Holifield is extremely good at presenting, so she will be the one to deliver the five- to sevenminute pitch to the investors at the competition. Block is an excellent researcher, and she continues to gather all of the necessary information we need to prepare. Constanzo is our graphic designer. She already does marketing for a real estate firm in San Antonio, Texas, and she will design the logo, marketing materials and anything else the team may need. The engineers are just as talented as the business students. Zachary Moses is the lead for research and programming. He needed to find the right sensor and materials for the prototype. Robert Hampton and Nick Taylor are in charge of SolidWorks, design and secondary research. They are aiming for single-phase flow and exploring multi-phase flow for the future. Nick Goodwin is the head of testing. According to him, the prototype is beautifully designed and shows tremendous promise. This is what the competition is all about: taking the strengths of individual students and meshing them together to form a successful business. UTSA is on its way to becoming a Tier 1 institution. The new entrepreneurship degree programs have contributed to this process. With the establishment of the CITE competition, the Roadrunner Incubator, the CEO and the degree curriculum, students will be better prepared as they enter their businesses into the real world. They are creating jobs for the future and contributing to the economy, and we hope this project will win the competition!

Raquel Stark is the president of the Collegiate Entrepreneursâ&#x20AC;&#x2122; Organization, and she has been named one of the Top 100 Best Business Students of UTSA. You can contact her at www. linkedin.com/in/raquelstark. For more information about the entrepreneur competition at UTSA, visit www.business.utsa.edu/etm.

MARCELLUS SHALE EXTRACTION SEMINAR

Pittsburgh Pennsylvania

Day One Seminar: 9 December 2013 Day Two Workshop: Water Management in Shale Gas Extraction: 10 December 2013

Innovations and Opportunities in Drilling and Completion Techniques EXPERT SPEAKER FACULTY: John Gottschling Area Technical Manager BAKER HUGHES Dan Billman President BILLMAN GEOLOGIC CONSULTANTS Derek Rice Vice President of Exploration RICE ENERGY Rick DeCesar Vice President Appalachian Basin Midstream Services URS CORPORATION Dr. Shahab Mohaghegh Professor of Petroleum and Natural Gas Engineering WEST VIRGINIA UNIVERSITY Dan Weaver Director of Public Outreach PIOGA (PENNSYLVANIA INDEPENDENT OIL & GAS ASSOCIATION) Dr. Terry Engelder Professor of Geosciences Appalachian Basin Black Shales Group PA STATE UNIVERSITY

Alongside an established series of summits on the Utica and Marcellus shale development, IQPC’s Marcellus Shale Extraction Seminar will focus on the best practices, latest innovations and technologies in the extraction process. Companies will hear about the pioneering methods being adopted to mitigate operational risks and challenges associated with horizontal drilling and hydraulic fracturing activities. Oil and gas producers, EPC companies, leading technology providers and technical experts will share a platform to present the latest inventions, best practice case studies and have an open dialogue about the role of technology and advancement in the Marcellus shale gas production.

KEY BENEFITS OF ATTENDING: • Learn the latest innovations, technology and best practice methods in shale gas extraction • Gain in-depth information on the challenges of shale extraction and how your company can offer of benefit from new technological solutions • Network and share ideas with a targeted group of industry professionals involved specifically in the extraction process

20% Off Standard Rates Register by Friday, November 29, 2013 with code SHALE_MP and receive 20% OFF standard rates. To register call 1-800-882-8684 or email info@idga.org

w w w. m a r c e l l u s s h a l e e x t r a c t i o n . c o m shale oil & gas business magazine

science and technology

The Letter of the Law The dominance of the mineral estate over the surface estate in the state of Texas By: james M. Summers

James M. Summers is a partner specializing in oil and gas and real estate in the San Antonio office of Norton Rose Fulbright, a global legal practice providing the world’s preeminent corporations and financial institutions with a full business law service. Recognized for its industry focus, Norton Rose Fulbright is strong across all of the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and health care.

shale oil & gas business magazine

and mineral interests, as well as their respective lenders.

Separating the surface estate and the mineral estate We have no problem in Texas with the unsevered mineral situation: The surface owner is also the owner of the minerals, so the surface owner has the right to develop the minerals, to lease the development rights to someone else, to sell and assign all or part of the minerals to another party or to otherwise separate the mineral rights from the surface rights by any legal act of severance. The surface owner may also choose to do nothing with the minerals. With respect to the ownership of the mineral estate, Texas follows the so-called “absolute ownership rule”: Each owner of land owns the mineral estate in, on and under such land to the center of the earth. When it comes to oil and gas, the ownership is in severalty, meaning that the oil and gas under each tract that lie over a producing reservoir are owned by the owner of that particular tract, but the ownership is not undivided throughout the entire reservoir. Oil and gas are subject to movement when a well is drilled into a producing formation, and they are subject to being forced around in the reservoir by injection operations that create underground pressures in the reservoir. Therefore, the absolute ownership rule, as it relates to oil and gas, is supplemented by the “rule of capture,” which

pumpjack image Natalia Pushchina/shutterstock.com

ith the increased oil and gas exploration and development throughout Texas, the age-old conflict between the ownership of land and the ownership of the minerals within it continues to rage. So how does it all work according to the letter of the law? In Texas, a landowner owns the minerals located beneath the surface of the land. However, the ownership of the minerals can be conveyed separately from the surface of the property. The mineral estate is thereby “severed” from the surface estate, with each interest then owned by different parties. These rights are also capable of being further divided into many different types of fractional interests, including lease interests and royalty interests. Once the mineral estate is severed from the surface estate, the mineral estate is considered to have a dominant right: The mineral owner has the right to use as much of the surface as is reasonably necessary to extract the minerals. The law recognizes this right because the mineral estate is useless without the ability to get the minerals out of the ground. The development and utilization of the mineral estate may cause varying degrees of change in the complexion of the surface estate, so the division of land into surface and mineral estates can inherently create conflicts between the competing owners, users and developers of the surface

holds that a property owner loses ownership if the oil and gas migrate beyond the owner’s borders. The rule of capture means owners of a tract of land have title to the oil and gas they produce from wells on their land, even though part of the oil and gas may have migrated from adjoining lands. Owners may also appropriate the oil and gas that have flowed from adjacent lands without the consent of the owner of those lands and without incurring liability. Therefore, there is no liability of one landowner to another for drainage of oil or gas from one tract to another. This is a rule of necessity, but it is also a rule of property. The protection of one landowner from another for damage to oil or gas is found in the offset drilling rule, which is the right of all landowners to drill a well or wells on their land in order to prevent drainage, subject to all applicable drilling rules and regulations.

oil worker image Kekyalyaynen/shutterstock.com

Separate surface and mineral estates The severance of real property into surface and mineral estates may occur as the result of the outright grant of minerals apart from the surface; by conveyance of either the mineral or surface estate by deed, which reserves or excepts the estate not transferred; by operation of law (i.e., prescription, adverse possession, waiver and estoppel); or by some other clear statement or evidence of severance. Once severed, the mineral estate is capable of being further divided, by grant or by reservation, into many different types of fractional mineral interests or royalty interests. Without access and entry upon the surface to develop the “oil, gas and other minerals,” the mineral estate is without value. To develop and produce the mineral estate, the mineral owner, at a minimum, must have the right of ingress and egress over the surface (including for conducting seismic and geophysical activities); the ability to place a drilling rig and other production facilities on the surface; and the ability to construct roads to access the wells and equipment. Because of this inherent need, it is well settled in Texas that the mineral estate is the dominant estate, and the surface estate is servient to the mineral estate. So what does that mean? Because of the dominance of the mineral estate and its superiority over the use and possession of the surface, the mineral estate owner enjoys the right to use and possess so much of the surface of the land at such time and place

and in such manner as is reasonably necessary to produce and remove the minerals. The dominant right runs with the land, so someone who leases the mineral estate obtains the same rights to use the surface as the owner of the mineral estate. While the general rule is that the mineral estate is the dominant estate, when the conduct of the mineral operation destroys or substantially impairs the surface owner’s use of the surface, the question arises as to the proper scope of the mineral operator’s activities. Limitations on the superior mineral right do exist, and they include: ➊ Only so much of the surface of the land may be used as is reasonably necessary. ➋ Such use must be in a non-negligent manner. Evidence must exist that the defen-

dant “proceed[ed] with conscious indifference to the rights, safety or welfare of others.” Examples of when an oil and gas lessee has been found negligent in its use of the surface and liable for damages include instances of salt water disposal pits improperly placed and operated in such a manner as to pollute fresh water springs or contaminate the underground water supply; and improper maintenance on a cattle guard that caused a horse to be put down after it broke its leg in the guard. ➌ Such use must be made with due regard for the surface estate. The surface owner is entitled to an accommodation of estates if the mineral lessee has a reasonable alternative that would serve the public policy of mineral development while permitting use of the surface. As a general rule, while the mineral owner may make such use of the surface as

There is no liability of one landowner to another for drainage of oil or gas from one tract to another.

shale oil & gas business magazine

estate valueless. For instance, a release could spatially divide the easement, reserving certain portions, or functionally divide the easement, reserving certain functions. To reconcile conflicts and address practical physical risks that may exist between concurrent surface use (whether it is a farm, ranch, agricultural operation, residential structure, multi-family, retail or some other type of surface use) and mineral use, it is wise to consider negotiating a surface use agreement that could contain provisions that address restrictions or limitations on certain activities of the mineral owner/operator that could impact surface usage. The list of things to be addressed can be as long as the needs and negotiating strength of the surface owner and the mineral owner. For example:

is reasonably necessary for the exercise of rights, the mineral owner may not use the surface estate to the damage of the surface owner if there are other usual, customary and reasonable methods available to develop the minerals. However, if there is only one manner of use of the surface estate to allow the minerals to be produced, the mineral owner can use the surface, regardless of damages or loss of land to the surface owner.

The effect on surface development In situations where the surface and mineral estates are severed and owned by different parties, it is crucial that all parties understand the effect that the outstanding mineral interest may have on proposed development and use of the surface estate.

• Noise and dust controls • Designation of hours, days and months of operation • Controlling speed of vehicles • Spill containment and liquid storage procedures • Construction of fences, gates, culverts and security devices • Drill site designation • Safety and environmental matters and protections • Repairs to fences and cattle guards • Security • Timing of operations (hunting season, calving season, harvesting) • No hunting or fishing or other recreational activities • Gate access protocols • Protection of trees • Restoration of topsoil • Location of access roads Whatever the means of waiver or drill site designation chosen, the instrument granting the release, waiver, designation or surface use restrictions should be drawn with all of the formalities required for a land transaction. However, when the conduct of the mineral operation destroys or substantially impairs the use of the surface by the surface

If a farmer, rancher, real estate developer or mortgage lender is not willing to accept the risk of the existence of outstanding minerals after consideration of local ordinances and the likelihood of mineral development in the area, the surface owner should attempt to obtain an agreement from the owners of the outstanding minerals that waives surface use of the property for exploration and development purposes. Alternatively, if the mineral interest owner is reluctant to grant a full release and waiver of surface rights, the mineral owner might be willing to limit surface rights to designated drilling locations, specifying in the agreement appropriate easements for ingress and egress to drill sites. Surface use by the mineral estate owner is in the nature of an easement upon the surface, and therefore, may be fully released and waived by written instrument in favor of the owner of the surface estate. Any release of rights the mineral owner possesses may, of course, affect his or her ability to produce the minerals. A mineral interest owner may be reluctant to grant a full release and waiver of surface rights since total waiver of surface use could render the mineral estate almost worthless if there would be no remaining means of reaching the minerals in place. Rights to certain areas not essential to the production of minerals could, however, be released without rendering the mineral

shale oil & gas business magazine

owner, the question arises as to the proper scope of the mineral operator’s activities. In that regard, the language used must be clear, and it must be broad and elastic enough to adequately deal not only with present conditions, but with future changes that may be anticipated.

Conclusion In any real estate transaction, a thorough examination of outstanding mineral interests should not be overlooked. Because of the dominance of the mineral estate over the surface estate, the surface owner/developer will want to take particular care to ensure that the planned use of the surface estate will not be adversely affected by the development of the mineral estate, and vice versa.

pipeline and oilpump image nesjerry/shutterstock.com

In any real estate transaction, a thorough examination of outstanding mineral interests should not be overlooked.

shale oil & gas business magazine

science and technology

Win-Win

Trican Well Service and Emerald Surf Sciences co-develop TriFrac-MLT, a fracturing linear and crosslinked fluid that has the potential both to save millions of gallons of fresh water and to reduce the cost of hydraulic fracturing. Produced or flowback water filtered with a 25 micron sock filter for use with TriFrac-MLT™

drive out of San Antonio down Interstate 35 toward Laredo or on Interstate 37 toward Corpus Christi will quickly call attention to an oil and gas boom occurring in the formation known as the Eagle Ford Shale. The properties of the outer formation boundaries are still not fully known; however, what is known about the Eagle Ford Shale is that it requires fracture stimulation for the well to be economically productive with an acceptable return on investment. Over the last few years, hydraulic fracturing has been in the public spotlight for numerous reasons. One main issue is freshwater consumption – to the tune of three to five million gallons per well, in some cases. As of October 2013, the U.S. Drought Monitor for Texas has declared that the majority of the state is still in a severe drought condition, including the area within the known Eagle Ford Shale borders, and the media is paying attention to this concern. Trican Well Service, a service company operating in the region, was established on core values and one fundamental value is to be a good steward of the environment. Trican and Emerald Surf Sciences (ESS) codeveloped an innovative fracturing linear and crosslinked fluid called TriFrac-MLT, formulated for use with 100 percent untreated produced or flowback water. Unlocking the code for water reuse, this unique frac fluid system has the potential to save millions of gallons of fresh water, and to save money when taking into account the complete cost cycle incurred by acquiring fresh water, disposing of flowback and produced water and hauling waste water. Trican’s TriFrac-MLT system requires no fluid chemical purification treatment, eliminat-

shale oil & gas business magazine

ing hazardous secondary waste streams. A simple 25-micron sock filter is used to remove suspended solids. Studies conducted years ago indicate that the small percent of suspended solids left in the fracturing fluid has an insignificant effect on the conductivity of the sand pack. TriFrac-MLT’s fluid characteristics are superior to conventional borate technology. Unlike conventional borate fluid systems, TriFrac-MLT can be used in fluids with boron levels exceeding 400 parts per million. The system’s total dissolved solids (TDS) tolerance can exceed 300,000 parts per million, generating a stable

degrees Fahrenheit, 80 percent final linear yield values are achieved in nine minutes, resulting in additional cost savings for operators in cold environments by eliminating the need for hot oil trucks that are typically required for conventional gel systems. TriFrac-MLT has been successfully implemented in the Bakken formation. Trican and ESS are proud to offer this new technology that works with common additives and a conventional fracturing fleet, and that does not require elaborate water treatment equipment on location. This system helps answer the question of

TriFrac-MLT does not require elaborate water treatment equipment on location. crosslinked gel system at bottom hole temperatures exceeding 260 degrees Fahrenheit. Fluids with reduced TDS characteristics are extremely stable. A benefit of using high-TDS (exceeding 300,000 ppm) water is the reduced biocide needed to control bacteria. Applying this system in cold weather environments is not an issue. Linear gel viscosity values are excellent, yielding 80 percent of the final viscosity value at 70 degrees Fahrenheit in three minutes. At 50

whether or not to treat produced and flowback water, and it allows the industry to conserve fresh water while also reducing the cost of hydraulic fracturing.

Frank Zamora is the U.S. vice president of engineering and technology at Trican Well Service L.P. For more information, visit www.trican.us or call KD Passons, TriFrac-MLT product champion, at 940-229-4028.

water background image robert_s/shutterstock.com

By: Frank Zamora

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food and entertainment

With his new album, “How Country Are Ya?” set for release in a few months and an increasingly hectic touring schedule, Kevin Fowler enjoys the boom in the Texas country industry and continues to write music for the fun of it. By: Lorne Chan

“I’ve never set out to save the whales. I write music to be fun.” 48

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How has life been touring nonstop since about 2000? The cool thing is that we get to see every nook and cranny of the state. We’ve been everywhere from Piney Woods in the east to the Panhandle and have covered a big ol’ chunk of real estate. Down in South Texas, it’s crazy right now with all the oil booming. You can’t even get a hotel room anymore. We love playing shows in Poteet at the strawberry festival or in Corpus Christi or Three Rivers, and Texas is on fire right now. Do you also spend a lot of time in the Eagle Ford area when you’re not on tour? My buddy has a ranch down in Cotulla, and we love hunting there. I was 6 months old when I went on my first deer hunt, and haven’t stopped since. It’s a really good escape to recharge the batteries because when you’re on the road, it’s constant people. You’re on a 45-foot bus with 10 guys, and it’s nice to get some peace once in a while.

Why do you think Texas country took off? The main reason was the Internet. Before, the only way to promote your show if you weren’t on the radio was to go to Kinkos and make flyers. But then, people were able to find alternative forms of music other than what was on Top 40. We spread from Austin to College Station, then to Dallas and Corpus. Now we play in Chicago. You can find the music you want now, whether it’s Texas country or Hungarian folk music. Is your goal to write the great American beer-drinking song? I think I should own a Guinness record of most songs with “beer” in the title or something. Before we started recording my new record, I said there wouldn’t be a beer song. I’ll be damned if I didn’t end up with a track called “Beer Me.” I’ve never set out to save the whales – I write music to be fun. Music doesn’t need to be used to spread a platform or agenda or views. I think music should be an escape from all those stresses. I want people listening to my music to forget about things like the government and have a good time.

To learn more about Kevin Fowler, visit www.kevinfowler.com.

photos by scott wade

On Fire

exas country artist Kevin Fowler says he’s on the road about 50 weekends a year, which has given him a ton of opportunities to grab a beer with the locals after the show. He’s spent plenty of time in the Eagle Ford Shale area holding a guitar, a hunting weapon, a beer or all of the above. His new album, “How Country Are Ya?” will be released in March, and he’ll be playing at Cowboys Dancehall in San Antonio on Nov. 30.

It wasn’t always a 45-foot bus. I’ve really been blessed to be a part of this Texas country boom. I remember back in 1999 and 2000, it was just me, Pat Green and Cory Morrow hitting the same clubs, the same dance halls, and we made a conscious effort to build up the scene. It’s an industry now. We’ve got a whole industry. The great thing about it is we can just keep playing as long as folks will listen. Willie Nelson’s 80 years old and playing 200 shows a year. We’re lucky as Texas artists that we can have such long careers like Jerry Jeff Walker and Robert Earl Keen.

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food and entertainment

Make Your Own History True history and tales of German settlers mark The Settlement – Circa 1850, the first settlement in Bulverde that currently serves as a unique destination venue for a wide variety of events. By: Dawn Robinette photography: Michelle Jones

shale oil & gas business magazine

hanks to the research efforts of Lillian Schulze Schneider, a greatgranddaughter of the original property owner, much is known about the history of the property and its inhabitants. The story of The Settlement – Circa 1850 begins with August Anton Pieper, born June 13, 1824, in Klein Bergwedel, Hanover, Germany, who arrived in Texas soon after the first settlers came to New Braunfels. Like so many other German immigrants to Texas, Pieper sailed to Galveston, arriving on the ship “George Dillus” in November 1845. Before leaving Germany, Pieper had purchased a land contract for 320 acres in the Fischer-Mueller Grant, an area on the Colorado River, but he never received the land. The 21-year-old settled in Comal County and began work as a laborer, according to the 1850 census. Soon after the census was taken, he found his way to Cibolo Creek, hauling freight and settlers to Fredericksburg and often camping at the low-water crossing on the creek that now serves as the boundary between Comal and Bexar Counties. At the time Pieper immigrated, the Republic of Texas was awarding “headright” grants – that is,

grants given on the condition that the grantees meet specified requirements. The history of land grants in Texas is long and complex, dating back to the earliest grant made by the Spanish crown to establish a mission and presidio in East Texas in 1716. The offers varied over the years and had a variety of conditions, as Texas became a republic and then a state. At one point, Texas was giving land to those who worked and improved it for three years – the offer that was in place when Pieper immigrated. Most settlers were not interested in the land beside Cibolo Creek because it lacked a steady flowing stream. There was a water hole and the stream would surge after a rain, but steady water was important to the settlers for long-term success. Pieper and fellow German immigrants Johann Kabelmacher and Heinrich Voges liked the Cibolo Creek area in spite of the water challenges and decided to settle along the stream.

The Settlement – Circa 1850 has been restored to highlight its natural history and Hill Country beauty. Kabelmacher was a surveyor, so they surveyed a 160-acre tract for each of them (the size of the land grants being given at that time) and began improvements. Pieper set up a tent he brought from Germany, while Kabelmacher and Voges had wives and children living in New Braunfels. They worked long hours building rock fences, one of which still lines The Settlement – Circa 1850. Preparing for the coming winter, Pieper built a long lean-to shed, acquired a milk cow and began digging a well. Lined with the rock out of Cibolo, the well has a date of 1851 on it. All of the work was hand-done, and the well, which can be seen on the property, still works. At first, all of their water was bucket-drawn from this first dug well in the community. Then a hand pump was bought and Pieper built a “wasser schlucht,” German for water canyon or canal, carrying water from the well to the barn. People came from miles around to see this first wasser schlucht, which later grew to bring water to the kitchen of the home Pieper built on the property. A windmill was later added to the well, and soon, windmills appeared throughout the neighborhood. The well ultimately featured

About Don Strange of Texas Inc. Celebrating 60 years in the event and catering industry, Don Strange of Texas Inc. is known for world-class cuisine and unsurpassed style. The third-generation family business is one of the most sought-after catering companies in the nation. From small, private dinners to memorable meals and parties welcoming thousands, the company helps people celebrate through fabulous events and flavors like no other. The Don Strange of Texas brand includes catering and private dining for any location or occasion, as well as food and goods available for purchase online through the Don Strange Market Place, www.donstrangemarket.com, and event facilities including the Don Strange Ranch in Welfare, the Waring General Store, the Ropes Course, the Zip Line at Zinc Hill, the Buckhorn Saloon and Museum, The Settlement – Circa 1850 and the entertaining cookbook, “Don Strange of Texas: His Life and Recipes.” To learn more, visit www.donstrange.com. shale oil & gas business magazine

A Unique Setting for Events Looking for a venue that will help your event stand apart from the crowd? How about hosting your guests in the foothills of the Texas Hill Country, walking in the footsteps of the native Indians and settlers who carved their lives out of the rock of Cibolo Creek? Just a stone’s throw off of Highway 281 in north San Antonio, but a world away from the bustle of the city, The Settlement – Circa 1850 is a destination venue flavored with tales of German settlers that offers the beauty of the countryside and the convenience of easy travel from San Antonio. From intimate to large scale, The Settlement – Circa 1850 offers a variety of venue settings that will create memories for you and your guests, all coordinated by the fantastic event and catering team from Don Strange of Texas Inc. Don Strange of Texas provides exclusive venue management for The Settlement – Circa 1850 and can work with you to make your event the next chapter of the glorious history of the property.

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the first mechanical pump in Bulverde and today features an electric pump. The hand pump is still visible, as is the wasser schlucht, the unique plumbing system Pieper ultimately arranged for The Settlement – Circa 1850. Pieper worked hard to improve the land and make The Settlement – Circa 1850 his home in Texas. Building pens for the livestock and leantos for the cattle, Pieper also worked to clear the land for crops and a garden and began building a herd of longhorn cattle. Kabelmacher had married a widow, Sophie Theis, whose husband, Christian Kamm, and two of their five children had died at sea during their crossing from Germany. One of Kamm and Theis’ surviving children, Johanna Henrietta, born on Dec. 22, 1830, in Gross Lafferde, Hanover, Germany, married Pieper on April 27, 1851. The marriage is recorded in Comal County. August and Johanna worked the land together, digging rock from the Cibolo bottom near the low-water crossing, and dragging the stones up the east bank of the stream with oxen. August cut some of the larger oak trees and made beams – 16 inches square, according to the German style of building – and began constructing a rock barn with two large rooms on the east end. The rock barn was the first home to be built in Bulverde (then called Pieper’s Settlement), and the walls of the structure are still standing as part of the property. The building, now

named The Settlement – Circa 1850 in a nod to its status as the first structure on the property, was known for miles around as a stagecoach stop, a trading post and most of all, a place for a warm meal and friendly hospitality. Located at the heart of the property, the structure is the perfect setting for an intimate dinner under the stars for up to 12 guests, or a unique setting to exchange wedding vows before a small group of friends and family. Later, a two-story stone house was built, making the Piepers the first couple to settle this area of Bulverde. The house features two rooms, a kitchen downstairs and a large room upstairs, as well as a cellar. The cellar’s ceiling is insulated with clay and oxen hair, and then the downstairs floor is laid over that. This house still stands proudly on the property and is known as The Homestead. The original antique rafters and thatch ceiling of the cellar are visible. Formerly used as a chilled room to store food and smoked meats, the cellar is now a unique spot for cocktail parties and wine tastings. Johanna’s family and August’s friends, the Kabelmachers, as well as the Voges, soon came to live at Pieper’s Settlement, and other settlers followed. Travelers between New Braunfels and Fredericksburg stopped to camp there, and Johanna always had big pots of food ready to welcome guests. The two rooms on the barn were used to house weary travelers. Johanna also became the community doc-

tor, cooking drugs from roots and herbs and making salves and ointments that she would use to tend to neighbors in need and even sick Indians. As the years passed, the Piepers had eight children, all born in the house now known as The Homestead, and life went on beside the Cibolo. August sold the land contract he’d originally purchased before leaving Germany to John Meusebach for 10 cents an acre, signed May 2, 1853. But he never made a formal application for the 160 acres he had settled on – 10 years had gone by and no one had questioned it. One morning, two strangers arrived: government surveyors sent to survey the land for a Mrs. Thomas J. Robinson, widow of a San Jacinto war hero. Remember the land grants that were so popular with the Texas government? Both the republic and the state granted lands for military service. An act of Dec. 21, 1837, provided 640 acres each to all persons who had engaged in the battle of San Jacinto … or to their survivors. According to the State of Texas, the land Pieper had settled now belonged to Robinson. What a shock! Pieper, Kabelmacher and Voges went straight to Austin to see Gov. Edwin Clark, who had succeeded Gov. Sam Houston, explaining how they had worked for 10 years improving this land, building homes, clearing fields, building rock fences and digging wells. But Clark said, “I am sorry, but I was not shale oil & gas business magazine

The Legend of the Dragonfly For Native Americans, the dragonfly is a sign of happiness, speed and purity. In China, the winged creature means prosperity, harmony and good luck. In Japan, it symbolizes summer and autumn and is admired and respected so much that the Samurai use it as a symbol of power, agility and victory. Long a focus of legend and lore, the dragonfly carries a variety of meanings around the globe, but at The Settlement – Circa 1850, the dragonfly represents the elegance and grace of the 78 acres waiting to welcome you and your guests. The dragonfly adorning the logo is a nod to the striking natural beauty that greets you when you step on the property. As the grasses and wildflowers wave in the gentle breezes of the Hill Country, dragonflies that call nearby Cibolo Creek home hover and flit, their iridescent wings splashing flashes of color in the setting sun. The beautiful jewel-like colors of these magical, mystical creatures mesmerize and draw you in, luring you to linger and enjoy the Hill Country as you host the perfect event in a backdrop designed to impress by Mother Nature herself. 56

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able to see all the way from here to Pieper’s Settlement, and the map shows this land is unclaimed. So it now belongs to Mrs. Robinson.” He suggested they try to purchase the land from her. They did, and John Burlage, administrator of the Robinson estate, signed a deed in Travis County on Sept. 12, 1861, to Pieper, Voges and Kabelmacher, for 640 acres, for $320 cash – quite a deal in today’s real estate market! Pieper acquired a hand cotton gin, drawing many neighbors to The Settlement – Circa 1850 to gin their cotton. A molasses press again brought the neighbors together, and they worked together at haymaking time, as well. With labor scarce, each farmer took his turn at helping his neighbor. In 1875, the farmers formed the Germania Farmer Verein, and Pieper was one of the 45 charter members. He helped build the Germania Farmer Verein Dance Hall at Anhalt; he also worked on county roads and was active in all community affairs. Johanna Pieper died on Nov. 12, 1884, hours after injuring herself while carrying a sack of corn. Her funeral drew settlers and Indians together as they mourned the loss of their friend, neighbor and community doctor. Her daughter, Augusta, took over her doctoring duties. August Pieper developed Parkinson’s disease in his later years, but he had marked more than 89 years when he died on March 8, 1914. The Piepers are buried in the Leesch Family Cemetery, located on Bulverde Road, in a pasture now owned by Charles Staudt. The Settlement – Circa 1850 has been restored to highlight its natural history and Hill Country beauty, and it is maintained as an event venue featuring a variety of structures available to host a wide array of corporate events, weddings and family gatherings. A custom-made structure designed for the perfect party, “The Barn,” was added to the property this year. Crafted from reclaimed lumber, giving it the natural look of the rest of the property, The Barn features antique windows, blending into the weathered beauty of the original settlement. Featuring 14-foot porches on both sides of the building, as well as a 32-foot-high cupola, The Barn can host an event for up to

300 people. The Barn became available for event dates on Sept. 1, 2013. The entire venue site is available for use – Don Strange of Texas can work with you to utilize each structure to make your event flow as you enjoy the beauty of property, while individual structures on the site also provide a variety of event options depending on your needs. And of course, a custom space can be crafted with tenting. With 78 acres to play with, you can make your own history at The Settlement – Circa 1850.

settlement recipes

German Potato Dumplings • 1 tablespoon butter • 2 egg yolks • 1 cup breadcrumbs • 1 cup mashed boiled potatoes

• Lemon peeling • Nutmeg • Salt • 2 egg whites

Cream butter and add egg yolks, breadcrumbs, potatoes, lemon peeling, nutmeg and salt. Last, add stiffly beaten whites of eggs. Drop by small spoonfuls into boiling water and cook about 10 minutes.

Chicken Schnitzel With Mushroom Sauce • 2 bone-in chicken breasts • 3/4 cup flour • 2 large eggs, beaten • 1 cup plain breadcrumbs • Kosher salt, to taste • Freshly ground black pepper, to taste • 1/4 cup canola oil • 2 tablespoons unsalted butter

• 1 package (8 ounces) sliced mushrooms • 1 teaspoon chopped garlic • 1 cup chicken broth • 1 tablespoon Worcestershire sauce • 1/2 cup sour cream • 1 tablespoon chopped parsley, for garnish

Remove the chicken breasts from the bone. Slice each breast in half lengthwise. Put them between pieces of plastic wrap and pound them with a mallet or small skillet until they are 1/4-inch thick. Set up a breading station with three pie plates or shallow dished. Put the flour in one and season it with a generous pinch of salt and pepper, the eggs beaten with 2 tablespoons of water in another and the breadcrumbs in the third. Dredge the chicken pieces in the flour, then the egg wash and then the breadcrumbs. Set aside. In a large skillet over medium heat, add the oil. When the oil is hot, add the chicken in 1 layer and cook until it is golden brown and crispy (about 4 minutes per side). Drain on brown paper and keep warm while you make the sauce. In another skillet over medium heat, add the butter. When it is melted, add mushrooms and season them with salt and pepper. Cook until they are browned (about 6 minutes). Add the garlic and cook for 30 seconds, then add the stock and simmer for 4 minutes and reduce by one third. Add the Worcestershire sauce, turn the heat off and let cool for a minute before stirring in the sour cream. Serve the schnitzel with the sauce poured over the top, garnished with parsley.

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travel and real estate

Fredericksburg’s ultra-exclusive Boot Ranch offers the ultimate in five-star luxury living and serves as an oasis like no other. By: Jimmy Perkins

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ust 80 miles west of Austin and 70 miles northwest of San Antonio lies an oasis like no other: Fredericksburg’s ultra-exclusive Boot Ranch. Publisher Kym Bolado and I just returned from our visit to the luxury private golf community. We were stunned by the expanse of the ranch and its first-rate amenities, as well as the opportunity to own a piece of heaven on earth. Some community features include a 7,155-yard championship golf course designed by resident pro-golfer, PGA legend and Ryder Cup hero Hal Sutton; a restaurant run by award-winning Executive Chef Aaron Staudenmaier; a magnificent 55,000-square-foot clubhouse village; and a newly constructed four-acre ranch club with a series of four pools that are heated and total more than 125,000 gallons. The ranch club also features an open-air pavilion that will house a full bar and pizza oven with

plenty of seating, televisions, ceiling fans and tennis and sport courts. Another recently completed feature is the first of the overlook cabins boasting five bedrooms and five-and-a-half bathrooms, a state-of-the-art outdoor courtyard and outdoor kitchen and spectacular back porch views of the signature 10th hole and its double 40-foot waterfalls. The cabin draws upon classic Hill Country architecture, and it is centered on a family-gathering concept. Not to mention estate homes and lots, Sunday houses, five-star accommodations at the lodge and the community’s esteemed members and residents. The Boot Ranch Clubhouse Village rests naturally atop a Texas Hill Country plateau as we stop at the entry gate. An easy 70-minute drive from San Antonio ends in what is without question the most ambitious and dramatic private community development ever to be envisioned and woven into the tapestry of this beautiful landscape. And here

photos courtesy of boot ranch

Heaven in the Hill Country

photos courtesy of boot ranch

along the ancient Pinta Trail, we sit and gaze in the distance upon the clubhouse village, which includes the buildings that house the clubhouse, the men’s locker room and lounge, the ladies’ locker room and lounge, the spa, the fitness center and the members’ lodges. As we arrive at the clubhouse, I am immediately struck by two words: strength and permanence. From the mix of stone, iron, timber and rough-hewn shingles used to construct this fortress, it is clear that Boot Ranch is here to stay. Borrowing heavily from the German immigrants who settled this land in the 1840s, the visionaries have struck a concordant note with both history and landscape. From a geomorphological perspective, it is as if these structures revealed themselves as naturally from this ground as a limestone shelf. However, it is the land itself that commands center stage. Rolling hills, a spring-fed creek and lake and well-groomed majestic oaks centuries in the making create the ambiance for a 25-mile view in three directions. If one could see a symphony, this is what it would look like. And with an elevation of 2,200 feet, the climate remains temperate year-round with low humidity and lower temperatures than surrounding areas. Boot Ranch is definitely a one-of-a-kind community. The most prestigious of addresses, it’s been designed with every generation

in mind, and it caters to families as much as it does to leisure pursuits. Explore scenic nature trails, meander your way down winding bike paths, hone your marksmanship skills at the trap and skeet pavilion, paddle out on Longhorn Lake to reel in some native bass or rejuvenate yourself at the luxurious spa, Restore. It’s no wonder Sutton chose this place to design a course incorporating everything he loved about the game, but with one thing in mind: to provide every player with a peak golf experience. Sutton took full advantage of the natural contours of the property and created a course that rises and falls along the natural ridges and valleys and takes full advantage of natural water features. In front of the signature 10th green cascades a 40-foot waterfall that provides not only a dramatic visual, but also a challenging test with multiple risk/reward options. Sutton designed the course for all players, but the tournament tees length of 7,155 yards and a slope rating of 148 offers a test for even the most talented of players. And if an 18-hole championship golf course wasn’t enough, he added more. Drawing on his experience on Tour, he created a Texas-sized 34-acre, 360-degree practice park that includes a short game range and an executive par-3, nine-hole course. 

Boot Ranch offers many things, but “community” is its greatest offering. shale oil & gas business magazine

shale oil & gas business magazine

hand-hewn cedar beams from British Columbia, antler chandeliers and beautiful Texas artwork visually enhance the dining experience and lend themselves to the environment, where members can choose from many community and private dining areas. And there is no better place to enjoy the breathtaking long-distance views of the Texas Hill Country than dining on the back porch of the Boot Ranch Clubhouse Village. The Boot Ranch location makes for great home sites. Imagine relaxing in your own luxury retreat set amidst 2,000 acres of rolling hills atop the best part of the Texas Hill Country. Boot Ranch offers you homeownership choices as individual as you. Consider estate home sites with stunning, unparalleled 25-mile views. These two- to 18-acre sprawling home sites with rolling hills allow homes to be placed at elevations up to several hundred feet above the valley. In addition to estate home sites, overlook cabins and Sunday houses offer attractive options. The overlook cabins capture the rustic charm of homes handcrafted by the Hill Country’s original settlers, and lots of them are nestled in a special place overlooking the 10th hole. Each halfacre 1,800- to 3,000-square-foot cabin

photos courtesy of boot ranch

The Sutton-designed course is without a doubt the crown jewel of this exclusive community. Recently recognized as a Top 10 course by the Dallas Morning News, it was also ranked No. 106 by Golfweek in 2013. As the course continues to mature, it will undoubtedly achieve a Top 100 ranking in the near future. The folks behind Boot Ranch put just as much thought and planning into the clubhouse atmosphere and restaurant. The clubhouse is home to a celebrated restaurant with a well-stocked wine cellar, offering only the very best to those who appreciate fine food and wine. Staudenmaier, the award-winning executive chef, delivers acclaimed Hill Country-inspired menus that have members often requesting recipes. Staudenmaier’s cuisine sets the standard for Hill Country dining. Without question, this is a five-star dining experience that is complemented by a wide range of daily menu options. Having cooked at two of the top three restaurants in the country (Mansion on Turtle Creek and The Inn at Little Washington), Staudenmaier moved to the Hill Country to open the restaurant at Boot Ranch to provide the best of what Hill Country dining has to offer. Enormous

photos courtesy of boot ranch

features turnkey plans for intimately scaled one- to six-bedroom cabins, lofty guest cottages, barn-style garages and spacious outdoor courtyards. The overlook cabins start at $800,000 and offer a wide range of living choices. Boot Ranch shared-interests Sunday houses offer an escape from the daily distractions and harried pace of city life. A spacious courtyard and stone walkways connect the five structures. Together, they offer a wonderful balance of privacy and community. A large gathering house is surrounded by four standalone cottages, each of which is a luxurious suite. Starting at $300,000, this is an attractive entry opportunity that can be converted into a year-round residence if you so choose. When not enjoying Boot Ranch’s plentiful amenities, the historic town of Fredericksburg is close by. One of Texas’ most popular destinations, it offers great restaurants, shopping, wine tastings, art galleries, festivals and museums. San Antonio and Austin, two of Texas’ most visited cities, are also about an hour drive from the property. And a short 15-mile drive north leads to Enchanted Rock State Park and its famous pink granite batholith dome covering 640 acres. Just as Boot Ranch has harmoniously entered the landscape, it has also become a fixture in the community at large. Earlier this year, it hosted the Fourth Annual Nimitz Golf Classic to shale oil & gas business magazine

For membership pricing details, please contact Sean Gioffre or Andrew Ball at 830-997-6200 or info@bootranch.com, or visit www.bootranch.com.

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photos courtesy of boot ranch

The Hal Sutton-designed golf course is without a doubt the crown jewel of this exclusive community.

benefit and honor our wounded warriors; together with the Fredericksburg community, they raised $100,000. Additionally, area high school golf teams are able to play the course on a routine basis as part of Boot Ranch’s commitment to the community. All of this is a testament to the spirit of community embodied at Boot Ranch and the tone set by Sutton himself. Boot Ranch offers many things, but “community” is its greatest offering. It is a place to relax, to recharge and to escape, but it is also designed to provide an unparalleled environment for building memories. It is a place where a lifetime of hard work can truly be realized. A place where your family can commune, and the legacy of strength and permanence that family represents can be nourished. There are many choices for exclusive living, but few – if any – can compare to the beauty, amenities and down-home friendliness at this Hill Country cathedral. Do yourself a favor and take a trip to Boot Ranch. You aren’t paying to belong; you are paying to be home.

photos courtesy of boot ranch

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travel and real estate

Artistic Eye “If you can dream it, we can build it.” That’s the creative motto of interior designer and entrepreneur Catrina Kendrick, who has turned her career dreams into a reality at Catrina’s Ranch Interiors. Special to SHALE

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o shopping at Catrina’s Ranch Interiors, and you’ll likely find the owner, Catrina Kendrick, juggling phone calls, meeting with clients, answering employee questions, conferring with craftsmen and doing 1,001 other things that are necessary to keep her custom furniture and interior design store thriving. The decorating expert, who is noted for her one-of-a-kind furniture pieces, leads a demanding professional life. But she’s not complaining. Kendrick loves the challenges and even the multitasking involved. “Everything I used to do for other people I’m now doing for myself and this business,” she says. “This is exactly the life I imagined for myself.” Kendrick had years in the furniture business managing and buying for other furniture stores. She takes understandable pride in her stores and her specialty handcrafted furniture made of Canadian alder, as well as mesquite, pine, cedar and antique woods. She’s proud of her extensive inventories – unique things such as antler and iron chandeliers, custom furniture, rugs and layers of unique accessories overflowing from her 7,000-squarefoot store to huge circus tents located on her large acreage right on Interstate 10 West, just outside of Boerne, Texas. She’s also proud of the way she has been able to turn her career dreams into realities. The ranch store started out as what most considered an impossible dream. People gave dire warnings about the venture and told her it was crazy to leave a great downtown location behind (she had a successful home décor shop on Boerne’s Main Street). They shook their heads and asked, “Why take a dangerous gamble on an old, rundown building just off the interstate? And being out there all alone without the Boerne tourist crowds will be a huge risk! Why move?” It was a good question. But although Kendrick pondered it for a while (and although she spent some sleepless nights scared to death that it might be a mistake), she decided to make the move. Somehow the entrepreneur just knew the old building made partly of a barrack building constructed in 1935 had possibilities and could be repurposed to provide a perfect showcase for her quality wares and custom furniture designs. Furthermore, there was nostalgia involved. It had been the site of her first commercial design job more than three decades ago, and she had watched it function as a popular restaurant for many years. Many remember the old LOFT Steakhouse in Boerne.

Kendrick beautifully renovated the old loft and opened the store in 2005. And what a space it is! Replete with Texas/Tuscan/hacienda influences, it never fails to awe shoppers in search of the finest-quality home furnishings and unusual decorative items. The building feels like an old ranch house. Kendrick is no stranger to the various aspects of interior design. She spent many years working on commercial and residential projects in Houston and Colorado. It was a busy life even way back then – but nothing compared to now with so many hats to wear. The creative bonnet just might be the hat she likes best. She truly delights in working with clients, sketching out custom pieces that suit their tastes and then seeing the one-of-akind creations through to completion. “If you can dream it, we can build it” is her motto, and she pretty much stands behind it. What if a client has no dreams in mind? Well, no problem! The interior designer also meets with people in their homes to offer

fabric samples image xxxx/shutterstock.com

Kendrick’s approach rejects the one-style, right-outof-the-catalog look. decorating advice and to suggest what might be successfully integrated into arrangements. Her approach rejects the one-style, right-outof-the-catalog look. Instead, she favors an eclectic mix of old and new, enlivened with eye-catching conversation pieces that have personality. Attractive showroom arrangements aptly illustrate her design philosophy, and customers are encouraged to browse and make a mental wish list. The business owner tells her staff to be friendly and helpful, but never pushy. She also emphasizes the importance of making deliveries on time and insists that installers do a professional job. (There is a one-month turnaround time on custom-crafted furniture in most cases.) Kendrick’s professionalism and design talent have resulted in honors ranging from the Parade of Homes to the Summit Awards, both sponsored by the San Antonio Builders Association, of which she is an active member. She even won the Parade of Homes at Comanche Trace in Kerrville in 2011, and most recently, the Parade of Homes last fall in San Antonio.

Her career started when she was a teenager who arranged flowers for a local florist. When setting up for home weddings, she’d often find herself moving furniture around at a home in order to make things work better for a special occasion or party. Customers liked what she did and always seemed to leave their furnishings right where she placed them. Many told her she should become an interior designer. Even at a very young age, she had an artistic eye. Innate artistic talent eventually led her to interior decoration with Lack’s Furniture and to opening a downtown shop in Boerne, which her sister managed for her. Years later, it was off to Houston to work for Fingers Furniture, and then to Colorado to be the buyer and general manager for Denver Furniture. And eventually, the move to the historic old building that became Catrina’s at the Ranch followed. Each one of the career steps over the years has been a learning experience and a natural progression, Kendrick explains. Every move has been an opportunity to further develop her talents and discover quality resources and

talented craftsmen. Now a mature businesswoman, she manages to run her business and pay it forward, helping other women and being very active with charity fundraisers. Currently, Kendrick works in close collaboration with some of the finest woodworking masters in Mexico; she has great respect for their techniques and handcrafting. Indeed, every beautiful piece that’s created by her artisans, whether a tiny table, a massive armoire or a dining room group, is hand carved, built to last and built to be handed down. Kendrick likes to think about future generations still enjoying her heirloom-quality pieces. It makes her demanding workdays and non-stop schedule all the more worthwhile.

Catrina’s Ranch Interiors is located at 31300 IH-10 West off exit 543. To learn more about Kendrick’s interior design store, call 830-7556355 or visit www.catrinasranchinteriors.com, where you can see a selection of room settings and furnishings and shop online. shale oil & gas business magazine

travel and real estate

Home for the Holidays The perks of buying and selling homes during this festive time of year By: Tabitha King

◆ Faster closings: Lenders, realtors and others have more time to work with you. It’s the most wonderful time of the year … to sell a house! Although moving during the holidays may not be ideal, enjoying your completely unpacked home when the weather warms up is ideal. And although sales may tend to drop off between November and January, there are actually some good reasons to sell your home during these months: ◆ Buyers are more serious: Buyers shopping for a home during the holidays probably have a deadline to buy – a deadline such as a job relocation or military transfer. ◆ Buyers have more time to look during the holidays and fewer houses to choose from. That means less competition for you.

s the holiday season is upon us, let’s talk about the perks of buying or selling a home during the holiday months. It is true that fewer homes are on the market, as sellers sometimes take their home off the market to enjoy the season with their family and friends. But this overlooked time of the year has a few perks. Holly jolly house hunting! The holiday season is a good time to buy a home. Here are some reasons why:

◆ Less competition: You enjoy less opposition from other buyers during this season than you would in the spring. ◆ Serious sellers: Sellers who keep their home on the market at this time are motivated. ◆ Better interest rates: Many lenders experience fewer requests for mortgages at this time. ◆ Tax deduction: Closing before the end of the year may give you a much-appreciated tax deduction. Speak to a qualified tax advisor.

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◆ Buyers are more emotional during the holidays, so they may be more likely to pay your price. ◆ You can still be on the market, but you have the option to restrict showings during the six or so days in the actual holidays. Whether you are buying or selling this holiday season, it’s best to have quality professionals helping you. A good real estate agent and lender can take the burden off your shoulders so you can also enjoy the season. Home is the keeper of our memories, and it is where we hang our hearts. Happy holidays from my home to yours!

Established in 1974, King Realtors is one of the oldest and finest real estate companies in Alamo Heights. They are and always have been a staple within the Alamo Heights community. They know all of the wonderful assets and jewels that lie within this wonderful community. Tabitha and Trey King head up 20 experienced agents who provide exceptional service to clients with housing needs in the oil industry. For more information, please call 210-826-2345 or visit www.kingrealtors.com.

santa hat and house keys image inxti/shutterstock.com

There is less competition for both buyers and sellers during the holidays.

◆ Homes often look their best during the holiday months.

Presents a conference on:

Exclusive Subscriber Offer: Mention Code “FLR_SHALE” & Save 20% Off! Offer Expires on December 25

January 28-29, 2014 • Houston, TX

Harnessing Otherwise Flared Gas for Productive Use Endorsed by GGFR: The Global Gas Flaring Reduction (GGFR) public-private partnership facilitates the collaboration between oil producing nations, state-owned oil companies, and major oil companies. This World Bank-led initiative fosters balanced and pragmatic approaches to help reducing gas flaring to levels as low as technically and economically possible.

The monetary value of flare reduction: • CERES estimates that roughly $1 billion of associated gas was flared in the US in 2012

and that the amount is set to increase every year

• Over the last 6 years KOC has massively reduced their flaring, initially driven by

environmental concerns, their attention soon began to focus on the huge cost savings. In total, KOC’s flare reduction program lead to a financial gain of US $2.75 billion

• Daleel Petroleum successfully reduced the amount of gas they flared, an initial

investment of about $22 million and an annual Opex of about $8.5 million, in 2012 the company recovered about $15–20 million per year worth of hydrocarbon liquids (NGL & LPG), and saved about $15 million of diesel fuel, with forecasts of this doubling.

Top

benefits of attending:

Be part of this unique North American conference and network with industry leaders

Learn about commercial and technological solutions to flaring

Understand how to overcome the critical challenge of utilizing small amounts of associated gas

Act Now! First 20 VIP Passes are available at $50 for Exploration and Production Companies as well as Government Regulators. Register today to save.

Featuring Lead Experts: Subramaniam Lyer Director GGFR

David Porter

Commissioner Railroad Commission of Texas

Ryan Salmon

Manager Oil & Gas Program CERES

Keith White

EHS Director Chaparral Energy

Gerald Palanca

Technical Specialist Field & Operations Branch, Alberta Energy Regulator *Tentative

Vladimir Piven

Professor Petronas University of Technology

Senior Representative Mexico National Hydrocarbons Commission

www.FlareAndGasManagement.com/SHALE • 1-800-882-8684 • enquiryiqpc@iqpc.com 67 shale oil & gas business magazine

nonprofit

he second weekend in October is known to many in the South Texas oilfield region as DRH Shoot Time. Double Rafter H Construction LLC, known as DRH, is a small-town company with big ideas. In 2004, Lane and Mardee Hamilton had the idea of getting a group of family, friends and neighbors together near their ranch in Duval County for what would become an annual sporting clay event and fundraiser. The Hamiltons had this idea of putting on a sporting clay fundraiser to raise money for graduating seniors in Duval, Jim Hogg and McMullen Counties to help them with their continued education. This fundraiser has grown in numbers and interest over the last nine years, and it is now held on the Hamilton ranch in Tilden, Texas, at DRH headquarters. Many come from all around to put their skills to the test. This 20-station course is hard to beat with traps that are hidden from view deep within the thicket of mesquite trees and prickle pear cactus. Donâ&#x20AC;&#x2122;t let this course fool you. This sporting clay fundraiser has grown so much that in 2010, it became an officially registered event. Many people of all ages, young

A Staple of South Texas Double Rafter H Construction LLC lives up to its reputation as a smalltown company with big ideas. By: Hank Rosendfelder

shale oil & gas business magazine

and old, attend; however, it has recently become an important staple for registered sporting clay shooters who are attending nationals the following weekend. The DRH Sporting Clay Tournament & Fundraiser has substantially grown each year, with its last event sporting more than 300 shooters and 600-plus attendees. This event features an afternoon flight on Friday, followed by an evening community barbecue with live entertainment. Then, in the South Texas early morning sunrise, the trucks start rolling in and the ATVs unload and line up as the Saturday festivities began. A second flight of shooters starts the morning off around 9 a.m. after a quick safety meeting and prayer to head out and challenge the course. All come back happy and hungry, awaiting their results. Meanwhile, shooters and spectators alike fill their plates with food and grab a cold drink while they have the opportunity to bid on the vast array of silent and live auction items all donated thanks to the generosity of others. All of the proceeds raised from this event go toward scholarships for graduating seniors and various other community projects. This fundraiser is unique in that all graduating seniors wanting to apply for a DRH scholarship must help volunteer and participate in order to qualify. Please mark your calendars for the second weekend in October next year and join us as we celebrate our 10th anniversary of this event. Although DRH is involved in giving back to others, it also has more than 80 employees. DRH is an oilfield service company that provides services in the Eagle Ford and South Texas region. The Hamiltons started DRH in May 2003 with one bulldozer and three operators. It has since grown to become a well-known and respected company in the oilfield business. DRH has a history of offering a variety of oil and gas construction site services, as well as providing a high standard of quality service to major oil and gas operators in this region. Lane Hamilton has more than 20 years of experience in running and managing construction crews and heavy equipment.

The goal of DRH is “safety first always.”

The Hamiltons’ company and reputation have grown because of their strong beliefs in honesty, leadership and a good old-fashioned handshake, followed by hard work. These values are derived from growing up in a family whose roots trace back to the beginning of Texas’ heritage. Lane Hamilton married Mardee in 2002, and they have built the company from the ground up together. Along with being a mother of two young boys, Mardee helps run the company and serves as the vice president. She comes from Tennessee, and she has a strong background in business development and may years in sales and marketing in the pharmaceutical industry. When she is not helping keep up with the many interests of DRH and its sister companies, she is giving back to the community by helping teach the

kids her love of sports. To date, DRH provides oilfield services to major oil and gas operators in the South Texas region. It is a fully insured company, and all of its operators are certified and safety trained. DRH conducts monthly safety meetings, and it maintains records to reflect these meetings. The goal of DRH is “safety first always,” along with a high-quality work ethic from trained personnel. The trusted relationship the Hamiltons have developed throughout the community and the oil and gas industry has kept DRH a trusted company that gets the job done no matter the challenge.

For more information on Double Rafter H Construction LLC, visit www.doublerafterh.com.

ATTENTION:

EAGLE FORD SHALE INVESTORS

D IV E R S IF Y your oil income into technology South Texas, San Antonio based High Tech Social Media startup is seeking series A funding Texas Money for a Texas Business

Invest Directly through Investor Relations or through a well known diversiied fund based in San Antonio. San Antonio technology focused businesses are booming. As financial resources from our oil rich state matriculate into the secondary economy, opportunities to highlight our own Home Grown Entrepreneurs will increase.

To learn more, please contact us. We will provide you with an investor relations packet.

Lee Johnson, CEO 210-325-0728 investor@copingo.com

www.copingo.com shale oil & gas business magazine

scene

competing for a cause The San Antonio Pipeliners Association holds its annual golf tournament.

n Friday, Oct. 4, 2013, the San Antonio Pipeliners Association (SAPA) held their annual golf tournament at the Republic Golf Club in San Antonio. SAPA is a nonprofit organization, and the money raised is used to provide scholarships to deserving second-, third-, fourth- and fifth-year college students pursuing a bachelor’s or graduate degree in math, science or engineering. Additional funds are raised through golf tournaments, clay shoots and fishing tournaments held throughout the year. SAPA also provides an opportunity for “peer-topeer” networking for men and women involved in the pipeline and midstream industries. For more information, visit www.sapipeliners.org.

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scene

Informative and Entertaining The South Texas Wildcatters announces the speaker lineup and agenda for the 2013 Wildcatter Reception, sponsored by the Texas Alliance of Energy Producers. By: Scott Courtney

he South Texas Wildcatters is pleased to announce the speaker lineup and agenda for the Dec. 4, 2013 Wildcatter Reception, sponsored by the Texas Alliance of Energy Producers. The event will be the most informative and entertaining event of the year. The Wildcatter Reception will begin at 5:30 p.m. at the Northwest Marriott, located at 3233 Northwest Loop 410 in San Antonio, Texas. We are honored to have both a leading author and businessman speaking on America’s energy policy and Jeff Schwarz, Marathon Oil regional manager – Eagle Ford Operations and Construction Team, as our honored quests and speakers. Mark A. Stansberry is an international businessman, energy leader and humanitarian from Edmond, Okla. He is the founder and chairman of The GTD Group, and the author of “The Breaking Point: America’s Energy Dreams and Global Economic Realities” and “America Needs America’s Energy.” He will deliver a speech on America’s energy policy. Schwarz will represent Marathon Oil as we present our Wildcatter Award to Marathon Oil for their tremendous success and efforts in the Eagle Ford and South Texas community. Join the South Texas Wildcatters for a wonderful night of business networking and socializing while getting informed on America’s energy policy and hearing about Marathon Oil’s South Texas program. Registration information can be found at www.texasalliance.org.

Scott Courtney, P.G., is chairman 2013 South Texas Wildcatter Committee and a member of the Texas Alliance of Energy Producers. For more information, contact him at Premier Hydro/ Sterling Fluid Transfer by calling 210-823-2193.

shale oil & gas business magazine

scene

first class

Diverse Energy Systems holds its first-ever skeet shoot at the RockinV Ranch. special to shale / photography: kym bolado

etting together for some good food and competitive fun is a great way to create relationships that last. The Diverse Energy Systems team did just that on Oct. 7 at the RockinV Ranch with its first-ever skeet shoot. Fourteen people came to out to Three Rivers for our event. The RockinV Ranch is situated on 2,000 acres off Highway 281 near Three Rivers. The ranch is fully high-fenced and stocked with trophy bucks and exotics, and it features some of the best quail hunting in Texas. The Texas-style compound accommodates 18 guests in 11 bedrooms. RockinV also sports a formal eight-station skeet shooting range. This sounds easy enough, but those birds come out fast. Congratulations to Ray Pereira of Drillmec for placing first in our competition by breaking 37 out of 50 clays. “This was absolutely first class all the way,” said Jonathan Crouse, the director at PSI Midstream who finished in second place and made the competition interesting by hitting 35 of 50. “The whole crew from Diverse didn’t stop working the whole time to make sure everyone was taken care of and having a good time, and I definitely had a deliriously good time.” Rick Wilson of Sanchez Oil and Gas had a strong showing with 31 out of 50 and placed in third. “This was a great event,” said Chet Erwin, CEO of Diverse Energy Systems. “Events like this lead to stronger business relationships.” Due to the strong showing and great potential of this event to spread the word about our company, we hope that we can have more Skeet Shoots in the future. “All of the participants at our skeet shoot had a blast,” said Scott Muster, vice president of

shale oil & gas business magazine

“I definitely had a deliriously good time.” marketing for Diverse Energy Systems. “This was a big success. I believe we will need to do this again in the spring.” Headquartered in Houston, Texas, Diverse Energy Systems LLC operates an oilfield equipment and services company. Serving global oil and natural gas markets, Diverse provides integrated solutions with products and field operations from the wellbore to the pipeline. Diverse builds steel and NGL storage tanks, KeepSafe Containment Systems, FlowFast Jet Pumps for artificial lift, PDQ LACT Units, HAMMER PowerGen, tank accessories, heater treaters and products for saltwater disposal sites. In addition, Diverse provides Boots on the Ground Field Operations from site prep to startup and commissioning.

For more information about Diverse Energy Systems, visit www. des-co.com. And to learn more about the RockinV Ranch, visit www.rockinvranch.com.

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scene

Bringing the Best Together The JW Marriott San Antonio Hill Country Resort & Spa plays host to the 2013 Frac Sand Supply & Logistics Conference.

The 2013 Frac Sand Supply & Logistics Conference was held at the JW Marriott San Antonio Hill Country Resort & Spa on Sept. 5 and 6. The conference brought together industry leaders sand suppliers, exploration companies, rig operators, crude producers, rail companies, truckers, barges and those who provide technology solutions to help develop a more efficient supply chain.

shale oil & gas business magazine

scene

making connections

Industry, government and academic leaders discuss the growth and practice of hydraulic fracturing at a working lunch hosted by Petroleum Connection. special to shale / photography: greg harrison

he Petroleum Connection hosted an excellent working lunch at the Petroleum Club of San Antonio on Tuesday, Sept. 24, 2013. A panel of industry, government and academic leaders discussed emerging technologies, innovations and issues surrounding the growth and practice of hydraulic fracturing as related to air and emissions. Moderator Omar Garcia, president and CEO of STEER, led the panel’s discussion. The panel consisted of Peter Bella, natural resources director at Alamo Area Council of Governments; Brad Holms, chief technology officer at FTS International; Kathi Harris, emissions business manager at HOLT CAT; and Jesse R. Alonzo, program manager at the Texas A&M Institute of Renewable Natural Resources.

Petroleum Connection offers high-level conferences on targeted issues in the dynamic and important oil and gas industry. Its conferences are intentionally limited in size and focus on niche, but important, oil and gas issues. For more information, visit http://petroleumconnection.com.

shale oil & gas business magazine

scene

Empowering Women in Energy

SHALE magazine attends a panel discussion hosted by Women’s Energy Network, an organization dedicated to assisting the growing numbers of women working in the energy industry. special to shale / photography: kym bolado

n Monday, Oct. 14, 2013, SHALE magazine participated in a panel discussion hosted by Women’s Energy Network and facilitated by keynote speaker, Cindy Bigner, senior director of global diversity and inclusion at Halliburton. The audience was a group of ladies attending UTSA who are earning their degrees in engineering. South Texas is a dynamic, growing region to live and work in the energy industry. With the development of the Eagle Ford Shale, the regional economies encompassing San Antonio, Laredo, Corpus Christi and the neighboring communities are seeing a surge in demand for resources to support upstream, midstream, downstream and oilfield service activities. The ranks of women working in the energy industry in South

shale oil & gas business magazine

Texas are growing. Women are working as landmen, attorneys, geologists, dispatchers, engineers, drillers, pipeliners, traders, back office support staff, executives and entrepreneurs. Women’s Energy Network established the South Texas chapter to assist women working in this region. The organization promotes networking, education, mentoring, leadership and career development for women employed in the energy industry.

For more information, visit www.womensenergynetwork. org/?nd=southtexas.

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scene

The Texas Alliance of Energy Producers presented the Legends Merit Award to Eugene (Gene) L. Ames Jr. and his family.

Insight and Education

T Left to right: South Texas Wildcatters Host Committee Chairman Scott Courtney, Texas Railroad Commissioner David Porter and Texas Alliance of Energy Producers Chairman Townes Pressler

shale oil & gas business magazine

he Texas Alliance of Energy Producers held the Energy, Air and Water Conference in San Antonio on Thursday, Oct. 10, at Marriott Hotel Northwest. There were well over a dozen presentations by industry experts and a luncheon address by Texas Railroad Commissioner David Porter. The conference was hosted by Townes G. Pressler, chairman of the board for the Texas Alliance, and Scott Courtney, chairman of the South Texas Wildcatters. The presentations were insightful and educational. Of particular note was the keynote address by Dr. Cal Cooper of Apache Corporation. Cooper presented his topic, “Protection of the Environment Paramount in

Developing Oil and Gas Resources,” a wellbalanced and informative study on the use of electricity and water in the drilling process. Another highlight was the special recognition of Eugene (Gene) L. Ames Jr. and his family with the Legends Merit Award. This award honors members who have made a long-time contribution to the betterment of the industry, the community and the country.

The Texas Alliance represents the interests of the oil and gas industry at both the state and federal levels of government. The alliance’s commitment is to ensure that tomorrow’s energy policy will be one in which our members can grow and prosper. For more information, visit http://texasalliance.org.

PHOTOS COURTESY OF TEXAS ALLIANCE OF ENERGY PRODUCERS

The Texas Alliance of Energy Producers holds the 2013 Energy, Air and Water Conference at Marriott Hotel Northwest in the Alamo City. Special to SHALE

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