FACTS VS. FICTION FRACKING AND WATER USE | SIMPLY AMAZING SENDERO RANCH
SHALE OIL & GAS BUSINESS MAGAZINE
SEPTEMBER.OCTOBER 2013
From Small Town to Boom Town
PLEASANTON CHIEF OF POLICE RONALD SANCHEZ WEIGHS IN
TEAM PLAYER
MUD ENGINEER MIKE MCANDREW
BE PREPARED
HOW TO HANDLE WORKPLACE CATASTROPHE EIA’S ANNUAL INTERNATIONAL ENERGY OUTLOOK
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www.portofcorpuschristi.com
contents
september/october 2013
20 progress in pleasanton
Chief Ronald Sanchez
feature
12 On the Road 14 Demand the Extraordinary
industry
16 Industry Input 18 Statement on EIA’s Annual
International Energy Outlook 20 Team Player
environment and safety
26 Expanding Efforts 28 Preparing for Catastrophe 32 Myths vs. Facts 36 A Unique Problem
science and technology
40 Houston’s Chemical
Reaction
travel and real estate
46 No Monkey Business 48 Designed to Simplify Life
food and entertainment
50 The Secret’s in the Sauce 52 A Walk Through History 54 Share and Share Alike 60 The High Life
nonprofit
62 Getting in the Field
scene
64 Simply Amazing
in every issue 08 Advisory Board 10 Publisher’s Note
shale oil & gas business magazine
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advisory board OIL & GAS BUSINESS MAGAZINE
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.”
september/october 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
omar garcia 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.
Elisa Giordano
senior graphic designer Cristina Villa Hazar
account executive Liz Massey
administrative assistant Joyce Venema
contributing writers
Jason Alvarez, Doug Cain, Lorne Chan, Scott Courtney, Melinda Eddleman, Valerie Grant, Dr. Harold D. Hunt, Catrina Kendrick, Tabitha King, Alex Mills, Jimmy Perkins, Ronald Sanchez, James M. Summers, Jeffrey A. Webb
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.
Shane Kyle Jimmy Perkins Jose Sanchez Photography
editorial intern London Prince Katrina Torres
www.getnside.com For advertising information, please call 210.240.7188 or email kym@getnside.com.
Richard Ojeda San Antonio native Richard Ojeda is the owner of Black Tie Affairs Catering and Leon Springs Dance Hall and a minority owned partner with RK, LLC. He has been in the food industry for more than 30 years. He recently had the honor to be Rey Feo LXIV in 2011. He is a lifetime member of the San Antonio Livestock Exposition and a member of several different organizations, including the Greater San Antonio Chamber of Commerce, the Greater San Antonio Builders Association, the San Antonio Restaurant Association, the Consejo organization, St. PJ’s Children’s Home and the San Antonio Sports Foundation. Ojeda is a proud father of three and grandfather of five: Cecily, Paisley, Drake, Jane Francis and John David. continued on page 9
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For editorial comments and suggestions, please email kelly@getnside.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
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publisher’s note What an amazing two months we have had since the launch of our inaugural issue of SHALE. What a wildly successful ride it has been.
kym bolado
CEO/Publisher of Shale of South Texas Oil & Gas Business Magazine kym@getnside.com
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shale oil & gas business magazine
PHOTO BY SARAH BROOKE LYONS
Since our release, we have been overwhelmed with interest and partnership from the communities of South Texas. To all of you: I am truly humbled by the number of compliments we have received. The cover, content and overall feel of the magazine are just a few of the things people have complimented in the past month. As I have stated previously, the mission of SHALE is to promote business development within the oil and gas industry, and since we launched, we have had several success stories of connection to spark new business opportunities for our partners. We have added many new partners and are adding newly appointed advisers to the board. SHALE is a fast-growing magazine in the Eagle Ford Shale area. Within two weeks, we exhausted more than 7,000 copies to the community and our partners. We have received many invitations to community events, grand openings, seminars and expos – all of which we have attended. I look forward to even more of the amazing growth that we are experiencing and to the opportunities that await all of us within our community. Please be sure to stay in touch with us, as we have our first SHALE Golf Invitational coming in October at the exclusive Boot Ranch. The SHALE launch celebration is sure to be ranked a networking dream. We are the only business magazine that focuses on getting in front of key decision-makers in the oil industry. Be sure to stay tuned for our exclusive interview with Lewis Energy’s wildcatter Rod Lewis. I want to assure you that by partnering with SHALE of South Texas Oil & Gas business magazine, you are hiring me to promote you and your business. I would also encourage you to research and be informed if you are going to consider print ad purchases. While print ad is a wonderful way of getting your business out in the community, it is also important that you take the time to verify how long the business has been around, print dates, deadlines, areas of distribution, distribution confirmation and most importantly, the background of anyone wanting to do business with you. While you have choices, you should strive to purchase the best to deliver what your company has invested financial resources in. I would also like to thank the NSIDE production team and Eliot Garza for producing SHALE.
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.
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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.
Jeffrey a. Webb
WWW.DELSALOGISTICS.COM
NH ME TEXAS
LUXURY LIVING
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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.
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.
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feature
On the Road Del Mar College’s Transportation Training Services program meets the demands of the South Texas trucking industry and beyond with simulated training. By: Melinda Eddleman
T
ruck driving is a high-demand field with drivers needed for local commercial, oil and gas and regular delivery and by long-haul carriers. The demand in the Texas Coastal Bend was so great in 2012 that the Del Mar College (DMC) Transportation Training Services program had a three-month waiting list, according to program director John Rojas. A solution to meeting that demand: simulated training. “Getting our new training simulators earlier this year is helping us keep up with demand,” Rojas notes. “And we’re the first program south of San Antonio to have this equipment.” The program trained 190 students through the end of July. Rojas says that since implementing simulator training as part of classes in April, that number included 74 students using the simulators with 100 percent completing the program successfully. During 2012, the program
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trained just under 300 students overall. Rojas anticipates figures for 2013 to be much higher. The college unveiled the six new training simulators in January, two permanently located on the West Campus and four on two trailers for mobile instruction and recruitment throughout the Coastal Bend.
The simulators were made possible through support and funding by the 2012 Corpus Christi City Council and the Corpus Christi Business & Job Development Corporation (Type A). The simulators more than double the number of students the program trains every two weeks. Each simulator features a full motion-based cab resembling that of an actual truck with three screens providing different types of driving conditions. Students can learn to drive an 18-wheeler or straight driving of other trucks with various types of transmissions represented, including automatic. Rojas says the American Trucking Association estimates that 96,000 drivers are needed per year over the next 10 years as the baby boomers retire, making the field wide open for individuals interested in training for a job driving the big rigs. “We’re even focusing on veterans to consider this field and taking advantage of
The majority of DMC Transportation Training Services students have jobs even before they complete the program.
photos courtesy of delmar College Relations Office
The DMC Transportation Training Services’ mobile simulators allow the program to take training on the road to meet the demand for drivers with commercial drivers’ Licenses (CDLs) to work in the trucking industry in South Texas. Adding the simulators to the college’s program doubled the number of students who complete training to earn their CDL every two weeks.
Transportation Training Services instructor Rick Johnson (left) provides guidance as DMC student Cornelio Reyna completes an exercise using side mirrors to drive through a simulated training yard. Fellow students David Garza and Rudy Paredes (far right) observe as they wait their turn to sit behind the simulator wheel.
the post-9/11 G.I. Bill to cover their instruction,” Rojas says. The program costs $3,500 with completion in as little as three weeks with day classes and six weeks with night classes. Rojas notes that the majority of DMC Transportation Training Services students have jobs before they even complete the program. “Of the 74 students who took part in simulator training, 90 percent, or 66 graduates, successfully received job offers,” Rojas says. “On average, these students are earning wages from $500 to $1,400 per week.” He adds that the majority of these students have chosen to work for local carriers in South Texas, but about 10 percent decided to work for national carriers that will send them all over the United States. Since holding the first DMC Transportation Training Services class in June 2002, the program has trained well over 2,000 students and even offers customized training programs designed for South Texas employers, including ACME Truck Lines, the City of Corpus Christi, C&J Energy Services, Halliburton, Key Energy Services, Thomas Petroleum, Osage Environmental, Trican Well Service, FESCO Petroleum, Werner Enterprises, U.S. Xpress and many others. The simulators have proven useful on another front: public safety training. The DMC Transportation Training Services program has partnered with Shell Exploration Co. to promote among the public safe driving and sharing the road with commercial vehicles. The Eagle Ford Shale play and economic development has increased traffic on South Texas’ two- and four-lane roads. “We’re attending several events to promote public safety by using our mobile truck driving simulators,” Rojas says. “Attendees drive the
simulator truck and trailer performing different maneuvers such as keeping the vehicle in their own lane, accelerating to 55 miles per hour and then making an abrupt stop. They experience the huge difference between stopping on a dime
DMC Transportation Training Services student Cornelio Reyna sits behind the wheel of a simulator for the first time to practice driving forward and backward between posts in a simulated training yard during his class in June. Students train with the simulators and drive big rigs for hands-on experience to prepare for careers in the trucking industry.
with their personal vehicle and needing several hundred more feet in a truck and trailer.” He says the partnership with Shell Exploration has been successful. “We’re spreading the word about being a safer driver and offering helpful tips that can save lives,” Rojas says. “This program is just another way that Del Mar’s Transportation Training Services program impacts our community, the Coastal Bend and South Texas.”
To learn more about the program, visit Del Mar College online at www.delmar.edu/trucking or call 361-698-2707.
We are a safety training and consulting company that focuses on the Eagle Ford Shale play. “Your Custom, Quality, Safety Solution”
361-318-8710 / 361-318-3663
SERVICES •DOT Drug and Alcohol Specimen Collection (onsite or facility) •PEC SafeLand & Core Compliance •DOT Compliance Consulting •Safety Compliance Consulting
•Heavy Equipment Operator Training •Safety Program Management •Onsite Technical Assistance •Operator Qualifications •ISN, NCMS, Veriforce Consulting
JASON ALVAREZ
toplinesafety@outlook.com
shale oil & gas business magazine
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feature
Demand the Extraordinary
“When we build, let us think that we build forever. Let it not be for present delight, nor for present use alone. Let it be such work as our descendants will thank us for; and let us think, as we lay stone on stone, that a time is to come when those stones will be held sacred because our hands have touched them, and that men will say, as they look upon the labor and wrought substance of them, ‘See! This our father did for us.’” —John Ruskin My dear friend, Mark Trevino of GTO Advertising, sent this to me as I traveled to a conference of the major radio and TV talk show hosts in the country. I have not been the same since. What does this passage mean to you? Read it again. Read it in silence. Read it with reverence and expectation. But read it again. What spoke to you? Was it the concept of building for a future? Maybe you felt the stones cut into your hand as you read the words, “as we lay stone on stone.” Maybe you felt your stomach and throat tighten as you read about the sanctity of those stones. That’s what happened to me. Maybe you saw yourself as a member of the Sheffield iron workers of the 1800s that Ruskin was so fond of as you read the words, “that men will say, as they look upon the labor and wrought substance of them…”
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I hope some or all of this passage speaks to the many areas of your life: personal, family, business, spiritual, civic and others. I find myself applying these principles to every area of my own life. And why not look at every aspect of your life in this way? Are we not made for this level of dedication and intent of purpose? Why not look at everything with the objective that we are building forever? Why not build a marriage that lasts forever? Why not build a 64-year-old oilfield service company with the intent that it will be built forever? What if you looked at everything you did as sacred? Would that make you feel a stronger dedication to what you were doing? Most people think I am rather intense about doing things right the first time. This passage made me question every process, policy and procedure that we have here at the Lake Group of Companies. These words make me want to drill even deeper to the core of what a company can do, what a company can be and what impact this one man can have. Imagine hearing people say, “See! This our father did for us,” as they point to a mark you left on this world. Demand the extraordinary both for and from yourself in all aspects of your life, whether your current endeavor is significant or minor. Do this, and someone may say something about you as eloquent as what Ruskin wrote. 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.
businessman lifting a brick image alphaspirit/shutterstock.com
Expect excellence both for and from yourself in order to help you build forever. By: Doug Cain
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industry
The Texas Alliance of Energy Producers hosts the first ever Energy – Air – Water Conference. by: Scott Courtney and Alex Mills
T
asalliance.org. The conference is an opportunity for the oil and gas industry to demonstrate how they lead from the front in managing air and water resources while conducting exploration and production activities. We will discuss industry activities, challenges, initiatives and opportunities. Presentations and panel discussions will be conducted with input from the industry, subject matter experts, regulatory agencies, industry trade associations, conservation districts and stakeholders.
The conference will cover industry activities, challenges, initiatives and opportunities. 16
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oil gas refinery image Tomas1111/shutterstock.com
Industry Input
he Texas Alliance of Energy Producers will host the first ever Energy – Air – Water (EAW) Conference on Oct. 10, 2013. The conference will be held at the Northwest Marriott located in San Antonio, Texas. Information regarding conference registration, exhibits and sponsorship can be found at www.tex-
OIL & GAS BUSINESS MAGAZINE
FOR ADVERTISING INFORMATION PLEASE CONTACT
Texas Alliance of Energy Producers
Energy – Air – Water Conference october 10, 2013
KYM BOLADO 210.240.7188 kym@getnside.com
Northwest Marriott San Antonio, TX A Wildcatter reception will follow the conclusion of the conference!
Topics on the agenda include: Water management Sourcing Transfer and storage Treatment and recycling/reuse Disposal Air management Flaring/venting Emissions Attainment Permitting
The current list of invitees and participants includes: Texas Alliance of Energy Producers South Texas Wildcatters U TSA Texas Sustainable Energy Research Institute T exas A&M Institutes of Renewable Natural Resources – Texas Water Resource Institute E nvironmentally Friendly Drilling Systems Texas Water Recycling Association Texas Desalinization Association AACOG SARA W intergarden Groundwater Conservation District E vergreen Underground Water Conservation District G onzales County Underground Water Conservation District TCEQ FracEnsure Interra Bureau of Economic Geology Texas Water Development Board
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Please accept our invitation to participate in the conference and encourage your member organizations to attend and participate, as well. Thank you and we look forward to seeing you at the first ever EAW Conference.
Alex Mills is the president of the Texas Alliance of Energy Producers, and Scott Courtney, P.G., is the conference organizer and the 2013 chairman of the South Texas Wildcatters Host Committee. For more information, contact Courtney at 210-823-2193 or premierhydro10@yahoo.com. shale oil & gas business magazine
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industry
Special to SHALE
Natural gas must play an expanded role in the world to meet growing future energy demand. 18
shale oil & gas business magazine
E
IA’s Annual International Energy Outlook makes it clear that natural gas must play an expanded role in the world to meet growing future energy demand, and the United States, with its vast natural gas resource base, can be a major influencer in the global energy picture. The outlook rightly calls natural gas a ‘fuel of choice’ for the electric power sector because of its relatively low carbon intensity, low capital costs and favorable heat rates. As the outlook makes clear, with an overall growth in energy consumption of 56 percent by 2040, the world is going to need all forms of energy to meet growing demand. With major growth in reserves and production, North American natural gas is in a strong competitive position. This study reinforces that natural gas is a foundation fuel, not just for power generation, but also for industrial uses, direct fueling of homes and businesses and transportation. Responsibly developed natural gas can improve the economy, energy security and environment for the United States and for nations around the world that are seeking to meet their growing energy needs.
Representing North America’s largest independent natural gas exploration and production companies, America’s Natural Gas Alliance (ANGA) works with industry, government and customer stakeholders to ensure continued availability of our natural gas resource and to promote its increased use for a cleaner and more secure energy future. Learn more about ANGA at www.anga.us. Note: This article was originally released by America’s Natural Gas Alliance, and it has been edited according to the company’s policy and style.
natural gas flame image photowind/shutterstock.com
Statement on EIA’s Annual International Energy Outlook
Background: Following is a comment by Erica Bowman, Chief Economist at America’s Natural Gas Alliance, on the U.S. Energy Information Administration’s (EIA) International Energy Outlook 2013.
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shale oil & gas business magazine
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industry
Progress in Pleasanton A police chief’s view of the Eagle Ford Shale and his city’s newfound status as a “boom town” By: Ronald Sanchez photography: Jose Sanchez Photography
I
remember the day well. I parked my car right at the corner of U.S. Highway 281 and State Highway 97 in Pleasanton. As soon as my boot hit the pavement, I knew I had to do something about the traffic. I was a newly minted police chief in the heart of the Eagle “Furd.” I don’t know why everyone refers to it as “Furd.” As I stared at the endless stream of sand-hauling 18-wheelers and white Ford F-250 trucks (the official steed of the oilfield supply companies), I felt an overwhelming sense of pride and fear. Our once small town, which was known as the “Birthplace of the Cowboy,” had become a “boom town.” The Eagle Ford Shale had arrived, and from the looks of it, it wasn’t going anywhere. The sign at the city limit says “Pleasanton: population 8,900.” According to recent estimates, we have swelled to 13,000 residents. While many towns in the Eagle Ford didn’t know what to expect, Pleasanton was waiting at the starting line and waving the green flag. Driving the welcome wagon was Pleasanton City Manager Bruce Pearson. With his vast knowledge of big city government and a heavy background in the utilities industry, he went to work at a feverish pace, tackling any infrastructure problems head-on. He knew water would be a valuable and precious commodity, so, at the direction of the city council, the city acquired properties in order to drill more water wells. He rallied his troops behind his now wellknown battle cry, “Customer service is first and foremost!” As new businesses arrived, Pleasanton welcomed them all with open arms. According to Pearson, if you were willing to invest in our city, we would darn sure treat you right and see to it that we would provide the necessary means for your business to thrive. I started my law enforcement career with the City of Pleasanton on Feb. 6, 1997. I was a young, inexperienced police officer with zero street experience. Prior to that, I had worked two-and-a-half years with the Atascosa County Sheriff’s Department as a corrections officer. I worked under Sheriff Tommy Williams, who was one of the longest serving sheriffs in Texas. I was lacking in police knowledge, but I was fully stocked with street knowledge. While I interacted with them, the inmates of Atas-
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cosa County Jail unknowingly provided me with a priceless education in their efforts on how to circumvent the law. Going from a corrections officer to a street cop was probably one of the easiest transitions I had ever made. Every call we got and every disturbance we visited, I knew somebody there. I was at a huge advantage because I knew all of the players in the “let’s break the law” game. I developed informants, I made hundreds of narcotics arrests, I ran search warrants, I did a little bit of undercover work and I was having the time of my life. I was living every cop’s dream. Then one day it happened: Chief Gary Soward retired. The Eagle Ford had come calling. He was placed in a situation where he could retire with his 37 years of service, work a cushy job and make a substantial amount of money. He took the offer. Never in my wildest dreams did I ever think that I would one day lead the department I had dedicated my life to. I was having too much fun. The thought of a new chief coming in scared me. So I decided to submit my application knowing well that my chances were slim. After a few months as interim chief, I was officially named chief of police on Dec. 6, 2012. I was sworn in at a city council meeting. My mother and father and all of my siblings were present, along with my wife and three kids. The next morning, I stood there in the parking lot of Hurley’s Funeral Home, which is located at the corner of
through traffic enforcement. If it means we prevent a traffic fatality, it was all worth it. After all, the objective of any police department is the safety of our citizens. We all swore a solemn oath to protect and serve our communities. Shortly after becoming chief, I received a phone call from Rebel Road Studios in New York. They were filming a TV series called “Boom Town Cops.” They wanted to show the rest of the world what it was like to be a police officer in an oil boom town. According to the producer, when he asked about oil boom towns, he was constantly being diverted to Pleasanton. I told him “no thanks” for now because we had other things we needed to get a handle on. Hollywood could wait. Every time I go to a police chief conference, I am asked if we are experiencing a significant increase in crime because of the “oilfield trash,” which, by the way, is a term I take offense to because my wife is employed in the oil and gas industry. It was like they all wanted me to tell them stories of how our town was being pillaged and plundered by our newly acquired transient population. The RV parks and man camps are supposed to be a nightmare with shootings and stabbings every night. Nope. What people fail to realize is that the vast majority of our new residents are hardworking family men and women who are capitalizing on the opportunity to provide for their faraway families by working hard every day. These folks are too tired to cause any trouble. They sleep, wake up,
The “Birthplace of the Cowboy” is in its prime right now, and we are headed in the right direction. 281 and 97, wondering, ‘What now?’ According to TxDOT, our traffic had increased 200 percent in the last year. Our roads were crumbling from the heavy 18-wheelers lumbering down them. I knew we could stand back and whine or we could tackle the problem head-on. Part of our traffic problems came from drivers who had a total disregard for Texas traffic laws. They ran red lights, disregarded stop signs and drove well above the posted speed limits. It was like there was no need to play by the rules. I am a big believer in the “broken windows theory.” You start enforcing the law at the lower levels and work your way up. If someone runs a red light, you enforce the traffic law. If they disregard a stop sign, they receive a traffic citation and a visit with Pleasanton Municipal Court Judge Elsie Guerra. I created a fulltime traffic enforcement unit. I took two patrol officers off of the street and assigned them to fulltime traffic enforcement. Instead of running to the endless stream of disturbances, thefts and traffic accidents, their sole responsibility was traffic enforcement. Now, what do we stand to gain from such strict traffic enforcement? Perhaps we could instill in our motoring public an acute awareness to slow down and pay attention. What is the payoff for creating increasingly aware drivers? Fewer traffic accidents. So many traffic accidents are caused by distracted drivers – or should I say, texting drivers. Our mission was to help create safe drivers
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go to work, go home and repeat the process for several weeks in a row. Sure, we’ve had a few problems here and there, but nothing worthy of a TV series. I like to refer to it as the “new and improved oilfield.” The majority of the horror stories stem from the booms of the 1980s. Today’s petroleum industry has a few simple rules every employee needs to follow. The main one is, “You do drugs; you’re fired.” Simple, but effective. What started out as a small town police department has swelled to a 23-man police department – and by the way, we have three lady officers. I know we have many challenges ahead of us. We will not falter. We will face them head-on, and we will fight to protect Pleasanton and make it a city you would want to raise your family in. I feel blessed to be where I am today. I’m working alongside a city council, a mayor and a city manager who genuinely care for their community. The “Birthplace of the Cowboy” is in its prime right now, and we are headed in the right direction. We are not afraid of progress; we welcome it. I wish I had an answer for all of the naysayers who have stood in the background grumbling, “Once the boom leaves, then what?” I don’t know, but I hope that one day, 25 years from now (after I retire), I can look those naysayers straight in the eye and ask them, “Why did everyone call it ‘Eagle Furd’ when it’s spelled ‘Eagle Ford?’”
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event based marketing
industry
“The friendships you build out here become an important part of your life.”
team player Mud engineer Mike McAndrew’s journey from Florida to the Eagle Ford Shale By: jimmy perkins
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he journey to the Eagle Ford Shale has many paths, but generally, people find their way here thanks to a friend. Such is the case for Mike McAndrew, a mud engineer (or fluid specialist if you prefer) from Pace, Fla. After graduating with a communications and marketing degree from the University of West Florida, McAndrew spent a couple of years working in sales. In the meantime, one of his college roommates found his way working offshore near New Orleans. This friend introduced another mutual friend to mud engineering and helped him find a job in the Eagle Ford Shale. It was this second friend who convinced McAndrew to leave Florida and join the boom in South Texas. By 2011, after extensive training, McAndrew was working on various projects in DeWitt and Karnes Counties, and he settled in Corpus Christi. In 2012, McAndrew relocated to San Antonio to join his fiancée, Lacy Brinson, who had moved from Florida. Brinson works as an attorney for the Department of Homeland Security and had been awaiting a transfer. In addition to her fulltime career, Brinson is also an accomplished singer/songwriter who often performs around the San Antonio area. The rhythm of a mud engineer’s “seven days on and seven days off” life is captured in one of her original songs entitled “Mud”:
As a mud engineer, McAndrew specializes in maintaining the chemical properties to aid the drilling process through the different formations and maintaining the stability of the well. It’s a detail-oriented job that is just one part of a larger team working on each project. From the tool pusher to the driller, the floor hands to the derrick hand, the motorman to the directional drillers and all points in between, they all form a special bond on and off the rig. “The friendships you build out here become an important part of your life,” McAndrew says. “It’s a camaraderie that grows from working together and looking out for one another. And the best part is the food. Cooking out here is an art, and we all bring our culture and our moms’ favorite recipes to the table. I’m a Florida boy, so the first time I ate barbacoa was on the job in South Texas. I was on my way back for seconds when they told me what it was. That didn’t stop me. I’m hooked. And the best gumbo I’ve ever eaten was made by a directional driller from North Louisiana. There are great cooks out here.” When he’s home, McAndrew has plenty of work around the house, errands to run and his bi-monthly “to do” list that magically appears, but he still enjoys time with his family and friends and an occasional round of golf. While on the job, he fills his downtime with exercise, grilling with his coworkers, cards with the other hands and always staying mentally ready for work. And for the benefit of his employer and his fiancée, he always takes Brinson’s advice from the chorus of her song, “Mud”: So get that mud right The way it needs to be Keep that oil flowing And then come home to me
photo by greg harrison
You left me for mud And I tried not to get mad Pays you more money That part’s not so bad One week with you The next week I’m without Right when I get used to you It’s time to kick you out
In the Texas Hill Country “It was exhilarating, energizing and quail hunting like quail hunting used to be. Two coveys, nearly 40 birds flushing wild, challenging, real world wing shooting and good dog work. I could make a habit of this. The quail at Joshua Creek Ranch are wild and abundant.” Mike Leggett, Austin American Statesman Well-traveled sportsmen agree - At Joshua Creek Ranch you’ll experience the most challenging and exciting wingshooting in Texas. Here’s what other avid hunters say: “Joshua Creek Ranch is a spectacular venue for anything that has to do with shotguns or wingshooting!” Robert Mathews, Outdoor Writer “This is the best day of quail hunting I’ve ever had in my life.” Chuck Wechsler, Publisher, Sporting Classics Magazine “ Everything I experienced from the quality of the hunting to the fabulous meals at the end of the day is absolutely first class. With an experienced and capable staff combined with a kennel full of excellent pointing, flushing, and retrieving dogs, Joshua Creek provides the safest, most productive wing shooting experience in Texas. That, coupled with outstanding accommodations and gourmet meals, is why I make multiple trips each year to Joshua Creek Ranch.” Robert L. Potter, President, FMC Technologies, Inc. “For over 20 years, I’ve organized an annual trip to Joshua Creek Ranch…. We’ve hunted elsewhere, too, but Joshua Creek Ranch is the only place we return to year after year…. The Ranch consistently delivers a top quality experience that keeps bringing us back to the Texas Hill Country.” Michael E. Jones, CEO Clover Capital Management, Inc. - Rochester, NY “You have fine tuned your establishment over the years. I’ve hunted in many places and your hunt is at the top of the list for the 5-Star experience!” Mark Gingles, Stewart Title Celebrating 23 years of World-Class Wingshooting and Earning the Designation as a Beretta Two Trident Lodge
(830) 537-5090 info@joshuacreek.com a www.joshuacreek.com
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environment and safety
[
STEER welcomes First Lady Laura Bush and Taking Care of Texas to the Eagle Ford Shale. Photographed with STEER President Omar Garcia (right) and Erin Franz (left).
Expanding Efforts
As the founder of Taking Care of Texas, former First Lady Laura Bush partners with the South Texas Energy & Economic Roundtable to preserve South Texas native landscapes.
“The oil and gas industry understands the importance of embracing and protecting South Texas.” 26
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n June 3, 2013, Taking Care of Texas and the South Texas Energy & Economic Roundtable (STEER) co-hosted a tour of the Eagle Ford Shale region featuring Taking Care of Texas Founder and former First Lady Laura Bush; STEER President Omar Garcia; and representatives of the Caesar Kleberg Wildlife Research Institute, the Texas Parks & Wildlife Department and the Texas Wildlife Association. “Taking Care of Texas is about building on existing conservation efforts,” Bush says.
“We are working with developers of the Eagle Ford Shale because it’s important to take care of the landscapes and wildlife habitat where drilling occurs. We want Texas to be a leader in meeting the nation’s energy needs while conserving soil and habitat and boosting the economy in South Texas.” STEER and its members facilitated the day-long tour to showcase conservation efforts being implemented by the oil and gas industry on drilling sites across South Texas, and to explore opportunities to expand this work through collaboration with Taking Care of Texas.
photo courtesy of steer
Special to SHALE
About Taking Care of Texas Taking Care of Texas – founded in 2011 by Laura Bush and a team of engaged landowners, businesspeople and scientists – aims to promote the mutual benefits of economics and conservation, to raise awareness of collaborative conservation projects and to provide Texans with ways to engage. Its vision is for Texas to be the state best known for practical, scientific and citizen-led innovations in conservation.
About steer The South Texas Energy & Economic Roundtable (STEER) is the leading Eagle Ford Shale resource in the region, and it is the primary coordinator for communication and public advocacy surrounding the oil and natural gas industry in South Texas. With a focus on South Texas, STEER will serve as the bridge connecting the industry, legislature, academia and communities throughout South Texas to ensure positive collaboration and communication surrounding the activities associated with the Eagle Ford Shale.
Bush and the Taking Care of Texas team are working with the oil and gas industry in the Eagle Ford Shale region to ensure control of erosion, salvage of topsoil and native plant reseeding on drilling locations of all sizes. Together, they are organizing widespread adoption of sound conservation practices, many of which are already in use by several oil and gas companies. The partnership also aims to develop new and more effective practices over time. “We are extremely proud to welcome First Lady Laura Bush and her team from Taking Care of Texas to the Eagle Ford Shale region and provide this important organization with a firsthand look at the best practices the oil and gas industry are currently and meticulously implementing to ensure that we protect our environment,” Garcia says. “The oil and gas industry understands the importance of embracing and protecting South Texas, and we are happy for the opportunity to show how we effectively operate our businesses in communities across South Texas.” Taking Care of Texas will continue to work with STEER, the Texas Oil & Gas Association, oil and gas companies, wildlife biologists and private landowners to develop detailed support materials for surface activities and spotlight locations where conservation practices are voluntarily implemented. “We believe that conservation of Texas’ vast open spaces and natural treasures, when done collaboratively as part of drilling operations, will benefit all Texans, present and future,” Bush says. “We were pleased to see the conservation practices that are in motion during the extraction process, and we look forward to helping the industry continue the important work of safeguarding our environment.”
For more information about Taking Care of Texas, visit www.takingcareoftexas.org. And to learn more about the South Texas Energy & Economic Roundtable, visit www.steer.com.
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environment and safety
Preparing for Catastrophe What to do when the unexpected strikes
By: Jeffrey A. Webb
T Jeffrey A. Webb is a senior associate and a member of the mass tort/product liability team 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: energy; infrastructure, mining and commodities; transport; technology and innovation; financial institutions; and life sciences and health care.
he phone rings at 3 a.m. There’s an emergency at one of your sites. What’s the next thing you do? If you’re properly prepared, you and your team pull out your crisis management plan and immediately begin to implement it – contacting the appropriate persons and taking the appropriate steps. Don’t have a crisis management plan? The problematic and complicated nature of dealing with a crisis will be compounded if you have not taken the appropriate steps to prepare or plan. While all companies hope to never have to deal with a crisis or catastrophic event, the reality is that many companies will be faced with them to some degree at some point in time. Oil and gas companies, and those serving the industry, are no different. Emergencies can happen to any business in any industry on any day: A train can derail, a tornado can strike, a fire can spark an explosion or someone could target your workplace with a violent act. We see it in the news headlines every day. By their nature, crises and catastrophic events will occur unexpectedly, without prior notice. As such, it is imperative that you have a plan in place so you and your employees know what to do should something occur. Actions taken during the initial stages of a crisis can have long-term consequences for you and your company – isn’t it better to be prepared?
Draft and maintain an up-to-date crisis management plan Nearly a decade ago, the 9/11 Commission found that the private sector remains largely unprepared for crises and disasters. According to the commission, “[p]rivate-sector preparedness is not a
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luxury; it is a cost of doing business in the post-9/11 world. It is ignored at potential loss in lives, money and national security.” The commission called for uniform private-sector preparedness standards in 2004. However, a 2011 crisis preparedness study by Burson-Marsteller and Penn Schoen Berland showed that only 55 percent of U.S. companies had put a crisis management plan in place. A comprehensive and up-to-date crisis management plan that provides a “how to” manual that your employees can follow in the event they are forced to deal with a crisis ensures your company is prepared. A properly drafted plan should identify initial steps employees need to take to help stabilize a crisis and mitigate any further damage to persons or property. For example, in the context of a disaster resulting in personal injuries, your plan should set forth the appropriate steps to be taken to facilitate the rendering of aid to those who are injured and clearing any areas that could potentially result in further injuries. As another example, in the context of an environmental disaster, your plan may require that any affected area be immediately cordoned off so that the scene of the accident can be preserved. The “initial step” section of your plan should be tailored to prioritize the types of crises your company may likely or potentially encounter. Your plan should not just address past crises that have occurred. You can begin by developing a list of potential emergency scenarios by analyzing events that have happened in the past within your company, your industry and other similar industries. Your plan should also include a list of individuals to contact in the event of a crisis such as in-house and outside legal counsel, any appropriate governmen-
When managing a crisis, one of the keys to success is the availability of resources.
tal agencies, emergency service contractors, internal or external public affairs resources and any other employee or person whom your company has identified as someone who needs to be involved in a crisis. In addition to drafting a plan, companies should make sure the plan is appropriately updated. There may be a temptation to draft a plan, stick it in a drawer and leave it untouched until a crisis arises. But having an outdated plan can be similar to not having a plan at all. To avoid this problem, you should annually review and update your plan to ensure it addresses any relevant changes in your business or technology.
Organize a crisis management team Managing any crisis requires the involvement and assistance of a number of people who have expertise on a wide range of topics and issues. One of the first steps that should be taken after a crisis arises is to organize a crisis management team. The issues that will most likely arise during a crisis and the individuals needed to respond to those issues should be identified as soon as possible (and referenced in your plan) so that the team can be quickly assembled to help stabilize the crisis. Depending on the nature of your crisis, the team could consist of anyone from attorneys to individuals who can handle inquiries from the media or the government. After your team is assembled, a crisis command center should be established. This will be the decisionmaking center for your post-crisis response, as well as the primary location where the crisis team will work. Inquiries and information related to the crisis should also be funneled through the command center.
Have resources ready 24/7
fire image fluke samed/shutterstock.com
Most oil and gas operations are around-the-clock. Your emergency response readiness should be no different. When managing a crisis, one of the keys to success is the availability of resources. In a crisis, every moment is critical and the need for rapid response is complicated by the fact that issues may arise at any hour of the day, and often in remote locations. Because you may face a variety of legal and nonlegal issues, every component of your crisis plan should have at least one person available to serve you 24 hours a day, seven days a week until the crisis stabilizes. If possible, you should also have people identified as alternate contacts in the event that the primary contact cannot be reached.
Identify relevant stakeholders and interested parties More likely than not, your crisis will have repercussions for other individuals and entities. To properly mitigate and manage the long-term effects of a major crisis, those affected individuals and entities must be identified so that they may be kept apprised of relevant information. A variety of governmental agencies (the Texas Commission on Environmental Quality, the Occupational Safety and Health Administration, the U.S. Environmental Protection Agency, etc.), senior managers, internal stakeholders and the public will likely be involved in, or at least interested in, the resolution of the crisis. Boards of directors and high-level executives most likely will require a continuous stream of accurate inforshale oil & gas business magazine
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mation about their corporation’s crisis to ensure actions are being taken to protect the company. Your plan can help you by indentifying the individuals and entities that will most likely need to be contacted. Additionally, members of the crisis team should brainstorm to see whether there is anyone who has not been previously identified who may be interested in or need to be contacted regarding your crisis.
Communicate with relevant stakeholders and interested parties Once you have identified the individuals and entities that may have an interest in your crisis, it is important that you provide them with all necessary information through appropriate
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channels. A crisis communications plan helps convey information to these parties. The communications plan should outline your position on the crisis. Most of the time, you will want to be proactive and get publicly “out in front” of a crisis by informing communities or persons who may be affected about the details of the crisis and the actions you are taking. A welltailored communications plan should provide your in-house public affairs department and any outside public relations consultants with clear guidance on how you wish to respond to media or government inquiries. A communications plan also ensures that information is funneled through proper corporate channels so that any reporting on the crisis and its anticipated effects can be properly
managed. It may be advisable for communications with certain stakeholders, including government agencies, to be made through legal counsel. For example, in industries such as the oil and gas industry, which are regulated by government agencies with investigative and oversight authority, it is not uncommon for representatives from these agencies to appear at your workplace and/or incident location within days or even hours of the event’s occurrence. The communications plan can inform relevant employees what they should do if government investigators or officials or the media appear on your premises to obtain documents or ask questions.
tornado image pikoso.kz/shutterstock.com
Your communications plan should outline your position on the crisis.
Preserve relevant evidence A frequent path to trouble in crisis management is the failure to preserve all evidence relevant to the crisis as soon as possible. Failure to retain evidence often creates its own “bad” evidence, suggesting a sloppy investigation and follow-up or worse. Generally, there are three types of evidence to preserve: physical evidence, documentary evidence and electronic data. To ensure that evidence is properly preserved, it is important to implement a written evidence collection and preservation protocol. This protocol should outline a clear policy to be followed and be designed to capture all relevant evidence and information and inform employees who may possess this information that they have an obligation to preserve the evidence. Perhaps the most difficult question that must be answered when formulating an evidence collection and preservation protocol is how wide a net you must cast. Legal counsel should typically be involved in formulating this protocol so that the scope of preservation meets the relevant legal requirements.
Decide whether and to what extent to investigate After the immediate crisis has stabilized, you should decide whether to investigate its cause. Most crises – especially major ones – should be investigated. Investigation facilitates prevention: Determine the root cause of the crisis and prevent a reoccurrence. You may also need to determine the cause of an incident or crisis to defend yourself against potential civil and criminal litigation. In some situations, federal or state law may require an investigation. Investigations also can help demonstrate to company stakeholders and the public that every possible response to the crisis has been or will be taken. As a rule of thumb, an internal investigation should be undertaken whenever there is a credible indication of a violation of law or established company policy.
If an investigation is necessary, form a team If possible, crisis investigations should be led by your employees, but coordinated and overseen by your legal department and/or outside counsel. By involving attorneys early in the investigative process, there may be certain privileges that could potentially protect sensitive material. In addition to the potential involvement of attorneys, the investigation team should include at least one subject matter expert on each topic or issue the investigation is expected to cover. The investigation team must have full access to any information it requests. Additionally, all necessary resources should be provided to the investigation team to aid in its endeavors.
Decide whether to conduct interviews Tangible evidence may not provide a full
picture of the causes of a crisis. Often, oral accounts from eyewitnesses and others with relevant information can provide the greatest insight into the cause of a crisis. Although they can provide some of the best information that is collected during an investigation, it should be noted that witness statements may be specifically discoverable in a subsequent proceeding. Even notes taken by attorneys in the context of a witness interview may not be privileged if they are merely a recitation of facts known to the witness. It also should be determined whether the witness has a right to be accompanied by other individuals during his or her interview, such as a union representative, which is often covered by collective bargaining agreements. Consideration also should be given as to how to handle employees who refuse to cooperate during their interview. Despite these potential issues, witness interviews can provide some of the best evidence of the events leading up to a crisis and should be undertaken to provide you with a clearer picture of the crisis as a whole.
Draft an investigation report Once the investigation team has completed its investigation, you should ensure that the team’s findings are disseminated to the appropriate personnel. All recommended corrective actions in the investigation team’s findings should be undertaken, and you should document how you will take those actions. If you decide to not take action on any of the investigation team’s recommendations, the reasons for that decision should be documented. You also may wish to disclose the investigation’s findings to the public to show transparency in the investigation process. In summary, crises and catastrophic events can take many forms: environmental disasters, industrial accidents, explosions, natural disasters, pipeline problems, violent criminal or terrorist acts and even corporate scandals and computer crimes, just to name a few. No matter what the nature of the emergency is, there are steps you can take to help mitigate and eventually stabilize a crisis. Although each situation has to be assessed by you, your team and your trusted advisors based on the particular facts and circumstances of the emergency, having a response plan in place that considers the aforementioned issues will significantly expedite and maximize the response’s effectiveness.
No magazine article alone can provide all of the guidance you need to manage an emergency. This information is a snapshot of practical steps to consider taking when a crisis arises. This article should not be construed as legal advice, which of course depends upon the facts of each situation. This article does not establish an attorney-client relationship.
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Myths vs. Facts
T
wo of the most vital resources we have are water and energy. Our use of each of these most basic needs of society is reliant on and affects the availability of the other. Water is needed to produce energy, and energy is necessary to make water available for use, so the two are intrinsically linked. As we see continued growth in shale plays across the United States, questions continue to arise regarding water use and fracking. Unfortunately, many of the answers you see in some news coverage rely on myths vs. facts. So let’s walk through fracking, water use and what it all means.
Hydraulic fracturing and how it works 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.
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Before taking a look at the water used in fracking, let’s take a step back and detail the process. Hydraulic fracturing, or “fracking” as it is known, uses a specially blended liquid that is pumped into a well under extreme pressure, causing cracks in rock formations underground. These cracks in the rock then allow oil and natural gas to flow, increasing resource production. The process is not new. The first commercial application likely occurred in either the Hugoton field of Kansas in 1946 or near Duncan, Okla., in 1949. The process was not considered cost efficient, but technological advances have turned fracking into a relatively routine technology that is frequently used in the oil and gas industry. It
By: James M. Summers
allows for the recovery of oil and natural gas from formations that geologists once believed were impossible to produce such as tight shale formations like the Eagle Ford Shale. The process has been used on more than one million producing wells. As the technology continues to develop and improve, operators now fracture as many as 35,000 oil and natural gas wells across the country each year. Experts believe 60 to 80 percent of all wells drilled in the United States in the next 10 years will require hydraulic fracturing to remain operational. Fracturing allows for extended production in older oil and natural gas fields. Without hydraulic fracturing, as much as 80 percent of unconventional production from such formations as gas shales would not be possible on a practical basis. As outlined by Energy From Shale, a project of the American Petroleum Institute (API), a significant challenge of fracking operations is securing water supplies. Water may be obtained from surface water, groundwater, municipal water suppliers, treated wastewater from municipal and industrial treatment facilities, power plant cooling water, recycled produced water or flow back water. The choice of water source depends upon volume and water quality requirements, regulatory and physical availability, competing uses and characteristics of the formation being fractured. Where possible, wastewater from other industrial facilities or recycled fracking water is used, fol-
steel pipeline image nostal6ie/shutterstock.com
Fracking, water use and what it all means
lowed by ground and surface water sources, with the preference of non-potable sources over potable sources. API encourages the use of non-potable water whenever possible. So how much water do you need? An average multi-stage fracking job today uses somewhere between two and five million gallons of water, depending on the basin and formation characteristics.
By the numbers
modern irrigation system image Tish1/shutterstock.com
Before you assume those numbers seem high, let’s look at water amounts and usage to help better frame the numbers. The best way to understand the volume is to picture it in terms we can all understand. What does five million gallons of water really mean? Chesapeake Energy, one of the producers involved in the Eagle Ford Shale, averaged its usage in the area to 4.8 million gallons per well, so close to the five million gallons we’re talking about. That same amount of water flows, on average, past the city of Laredo in the Rio Grande River every 3.6 minutes. It’s also the same
amount of water used in the city of San Antonio in approximately 17.7 minutes. If that doesn’t help put it into context, let’s look at water usage in general. Compared with consumer, agricultural and industrial manufacturing demands, the amount of water needed to develop oil and gas wells in Texas is relatively small. Last fall, the Texas Water Development Board released a draft of the 2012 Texas water plan – a report prepared once every five years. It said 56 percent of water in Texas goes to commercial crops; 26.9 percent to cities and public water systems; 9.6 percent to manufacturing, including refineries; 4.1 percent to power generation; 1.8 percent for livestock; and 1.6 percent to mining, which includes oiland-gas drilling. Other studies say fracking consumes less than 1 percent of the total water used statewide – far less than agriculture and even watering lawns. A 2012 article in Environmental Science and Technology by Jean-Philippe Nicot and Bridget Scanlon of the University of Texas at
The biggest source of water consumption in the United States is agriculture.
Austin notes that as of 2011, total annual water consumption for fracking in the Barnett Shale was equal to about 9 percent of the annual water consumption of the city of Dallas. They also report that total water use for all shale gas wells in Texas amounted to below 1 percent of all freshwater withdrawals in the state. In other words, even in drought-stricken Texas, shale wells currently represent a fairly small use of water, relative to other activities – domestic use and agriculture being the largest sources of true consumption. Nationwide, the EPA estimates that landscape irrigation consumes about 9 billion gallons of water a day. That’s more than three trillion gallons a year, or more than 20 times its highest estimate for the amount of water used annually in fracking. Fracking relies on a wider array of water than just freshwater sources. (Note: About one-fifth of the current water used for fracking comes from recycled or brackish water, a category the industry is working actively to increase.) Still not convinced? Last fall, NPR’s “On Point” radio show featured a reporter from the Wall Street Journal explaining that the fracking industry will need between seven and 14 billion gallons of water this year. Using those numbers, let’s put fracking and water usage into context. According to the U.S. Geological Survey (USGS), which compiles county, state and national water withdrawal and use data for a number of water-use categories every five years, nationally, we use 410 billion gallons of water daily. If the Wall Street Journal reporter’s numbers are correct, 14 billion gallons of water needed nationally for fracking in a year is only 3.4 percent of overall water usage in the United States in a single day. To frame those same 14 billion gallons from an agricultural standpoint: USGS reports that U.S. farmers use 137 billion gallons of water per day to irrigate their crops, so if all of the water used for fracking were dedicated to farm irrigation, farmers who irrigate their crops for two hours a day would be able to run their irrigation systems for an extra 12 minutes one time, on a single day. Another way to look at the number is to compare it to the Mississippi River, as a blogger did following the NPR show: “If the oil and natural gas companies somehow managed to take all of the water they are using for fracking and poured it into the Mississippi River, it would rise by about an eighth of an inch.” Need another body of water to picture? Fourteen billion gallons would fill up a lake that was 1.4 miles across and 30 feet deep. So while the volume of water needed for fracking may seem high, the numbers are small by comparison to some other uses of water such as agriculture and domestic consumption and generally represent a small percentage of the total water use. By far, the biggest source shale oil & gas business magazine
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cent of all Texas water withdrawals. And the industry is constantly working to reduce its water usage and/or shift to brackish water to reduce freshwater needs in the future, so the 2020 projections may be indeed be overestimated.
Looking ahead With all of the activity and focus on water, the Texas legislature weighed in: The 83rd Legislature approved three bills as part of a broad package to provide funding for projects within the state water plan. These bills include Senate Joint Resolution 1, House Bill 4 and House Bill 1025. Taken together, these bills propose an amendment to the Texas Constitution creating the State Water Implementation Fund for Texas (or SWIFT) and the State Water Implementation Revenue Fund of Texas (SWIRFT), funded with $2 billion from the economic stabilization fund (known as the “Rainy Day Fund”). The accounts would be used to give out low-interest loans for regional water projects in Texas,
of water consumption in the United States remains agriculture, which consumes on the order of 32,850 billion gallons of water annually, or more than 243 times more water than fracking for shale gas.
Water from an economic point of view If the volume numbers leave you wondering why fracking causes such a fuss about water consumption, let’s look at another viewpoint in the discussion of water use: economic impact. Let’s go back to the Chesapeake Energy numbers – remember that 4.9 million gallons of water per well? That’s enough to irrigate 11.6 acres of vegetables in one season. Sounds good, right? But how does that translate economically? The Texas Ground Water Association estimates that one
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acre-foot – or 325,871 gallons of water – used for developing a well has a gross revenue potential of approximately $2,080,000 an acre-foot, compared to one acrefoot of water used to irrigate corn, peanuts or coastal hay, which has an estimate gross revenue potential of about $250 per acre-foot of water used. The point? Using water for fracking has a positive economic impact for everyone involved from landowners and oil production companies to municipalities in the fracking area. Or another way to look at water used in fracking: How much water does shale gas consume per unit of energy produced, and how does this compare to other energy sources? “Water Consumption of Energy Resource Extraction, Processing and Conversion,” a 2010 paper written by Harvard’s Erik Mielke, Laura Diaz Anadon and Venkatesh Narayanamurti,
notes: “Not only does shale gas extraction consume less water per unit of energy provided as coal or oil, combined cycle gas-fired power plants currently offer the most efficient way to turn fossil fuels into electricity.” Using shale gas in the electric power sector ultimately means that total water consumption per unit of electricity provided will actually decrease. Assuming values from the middle of the ranges reported by the paper previously quoted, water use per kilowatt hour could fall by as much as 80 percent, making fracking a more water-efficient source of energy overall. The paper projects that water use in the Texas plays will grow threefold by 2020 if shale production expands. Based on the aforementioned information provided by the Texas Water Development Board, that’s still less than 4 per-
but before any funds may be used for state water plan projects, Texas voters must first consider the proposed amendment to the state’s constitution creating the SWIFT. That amendment will be up for election on Nov. 5. Depending on the outcome of the election, we could be looking at a new landscape for water use in Texas. Smart development of energy resources will identify, consider and minimize potential impacts to water resources, while oil and natural gas, especially that found in shale formations, is an abundant U.S. energy resource that will be vital to meeting future energy demand. Balancing our water use and our energy use is vital to our future, and the oil and gas industry is leading the way through research and development to minimize its water needs.
pump jack in man’s hand image Vadim Georgiev/shutterstock.com
Balancing our water use and our energy use is vital to our future.
Design, Build &Renovations
7902 Calle Rialto, Suite 200 San Antonio Texas 78257 www.ckccustomhomes.com 210.408.7613 info@ckccustomhomes.com shale oil & gas business magazine
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environment and safety harm, and in the process, created a more productive and qualified worker. The Eagle Ford boom has created a unique problem: There is an influx of highpaying jobs, there aren’t enough qualified workers and there isn’t enough time to have them properly trained. They are told to wear hard hats and safety glasses. Organizations have put together training programs to fit the needs of most any work that will be done; these programs elaborate on the OSHA mandated standards. Success can be built by building a solid safety culture, not just a program. Several steps to changing the culture are to be vested in your employees. Set expec-
A Unique Problem Workplace safety in the Eagle Ford Shale: It’s not just hard hats and safety glasses. By: jason alvarez
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hat comes to mind when you hear “safety”? Most people think the idea of safety is wearing hard hats and safety glasses. There is much more to safety than that. OSHA has entire manuals dedicated to safety. Many careers have been dedicated to it. Companies’ successes and failures have been built on it. If it were just hard hats and safety glasses, why would there be all the fuss? Issues with the safety of employees are always just a symptom of company inefficiencies. Before the year 1970, 400,000 Americans were killed by work-related accidents and diseases. Fifty million more suffered work-related disabling injuries. New Jersey Sen. Harrison A. Williams Jr. petitioned Congress to pass a law that would protect workers. Rep. William A. Steiger worked on getting workplace safety and health legislation passed. On Dec. 29, 1970, President Richard Nixon signed the Occupational Safety and Health Act, now known as OSHA. Once OSHA was in place, its first big task was to protect workers from asbestos exposure. OSHA called for “voluntary compliance” and only sent inspectors to the most dangerous industries. As OSHA strengthened its efforts, industries started putting measures in place to protect workers from
tations and ensure employee understanding, hold employees accountable and if a job can’t be done safely, it shouldn’t be done. Laziness allows mistakes that have huge repercussions. We cannot continue fostering complacency in the work environment. We need to be proactive in looking out for and supporting each other. Many supervisors are complacent and only cover the very basics, telling their employees things such as, “wear your safety goggles – 100 percent tie off,” “wear hard hats at all times,” “use fire blankets,” etc. Leadership sets the tone. They must be practical and diligent about genuinely ensuring safety for all of their employees. In order to facilitate a truly safe work environment, the supervision must live, breathe and sleep safety. If the top dog is lax and nonchalant, what does it say about the company and its employees? At the end of the day, accident or injury can overshadow the success of the overall project. It’s not all hard hats and safety glasses; there is an unlimited number of ways to accomplish creating a safe workplace. But it has to start at the top and trickle down to the newest employee.
For more information, contact Jason Alvarez of Top Line Safety Services at 361-318-8710.
engineer on location image ndoeljindoel/shutterstock.com
If a job can’t be done safely, it shouldn’t be done.
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science and technology OCTG Tubular Owner David Siverling (below, right) and Vice President for Operations Bill McWhorter (below, left) at their plant.
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Houston’s Chemical Reaction Shale gas powers industrial boom By: Dr. Harold D. Hunt
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he petrochemical industry is back with a vengeance in Texas, the largest chemical-producing state, which boasts $145 billion in annual revenues. Nowhere is this more evident than in eastern Harris County. Surrounding the 25-mile Houston Ship Channel are 16 communities known as the Economic Alliance Houston Port Region (EAHPR). Located within its boundaries is one of the world’s most important trade ports and energy-related industrial corridors (see map). Rapid economic growth is often accompanied by new challenges. This round of expansion will be no exception, but the resulting real estate opportunities in and around east Harris County may be some of the best in years.
Early drivers Early economic drivers favoring petrochemical development near the ship channel included the ready availability of product (oil and gas) and easy access to a rail and waterborne delivery system. Installation of a vast pipeline network further diversified the area’s distribution capabilities. An interstate highway link completed the integrated transportation network. Much of the chemistry developed to produce other vital products from oil and gas was initiated during the war years of the 1940s. The Bayport Industrial District, created in 1970, is now among the largest private industrial complexes in the country, with more than 60 chemical plants. Roughly 160 companies have acquired facilities along the ship channel between the turning basin and Barbours Cut.
Current boom The primary feedstocks for the petrochemical industry are natural gas, natural gas liquids (NGLs) such as butane, propane and ethane, and naptha derived from crude oil. For decades, petrochemical production had been steadily drifting away from the United States toward emerging markets such as India or Indonesia, where feedstock prices and international transportation costs were cheaper. The discovery of shale gas and the resulting drop in U.S. natural gas shale oil & gas business magazine
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prices has totally changed the global dynamics of the petrochemical industry. The American Chemistry Council states that when the ratio of the price of oil per barrel to the price of natural gas per MCF (thousand cubic feet) is more than 7 to 1, the competitiveness of Gulf Coast petrochemical products is enhanced. The U.S. oil to gas ratio increased from 5.5 to 1 in 2003 to more than 20 to 1 in 2013. The ratio has become extremely favorable for U.S. production of petrochemicals, plastics and other chemical products derived from natural gas and NGLs. A recent report by the Houston Branch of the Dallas Federal Reserve found that prices for the NGLs ethane and propane had tumbled 40 percent to their lowest levels in at least two decades by 2012. In the United States, over 85 percent of ethylene, the major building block of most plastics, is derived from NGLs. The rest of the world primarily uses much more expensive naptha. The Fed report also stated that U.S. ethylene capacity is poised to increase almost 33 percent by 2017, pending completion of all new plants, expansions, enhancements and restarts of shutdown facilities that have been announced. Texas accounts for 72 percent of U.S. ethylene capacity. The report contends that the increase in domestic ethylene production will outstrip projected domestic demand growth in the next several years. As a result, U.S. petrochemical exports, particularly from Texas, will expand significantly. This is more good news for the Port of Houston.
The discovery of shale gas and the resulting drop in U.S. natural gas prices has totally changed the global dynamics of the petrochemical industry.
Synergy abounds Interdependence plays a big part in understanding the appeal to companies, big and small, that have chosen to locate in the EAHPR. For example, steam generated in one facility may be used to generate electricity for another. Gases produced in refining or processing applications like hydrogen may be used in a nearby chemical plant as a feedstock for specialty chemicals. The connections between the firms are massive. Interest in the region from foreign companies has always been strong and should continue to improve with the increase in available domestic feedstocks (see map). Foreign direct investment in plants and facilities can be attributed to a number of factors. “The Japanese originally chose this area to locate facilities based on availability of raw materials, the workforce, the support industries, low energy costs and reasonable taxes,” says Steven Skarke, executive vice president of Kaneka North America, a Japanese specialty chemical company in Pasadena. “Port access is also critical since our products are sold around the world.” “It’s also important to have access to things like a common wastewater facility, steam, oxygen and multiple natural gas suppliers,” says
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Doug Mathera, plant manager at the Dutchbased LyondellBasell’s Choate Road chemical plant in Pasadena. “The great thing about Texas is it looks for enlightened solutions to problems. Recreational boats, shrimpers and plants all work and play together in this region. That just doesn’t happen on the East or West Coasts,” says Mathera. Regarding wastewater, common practice is for each entity to build and operate its own waste management facility. The Texas legis-
lature took a different approach, creating the Gulf Coast Waste Disposal Authority in 1969, initially to clean up Galveston Bay. “About 80 industrial users send their wastewater to our treatment facility today,” says Scott Harris, facility manager at Gulf Coast Waste Disposal’s Bayport facility. “Another 11 companies or expansions are being considered as well, so we are continuing to grow.”
Pipe technology The EAHPR’s northern boundary along Highway 90 and Sheldon Road is ground zero for the latest in OCTG pipe, an old oilfield term that stands for “oil country tubular goods” used in producing or transporting oil and gas. Green, unfinished pipe is transported to this location from around the world or produced locally from rolled steel in new state-of-the-art pipe plants. Value-added processes, including heat treatment, finishing and final inspection, fi-
nalize the creation of a joint of downhole casing or production tubing. Heat treatment strengthens the pipe to handle harsh drilling conditions. Finishing involves threading the ends or attaching custom connectors for special applications. “The surge in horizontal drilling and hydraulic fracking has really increased the need for higher performance downhole pipe,” says Bill McWhorter, vice president of operations for OCTG Tubular Finishing.
“When we drilled vertical holes, gravity worked fine to help us drop well casing in place. But with horizontal wells, a joint of casing may have to be pushed a mile or more. That’s introduced a whole new level of stress on today’s pipe.” “There is a global land rush to be right here if you’re in the downhole pipe business,” says OCTG Tubular’s owner David Siverling. “This is the spot on the planet on the cutting edge of downhole pipe technology.” shale oil & gas business magazine
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With its perception as a blue-collar area, the east side of Harris County has not traditionally been a place young people are drawn to. “These are not sexy jobs,” says Ohlmansiek. “But they pay quite well and, with the shortages, there is a lot of opportunity to move up the ladder quickly.” The bulk of new-hires picked up by the major industrial employers will have two years in a trade school or the equivalent in on-the-job experience. San Jacinto College (SJC) offers a number of technical training programs. However, SJC reports that companies that overprojected labor needs in the last downturn remain hesitant to communicate their exact staffing needs.
Conflicts of interest over LNG
Workforce challenges The upswing in economic activity has increased the demand for skilled workers in the area. Many companies are forced to lure talent away from each other or train new people in-house. “It will take us four to six months to train an operator,” says Meredith Zauflik of Oxiteno. “We want to retain our talent and avoid retraining as much as possible by offering a great work environment. What we don’t want to be is some other company’s training ground.” “Unfortunately, America has a missing generation in the skilled labor pool,” says McWhorter. “We’ve been forced to bring in older talent, some of them retired, to get by until younger folks can be trained to fill the void. I spend a lot of my time recruiting, and I can tell you that finding good labor is a real problem.”
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A big unknown in the petrochemical and manufacturing sectors is how large the effect of exporting U.S. liquefied natural gas (LNG) to other countries would be on the domestic price of natural gas. The concern is that our advantage of cheap fuel and feedstocks for local industrial uses The Houston could disappear Ship Channel if the price of services vessels gas increased from 154 countries — too much. more than any C u r r e n t l y, other U.S. port only one LNG (left). export facility, Cheniere Energy’s Sabine Pass location, has completed the Federal Energy Regulatory Commission’s (FERC) authorization process and obtained signed longterm contracts from global buyers. The facility’s first two stages, under construction since last August, will have an export capability of about 2.6 billion cubic feet (BCF) per day. Natural gas production in the lower 48 states averages about 65 BCF per day. Twenty-five applications for permission to construct LNG export facilities have been filed as of March 2013, according to an April 2013 report by the Congressional Research Service. Energy analysts believe it is highly unlikely that all 25 projects will be built. Cheniere Energy’s CEO, Charif Souki, has described the 25 export applications as “20 ideas and four or five true projects.” If all 25 projects were to be constructed, they would represent a total export capacity of 29.7 BCF per day according to the congressional report. Proponents of natural gas as a transportation fuel argue that it makes no sense to export our clean domestic natural gas while continuing to import dirty crude oil. Most companies involved in U.S. petrochemical and manufacturing agree. Alternatively, exploration companies argue that exporting LNG could help bring the price back to a level sufficient to encourage drilling for
natural gas again, thought to be somewhere around five dollars per MCF. Interest in drilling for natural gas declined significantly in the last year due to a steep drop in price. The U.S. natural gas rig count fell from more than 800 in 2012 to less than 400 today, a level not reported since 1999. The decision regarding how much U.S. LNG to export will ultimately be decided by politicians. However, IHS Global Insight reports that the U.S. petrochemical sector is ramping up to spend $95 billion for plant expansions and new projects. This would indicate that they beSource: Real Estate Center at Texas A&M University (above).
lieve the eventual natural gas price increase will be manageable over the next 15 to 20 years. These expansions also will immediately create construction jobs and increase full-time employment as well. Marie McDermott, vice president of business development for the EAHPR, agrees. “In 2012 we had six major specialty chemical or manufacturing companies commit to spend more than $1.5 billion in our area for new capital investment. That makes us pretty optimistic about the future of our industrial sector.�
from cheap and plentiful natural gas feedstock that allows it to compete with countries that derive their feedstock from crude oil. Indications are that the boom created by low-cost natural gas will not be a short-term phenomenon.
The takeaway
Copyright 2013. Real Estate Center at Texas A&M University. Reprinted with permission.
Dr. Harold D. Hunt is a research economist with the real estate center at Texas A&M University. For more information, contact him at hhunt@ tamu.edu.
The U.S. petrochemical industry is benefiting shale oil & gas business magazine
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travel and real estate
No Monkey Business Catrina’s Ranch Interiors: making your interior design dreams come true By: Catrina Kendrick
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any people have the misconception that custom furniture is more expensive than furniture that comes in a box. In a perfect world, consumers would be able to choose woods, finishes, fabrics and leather without breaking the bank or waiting six to 12 months for their furnishings to arrive. Guess what? That day is here! Now you can enjoy “no monkey business” solid wood furniture and real leather upholstery that is built to last at affordable prices – and you can usually have furnishings in your office or home in about 30 days. Get ready to be amazed. At Catrina’s Ranch Interiors, our professional design team will come to you. Whether it’s your office in Houston or your ranch house in Pleasanton, we are ready to help you make your interior design dreams come true. We will photograph, measure and sketch your rooms so that furnishings are the perfect scale and the perfect fit. We will give you step-by-step and room-by-room suggestions in a design book and a storyboard that we create for you, neatly typed and totally priced so that there are no surprises or hidden costs. We offer full design service, whether it is remodeling or new construction. Included in our service, we can help you select paint, tile, flooring, lighting, appliances, cabinets, carpet, handmade rugs and of course,
windows. Drapery, shutters, fancy cornice boards, layered valances and custom bedding are our specialties. Our motto has always been, “If you can dream it, we can build it,” and we pretty much stand by that. Please check our website and see our long list of awards; we won the Greater San Antonio Parade of Homes, the Kerrville and Fredericksburg Parade of Homes and the Summit Awards in San Antonio. Try taking a virtual tour of parade homes and browse through many interesting articles about our company. You can also buy online! Not only do I love to design, I love to write about design, and I have a long-running design editorial in Urban Homes Magazine. We are pleased to announce that we now have two locations to serve you. Our original store, with its sprawling six-and-a-half-acre “ranch style” feel, is located at the base of the Hill Country. Located at 31300 IH 10 West, exit 543, just before Boerne, Texas, Catrina’s at the Ranch is a destination point filled with unique furniture, accessories and treasures from all over the world. The hours are from 10 to 5:30 Monday through Saturday, and Sunday 12 to 5. Our second store, Catrina’s Rug Gallery and Furniture Clearance Center, is located at 16350 Blanco Road in San Antonio, Texas. This store features handmade, one-of-akind Persian rugs, unique art and furniture bargains. The hours are 11 to 6 Thursday through Sunday. So whether it’s an area rug, custom barstools that fit just right, original paintings, office furniture designed to fit your needs, mirrors for the bath, patio furniture, leather furniture, antler or iron chandeliers or a whole house or office designed to perfection at affordable prices, come see us. We would love to earn your business at Catrina’s Ranch Interiors.
For more information, please visit us online at www.catrinasranchinteriors.com.
photo by angela stout
“If you can dream it, we can build it.”
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travel and real estate
Designed to Simplify Life Condos and townhomes: increasingly attractive alternatives to single-family homes By: Tabitha King
Marcia Place Townhomes
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hese days, many people are comparing the benefits of owning a condo or townhome versus a single-family home. Condos and townhomes are alternatives to the traditional single family home with its expensive lawn, driveway and large amount of maintenance. Interestingly, an increasing amount of families are turning to these options to stretch their budgets and cut down on maintenance. Many buyers actually start their home-buying history with a condo or townhome. There are many reasons condo/townhome living is more attractive to some buyers. What’s so special about it? [1] less maintenance: Because these properties are attached to other properties, the amount of exterior maintenance is greatly reduced, and with a condo, most or all of it is taken care of by the HOA. This takes a lot of burden off your budget and saves you time. Maintenance consists of two things: time and hassle. [2] Security: Neighbors are close by, and that makes it more difficult for a burglar to break into your home. Some condos may have a front door that requires a key just to enter the building, and the proximity of townhomes can create a unified front for any potential intruder. [3] More bang for your buck: If square footage is important to you, you may be able to afford more
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in a townhome than a single-family home in the same area. Townhomes are usually multi-level, so builders are able to put a lot of living space between the four walls. Today’s condos and townhomes have fancy upgrades you might not be able to afford in a house like granite counters, high-end stainless appliances, wood floors and modern fixtures. Ultimately, it’s a lifestyle choice. Both condos and townhomes create a bit of community living. Townhomes offer more independent living, while condos offer more citified living. Either is perfect for busy professionals, first-time buyers and even empty nesters. San Antonio has many cutting-edge luxury condos and townhomes. They are sophisticated and modern, offering luxurious and comfortable living without all of the hassles, the worries and the upkeep. Whether you prefer a neighborhood feel or high-rise living, there are many options available.
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.
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food and entertainment
The Secret’s in the Sauce B&B Smokehouse continues to serve up some of the best barbecue in the Alamo City after nearly 30 years in operation By: Jimmy Perkins / photography: jimmy perkins
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here are certain restaurants that reach institution status thanks to quality, longevity, consistency and customer service. On the south side of San Antonio, places like Don Pedro’s, Bud Jones and the Hungry Farmer come to mind. Add B&B Smokehouse to that list. B&B Smokehouse has been serving up great barbecue and burgers for 29 years, but its roots reach even deeper. Harold Finley operated Hal’s Drive In and Bar-B-Que at this location beginning in 1958. After 1970, Finley retired and sold the business, which continued
on as Hal’s Drive In and Bar-B-Que for another 10 years. After a brief stint as a music store in the early ‘80s, Finley’s sons, Bruce and Robert Finley, opened B&B Smokehouse in 1984. The fire never goes out in the vertical flow pit at B&B Smokehouse. Briskets are cooked between 12 and 16 hours, and sausage and chicken are cooked throughout the day. The wood of choice at B&B is, and always has been, oak. It is without a doubt some of the best barbecue you will find in San Antonio. And the secret is in the sauce. In reality, this is true if by “sauce” you mean a friendly atmosphere and first-rate customer service backed
by great food seven days a week (Monday through Friday from 10:30 a.m. to 9 p.m. and Sunday from 11 a.m. to 8 p.m.). This is what you can count on at B&B Smokehouse. Whether it’s the slow-cooked brisket or the ribs, the chicken or the sausage or quite arguably the best hamburger in San Antonio, the food is always fresh, delicious and consistent. They even offer great salads, tacos, nachos and chalupas, but I don’t know that I’ve ever eaten a salad at a barbecue restaurant. According to Bruce Finley, the cornerstone of what makes B&B great is the employees. B&B employs 33 people, including three who have
been with the restaurant for 12, 15 and even 27 years. And then there is the actual barbecue sauce. Like any great barbecue restaurant, the sauce is a high-level trade secret and B&B is no exception.
B&B Smokehouse is located at 2627 Pleasanton Road just south of Southwest Military Drive. Large to-go orders can be phoned in and picked up at the drive-thru window for your convenience. If you have catering needs, Bruce Finley and his staff are ready to help. To learn more, visit www.bbsmokehouse.com.
At B&B Smokehouse, the food is always fresh, delicious and consistent. shale oil & gas business magazine
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a walk through history The Gunter Hotel and Barbershop: celebrating more than 100 years of rich and unique Alamo City history By: jimmy perkins / photography: jimmy perkins
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n 1837, one year after the fall of the Alamo, the Republic of Texas was officially recognized by the United States. That same year in San Antonio, the Frontier Inn opened its doors at a busy intersection downtown. The hotel flourished and was sold in 1851 to the Vance brothers, who built a two-story building that was subsequently leased by the U.S. Army to house soldiers stationed in San Antonio. By 1877, Vance House, as it was renamed, was a busy hotel at which guests could obtain firstclass accommodations for the price of $2. Then on Nov. 20, 1909, the new Gunter Hotel was officially opened and it set the stage for a truly rich and unique history. The Gunter quickly became the celebrated place to be, and in 1917, Jot Gunter added an additional floor. Three more floors were added in 1926, and the grand hotel at the corner of St. Mary’s and Houston Street was in full bloom. Over the years, legends like Roy Rogers, Gene Autry, Mae West and John Wayne frequented the hotel. Presidents Franklin Roosevelt and Harry Truman both stayed at the Gunter when visiting San Antonio. And in November 1936, an unknown blues singer from Hazelhurst, Miss., traveled to San Antonio and recorded 16 songs in room 414. Less than two years later, Robert Johnson died at the age of 27, having only recorded a total of 29 songs in his short life. Johnson was virtually unknown during his time and would have been forgotten entirely, but in 1961, Sony Records released his original recordings and that release changed rock ‘n’ roll history. His songs were covered by Eric Clapton, the Rolling Stones, Fleetwood Mac and Led Zeppelin. Clapton has called Johnson “the most important blues singer that ever lived.” Keith Richards of the Rolling Stones has said, “You want to know how good the blues can get? Well, this is it.” And Billy Gibbons of ZZ Top cites Johnson’s guitar technique as the inspiration for the song, “La Grange.” And it all started in room 414 at the Gunter Hotel in San Antonio.
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Over the years, legends like Roy Rogers, Gene Autry, Mae West and John Wayne frequented the hotel.
From its opening in 1909, the Gunter offered a full-service barbershop in the basement. By 1937, this barbershop was operating three shifts 24 hours each day. Two cashiers, six manicurists, five porters and 18 barbers worked day and night shifts to keep up with the business. In addition to travelers, local businessmen and politicians frequented the barbershop and kept the schedule full. One hundred and three years later, that same barbershop continues to offer a full menu of services to its clientele. With three barbers and one porter, it is not as busy as in the past, but men can still get haircuts, straight razor shaves and shoe shines Monday through Friday. The atmosphere is much the same as it
was before thanks to owner Lee Bosman’s sense of history and commitment to customer service. Bosman started working at the barbershop in 1975 after spending time in the Navy. He worked with, and learned from, some of the same barbers who had worked there in the ‘30s. While the old barbers are long gone, the equipment remains. Original hat rack: 103 years old. Sinks: 93 years old. Chairs: 65 years old. Sitting in the barber’s chair and getting a straight razor shave is simply timeless.
To learn more about the Gunter Hotel or to make an appointment at the barbershop, just call the Gunter front desk at 210-227-3241. shale oil & gas business magazine
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food and entertainment
Share and Share Alike Jeff White takes the helm as executive chef at Boiler House Texas Grill & Wine Garden. By: Valerie Grant / photography: shane kyle
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oiler House Texas Grill & Wine Garden has named Jeff White executive chef, promoting an accomplished member of the team to lead the restaurant’s kitchen and tame the flames of Boiler House’s renowned grill. A true Texas original, Boiler House is a wine-centric, Texas-style restaurant featuring grilled dishes from local farms and markets and extraordinary wines from around the world. Housed in the original boiler house that powered the Pearl Brewery during its heyday, the restaurant’s building dates to 1896 and is one of three original structures remaining on the brewery campus. Born and raised in San Antonio, White helped craft the Boiler House menu that has won accolades from critics and diners alike. He has received several awards and recognitions, including an invitation to cook a dinner as the featured chef at the prestigious James Beard House in New York City, the People’s
Choice Award for the Taste of Elegance, a spot in “Who’s Who in Restaurant Business,” a feature on the cover of San Antonio Magazine and a medal from the American Culinary Federation. As executive chef, White’s plans do not include major changes to the Boiler House menu. “We feature farm fresh ingredients, so we’ll have seasonal changes and we’re always looking at different angles on grilling and Texas cuisine,” he said. “Our entire opening team worked to create a lasting menu that has gained fans. At the same time, I like to introduce people to new flavors and ingredients they may not know, so we will also be offering
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“We have an amazing team here. I’m proud of what we produce and the creativity you see in our dishes.”
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more culinary-driven events such as our fall wine preview event in early September and our National Drink Beer Day dinner in late September. These events allow us to pair some of our amazing wines and Texas beer selections with creative dishes. It’s also fun to get out of the kitchen, walk around the ‘yard,’ visit with our guests and talk about their experience.” Boiler House’s kitchen is from scratch, meaning they make everything in-house – a source of great pride for White. “We have an amazing team here,” he said. “My background includes preparing meals for as many as 2,000 people at a catered event. I’ve seen everything there is to see in a kitchen, and this crew is phenomenal. I’m proud of what we produce and the creativity you see in our dishes. I believe it’s the little things that add up to make a difference in what we do, and making things like our charcuterie plate is proof of the effort we put into everything we do.” The largest restaurant on the Pearl campus, Boiler House features two floors
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of dining, as well as an expansive outdoor patio – a feature White enjoys. “With the kitchen as the center of the restaurant, we can soak in the vibe that flows through the space – even the patio,” he said. “There’s a terrific energy here and we feed off of that. It’s a lot of fun making great food for people to enjoy with family and friends as they hang out for the afternoon, lingering on the patio, soaking in live music and just relaxing in this really unique space. “The idea behind Boiler House is terrific. We’re all about sharing: sharing great food, sharing great wine, sharing time with friends. We’re not just tapas and we’re not just small plates. We’re family style done the Texas way: big. We offer something for everyone; two thirds of our menu is actually gluten-free and almost all of our dishes can be served as vegetarian options, and of course, we feature fabulous proteins. I’m excited to build the brand we’ve started and share Boiler House with everyone. There’s always room for more, and we’re happy to uncork another bottle if you want to hang out with us a little longer.”
Boiler House Texas Grill & Wine Garden is located at 312 Pearl Parkway, Building 3, in the shadow of the iconic Pearl brewhouse. Boiler House is open Monday through Wednesday from 11 a.m. to 10 p.m.; Thursday through Friday from 11 a.m. to midnight; Saturday from 10 a.m. to midnight; and Sunday from 10 a.m. to 10 p.m. For the latest Boiler House news and menu and drink specials, follow Boiler House on Facebook (The Boiler House SA) or on Twitter (@boilerhousesa).
food and entertainment
for some little country kids from Bandera, Texas.
How have you seen South Texas change with the Eagle Ford Shale?
Country singer/songwriter Charlie Robison talks about the changing landscape of South Texas. By: lorne chan
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How much time do you spend on your ranch? We’ve had a ranch between Bandera and Kerrville that’s been in the family for more than 100 years. It’s not the grassiest place, but it works.
You talk about working on a pipeline in the song, “My Hometown.” What do you remember from that experience? Worked on a pipeline back in summer in high school, and it’s definitely the hardest job I’ve ever had. I’ve had plenty of other tough jobs, but being a welder’s helper on a pipeline ... well, you can do anything after that. I hate to sound like an old fart, but back then, it wasn’t a weird job to have in high school. It was work. We were making $6 or $7 an hour and getting overtime for 60hour weeks. In 1981 dollars, we were rich
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How would you describe living in the area these days? It’s the same lifestyle. I’m at our ranch a few days a week, and anyone with a ranch knows that there’s always work to do on it while you’re there. Other than that, it’s spending time with the kids and going fishing.
Your new album is called “High Life.” Did you just describe the high life? I think so. The songs are very upbeat and up-tempo. I was going through a divorce during my last record and those songs reflected that. This is about getting past that part of your life, and everything is about being where you are. It’s about having a blast with the time that you’re in – living in the moment.
For more information, visit www.charlierobison.com or www.facebook.com/charlierobison.
photos by Todd Purifoy courtesy of Smith Music Group
The High Life
harlie Robison has chronicled life in Texas through two decades as a country singer/ songwriter. He’s spent much of the time on the road playing shows around the state, but he has said there’s no better place than his home, Bandera. He spoke about life in South Texas while on the road this summer. His new album, “High Life,” will be released in October.
I’ve got a bunch of friends in the business and it’s wild. As much as I drive around Texas to play a show or go to Port Aransas, I’ve seen so many things just popping up everywhere in the last two years. There are a lot of “right of ways” going on, and it’s obvious when you look around how much the landscape has changed. It’s a good thing for everybody to add a piece of commerce with the shale. I’m driving from Port A to San Antonio right now, and we’ve gone from absolutely nothing on the side of the road to pipelines going in, massive truck stops and restaurants to cater to the new workforce.
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Getting In the Field
The Texas Alliance of Energy Producers keeps oil and gas industry players up-to-date about what’s going on in the Lone Star State with its Wildcatter receptions. By: Scott Courtney
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n Jan. 18, 1930, a group of about 50 independents met at the Wichita Club in Wichita Falls, Texas, to protest “the recent drastic price cut in crude oil, inaugurated by some of the major purchasing companies.” One week later, on Jan. 25, the group of independents formally organized the North Texas Oil and Gas Association (NTOGA). P. B. Flynn was elected the first president, a board of directors was selected, bylaws were adopted and a dues structure was established (from $100 for the largest producers to $10 for producers of small quantities of crude oil). In 1933, the West Central Texas Oil and Gas Association was formed in Abilene. The two associations worked closely together for more than 60 years when the directors of each organization got together and decided to formalize that close relation-
ship. In 2000, the two associations merged and became the Texas Alliance of Energy Producers. Today, the alliance is the largest state oil and gas association in the nation that represents independents solely. With more than 3,300 members in 35 states, the alliance has offices in Houston, Austin and Wichita Falls to serve the needs of its diverse membership. The mission of the alliance is “to further the interests of the oil and gas industry by taking an active interest in matters of local, state and national significance to the domestic oil and gas industry; to advance the standards of the industry; to promote sound risk management techniques and practices; to foster confidence and goodwill between employers and employees and with the general public; and to collect and disseminate information of value.” The Texas Alliance of Energy Producers exists to act as a government relations department, to represent producers in Austin and Washington and to create a better business climate for the oil and gas industry. Most companies are not large enough to hire someone to analyze the impact of new regulations on their business, and that’s why it is important that businesses in the industry work together. Membership in the alliance provides the support to allow them to work regulatory and legislative issues on behalf of producers across the state. Membership information can be found at www.texasalliance.org. Anyone can become a member, and if your business growth is related to the success of the industry, you should support the alliance. Government relations have become an integral part of the alliance’s mission. Over the years, the alliance has strengthened its government relations team from President Alex Mills and Executive Vice President Bill Stevens to three more key professionals. Charlie Stenholm served 26 years in the U.S. House of Representatives and became part of the alliance team in 2009. Gloria Leal, an attorney who worked for the Texas Department of Insurance, joined the alliance team in 2006. And John Tintera worked at the Railroad Commission for 22 years, and served as the executive director from 2009 to 2012. “We have an experienced staff that is very diverse,” Mills said. “Stevens, Leal and Tintera all have experience in state and federal law and regulation.” The alliance has an annual expo and alliance board meeting every year in Wichita Falls, where it is headquartered. The alliance spends a tremendous amount of time “in the field” meeting with members, regulators, legislators and industry-related groups in an effort to get to the grassroots of issues and challenges producers face.
businessmen shaking hands image Andresr/shutterstock.com
nonprofit
Government relations have become an integral part of the alliance’s mission. One of the ways the alliance reaches out to its members is hosting Wildcatter receptions. The South Texas Wildcatters was formed in 2012 to recognize and honor companies or individuals that exhibit the entrepreneurial spirit, dedication to the industry and commitment to excellence that typifies the Wildcatters of yesteryear. South Texas Wildcatters is an oil and gas business networking group first and a fun bunch to hang out with second. Wildcatter receptions are held four times per year. We typically kick things off with a receiving line composed of Texas Alliance of Energy Producers leadership and staff, Wildcatter Host Com-
mittee members, reception sponsors and company honorees. Every attendee entering the reception has an opportunity to meet those in the receiving line and “put a face with a name.” Next, we open up the reception to about an hour of networking over quality buffet and libations. After an hour or so of networking, we begin the program with opening remarks from the alliance’s chairman of the board, Townes G. Pressler, on the important work the alliance is addressing on behalf of producers. Following the alliance update, the honoree of the evening is introduced and they have the opportunity to give a presentation on their company, operations, areas of interest, current and future plans and other interesting information. After the honoree presentation has been completed, other speakers present information useful to the attendees such as legislative updates, subject matter expert opinions and general business-related topics. Once the presentations are over, the evening returns to a relaxed, yet exciting hour of networking and socializing. Past recipients include Abraxas Petroleum Corporation, NuStar, Halliburton, EOG Resources and BlackBrush Oil & Gas. Join us at the next Wildcatter reception and learn what’s going on in South Texas while enjoying a great evening with old and new friends and associates. Become a sponsor of South Texas Wildcatter Receptions and enjoy a special pre-reception with the honorees, alliance leadership, the South Texas Wildcatter Host Committee and other sponsors in addition to the benefits of exposure and recognition in front of a great business crowd. The next Wildcatter reception will be held on Oct. 10, 2013, at the Marriott Northwest.
For more information, visit www.texasalliance.org.
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!
5600 Broadway Avenue | San Antonio, TX 78209 | Tabitha@KingRealtors.com
TABITHA KING 210.414.4255 shale oil & gas business magazine
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scene
Simply Amazing Sendero Ranch: a grand opening for a grand community
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was very happy to attend the grand opening of Sendero Ranch, a grand new community in Dilley, Texas. From the moment I could see the gates, Sendero Ranch appeared to be a safe and amazing place. As I made my way inside, the first thing I noticed was the magnificent pavilion that would be great for Sunday barbecues and relaxation. The entrance to the community area is clean, warm and inviting with leather sofas and TVs located just about everywhere, making it easy to follow your favorite game no matter where you are. The large, air-conditioned laundry area lets you wash your clothes and play pool or watch TV at the same time. The apartments are simply amazing. The facilities are inviting, with a fully stocked kitchen and living room area with a large flat-screen TV, which makes cooking a delight. There is fullservice drop-off for food, and laundry services are available, as well. I’m glad I attended the grand opening of Sendero Ranch. It allowed me the opportunity not only to view this great new community, but also to meet the friendly, wonderful staff who warmly welcomed me. Here is what a few guests have to say about Sendero Ranch:
Mark Navarro: I’ve been to many places. This is the first with gate access, and that’s important. WiFi and TV in every room – what a
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big plus. (white sleeveless T-shirt, Black Balls hat)
Rocky Gurry: Very nice room, and the staff are very nice. (black T-shirt, black sunglasses on his head) Brian Pena: The community, although new, has a great atmosphere and allows me to feel at ease with the high fences and security gates. The amenities allow me to pass the time enjoyably while being away from home. (white T-shirt, gray cap) Gilbert Grado: The property layout is fantastic – not crowded, ample room to park. The rooms are more than adequate and roomy. They’re nicely decorated, which makes it feel like home away from home. (polo shirt with red horse) Ryan Curry: Nice rooms – cleaned well and maintained. (black T-shirt, sunglasses) Jason Bishop: Awesome, comfortable beds. Great service in the office. Love this place. (gray T-shirt, no hat) Shayne Harvard: Nice rooms, well maintained/clean grounds and beautiful pavilion. (Texas Rangers baseball cap)
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