SHALE Oil & Gas Business Magazine Sept/Oct 2014 by SHALE Oil & Gas Business Magazine

SHALE OIL & GAS BUSINESS MAGAZINE

VOLUME I / ISSUE VIII SEPT/OCT 2014

PORT OF CORPUS CHRISTI’S

JOHN LaRUE

STEADY AT THE HELM HOUSTON’S DIVERSE ENERGY SYSTEMS

Innovative and Entrepreneurial

DAVID BLACKMON on EFS Economic Boom

SENATOR JUAN “CHUY” HINOJOSA Energy Matters in South Texas

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

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

SEPT/OCT 2014

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The leader in oilfield transportation and logistics since 1949

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AEP Texas: Your Business Partner in Shale Oil & Gas Extensive shale oil/gas reserves are located in and around geographic areas that align with the AEP Texas electric delivery service territory. Let the AEP Texas service team assist you with timely information regarding the location, capacity and availability of AEP Texas facilities. To request electrical service or gain access to a certificated planning map, please complete the information request form located at www.AEPTexas.com/shaleoilgas Contact: Bradley Lenz 361-881-5455 bhlenz@aep.com

John Longoria 361-881-5867 jflongoria@aep.com

www.AEPTexas.com/shaleoilgas @AEPTexasEconDev

SEPT/OCT 2014

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- Sand Kings - Sand Chiefs - Blenders - Hydration - FRAC Pumps - Falcons - Batch Mixers

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Exclusive Dealer for the Eagle Ford Shale Territory

PYRICOAT: is an all-natural soil treatment application designed to inhibit the oxidation process of soil with harmful metals and minerals. By coating the soil with Pyricoat, minerals will be encapsulated, which will stop any liquids from further contamination such as coal mining runoff. This application has increased acidic waters PH levels from 3.4 to 6.5 for over three years now in alpha test in coal mining areas. FeCONTROL: is an all natural product used to binds, encapsulates and creates a carrier for iron sulfites and other damaging microscopic particles from crude oil. When applied to crude oil directly it reduces iron, sulfides and other corrosives by up to 93% when separated. Using this product will save downtime by reducing maintenance days by eliminating the corrosive iron sulfides from the crude before being introduced into the refineries. This application will also augment the existing downstream process of removing iron from crude oil. ReLOAD: is an all natural product use for treating frac and produced water. This product creates a top layer of hydro Cardons in Frac or produced water. This application is perfect for recovering oil from the formation fracturing process in the flow back and produced water will help in the recycling of the

water for reuse in the formation fracturing process. ReLoad is most effective when introduce into holding tanks or holding ponds with a circulating pump. ReLoad will also help keep out moisture when needed. ReLoad is used on water for the separation of water and hydro carbons PREMIUM ReLOAD: is an all natural product use for treating frac and produced water. This product binds and encapsulates the heavy metals including the damaging iron sulfites and keeps them from the oxidation process. The method reduces iron sulfates by 90% and makes the separation of solids from water more efficient. This product pushes the hydrocarbons to the surface while creating a layer of encapsulated metals. This application is perfect for recovering oil from the formation fracturing process in the flow back and produced water will help in the recycling of the water for reuse in the formation fracturing process. Premium ReLoad is most effective when introduce into holding tanks or holding ponds with a high turbulence application. Premium ReLoad also binds heavy metals in acidic water and helps eliminate corrosive effects. Premium ReLoad is use on water for inert effect on heavy metals.

Clint Schweers / oilfieldexperts@gmail.com 13611 U.S. Hwy 181 S., San Antonio, Texas 78223 / (210) 471-1923

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CONTENTS

SEPTEMBER/OCTOBER 2014

FEATURE

16 From the Wellbore to the Pipeline

COVER STORY JOHN LaRUE 18 As Executive Director of the Port of Corpus

Christi, John LaRue leads the way to new horizons for this fast growing Texas shipping port.

INDUSTRY

26 Eagle Ford Shale Creating Careers 28 Shale Play! 30 Water Recycling in the Future for Oil Companies 32 Our Energy Moment Coalition

POLICY

38 Legislative Update: House Interim Activity 40 Urban Energy Coalition 42 The Evolving Mexico Energy Market

Reaches a Historic Milestone 46 Oil and Gas Vital to All Texans 48 Energy Renaissance Coming to South Texas

BUSINESS

50 Estate Planning-Keep the Promises You Make 52 Four for Texas 54 Steel and Ice 56 Education Pipeline to the Workplace 58 The New Age Traveler 60 A True Technology Partner

LIFESTYLE

64 Return to Glory 66 Rogers Lacy and Frank Lloyd Wright 68 Make Time to Toast and Celebrate 70 Celebrating 25 Years of Excellence 72 Joshua Creek Ranch Offers Up Some Seasonal Recipes 74 A Haven in the Hill Country

NONPROFIT

76 Funding Our Future 78 Just Say “Oui”

SCENE PORT COMMISSION CHAIR JUDY HAWLEY AND EXECUTIVE DIRECTOR JOHN LARUE

86 Arturo Henríquez Cover Party 90 Eagle Ford Shale Consortium 92 Silverback Homes 94 South Texas Wildcatters 96 Joshua Creek Ranch Clay Shoot 98 TAMACC Convention and Business Expo

COVER AND TABLE OF CONTENTS PHOTOGRAPHY BY: MICHAEL GIORDANO

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ADVISORY BOARD

OIL & GAS BUSINESS MAGAZINE VOLUME I ISSUE VIII • SEPTEMBER/OCTOBER 2014

OMAR GARCIA - SENIOR ADVISOR

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

KYM BOLADO CEO / PUBLISHER

EDITOR IN CHIEF Jimmy Perkins

CHIEF FINANCIAL OFFICER Deana Acosta

ART DIRECTOR Elisa Giordano

EXECUTIVE EDITOR Lauren Guerra

EXECUTIVE ACCOUNT MANAGER/ EVENT COORDINATOR Ashlee Harper-Arnn

VICE PRESIDENT OF SALES

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.”

Stephanie Hawley / Austin & Houston Liz Massey Kimmel / Corpus Christi, McAllen, Laredo & Alice Joyce Venema / San Antonio

VICE PRESIDENT OF SOUTH TEXAS BUSINESS DEVELOPMENT Gloria Perez

ACCOUNT EXECUTIVES

Christi Guillory, Gloria Perez, Dina Ybanez

CONTRIBUTING WRITERS

David Blackmon, Kim Bridger, Scott Courtney PG, Dr. Janet Cunningham, Elisabeth Eljuri, Omar Garcia, Senator Juan ÒChuyÓ Hinojosa, William Keffer, Liz Massey Kimmel, Gloria Leal, George F. Long, Rob Patterson, Jimmy Perkins, Randy E. Pruett, Bert Quintanilla, Dawn Robinette, Thomas Tunstall PhD, Jeffrey A. Webb, William D. Wood, Joyce Venema

STAFF PHOTOGRAPHER Malcolm Perez

PHOTOGRAPHERS

Jose Alcala, Michael Giordano, Matt Gomez, Jimmy Perkins, Thomas Tunstall

JEFFREY A. WEBB

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. CONTINUED ON PAGE 11

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com. For editorial comments and suggestions, please call 830.377.8573 or email jimmy@shalemag.com. SHALE MAGAZINE OFFICES: 5600 Broadway Ave., San Antonio, Texas 78209 18756 Stone Oak Pkwy, #301, San Antonio, Texas 78258 For general inquiries call: 210.854.3361 Copyright © Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

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We See Shale Differently. We look at shale plays and see data. Data from the rocks, data from the wells, data from many sources. We deeply analyze that data to reveal information and predict production for any well, anywhere. That means fewer underperforming wells and more accurate reserve reports. See how we can help you see shale differently, too.

www.OAGshale.com

SEPT/OCT 2014

SHALE SHALE OIL OIL & & GAS GAS BUSINESS BUSINESS MAGAZINE MAGAZINE

PUBLISHER’S NOTE IN OUR LAST ISSUE OF SHALE OIL & GAS BUSINESS MAGAZINE I TOLD OUR READERS ABOUT SHALE BEING SELECTED BY STEER (SOUTH TEXAS ECONOMIC ENERGY ROUND TABLE) TO HOST A FOUR CITY TOUR ON THE

Economic Impact Research of the Eagle Ford Shale that will be released by the University of Texas at San Antonio this fall. I am overwhelmed to see such support for this tour; we will be completely sold out at every event. I strongly encourage readers to purchase tickets now if you wish to attend as space is very limited at this point. We are truly grateful to our sponsors who graciously donated to the tour and ensured its success. We all see the value of helping the community and business leaders as well as elected officials understand the report and the significance to our great state. We are truly honored to have been the only publication selected to host the tour and to be endorsed by STEER. The tour will consist of stops in Houston, San Antonio, Corpus Christi and Laredo, Texas. These networking events will provide a clear look into the study and allow interaction with industry experts. The research is being released by the University of Texas at San Antonio and authored by Thomas Tunstall, PhD. The research is also a vital reference source used by media to report on the economic data from the region. I would like to thank John LaRue for allowing SHALE Oil & Gas Business Magazine to interview him on behalf of the Port of Corpus Christi for our cover story this issue. We are inspired by his forward thinking leadership and how the Port continues to respond to the needs of the market to keep up with the rapid growth and demands resulting from the energy boom in Texas. Corpus Christi is poised to remain a major player in the oil and gas arena for years to come. Our interview with Mayor Nelda Martinez in our January/February issue shows the astute leadership that is guiding this amazing city into the future. I am so happy to announce our newest contributing columnists, Arturo Henriquez, Chief Procurement Officer of Pemex and David Blackmon of FTI Strategic Communications. Mr. Henríquez will explore topics that companies need to know in order to do business with Pemex and Mr. Blackmon will shed light on numerous topics concerning the oil and gas industry from his expert perspective. SHALE is focused on demonstrating that oil and gas is much more than simply an occupation - it’s a lifestyle! We are more than just another publication - we are your marketing team providing you with multiple touch points to get you in front of the decision makers in the industry. We hope to see you at The Economic Impact Tour of the Eagle Ford Shale presented by SHALE Magazine!

KYM BOLADO

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

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT:

SHALE Oil & Gas Business Magazine is a publication that showcases the dynamic impact of the Texas energy industry. The mission of SHALE is to promote economic growth and business opportunities and to further the general understanding of how the energy industry contributes to the economic well-being of Texas and the United States as a whole. SHALE’s distribution includes industry leaders and businesses, service workers, entrepreneurs and the public at large.

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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.

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.

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 fiveplus billion gallons of commodities worldwide. It is the world’s leading integrated producer and marketer of commodities.

THOMAS TUNSTALL, PH.D.

Thomas Tunstall, Ph.D., is the research director for the Institute for Economic Development at the University of Texas at San Antonio. Previously, he was a management consultant for SMEs, and the former Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. He has also served as an advisor relations executive at ACS, and was the founding co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). He has published a business book entitled “Outsourcing and Management” (Palgrave 2007) and was the technical editor for “Outsourcing for Dummies” (Wiley 2008). Tunstall has consulted in both the public and private sectors. In 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was deputy chief of party for a central bank modernization project.

WTxEC Business & Industry Involvement “Industry input is vital in our decision making process. Help us as we work with the area community colleges and technical schools to determine industry specific training & certification requirements. We need your input to effectively train people with the knowledge, skills and abilities necessary to be successful in the oil and gas industry.” Provide expertise and input as we work to improve emergency services to communities and drilling locations. Be a part of the energy and economic growth forum in West Texas.

JOIN NOW!

Visit our website for more info: www.wtxec.org OR Contact Our Office 325-795-4206 / info@wtxec.org

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CONTRIBUTORS

David Blackmon is a managing director of the FTI Strategic Communications practice and is based in Houston. Throughout his 34 year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state and federal level. David has more than 15 years experience working legislative and regulatory issues in Washington, DC, Texas and other states. He is a recognized subject matter expert on a variety of oil and natural gas issues, and regularly offers testimony at legislative hearings. David is currently a contributing columnist for Forbes. com, focusing on public policy issues affecting the oil and gas industry. He also writes regular commentary for World Oil Magazine.

Bill Keffer has practiced law for thirty years as in-house counsel at a major oil and gas company and in private practice. He currently teaches at Texas Tech University School of Law and continues to consult. He served in the Texas legislature from 2003-2007 representing the 107th District in Dallas, TX.

Jimmy Perkins is the Editorin-Chief of Shale Magazine. He has spent 29 years as an entrepreneur in the music business as a concert promoter, artist manager, record producer, and music publisher. Additionally he is the Founder and CEO of Toro Pipeliner, LLC, a software design company providing data solutions for the oil and gas pipeline construction industry.

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Dr. Janet M. Cunningham serves as the executive director of Citizens for Educational Excellence (CEE), a non-profit education organization, and Education to Employment Partners, the regional P-16 council that serves 42 school districts in 11 Coastal Bend counties. Under her leadership, CEE has established Coastal Compass Education and Career Resource Center located in Corpus Christi’s La Palmera Mall. She also serves as the director of the Northwest Center for Advanced Studies, a dual enrollment program in Calallen ISD that provides college-level classes to students from four school districts. Dr. Cunningham serves on the Postsecondary Success City Action Network, Corpus Christi Mayor Nelda Martinez’s Education Workforce Task Force, Representative Todd Hunter’s Workforce Task Force, and Flint Hills Resources Community Action Council.

Jeffrey A. Webb is a senior associate 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.

Omar Garcia, president of the South Texas Energy & Economic Roundtable (STEER), 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.

Rob Patterson is an Austin based writer and editor whose work has appeared in numerous consumer and trade magazines, daily and weekly newspapers, and a number of web publications. He writes about news, personalities, politics, film, music, food, buildings, education, books, energy, culture, travel and much more that catches his diverse interests; he also pens and edits marketing communications copy for corporations, businesses and individuals. He can be reached at robpattersonwrites@att.net

Elizabeth Massey Kimmel is Vice President of Sales at Shale Magazine and facilitates marketing and advertising campaigns with our media partners and also markets the SHALE brand across multiple platforms. Contact her at liz@shalemag.com, @isitlizzard, or Elizabeth Massey Kimmel on Facebook and LinkedIn. Favorite quote “Be the hero in more than one life story!” - self

RLI. A Solutions Company.

210.932.2989 www.rlilogistics.com RLI is an Intermodal broker that can provide a complete package of integrated shipping and freight logistics, which includes: » Rail Management Services » Transloading » Warehousing » Bulk aggregate and chemicals handling » Mexican Customs Clearance » US Customs Clearance » Truck and Container Logistic Solutions » Freight Forwarding » Distribution » Trucking Solutions » Documentation - all required forms » Project Supervision and Execution » Repackaging

RLI, A RAIL LINK INTERNATIONAL COMPANY, is a full service shipping and freight handling specialist, offering fully customized and integrated logistics solutions. RLI’s expertise in US-Mexico cross border operations and customs broker services, allows expedited clearance of commercial shipments to and from Mexico.

At RLI, we work to find specialized and specific solutions for our clients. Our team of logistic solutions experts are people you can place your confidence in, providing a single point of contact and responsibility for all your material handling and logistics needs. RLI provides door to door, turnkey logistics solutions, banding and transportation coordination logistics that meets or exceeds your needs. SEPT/OCT 2014

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1814 E. 53RD LANE FORT STOCKTON, TEXAS 79735

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432-336-3446

THE INDUSTRY LEADER IN OIL FIELD SERVICES

Surface Rentals

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Equipment

• Portable Housing

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• Tank Cleaning Crews with Confined Space Certification from an independent safety compliance service

• Backhoes

• Portable Restrooms • Portable Showers • Portable Eyewash Stations • Power Washers • Sand King Exhaust Hatch Sock • Safety Trailers • Trash Trailers

• Site Remediation • Location Construction • Poly Pipe Placement/Construction

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• Steel Wheeled Rollers • Flat Beds • Lowboys

• Environmental Cleanup

• Trenchers (with capability to place up to 42” lines)

• Heavy Equipment Hauling/Hot Shot

• Belly Dumps

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• PRV Testing

• Vibratory Roller (Sheep’s Foot, Steel Wheel)

• Secondary Containment

• Reel Trailers

OTGSERVICESTX.COM 14

• Skid Steers

SEPT/OCT 2014

SHALE OIL & GAS BUSINESS MAGAZINE

FEATUR E

FROM THE WELLBORE TO THE PIPELINE Diverse Energy Systems

BY: JIMMY PERKINS

ouston-based Diverse Energy Systems provides integrated solutions for well sites worldwide. “From the wellbore to the pipeline” is more than a slogan; it’s what they promise and what they deliver. With manufacturing operations in Grafton, N.D. (110,000 square feet), in Odessa, Texas (50,000 square feet), in Katy, Texas (90,000 square feet), and sales and service centers in West Virginia, Oklahoma, Texas, New Mexico, and Colorado, Diverse is able to provide full support to all of the major shale plays - Bakken, Permian, Eagle Ford, MidCon, Rockies, and Utica. Additionally, Diverse has ongoing projects in Mexico and South America. The goal is to be a single source company to fulfill the needs of its customers at the greatest value. The impressive manufacturing and global business operations are only as good as the people behind the products and services, and this goes to the heart of the company’s philosophy. Founder and CEO Chet Erwin created an entrepreneurial and innovative environment to enable his entire staff the ability to achieve individual

and company goals. Erwin describes his business philosophy in clear and concise terms: “It’s always about the people.” He continues, “It’s simple, but true. If you hire quality people, invest in their growth, then empower them, they will develop a strong dedication to the company, and most importantly, our customer’s success. When your people are dedicated to the company, then they are dedicated to your customers. This is a lesson Erwin learned over the span of his 31 years in the oil and gas industry and one he committed to long ago. Erwin business philosophy, however, dates back much earlier than his career in oil and gas. Born in El Paso and raised in Quitman, Texas,

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Erwin is the son of a high school football coach and athletic director. As such, hard work, discipline, and teamwork were staples of life that were ingrained in him at an early age. One can only imagine how much higher the expectations were when the coach was also your father. Armed with the discipline and work ethic from his youth, Erwin attended Stephen F. Austin University on a football scholarship. He settled in Dallas in 1983 to do what he could during the bust of the 80s in the oil and gas business. Starting in equipment sales, he soon landed a job at Energy Industries owned by Holt and relocated to Corpus Christi in 1985. By 1990, Erwin returned to Dallas and co-founded the Hanover Compression Company serving as Chief Operating Officer and President of the Operating Board. The focus was building a business unlike any other, where people are at the center of its innovations, and the company became a single source provider of quality equipment for gas handling solutions. Hanover flourished and experienced rapid growth through mergers and acquisitions as the gas services industry was very fragmented and created a lot of opportunity for growth– 40 plus acquisitions in all. This also changed Erwin’s perspective on how gas services were being provided. Becoming a single source provider became the goal and Hanover flourished. By 1995, the company became the market leader. In 1997, Hanover went public, raised capital, and from humble beginnings, became a billion dollar company with over 5,000 employees worldwide by 2001. The single-source model was now a successful global strategy. In 2004 Erwin left Hanover and founded Valerus Compression Services serving as Co-CEO. By 2009 he became Chairman/CEO. Under his leadership, Valerus grew rapidly becoming the second largest provider of gas services (Hanover/ Exterran was #1) in year three of business. Erwin’s journey in the industry follows a well-known path. The allure is in the creation of something different than before and then refining the approach. At Diverse Energy

Services, Erwin has come full circle. The shale boom has provided ample opportunity to create a new giant with a similar model to serve the oil producers much like the previous companies served the gas producers. Diverse Energy Service is clearly on its way and driven by dedication to its customers and that starts at the top. Erwin’s commitment to the effort of his leadership team and all of the Diverse Energy employees is evident when he talks about the company. “No one can accomplish what we do on a daily basis without all facets of our business working cohesively together. Our key employees are partners and every employee has the opportunity to earn his or her way in making a difference, which is stressed daily.” He continues, “We set the pace!” As for Diverse customers, the list reads like a Who’s Who in the industry with 50 plus Master Service Agreements comprised of major oil companies and national oil companies to the small domestic independents. What Diverse is offering is unique. Customers are used to calling several companies to fulfill their needs, but Diverse is a single source solution from the “Wellbore to the Pipeline.” For more info: www.des-co.com or contact Scott Muster, Vice President Sales and Marketing at smuster@des-co.com.

SERVICES:

• Radiator Flushes • Hydraulic Oil Filtration • Oil Sampling • BOP Repair • Valve Repair

Most accurate company of the Eagle Ford Shale and Permian Basin area

• Manifold Repair

PERFORMANCE OIL FIELD SERVICES

• Choke Repair • Annular Repair • ChickSan Repair • Wing Assembly Repair • HPU Repair • Accumulator Inspection and Repair • Supply Breather Filters for HPU’s • Supply Filters for Hydraulic HPU’s, Pipe Wranglers • Supply Sample Valves for Engines • Valve Rental • Greasing Program (choke manifold, BOP Valves) • FloBack Manifold • General Supply and Rentals • 24hr On-Call Service Hands

Call Donny Baer (210) 501-7154 / donaldbaerjr@yahoo.com

OIL AND GAS SUPPLIES Hydrometers // Thermometers Woodbacks // Lufkin Tape Many more products available 17460 IH 35N 160 #394 Schertz, TX 78154 (210) 823-3181

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REBECCA HOWLAND Texas Energy Advantage Resources rhv@txenergyadv.com SEPT/OCT 2014

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STEADY AT THE PORT OF CORPUS CHRISTI’S JOHN LARUE BY: JIMMY PERKINS

SHALE OIL & GAS BUSINESS MAGAZINE

PHOTO BY MICHAEL GIORDANO

COVER STORY

SEPT/OCT 2014

THE HELM PORT COMMISSION CHAIR JUDY HAWLEY AND EXECUTIVE DIRECTOR JOHN LARUE

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SHALE OIL & GAS BUSINESS MAGAZINE

The rail agents aggressively promoted Corpus Christi as a destination by the sea for families and a healthy destination for those in need of fresh sea air. Rail passage rates were offered at deep discounts in order to increase passenger business and the results were a great success. This led to an expansion of tourism and a construction boom ensued with hotels, cottages by the sea and boarding houses being erected to serve the many visitors. The previous year, in 1913, a city administration was elected and was headed by Mayor Roy Miller. Together these civic leaders embarked on a massive modernization effort. Within three years there were 12 miles of paved streets, 26 miles of storm and sewer lines, a new water system, a paid fire department, and a new city hall and municipal wharf. The ‘city by the sea’ was booming until catastrophe struck. On Sept. 14, 1919 Corpus Christi was devastated by a ferocious hurricane that took the lives of 284 citizens, with some estimates as high as 1,000, and wiped out much of North Beach and the business district. Yet in its darkest hour the city leaders and citizens responded with great strength and determination. The catastrophic loss served to convince the city’s leaders that to achieve a prosperous and sustainable future it would finally need to construct a 30 foot deep channel from the gulf to a protected harbor. Local officials lobbied the federal authorities and President Warren G. Harding signed the River and Harbor Act of 1922 that authorized and funded the channel project. The first Port Commission was formed in 1923 and construction of the Nueces County Navigation District No. 1 began that same year. On Sept. 14, 1926, seven years from the day of the hurricane, the city opened a deep-water port with four docks and a main cargo of cotton. The impact was felt immediately and the city’s population exploded, growing from 10,522 to 27,741 in just 10 years. The Great Depression would slow that growth, but in 1930 oil was discovered in Nueces, San Patricio and surrounding counties. With these discoveries and the continued development of Port Corpus Christi the city began another great expansion. The population grew between 1931 and 1941 from 27,741 to 57,301. By 1948, Port Corpus Christi

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was the 12th busiest port in the nation by volume and by 1969 had climbed to the 9th position and the 2nd busiest port in Texas, handling in excess of 29 million tons of cargo. Furthermore, a new system of channels 40 feet deep and 400 feet wide were completed in 1965 to ensure the entry of the latest supertankers into the Port. History is repeating itself and today Port Corpus Christi is booming like never before and the city is experiencing another surge in population. The most recent catalyst is clearly the boom in the oil and gas business in South Texas, and the Port’s activity has seen steady improvement over the past 20 years. Located on over 21,000 acres, 16,000 of which are submerged, Port Corpus Christi is now the 5th largest port in the U.S. and serves over 6,800 vessels annually and handles nearly 90 million tons of cargo. The future of any port requires farsighted leadership to meet the challenges of international maritime cargo shipping. In the case of Port Corpus Christi, it is governed by a seven member Port Commission and operated by an executive director and executive staff. Commissioners each serve a 3-year staggered term without pay and new appointments are made each year. Three commissioners are appointed by the City Council of Corpus Christi, three are appointed by the Nueces County Commissioners Court, and one is appointed by the San Patricio Com-

PHOTOS COURTESY OF PORT CORPUS CHRISTI

CORPUS CHRISTI IN 1914 WAS BEGINNING TO SHOW SIGNS OF GROWTH. THE CITY WAS SERVED BY THREE DIFFERENT RAILROADS THAT CONNECTED IT TO THE REST OF THE COUNTRY AND IT WAS THIS RAILROAD ACTIVITY THAT SPURRED ITS INITIAL POPULATION RISE.

PHOTOS COURTESY OF PORT CORPUS CHRISTI

PORT CORPUS CHRISTI IS NOW THE 5TH LARGEST PORT IN THE U.S. AND SERVES OVER 6,800 VESSELS ANNUALLY AND HANDLES NEARLY 90 MILLION TONS OF CARGO missioners Court. The executive director of the Port works closely with the Commission and it is the role of the Commission to encourage industrial expansion, attract new cargo, build and maintain public terminals, set operational policy and cooperate with the federal government to maintain and improve vital navigation channels. The day-to-day activity of the Port falls to the many dedicated men and women who work on the executive staff and are led by Executive Director John LaRue who has held the position since 1994. A native of Reading, Pennsylvania, near Philadelphia, LaRue attended Villanova University and earned his Bachelor’s Degree in Political Science. After completing his undergraduate degree

he went to work at the National Security Agency and then two years later returned to Villanova for his Master’s Degree in Political Science. After some time spent as an underwriter for Allstate Insurance, John LaRue took a position with the City of Philadelphia working for the Managing Director. He spent eight years in the department working on operations for the city. Then an opportunity arose to transfer to the Commerce Director’s Department overseeing airports, parks and other city facilities. The Commerce Director also handled port related issues, and this is where LaRue began his association with the international cargo business. Eventually he became Port Director at the Port of Philadelphia for eight years until the move in 1994 brought he and his family to Corpus Christi. Making the move from one of the oldest ports in America to a relative newcomer was an easy decision for LaRue. No doubt Philadelphia winters are difficult to endure in one of America’s oldest and coldest ports, but Corpus Christi offers a unique set of opportunities to a director. Port Corpus Christi is not owned by the city or the county and does not take in city, county or state tax. The Port also owns it own docks, known as public docks, and it maintains the infrastructure of the Port. According to LaRue, “Although Port Corpus Christi has the authority to impose a tax on citizens, it’s a matter of pride that the Port is self-sufficient and we intend to keep it that way.” John LaRue and Diane, his wife of 31 years, quickly adapted to the change of scenery and the weather is certainly more conducive year round for his favorite downtime activities of golfing and hiking. The LaRue’s have four grown sons and four grandchildren, three boys and one girl. Two of their sons live in Texas and two are in Pennsylvania, and with other extended family in the Reading and Philadelphia area, the LaRue’s have plenty of reasons to visit back east, but Corpus Christi is definitely home. Another significant advantage at Port Corpus Christi is the continuity of leadership that has guaranteed a level of institutional knowledge that increases the capacity for success. Now after 20 years in Corpus Christi, John LaRue embodies that continuity and his leadership continues to serve the Port’s best interest as it faces the many challenges associated with the rapid growth of activity being spurred by the oil and gas boom in Texas. Additionally, the strong leadership of the Port Commission, headed by Chair Judy Hawley, provides the support and guidance to keep Port Corpus Christi moving into its bright future. LaRue makes this point clearly when he says, “Our Port Commission, led by Chair Judy Hawley, sees the big picture, and they are very strategic in their thinking and understanding that global trade requires long-term vision.” Driving into Corpus Christi one sees

SEPT/OCT 2014

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City Southern and Union Pacific. The oil and gas boom has brought great diversification to the Port and with the addition of the third lock in the Panama Canal set to be complete within the next two years, LaRue and the Port Commission have their eyes set on preparing for the future. The construction of the new Harbor Bridge will begin in 2016 and be completed by 2020. The $700 million for the project has been

Plains and Oxy. And it’s not all oil and gas coming in from the Eagle Ford Shale for refining and export. The Port plays a key role in the supply chain for the oil and gas fields of South Texas – frac sand, pipeline and more arrives daily by both sea and rail. Port Corpus Christi also serves as a rail port serviced by three railroads – Burlington Northern Santa Fe, Kansas

secured and the final environmental studies are being completed. The current bridge has a clearance of 138 feet and the new bridge will be at 200 feet. Then there is a $300 million project being planned to deepen the channel from its current level of 45 feet to 52 feet. While this will require congressional funding it is certainly a priority that will benefit the

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U.S. economy. All of these preparations will increase efficiencies and enable the passage of the larger vessels that will be arriving in the future as a result of the Panama Canal expansion. The Channel Improvement Project stands as a perfect example of the vision and leadership required to remain competitive in global trade. This was a project and funding request that began in the 1990s and the final studies completed in 2003. There are many government agencies involved in final approval of any work to be done on a waterway, especially one that is as rich and diverse as the Texas coastal region. Such was the case with the Channel Improvement Act. Once readied, it had to be attached to a bill covered by the Water Resources Development Act and signed by the president (which occurred in 2007). The initial funding arrived in 2010 and the La Quinta Channel Extension Project was started in 2012 and completed this year. The project extended the Port’s La Quinta Channel by a mile and half at a cost of $75 million ($20 million of which was provided by Port Corpus Christi and $55 million by the federal government). The results of this long-term vision are billions of dollars of infrastructure investment along the La Quinta Channel Extension that will result in a vast number of jobs and billions of dollars of business and trade in the near future. For instance, voestalpine Texas, LLC, an Austrian company, is building a new $740 million direct reduction plant on La Quinta, and will ship out 2.5 million metric tons of hot briquetted iron per year, used to make highquality steel. Additionally, Cheniere Energy, Inc. is building a $12 billion LNG export terminal on the La Quinta Channel extension. This means jobs, jobs and more jobs and also more and more U.S. exports of liquefied natural gas. Furthermore, 80 percent of the current LNG vessels in operation are too large to get through the existing Panama Canal. Cheniere’s Corpus Christi terminal will have two berths large enough to accommodate the Qmax class vessel, one of the largest in the industry. The interconnectedness of today’s global market is on full display in Corpus Christi. Imagine and follow a Qmax class vessel filled with Texas LNG disembarking from its berth at Cheniere’s terminal on the La Quinta Channel Extension. It passes through the channel and only 10 short miles later sets out into the Gulf of Mexico bound for the Panama Canal that can now accommodate such a massive ship. Eventually it finds its way into the Pacific Ocean heading for its destination in the far east with its Texas cargo bound for delivery to a foreign market. The sheer number of jobs associated with each such occurrence is only surpassed by the feat of the planning and execution of every foot of extending, widening, deepening, and raising of waterways and bridges and canals required to make it all possible. At the center of it all stands John LaRue, the executive staff and the Port Commission,

PHOTOS COURTESY OF PORT CORPUS CHRISTI

the activity of the oil and gas industry in full view just as you reach the edge of the bay. The refineries of Valero, CITGO and Flint Hills dominate the Port, and tanks from Martin, Trafigura and Magellan are budding up along the highway, but what is even more impressive is what can’t be seen from Interstate 37. There are 44 public and private oil docks plus another 10 to 12 new docks projected over the next 18 months by companies such as NuStar,

all working together to enhance and ensure the future of the citizens of Corpus Christi. Their daily work is so vitally important, and whether or not they stop to survey this fact, their efforts create a powerful wake that affects every Texan, and in fact every American and other people around the world. The oil and gas boom continues to be the major driver of our economic success in Texas and provides an end product that every citizen of our nation relies on daily. Everyone involved in this industry, from a truck driver or swamper to a CEO or port director, is a key component of the great American success story at this moment in history. As is anyone who follows their entrepreneurial spirit and starts up a new business that provides support to those who work in the industry – laundry service, restaurant, hotel, convenience store, fabricator, car wash and all those who work in such places – is an essential part of this story. It’s the American story. Energy is the reason America is a superpower and our ability to shape the world with our democratic ideas, our effectiveness in fighting injustice anywhere it occurs in the world,

JOHN LARUE OCCUPIES A MAJOR PLACE IN THIS CHAIN, AND THE STABILITY AND VISION HIS LEADERSHIP PROVIDES IS A SIGNIFICANT THREAD IN THE TAPESTRY OF THIS STORY

THE PORT PLAYS A KEY ROLE IN THE SUPPLY CHAIN FOR THE OIL AND GAS FIELDS OF SOUTH TEXAS FRAC SAND, PIPELINE AND MORE ARRIVES DAILY BY BOTH SEA AND RAIL

and the amount of influence we wield on global affairs, is directly tied to the production and commercialization of these resources. There is no separation between the two. One’s role in this chain of events that discovers oil or gas, extracts it, transports it, refines it and sells it, is something to be proud of no matter how big or small. As Executive Director of Port Corpus Christi, John LaRue occupies a major place in this chain, and the stability and vision his leadership provides is a significant thread in the tapestry of this story. His work and the work of all those involved at the Port will fundamentally change the face of a great American city. Think about that for a moment. And then think about how it all began 95 years ago after a hurricane, when that same American city refused to fold, picked itself up, then built itself back up, better and stronger, to take its place as the ‘city by the sea’. Corpus Christi itself is a great American story, but it has taken generations of Americans working together as a community to reach its destiny. In the case of Corpus Christi, the center of its economic life has been and always will be the Port. For more information visit www.portcorpuschristi.com. SEPT/OCT 2014

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INDUST RY

EAGLE FORD SHALE CREATING CAREERS BY: OMAR GARCIA

THERE IS NO DOUBT THAT THE EAGLE FORD SHALE is a prolific play. We have heard it time and time again. Unprecedented economic growth and investments are being pumped into the region. With this growth, there is also increased demand for workforce From truck drivers to roustabouts, and engineers to accountants, there are abundant opportunities in the oil and gas industry. These are not just jobs. They are careers, with benefit packages and upward mobility opportunities. Careers that can change the economic outlook of a family for generations. Today, companies are hiring welders, truck drivers, logistics managers, accountants, construction managers, safety representatives, engineers and superintendents, just to name a few. Whether out in the field or in the office, each position is important. STEER companies are looking to hire more South Texans. We place a high importance on educating students on the opportunities available when they graduate from high school or college. Whether you want to stay in South Texas or travel the world, understanding the vast array of career options the oil and gas industry offers will give students a head start as they begin interviewing for jobs. Education in the Eagle Ford Shale is critical to the oil and gas industry in order to develop a sustainable workforce that will live as well as work in the area. Many education programs from K-12, to community colleges and universities, continuing education programs and industry training are working tirelessly to catch up to the employment

STEER COMPANIES ARE LOOKING TO HIRE MORE SOUTH TEXANS 26

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demands in the Eagle Ford. In order to sustain the workforce over the next three decades, new, highly technical, and well trained employees must be trained. Over the past months, STEER and our members have been creating a Guide to the Oil and Natural Gas Industry in the Eagle Ford Shale. The booklet, coupled with presentations, aimed at middle school and high school students, and activities, aim to educate the future workforce about the oil and gas industry, including: is oil? What is natural gas? What ‣doWhat we use everything that is made from byproducts of both?

is the Eagle Ford Shale? Why ‣is What the Eagle Ford important in terms of America’s energy needs?

do we extract the oil and gas out ‣of How the ground? What safety precautions

does the industry take for the community and employees? What careers are available and what ‣level of education do you need to complete?

For more info: If you are interested in more information and/or when the presentations will be available, please email us at info@steer.com.

SEPT/OCT 2014

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INDUS T RY

SHALE PLAY! BY: SCOTT COURTNEY, PG

WELCOME BACK TO SHALE PLAY! In our last article we tried to determine who had bragging rights for the best oilfield in Texas. We had to settle on the fact the Eagle Ford and Permian Basin are two of the most prolific plays in the country and both have plenty of room to brag! The Eagle Ford is a little short on style points, but made up for it in production. The Permian Basin led in style points, but came up a little short in production from its unconventional shale and tight oil formations. Game one went to the Eagle Ford but make no mistake, the Permian Basin is a come-from-behind team and will no doubt win the championship when all is said and done! What makes me so sure Permian Basin production will ultimately outpace Eagle Ford production? History, geology, mythology and technology will all play a role in pushing the

of production, the Permian Basin produced over 29 billion barrels of oil and 75 trillion cubic feet of gas, according to the Texas Railroad Commission statistics. With current drilling and completion techniques the Permian Basin is expected to produce that much and more oil and gas in the coming decades. In 2014, the Permian Basin is forecasted to produce 1.5 million barrels per day to lead the nation. Not bad, considering we have only just begun to tap its most recent potential! I say “most recent potential” because as stated previously the Permian Basin has been given up for dead several times but it always seems to come roaring back just before the soft singing and slow driving begins. As recently as 2007 production had dropped to half of what it is today and so-called experts were claiming the last boom was over and

The Permian Basin is essentially two main basins separated by a central plateau, all underlying one geographic area. The overall basin is approximately 250 miles wide and 300 miles long with the Delaware Basin situated west of the Central Basin Platform and the Midland Basin located in the eastern portion. Both basins have similar depositional history and geology with significantly different lithology and producing zones. The Avalon, Bone Springs and Wolfcamp formations are primary targets in the Delaware Basin while the Clearfork, Wolfcamp and Sprayberry are primary targets in the Midland Basin. The term “stacked play” is often heard around West Texas. This refers to multiple pay zones more or less co-mingled together such as the Wolfberry, Wolfbone and Wolffork. By now, many of you know that it is the

Permian Basin to its rightful position as one of the pre-eminent oil and gas basins in the world! Let’s start with the history of the Permian Basin to get an idea of how productive the old man is, and probably will be for years to come. The Permian Basin first became productive in the 1920s and has been going strong ever since. On May 28, 1923 the Santa Rita No. 1 came roaring in convincing the world that the Permian Basin was for real. From that time on, the very mention of the Permian Basin has been uttered with a gleam in the eye and certainty of riches to follow. In the first 90 years

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it was about time to close up shop and look elsewhere for the elusive black gold. They said the same thing in the 1970s, ‘80s and ‘90s. What makes the Permian Basin so productive? Well, besides being mostly in Texas, which is a natural boost to anybody or anything, the sheer size of the basin(s) combined with multiple layers of organic rich deposits that measure in thousands of feet make the Permian Basin uniquely prolific and supremely dominant in the world of oil and gas. Some of the oil and gas field names are among the legends of the industry including the Sprayberry, Yates and Wasson.

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combination of horizontal drilling and hydraulic fracturing that led to the Shale Play revolution. While this is true for the Marcellus, Bakken and Eagle Ford plays, Permian Basin producers are still scratching their heads to figure out how to best unlock the thousands of feet of formation and pay zones. As recently as 2013, approximately half the wells were more conventional vertical wells which are cheaper to drill and prove more economical. Horizontal wells are much more expensive but are becoming trendier as producers have begun to hone in on the most productive zones within each basin and formation. Horizontal versus vertical comple-

SSUAPHOTO/BIGSTOCK.COM

ALL IN ALL THE PERMIAN BASIN HAS BEEN, IS, AND WILL CONTINUE TO BE, ONE OF THE GREATEST ENERGY PRODUCING AREAS IN THE WORLD

tions is not a bad problem to have when trying to maximize returns on as much as 3500 feet of productive formations! The sheer size and magnitude of the Permian Basin has led to unprecedented levels of activity that are straining resources, budgets, infrastructure and nerves! The “Petroplex”, as the cities of Midland and Odessa are collectively known, is experiencing levels of growth and economic development that dwarfs previous booms. In the past drilling booms there was an influx of drilling rigs and roughnecks. When the boom was over, the rigs and roughnecks moved on leaving behind a ‘rode hard and put up wet’ Petroplex that looked very similar, if not frayed around the edges, than before the boom began. Not so with today’s boom! You used to be able to drive on Old Highway 80 between Midland and Odessa and actually observe a physical break between the two cities. Today there are almost no undeveloped lots between the two towns. Oilfield service companies are developing cookie cutter five to 10 acre lots each with a 10,000 square feet metal building. Every highway, county road and side street leading to and from towns are crowded with new construction. New restaurants, hotels, convenience stores and strip centers are popping up everywhere. There is even talk of a 40+ story Energy Plaza to be developed in Midland. Whether that’s just a tall tale in the Tall City or a sign of the times, there is no denying the fact that the Permian Basin is back. Who’s driving this runaway freight train? It’s a great mix of old and new, majors and independents, and public and private operators and service companies. The Permian Basin is big enough for all. Majors such as Chevron, ExxonMobil, ConocoPhillips and Occidental have deep roots that are sprouting new revenue and profits in the tight oil sands and shales. Pioneer Natural Resources, Apache and BHP Billiton lead the publicly traded companies in the Permian with their long time positions and deep pocket books. Endeavor, HEYCO and Brigham are the leaders among the privately held companies operating in the Basin. On the oilfield services side of course the Big Four: Schlumberger, Halliburton, Baker Hughes and Weatherford have had a long time presence in the Permian Basin. They have all seen phenomenal growth and expansion of their services, clients and operating areas all at once. Other significant service oriented companies include Basic, Express and FTS. On the drilling side, Nabors, Big Dog, Cactus and H&P are some of the more prominent contractors. All in all the Permian Basin has been, is, and will continue to be, one of the greatest energy producing areas in the world. We’ve just scratched the surface of this incredible story but promise to dig deeper and bring in the well of tantalizing people, companies, technologies, and economics that drive the mighty Permian Basin. That’s it for today’s Shale Play! We enjoy your comments and feedback so keep it up and stay tuned for our next epic adventure!

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For more information email scott@shalemag.com Keep Playing! SEPT/OCT 2014

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INDUST RY

WATER RECYCLING IN THE FUTURE FOR OIL COMPANIES BY: BERT QUINTANILLA

epending upon your source, water has been described as “the next oil” or “the next gold.” Municipalities, states and even countries, are becoming extremely aware—and critical—of the water used in the oil industry. Some say the writing is on the wall: In the near future, the use and disposal of water will become an unpopular and expensive proposition for oil companies. Traditionally, oil companies dispose of their produced and flowback water, transporting the water to underground disposal well facilities, and have little success in recycling their water. Now, with the large demands of water from the oil industry, droughts in multiple oil producing states, especially Texas, and the political fallout from both water use and water disposal by the oil industry, oil companies are seriously considering changing their long-standing practices of disposing water and instead are desiring to recycle water. Consequently, a great deal of capital and energy is being MUNICIPALITIES, spent to devise the best oilfield water recySTATES cling applications. Oil field water treatment AND EVEN companies are currently employing variations COUNTRIES, and/or combinations of traditional water treatARE BECOMING ment technologies, such as settling, flotation, EXTREMELY weir tanks, ultraviolet light, electrocoagulaAWARE Ñ AND tion, dynamic cavitation, ionic displacement, CRITICAL Ñ OF THE WATER etc. which all have water treatment benefits, USED IN THE OIL but are either dependent on expensive equipINDUSTRY ment, energy dependent, unable to treat large volumes without large related costs, or are simply unreliable to treat the large variances of water specifications found in oil field water. Despite the millions of dollars spent on R&D, engineering, and testing of oil field water treatment systems, no technology or water treatment application has emerged as a dominant process for recycling frac and produced water. This month SHALE Magazine covered the Port of Corpus Christi. In my recent trips to the Sparkling City, I have discovered two companies that call the Coastal Bend Innovation Center home and deliver a one-two punch to the ongoing problem of frac water recycling.

is treated and recycled can be used again for the next drilling site. It will meet drilling water standards — saving water and money.

HYDRO ENVIRO CLEAN

Hydro Enviro Clean uses a 100 percent natural product that effectively separates hydrocarbons and water, while at the same time binding heavy metals in the frac water. This application allows an oil and gas company to retain all of the oil in the frac water by creating a top layer of hydrocarbons that can be easily recovered, instead of being transported to salt disposal sites for final disposal—at an additional cost to the oil and gas producer. HEC’s process saves time for the producer, and adds value, in a process that remains stable longer than the industry’s current products.

PLASMA PURE

Plasma Pure uses cold plasma technology to effectively recycle oil field frac flow-back and produced water. This new process is reliable and capable of large scale recycling and/or treating large volumes of oil field frac flow-back and produced water—up to 300 barrels of flowback water per hour. The system is portable—brought directly to the oil field site in a portable system that can be used with a trailer

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TEST RESULTS FROM FRAC WATER TREATMENT

— and energy efficient, using only 15 kW of electricity per hour. This system is further scalable for larger volumes and can recycle or treat virtually any volume of oil field water in fixed-location, modular systems. As an added bonus, the water that

Keeping all of the oil, while taking the heaviness of the water out and effectively treating oil and gas produced water with no chemicals— this is a one-two punch that will help the industry conserve our precious resources. For more information email plasmapure1@gmail.com.

SEPT/OCT 2014

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INDUS T RY

OUR ENERGY MOMENT COALITION BY: JOYCE VENEMA

THE U.S. has natural gas resources in abundance throughout our nation. However, many of the general public, as well as some of those in politics, need more education about this wonderful thing happening here in the U.S. There is one group that has been formed to inform citizens about the importance of these resources that are at our fingertips: Our Energy Moment Coalition. Our Energy Moment is a diverse group of companies, organizations, individuals,and institutions throughout our country that want to build support for the exportation of LNG (liquefied natural gas) and the development of energy resources. SHALE Oil & Gas Business Magazine is proud to be a part of this coalition in educating and promoting this movement. Through OurEnergyMoment.org, this transformation clearing house combines social media, thirdparty studies and papers about America’s energy revolution. Jason French, board member and spokesperson for Our Energy Moment Coalition says its mission is essential. “The general public needs education about the importance of exporting LNG. The United States is blessed with an abundance of natural gas. We can produce more than what we need as a nation.” There are many benefits to exporting LNG. Not only would exporting create jobs, but it is estimated that it would generate over $80 billion in net benefits to the U.S. economy. In Corpus Christi, Texas there is an anticipated project that is to break ground in early

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✯

POLITICIANS ON BOTH SIDES OF THE AISLE AGREE THAT THIS IS A HUGE OPPORTUNITY FOR THE U.S. TO GROW ITS ECONOMY 2015 by Cheniere Energy that after completion will reduce U.S. trade deficit by $7 billion per year. “In Texas and Louisiana alone, there are over $70 billion in proposed projects,” according to French. The technological advances of this century, in combination with the bountiful supply of natural gas, will create jobs and wealth for the economy. According to IHS Consulting, today over 1 million jobs are supported by natural gas development and by 2035 will support more than 2.4 million jobs. According to Our Energy Moment, the U.S. and our allies in Europe and Asia have long been dependent on foreign countries like Iran, Russia and Venezuela. By cultivating our own LNG, instead of relying on other nations, we would be self-sufficient keeping our energy prices low, while advancing geopolitical benefits. Politicians on both sides of the aisle agree that this is a huge opportunity for the U.S. to grow its economy. One of Our Energy Moments tasks is to be a megaphone for the domestic use and exportation of LNG through policy briefings, events and editorial meetings, letters to the editor, op-eds, and a variety of other public arenas. Not only is Our Energy Moment a positive voice for the industry, but it directs public outreach and education about the benefits of the U.S. jumping into the world market. Our Energy Moment is always looking for new members that are in support of our LNG export opportunities and the thousands of job this will create. They host several local and national events throughout the year and membership support is crucial for their mission to continue.

www. Es ca l e r a R a n ch18 3 3.co m

Own a piece of Texas History

For more information visit Our Energy Moment’s website www.OurEnergyMoment.org. SEPT/OCT 2014

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POLIC Y

LEGISLATIVE UPDATE: HOUSE INTERIM ACTIVITY BY: GLORIA LEAL

SPEAKER JOE STRAUS (R-SAN ANTONIO) earlier this year issued interim charges to every standing committee in the Texas House of Representatives. The charges highlight some of the issues that the House will study and investigate to prepare for the next legislative session, which will begin in January 2015. The charges are based on requests and suggestions made by House members. It is interesting to note that a majority of all charges to House committees deal with either oil and gas or water-related issues.

THE HOUSE COMMITTEE ON ENERGY RESOURCES CHAIRED BY STATE REP. JIM KEFFER (R-EASTLAND) WAS TASKED WITH SIX CHARGES

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The House Committee on Energy Resources chaired by State Rep. Jim Keffer (R-Eastland) was tasked with six charges. The first charge asks the committee to study the impact of the expanding oil and gas exploration and production occurring across the state and the effect on the state budget and the Economic Stabilization Fund (aka Rainy Day Fund). Also to be studied is the overall impact of production on the state economy, property values and local taxes, roads and school districts. A study of the relationship between landowners, royalty owners and operators is part of the charge. The committee will also study oil and gas activitiesâ&#x20AC;&#x2122; impact on the environment, emissions, injection wells and projected water needs. Housing issues created by the number of workers needed in areas of shale plays will also be studied. The second charge asks the committee to study the P-5 permitting process at the Railroad Commission to determine whether the process is efficient and effective and whether there are actions that can be taken to improve the process. Every operator is required to file the P-5 Organization Report form on an annual basis. The third charge requires a study and review of appropriations of general revenue dollars allocated to the Railroad Commission for improvements in its Information Technology (IT) systems to ensure those funds are being utilized to streamline the permitting process and to allow access to informa-

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tion for all parties that conduct business at the Commission. The fourth charge requires a review of the application of Texas Business & Commerce Code, Section 9.343, to determine the legal rights of unperfected security interests of oil and gas producers with respect to subsequent purchasers, specifically in the context of a bankruptcy proceeding such as Arrow Oil & Gas, Inc. v. SemCrude, L.P. and subsequent cases. The fifth requires monitoring the implementation of two keys bills to ensure the required rulemaking is completed efficiently and in a timely manner. HB 2982 by Rep. Keffer relates to the power of the Railroad Commission to adopt and enforce and safety standards applicable to the transportation by pipeline of hazardous liquids, carbon dioxide and natural gas in rural locations. SB 1747 by Sen. Carlos Uresti (D-San Antonio) relates to funding and donations for transportation projects in counties and establishing a mechanism for the establishment of county energy transportation reinvestment zones. The sixth charge is a general one to all committees that requires a committee to consider new and different ways to make state government and agencies and programs under their jurisdiction more effective, efficient and accountable to taxpayers. After interim hearings with invited and public testimony, an interim report is produced. The report containing findings and recommendations for legislation is signed by committee members and distributed to all members of the Legislature.

For more info: Gloria Leal is an attorney and government affairs consultant in Austin, Texas. Ms. Leal has a solo practice primarily relating to energy, environmental and healthcare matters. She also represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers. She can be reached at GLealLaw@sbcglobal.net.

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URBAN ENERGY EXPLORATION BY: WILLIAM KEFFER

fter thirty years in practice as in-house counsel for a major oil and gas company, an outside lawyer in big firms, and representing oil and gas companies independently, along with serving two terms in the Texas legislature, I have begun teaching courses on oil and gas law and the legislative process as a law school professor at Texas Tech. Undoubtedly, it will be a different world, but I’m eagerly looking forward to the new opportunities that will be coming my way. Having christened my teaching career with a “soft” opening of teaching my first course this summer, I can already tell that I will likely now have more time to observe, study and reflect on the legal and political developments in Texas, the U.S., and across the world that relate to the subject matter of my courses. The natural byproduct of that luxury, of course, is the likelihood that I will feel compelled to form and deliver the opinions that I develop along the way. My students will be the most immediate beneficiaries or victims; but, thanks to this publication, you as one of its readers will also come within range of my occasional friendly fire – at least until the folks at SHALE Magazine find me to be too unconventional. The advent of shale plays that heretofore were unknown, unappreciated or uneconomic have also brought about a whole new era of urban exploration and production. Urban drilling isn’t a “brand-new” phenomenon because previous generations were

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exposed to it in smaller Texas towns like Kilgore, Burkburnett, and Van, as well as in our largest cities such as Los Angeles. Admittedly, there were transition pains at first, but somehow, over the decades, urban life and oil and gas production figured out a way to coexist. So why all of the furor today, with cities aggressively seeking to wrest control away from their state governments regarding oil and gas development policies, even to the extreme point of banning development altogether? Historically, it has been the clear policy of producing states like Texas to enact laws that encourage the exploration, development and production of our natural resources, like oil and gas, as a positive thing that is beneficial both to our economy and our people. The overall state policy generally encouraged this activity, while local governments could regulate certain details, such as zoning, location, etc. But local governments encouraged this kind of activity, too, because of the economic benefits that were generated. Today, however, drilling for and producing oil and gas in an urban setting, like in the Barnett Shale, has generated a more pronounced and organized opposition from local residents unaccustomed to having this kind of activity taking place so close to their homes. This opposition is manifesting itself through the passage or promotion of ordinances by local governments, which would have the effect of shutting down development. Local governments throughout the Marcellus-shale part of southern New York are passing bans, while Governor Cuomo and New York state itself continue in a state of moratorium paralysis. Communities along the front range of the Rocky Mountains in Colorado are passing bans, while Governor Hickenlooper and his state legislature await the results of the vote on a November referendum on the same topic. Even communities in oil-friendly Texas are starting to rise up. The Dallas suburb of Flower Mound, on the edge of the Barnett Shale, passed a 190-page ordinance specifically designed to prevent, as a practical matter, any mineral development within its city limits. The city of Denton just tried to pass a ban through its city council; but, in light of that failed vote, the issue will be put on the November ballot for its citizens to decide. A showdown between local control and state policy is inevitable. State legislatures, city councils, county commissions and state courts will be confronted with the challenge of how best to balance the competing interests and concerns of protect-

7 FINANCING YRS

ing their communities’ health, environment and aesthetics, as well as promoting the economic benefits that flow from development and protecting the private-property rights of their mineral owners. Oil and gas in the U.S. (and in Texas) have been a global gamechanger over the past hundred years. It has often been observed that the U.S. and its allies in World War II floated to victory on a sea of oil provided by the East Texas oil field and other fields just like it across the country. With today’s resurgence in Shale oil and gas, we have already been reaping significant economic rewards across the U.S. and especially in Texas. The U.S. is producing over eight million barrels of oil each day, which is the most since 1988. U.S. oil imports are to fall to

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25 percent by 2016. By 2025, it is estimated that the U.S., Canada and Mexico combined could become a net exporter. With ever-increasing geo-political uncertainty around the world, what country wouldn’t want to be in control of its own energy needs? And for those who spend their days lost in the alternative world of alternative energy as a panacea for our energy needs, the U.S. gets 70 percent of its energy from oil and natural gas – so don’t tilt too hard at your windmill just yet. As for Texas’ continuing leading role in this story, we possess onefourth of the nation’s oil reserves; we possess one-third of the nation’s proved natural-gas reserves; and we are home to the nation’s largest refining center (twenty-seven refineries in all). Texas currently produces more oil and natural gas than any other state. The oil and gas industry provides over 330,000 jobs in Texas and generated over $9.3 billion in state and local taxes and royalties in 2011. We live in the most technologically-advanced time in human history. While there are undeniable advantages that we enjoy, there is also a certain dangerous disconnect that is a byproduct of increased comfort and isolation from the basic activities that provide that comfort. People still want their comforts but have become economically illiterate as to those ingredients that continue to be necessary for our economy and society to thrive. We like the benefits, but we don’t want to deal with what we perceive to be the negative. A better understanding of how the world works economically would be of much greater and more immediate value than wringing our hands over theories of man’s impact on climate change. Disconnects in understanding can be annoying and frustrating; but a disconnect in our long-term energy supply would be downright disastrous.

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

Visit www.hightouch.info/shale for more info on how we can help the gas and oil industry.

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THE EVOLVING MEXICO ENERGY MARKET REACHES A HISTORIC MILESTONE BY: ELISABETH ELJURI, WILLIAM D. WOOD, AND JEFFREY A. WEBB, NORTON ROSE FULBRIGHT

ACCORDING TO THE U.S. Energy Information Administration, Mexico ranks sixth in the world in terms of technically recoverable shale gas resources (545 trillion cubic feet) and eighth in shale oil and condensate resources (13.1 billion barrels). The largest known shale potential exists in northern Mexico where the Eagle Ford Shale crosses over into Mexico’s Burgos Basin. Despite the enormous potential, Mexico’s unconventional shale resources remain largely untapped due to a lack of capital investment. During the past several months, historic changes have been underway that will revolutionize the energy landscape of Mexico. Specifically, in December 2013, amendments were made by the Mexican government to the Mexican Constitution when the majority of the Mexican State Legislatures approved a decree, which was then enacted by President Peña Nieto. These reforms to the Mexican Constitution introduce new opportunities for private investment in the oil, gas and refined products industries – industries that were previously under the monopolistic control of Petróleos Mexicanos (“PEMEX”). Through these changes, Mexico hopes to more fully realize its energy potential, including through development of its vast hydrocarbon reserves through private investment. Mexico’s energy reform continues to move forward at a rapid pace with the recent passage of the legislation that implements the reforms put in place by the unprecedented constitutional amendment. On April 30, 2014, President Nieto presented a comprehensive package of 21 proposed laws (also referred to as secondary legislation) to the Senate of Mexico. On Aug. 5, 2014, the Federal Legislature approved the new Hydrocarbons Law and the Law for Revenues on Hydrocarbons, in addition to amendments to the Foreign Investment Law, the Mining Law, the Law on Public Private Associations, and the PEMEX Law. President Nieto enacted the laws on Aug. 11, 2012. This legislation contains many laws that will have a major impact on the energy industry in Mexico. Although the regulations and their impact are still evolving, below is a brief overview of some of the provisions of the oil and gas aspects of the recentlypassed laws.

Foreign Investment Law

Given the new constitutional scheme, which provides that the petrochemical sector is no longer exclusively reserved to the Mexican State, certain articles of the Investment Law were amended to allow the free participation of foreign investors in (i) the marketing of gasoline, (ii) the distribution of liquid petroleum gas, and (iii) support service activities for hydrocarbons exploration and extraction.

Mining Law

The Mining Law was amended to no longer give preferential treatment to mining rights over hydrocarbons exploration and extraction activities. Now, before mining rights are granted through concessions, the Energy Secretary’s (SENER) approval must be obtained. The mining concession may be denied if hydrocarbons exploration and extraction activities and a proposed mining concession are in the same area and their coexistence is incompatible. Alternatively, the mining concession may be reduced to exclude the area of incompatibility, giving priority to the hydrocarbon activities.

Law on Public Private Associations

The Law on Public Private Associations was amended to allow the implementation of public-private associations in activities with specific legislation that foresees the free participation of the private sector. Thus, public-private associations may be

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adopted in activities such as petroleum refining and natural gas processing, as well as the transportation, storage, and distribution of hydrocarbons, liquefied petroleum gas, hydrocarbon derivatives, and petrochemicals.

PEMEX Law

The PEMEX Law transforms PEMEX from being a state oil company to a state productive company, which will operate autonomously and be in direct competition with the private sector, with the purpose of creating profits and value. PEMEX is no longer a regulatory agency.

Exploration and Extraction of Hydrocarbons Under the new Hydrocarbons Law, the Mexican State will conduct all exploration and extraction of hydrocarbons through certain contractual structures between (i) the State and the state productive companies such as PEMEX (Asignaciones) or (ii) the State and the private sector (Exploration and Extraction Contracts). There are opportunities for private sector investment and involvement under both scenarios.

Asignaciones

According to the Hydrocarbons Law, Asignación (or en

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BE RESOURCEFUL

titlement) is the administrative act of granting PEMEX or any other state productive company the exclusive right to develop exploration and extraction activities in a determined area of a specific depth, for a finite duration. Asignaciones are to only be exceptionally granted by the SENER, which is required to justify why an Asignación must be granted and obtain approval from the National Hydrocarbons Commission (CNH).

Service contracts

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A state productive company, including PEMEX, that is granted an Asignación is able to develop all related activities indicated in the Asignación through contracts with private parties, but must do so only through the use of service contracts. Such contracts shall provide a scheme that allows greater productivity and profitability, and payment of the contractor must be in cash. (Service contracts must be distinguished from Exploration and Extraction Contracts described below). PEMEX must select service providers by open contest, through public procedures, although there are 22 exceptions to the public contest requirement.

Migration of Asignaciones

PEMEX and other state productive companies can convert an Asignación into an Exploration and Extraction Contract, for the purposes of changing the fiscal regime and, in such cases, enter into alliances or associations with private investors, incorporated and existing validly in accordance with Mexican law. Interested parties will present their offers in bid procedures run by CNH (not PEMEX).

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Exploration and Extraction Contracts

The Law for Revenues on Hydrocarbons provides that the types of contracts available to private investors are, among others, service contracts, production or profit-sharing contracts, and/or licenses, and it regulates the fiscal terms of each. In contrast, the Hydrocarbons Law refers to Service Contracts, Alliances and Associations among private investors and state productive companies, and Exploration and Extraction Contracts (which, along with the Asignaciones, are the true E&P granting instruments). Exploration and Extraction Contracts are defined by the Hydrocarbons Law as legal acts by which the Mexican State, acting through CNH, grants a private contractor the right to conduct exploration and extraction activities in a contractual area for a specific period of time. The private parties will be selected through a bidding process regulated by the Hydrocarbons Law. The bid criteria will be economic, seeking always to maximize revenues for the state. An important aspect of the laws, particularly for private companies who are required to book reserves, is that the private contractors (and state productive companies) will have the right to report, for accounting and financial purposes, the Asignación or Contract for Exploration and Extraction, as well as the benefits expected from such agreements, as long as they express that the hydrocarbons in the subsoil are property of the Mexican State.

Local content

All things being equal, including price, quality, and time of delivery, the Hydrocarbons Law establishes a preference towards the acquisition of local goods, and the contracting of national services. Holders of Asignaciones and contractors must individually meet a progressive minimum percentage of local content.

Law and arbitration

Arbitration clauses may be included in Exploration and Extraction Contracts, so long as they are under the terms of certain Codes and treaties. However, the CNH’s termination of Exploration and Extraction Contracts cannot be submitted to arbitration, nor can CNH and contractors be subject to foreign laws. Mexican Federal Law will be applied.

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Pipeline Infrastructure Incentives

In order to address shortcomings in Mexico’s current pipeline infrastructure, there are incentives for the creation of interconnected pipelines to transport and store natural gas, petroleum and petrochemicals.

Hydrocarbon Revenues Law and government take

The Law for Revenues on Hydrocarbons regulates the revenues that the Mexican State will receive from the exploration and extraction activities carried out through Asignaciones and Exploration and Extraction Contracts. The amount that the holder of an Asignación or an Exploration and Extraction Contract must pay to the Mexican State will be set forth in each granting instrument and will vary based on the type of contract involved. In some cases, a signing bonus is required, in addition to certain royalties, contractual quotas and other compensation.

Mexico’s Energy Future: Will the Reforms Work?

This is just a brief summary of some of the extensive new legislation, but the details of how it plays out will be seen in the months and years to come. The ultimate success of Mexico’s energy reforms – and the development of the vast untapped unconventional reserves – will likely depend in the willingness of private investors, including U.S. companies, to devote significant resources to the development

of Mexican energy assets. In a time when there are many energy investment options, including in the U.S., and limited amount of resources to devote to such investments even for the largest of companies, only time will tell if Mexico’s reforms will be the catalyst for the private investment and development in Mexico that the reforms hope to create. There is plenty of enthusiasm and hope that the answer will be ‘yes’.

Elisabeth Eljuri is Head of Latin America for Norton Rose Fulbright, as well as the Head of the Oil and Gas Practice Group and Corporate Department of the Caracas office. She has significant experience in the Mexican oil and gas regulatory framework due to her advisory work in Mexico over the past thirteen years.

William D. Wood is Norton Rose Fulbright’s United States Head of Energy and Infrastructure and a partner in its Houston office. He concentrates his practice on the defense and prosecution of U.S. and international commercial, business litigation, and arbitration cases, with an emphasis on energy industry matters.

Jeffrey A. Webb is a Senior Associate in Norton Rose Fulbright’s San Antonio office. His practice focuses on complex commercial and business litigation, including in the energy industry.

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OIL AND GAS VITAL TO ALL TEXANS

ONE THING I NEVER TIRE OF writing about is the amazing positive impact the Eagle Ford Shale and the oil and natural gas industry, in general, have had on the Texas economy in recent years. In rolling out a recent state of the economy report by the Texas Comptroller’s Office, Chief Revenue Estimator John Heleman pointed out that, if Texas were a separate country, our economy would rank as the 12th largest in the world. While that’s impressive enough, the story gets even better when one looks at where a ‘Nation of Texas’ would rank when it comes to oil and gas production: We’d rank as the eighth largest oil producing nation and the third largest natural gas

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producing nation on earth. Granted, Texas is a big ‘ol state, but still, that kind of natural resource production is pretty amazing from any perspective. But wait, it gets even better. Early in August, the Baker Hughes rig count – the count of all the active onshore and offshore drilling rigs in the United States – ran up over 1,900 for the first time in memory. Almost half of those active rigs were drilling for Texas oil and natural gas. Even better, Texas was home to 26 percent of all of the active drilling rigs on the face of the earth, or as I like to refer to it where oil and natural gas is concerned, the known universe. ‘Well that’s all great,’ you might say, ‘but what

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BY: DAVID BLACKMON

does it mean to me?’ Good question. Let’s get some answers for you. First of all, it means jobs, and lots of them. The most recent Federal Bureau of Labor Statistics data indicates that, while the nation’s economy continued to struggle over the last year, Texas was adding more than 1,000 net new jobs every day, more than 390,000 for the most recent 12 month period. By contrast, California, which has highly restricted the growth of its own energy production, has added just

BUT WHAT THE OIL AND GAS BOOM HAS DONE FOR THE TEXAS BUDGETARY SITUATION IS PERHAPS THE BIGGEST STORY OF ALL

OUR STATEÕS UNEMPLOYMENT RATE OF 5.1 PERCENT WAS A FULL POINT BELOW THE NATIONAL AVERAGE

322,000 net new jobs in the last five years combined. Our state’s unemployment rate of 5.1 percent was a full point below the national average. Indeed, a recent report from Bernard Weinstein, Associate Director at the Maguire Energy Institute at SMU, showed that Texas has accounted for fully 35 percent of the nation’s job growth since the year 2000. The jobs generated from oil and natural gas development don’t just come to fruition in the industry itself: the advent of massive new reserves of affordable domestic natural gas has led to a nascent manufacturing renaissance in the U.S., as industries that use natural gas as a feedstock - fertilizers, chemicals, clothing, plastics, steel and many others – have begun to invest tens of billions in new plants and equipment here in the U.S., creating domestic jobs that had been sent overseas over the last quarter century. And of course, anyone living in the Eagle Ford region has seen first hand the major job-creating effects the boom has had on local businesses like restaurants, cafés, fast food joints, hotels, motels, clothing stores, grocery stores and any other retail or service business one can think of. But what the oil and gas boom has done for the Texas budgetary situation is perhaps the biggest story of all. Prior to the development of the Eagle Ford Shale

commencing in earnest during the 20092010 time frame, our state government had been in a state of chronic budgetary shortfalls for about a decade. In fact, when the legislature convened in January 2009, that shortfall was estimated to be as high as $25 billion for the following two year budget cycle. In 2007, the legislature and governor had to figure out how to close about a $10 billion shortfall. My, how different things are today. When the legislature convenes in January 2015, the state’s budget will be in a large surplus situation, conservatively estimated to be $6 to $8 billion, and possibly more. This happy transition is thanks in large part to the swelling in collections related to the state’s sales tax, and that is largely thanks to the massive economic impact the oil and gas boom has had in the Eagle Ford region and other parts of the state. So the challenge for the 2015 legislature won’t be how to close a multi-billion dollar budget shortfall; instead, it will be how not to squander a gigantic budget surplus. But even that isn’t all there is to this story. Let’s talk about the state’s Rainy Day Fund. Heleman noted that the comptroller currently projects that it will swell to more than $8.4 billion next year, and that’s assuming voters approve a proposal on the November ballot to allocate $1.6 billion of the current balance to help pay for road repairs and upgrades in the Eagle Ford and other regions of the state with heavy oil and gas development. That again is a very conservative estimate with some experts thinking we could have a balance of upwards of $12 billion by the end of 2015. And remember, that is all after the voters in November of 2013 approved a one-time allocation of $2 billion from the Rainy Day Fund to create a revolving credit account that will help fund the state’s crucial Water Plan, which had sat unfunded for 16 years, after having been authorized by the 1997 session of the legislature. Now, why is all of this relevant to this discussion? Because the Texas Rainy Day Fund is funded by the severance tax on oil and natural gas production, and has been since it was created in the early 1980s. Not surprisingly, it is the largest state Rainy Day Fund in the nation. So, the moral to this story is that if you live in Texas and you don’t think the oil and gas industry is important to your community, important to your local economy, important to your well-being and your pocketbook, well, think again. FMI: David can be reached at David. Blackmon@shalemag.com

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ENERGY RENAISSANCE COMING TO SOUTH TEXAS BY: SENATOR JUAN “CHUY” HINOJOSA, DISTRICT 20

istory has taught us that nothing transforms a society or improves the quality of life more than man’s ability to effectively and efficiently harness and develop previously untapped sources of energy. The discovery of fire took us out of the Stone Age; hydropower, combustion, and coal power birthed the Industrial Revolution; our discovery and development of fossil fuels such as oil and gas catapulted us to the modern and technological age we are in today. In August, Mexico cleared its final legislative hurdle ending 76 years of state monopoly and approved rules outlining the framework under which foreign companies will invest and drill for oil and natural gas in Mexico. The recent expansion of oil and gas production in Northern Mexico is expected to top $1 trillion in investment over 10 years and create over 2.5 million new jobs by 2025 creating a new energy paradigm for North America. By combining the United States, Canada, and Mexico, oil and gas production in North America will be bigger than OPEC. A new energy renaissance is coming to the Rio Grande Valley in South Texas. No region stands to gain more from Mexico’s energy reforms than South Texas. With the Eagle Ford Shale to the north and the Burgos Basin, also known as the Eagle Ford Shale south of the border, the Rio Grande Valley is at the epicenter of this energy revolution happening in Texas and Mexico. We have already seen how the Eagle Ford Shale has begun to transform South Texas and the Coastal Bend regions. We are seeing tens of thousands of new jobs created, higher wages being paid, billions of dollars in invest-

ments in the region and increased traffic and expansion at Port Corpus Christi due to the Eagle Ford Shale boom. In 2013 alone, Texas produced over $110 billion worth of oil and gas. If Texas were its own nation, it would be the seventh largest oil and gas producer in the world. The indirect growth and benefits are also visible. Every time I drive down U.S. 281 and Highway 35 in South Texas, I notice new hotels, restaurants, shopping centers, and pipeline and welding companies, just to name a few. The creation of wealth and prosperity are on full display. Families have more money at the end of the month. Entrepreneurs are finding success with new startup businesses. County coffers are filling up. The Rainy Day Fund is bringing in more money from increased oil and gas activity allowing us to invest more in our state infrastructure. Now imagine the full picture. If this is what we are seeing from just the Eagle Ford Shale to the north, imagine the growth and prosperity we will see when development is in full swing south of the border. All across the state, country, and the world, people are taking note of this energy revolution in South Texas. On Aug. 6, Texas Lieutenant Governor David Dewhurst charged the Senate Natural Resources Committee to “examine the impact on Texas’ economy and businesses of the recent expansion of oil and gas production in Northern Mexico. Assess opportunities for economic growth in Texas and collaboration between Texas businesses and Mexico resulting from Mexico’s energy reform, including Mexico’s efforts to recover shale gas from the

NO REGION STANDS TO GAIN MORE FROM MEXICOÕS ENERGY REFORMS THAN SOUTH TEXAS

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Eagle Ford Shale.” In a letter sent to the members of the Senate Natural Resources Committee, Chairman Troy Fraser recognized “Texas producers are particularly well suited to take advantage of the change that will come with energy reform in Mexico, and Texas communities and business may well benefit from cross-border development of the Eagle Ford Shale.” In his closing, Chairman Fraser appointed a subcommittee, which I am to chair, to study this new interim charge. Mexico will surely look to Texas as a model for developing its natural resources. We must be prepared to take on any challenges and ensure we are ready and positioned to fully capitalize on the economic boom Mexico’s energy reforms will have on South Texas and the entire state. A few of the things we need to examine are the infrastructure needs to accommodate the anticipated growth, an educated and trained workforce to fill the jobs expected to be created, the environmental impact of expanded drilling, and safety and security concerns south of the border. I look forward to convening the subcommittee studying the impact of Mexico’s energy reforms on Texas in the near future and making recommendations to the full Senate Committee on Natural Resources. For more information Senator Juan “Chuy” Hinojosa proudly represents the counties of Nueces, Jim Wells, Brooks, and Hidalgo (part). Senator Hinojosa serves as Chairman of the Senate Committee on Intergovernmental Relations, Vice-Chairman of the Senate Committee on Finance, a member of the Select Committee on Transportation Funding, JointInterim Committee to Study Water Desalination, and serves on the Senate Committees on Natural Resources, Criminal Justice, Agriculture, Rural Affairs and Homeland Security, as well as the Legislative Budget Board (LBB), the Sunset Advisory Commission and Chairman of the Subcommittee Studying the Impact of Mexico’s Energy Reforms on Texas.

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ESTATE PLANNING – KEEP THE PROMISES YOU MAKE BY: GEORGE F. LONG

1) Minimize estate taxes Depending upon your net worth, the federal government may levy a substantial tax against the value of your estate. In addition, many states impose their own separate tax at death on their residents and on nonresidents who own property within the taxing state. Just as important, that tax is due and payable before any property can be transferred to your beneficiaries. With a well-conceived estate plan, some, or even all, of this tax may be avoided.

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2) Liquidity to pay estate taxes If your estate consists primarily of real estate, a business, or other non-liquid assets, your heirs could end up cash poor and be forced to sell assets in order to pay taxes. Estate planning can help by reducing your estate tax liability. A solution is an estate plan that includes life insurance to address your estate liquidity needs. 3) Protect your family’s income How will the members of your family support themselves after you’re gone? A sound estate plan, including life insurance for your beneficiaries’ financial protection can make certain they will be taken care of. 4) Provide professional asset management An estate plan that includes the creation of a trust can be established to arrange for the professional management of your assets on your family’s behalf. 5) Control distribution of your estate Will your assets be distributed the way you want them to? Your estate plan will help make sure your wishes are met. FORM AN ESTATE PLANNING TEAM Estate planning is a team effort. It involves the talents and efforts of a

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ESTATE PLANNING can be the single best way to make certain the promises you make, are promises you keep. We all have goals we want to meet during our lifetimes. Some of them might be the education of our children, a comfortable and financially secure retirement, and perhaps a new home or a second home. The first step of estate planning is to help you plan for, and realize, these lifetime goals. An estate plan addresses your legal and financial concerns, taking into account your goals and tax considerations. It also takes advantage of existing laws and funding vehicles to help you save on taxes and manage your property in an efficient and profitable way throughout your lifetime. Here are some of the more significant ways estate planning can help you make certain your family will retain as much of your estate as is legally possible.

number of professionals – people you respect and trust. ATTORNEY Your attorney would be responsible for making sure that your intentions are carried out in legally enforceable documents. ACCOUNTANT Your accountant may provide tax advice and would be most familiar with the extent and value of your assets. BANK TRUST OFFICER If you have chosen to use a corporate trustee, you will want to include the trust officer in your planning discussions. Life insurance and an irrevocable life insurance trust can give you extra advantages. THE IMPORTANCE OF LIFE INSURANCE Life insurance plays a critical role in estate planning. It provides cash to pay estate settlement expenses and taxes, and it provides the capital to meet the financial needs of your family. While it gives you the security of a death benefit, life insurance can also be used to help you accumulate savings to supplement your retirement income. Life insurance coupled with an irrevocable life insurance trust can be even more advantageous for you, particularly if the joint assets of you and

your spouse are worth more than two times the applicable exclusion amount. This is the usual cut-off point where your heirs can, through proper estate planning, receive your assets without paying federal estate taxes. An irrevocable life insurance trust offers several unique advantages: · The proceeds of the life insurance policy can be insulated from estate taxes. · Life insurance proceeds can pass income tax-free to your beneficiaries. · The premium may be gifted to the trust, and thereby reduce the remaining taxable estate.

financial success. A skilled financial services professional can not only advise you on the type and amount of insurance protection that is right for you, he or she can also coordinate your estate plan with your attorney, your accountant and any other professional advisors with whom you work to help you achieve what is most important to you. Your financial services professional can help you live better today and be prepared for whatever tomorrow may bring.

Since life insurance is such a vital part of your estate planning needs, you should make sure you work with a company that is an established leader in the field, such as Massachusetts Mutual Life Insurance Company (MassMutual). Furthermore, MassMutual’s representatives are supported by a team of attorneys specializing in estate and business planning located in the home office.

For more information: Provided by George F. Long, a financial representative with MassMutual South Texas, a MassMutual Agency; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual) (210) 384-5314, gflong@financialguide.com

FINANCIAL SERVICES PROFESSIONAL As a result of the unique features and tax advantages of life insurance, your financial services professional is a key member of your estate planning team. You can benefit from working with a financial services professional who has knowledge, experience, insight and an active interest in your

CONFIDENCE.

This information represents our understanding of the federal gift and estate tax laws as currently interpreted. The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

Site Development

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excavation

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UtilitieS

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paving

WE’LL DO WHAT IT TAKES TO HELP YOU GET THERE.

You have goals. Ours is helping you achieve them. To learn more, contact: George F. Long Financial Services Professional MassMutual South Texas 10101 Reunion Place, Suite 300 San Antonio, TX 78216 210-384-5314 gflong@financialguide.com www.financialguide.com/george-long

LIFE INSURANCE + RETIREMENT/401(K) PLAN SERVICES DISABILITY INCOME INSURANCE LONG TERM CARE INSURANCE + ANNUITIES

MassMutual Financial Group refers to Massachusetts Mutual Life Insurance Co. (MassMutual) and its affiliated companies and sales representatives. Local sales agencies are not subsidiaries of MassMutual or its affiliated companies. Insurance products issued by MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance Co. and MML Bay State Life Insurance Co. (Enfield, CT 06082). CRN201411-166963

713-838-7300 • www.slackandco.com SEPT/OCThouston 2014 SHALE OIL & ford GAS BUSINESS MAGAZINE • Eagle • Permian basin

BUSINE S S

FOUR FOR TEXAS BY: THOMAS TUNSTALL, PHD

GONZALES

PHOTOS BY THOMAS TUNSTALL

The city is situated due east of San Antonio, south of IH-10 along U.S. Highway 183. As the birthplace of the Texas revolution, the spirit of independence there is infectious. The city is managed by Allen Barnes, and its economic development director is Carolyn Gibson. Before activity in the Eagle Ford got underway, Gonzales had already taken steps to diversify its economy. Adam’s Extract opened a modern 90,000 square foot facility in Gonzales in 2002. It is one of the oldest continuing operating companies in Texas, and last year celebrated its 125th birthday. The city is also home to facilities for Tyson’s Chicken, Buddy’s Natural Chicken, Southern Clay Products, Land O’ Lakes Purina Feed and Jim H. Wilson Rail Car Dismantling. Gonzales is one of the top three poultry, egg and pecan producers out of 254 counties. Gonzales also has benefited from the upgrade of a rail spur that has been in

place since 1882 - the Texas-Gonzales Short-Line Railway. The spur provides freight service from Harwood to Gonzales. Traffic consists of crude oil, grain and animal feed, clay and metal products.

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The Gonzales downtown is undergoing a significant revitalization process. Alcalde Hotel was recently purchased and plans include a transformation of the old landmark to a luxury property. With several landmarks, significant open space, an impressive county courthouse and many two and three story buildings, Gonzales is wellpositioned to transform itself for the long-term. Victoria College operates a campus in Gonzales that provides training to meet the employment demands of existing businesses and the oil and gas activity currently impacting South Texas. Career training is available in the medical field, as well as certified electricians, welders, and instrumentation/ measurement specialists. The cooperation between Victoria College and Gonzales Independent School District gives our high school students the opportunity to graduate with certificates from these courses, and gives the Gonzales area an advantage for business recruitment and expansion.

SEPT/OCT 2014

FOUR CITIES in the Eagle Ford area are taking important steps to help ensure their long term sustainability Gonzales, Cotulla, Pleasanton and Karnes City. As is the case with much of Eagle Ford, each community has its own unique characteristics, and opportunities for developing enhanced quality of life, high-quality infrastructure and a diversified economic base.

KARNES CITY

PHOTOS BY THOMAS TUNSTALL

For much of the 20th century, Karnes City enjoyed significant economic activity, from cotton farming and processing, to oil production, to uranium mining. However, as activity in those areas fell off in the 1990s, and because of aging infrastructure, city planners worked to replace and upgrade much of Karnes City’s infrastructure. As a result, when the activity in the Eagle Ford began in earnest in 2010, the city was relatively well positioned to capitalize. Prior to the Eagle Ford boom, the city implemented wastewater treatment upgrades that will enable the city to grow. The local K-12 school system is looking at ways to improve so that Karnes City will be in the position to attract young families to the area. The city also has plans for a new civic center City manager Don Tymrak and economic developer Ray Kroll are in the process of putting together a vision and master plan that will include opportunities to revitalize downtown. Key priorities will be to create walking spaces and add amenities in order transform Karnes City into a destination location that will attract visitors interested getting away for shopping or recreation.

COTULLA Cotulla has been very active with Eagle Ford Shale activity since the beginning. The Middle Rio Grande Development Council was the basis for the formation of the Eagle Ford Shale Consortium, but its impact covers the entire region. Not surprisingly, and similar to several other counties in the Eagle Ford, Cotulla’s sales tax revenues have been increasing steadily. In 2009, sales taxes totaled $445,022. By 2012, they had risen to $2.2 million annually. Cotulla leaders have been busy enhancing the infrastructure. Elevated water tank/towers have been upgraded, along with water lines and meters. Wastewater treatment is up to 600,000 gallons per day, but has capacity of 1 million gallons. The city is working on street improvements, with plans to spend between $1.2 and $1.6 million over a dozen streets in the downtown area. As part of a downtown revitalization effort, the

PHOTOS BY JOSE ALCALA

city plans to restore the historical Cotulla Motor Company that runs along Main Street and will be used for city administrative offices. Phase II of the project calls for a new retail center nearby on Front Street with historically compatible one and two story heights. The modular format will encourage business diversity, which is adaptable to changing economic conditions. Cotulla is undertaking an airport runway expansion to 6,000 feet that will enable aircraft with maximum takeoff weight of more than 25,000 pounds. With the many oil and gas companies operating in the Eagle Ford, demand for landing facilities closer to production has increased. One issue concerning longterm sustainability is the fact that there are 19 hotels or motels either planned or already completed. Will diversification into industries like tourism generate enough activity to maintain occupancy rates in the event of an

energy industry slowdown? Or can the buildings be repurposed for assisted living or nursing homes? Perhaps the most likely strategy, according to city manager Larry Dovalina, is to make Cotulla a staging point for truckers headed to and from Mexico. Cotulla is about an hour’s drive from the border in Laredo and now boasts at least two competitive truck stops that help ensure competitive

fuel prices. As trade with Mexico continues to increase, Cotulla is potentially well-positioned to capitalize on that growth.

THE MIDDLE RIO GRANDE DEVELOPMENT COUNCIL WAS THE BASIS FOR THE FORMATION OF THE EAGLE FORD SHALE CONSORTIUM, BUT ITS IMPACT COVERS THE ENTIRE REGION PLEASANTON

Pleasanton is located in Atascosa County on U.S. Highway 281 near IH-37, about 20 miles south of San Antonio. Pleasanton was the county seat from its founding in 1858 until 1910, at which time it was moved to nearby Jourdanton. Officially the city’s population is

PHOTOS BY THOMAS TUNSTALL

8,200 but city leaders think that it is more like 13,000. It is known as the birthplace of the cowboy. Pleasanton has access to ample water supplies - approximately twice its current usage of 1.2 million gallons per day has been permitted. With some cities in Texas literally

running out of water, Pleasanton is well positioned for growth. The city has developed several annual events. Each year the community hosts the Turn N Burn CookOff with contests for barbeque brisket, pork spare ribs, chicken, and beans. The Longhorn Museum hosts an annual Yesteryear Festival. Renovation of downtown buildings for the library and civic center, which face Highway 281, were

completed in February. The city is also planning a park expansion, playing field improvements and walking paths. Pleasanton ISD maintains a dualcredit program with Coastal Bend College, which includes vocational, technical and academic course offerings. Housing is in short supply, so in order to address the issue, 130-150 lots are slated for development in the $50,000 to $120,000 price range. In the last phase of one of Pleasanton’s subdivisions, there are 66 lots where the houses are expected to sell for between $190,000 and $260,000. At least two other subdivisions are being developed, along with multi-family apartments, and a possible 101-unit condominium project.

For more info: Take from last issue SEPT/OCT 2014

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STEEL AND ICE

Small Businesses Making Big Waves BY: JIMMY PERKINS

he energy boom in Texas has a far-reaching impact well beyond direct jobs related to the oil field. This month UTSA will release its Eagle Ford Economic Report providing a thorough understanding of the direct and indirect economic impact of the energy industry on our state and its communities. Pleasanton resident Jamie Downs is a perfect example of an enterprising businessman recognizing the many opportunities available to his companies. Downs is the owner of Southern Steel and Chilly Ice both based in Jourdanton. These are two very different companies with distinct products and both predate the current renaissance of the oil industry in South Texas. Downs has lived in the area for 13 years and has enjoyed a front row seat to the growing activity in the region. Southern Steel is a subsidiary of his company Atascosa BBQ Pits that fabricates over 14,000 BBQ pits annually and sells to major grocery chains across the country. As an entrepreneur Downs recognized the boom early on and expanded his operation to fill the needs in the oilfield with his custom welding and fabricating expertise. Today Southern Steel fabricates and welds fencing, railing, cooling trailers, fluid containment systems and more, all for the oil and gas industry. Chilly Ice, on the other hand, has expanded to deliver large amounts of ice to drilling locations, service companies, new retail convenience stores, company yards and more. The ice is all manufactured at the Chilly Ice warehouse and also fills a need created by the expansion of the industry in South Texas. More than a savvy businessman, Downs is an active member in his Pleasanton community and participates in a program offered by the Pleasanton Independent School District. Vocational training in the region’s high schools has taken on a greater importance and seeks to solve an age-old dilemma - “I Can’t get a job without experience and I can’t get experience without a job.” Career in Technology Education is a program that offers high school students specialized training and career readiness. High school seniors are able to secure jobs through the program and its partner companies such as

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BUSINESS OWNERS SUCH AS DOWNS LEAD BY EXAMPLE Southern Steel and Chilly Ice. Southern Steel currently has 15 employees, three of whom are students working in the welding shop. Chilly Ice employs eight, two of whom are students. All of the students earn more than minimum wage working for Downs, get credit toward graduation and gain invaluable experience in the workforce. The oil and gas expansion in Texas requires local government officials to rise and meet the many challenges of rapid community growth. These same local officials rely on the support and talent of local business and community leaders. Business owners such as Downs lead by example. Companies like Southern Steel

and Chilly Ice that respond to the industry and evolve to meet its needs will continue to flourish in their communities with forward-looking leadership. For more information visit www.oilfieldice.com

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SEPT/OCT 2014

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EDUCATION PIPELINE TO THE WORKFORCE BY: DR. JANET CUNNINGHAM

COASTAL BEND EDUCATION INSTITUTIONS

are the key in providing an educated and skilled workforce. Not only are the local colleges doing their part, but Craft Training Center of the Coastal Bend (CTC) is also responding to the increased demands for workers. Nationally-recognized for its unique approach to developing skilled craft labor, CTC offers programs that are directly related to the skilled manpower needs of businesses associated with plants, industry and the oil and gas boom. Dr. Michael Sandroussi, President and CEO of CTC, states that the goal of CTC is to develop an educated craft professional who is drug-free, experienced and capable of working under the highest professional standards. CTC is a non-profit organization that was started over 25 years ago by a group of Corpus Christi industrial owners and contractors, who found it increasingly difficult to remain strong and competitive because the area lacked an abundance of skilled craft workers. They recognized that the best way to alleviate manpower shortages and ensure a steady supply of labor was to create their own training center. They formed a partnership, the Associated Builders and Contractors, to establish the center and serve as the governing board. They also established an Apprenticeship Training Program, which allows students to receive on-the-job electrical and plumbing training with sponsoring companies and earn

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wages while completing a four-year program. The most dynamic aspect of CTC is that all programs are designed for students to acquire the knowledge and performance-based training required by the National Center for Construction Education and Research (NCCER) to become entry-level craftsmen. With the NCCER certification, students are employable throughout the country. Recognized for its strong partnerships, CTC works closely with workforce development to design programs that target specific industry requirements. More than 700 adults have completed programs in the past year and over 95 percent have been employed within three months. The center provides 14-week (84 hours) evening programs to adults in welding, scaffold building, plumbing, instrumentation, industrial painting, pipefitting, field safety/technology, and recently a course was added in mobile crane operations. Increased demand by construction companies, Port of Corpus Christi and many other industries led to the implementation of the mobile crane operations course at the CTC. Students conduct hands-on training including the use of a state-of-the art crane simulator. Once students complete the required coursework, they receive an NCCER Certificate of Completion that allows them to operate cranes or draglines to lift, move, position or place machinery, equipment and other large objects at construction or industrial sites, ports, railway yards and other similar locations. Getting adults ready for the workforce is a major objective of the center, but giving Coastal Bend students a jump start on future careers immediately after high school graduation is also a major strategy of the center. Starting students through the education pipeline begins with a summer program for middle school students in grades six through eight. Twenty six students, including three female students, from two school districts spent part of their summer vacation taking classes that give them an overview of the skilled trades. The two-week program not only excites students about possible careers, but it also teaches them soft skills such as being on time, shaking hands, establishing eye contact and speaking clearly. The students must submit to drug testing before being accepted in the program and will encounter a random drug test while participating in the intense camp. Dr. Sandroussi believes that starting students early is critical to getting them ready for the workforce. â&#x20AC;&#x153;Students need to learn early that craft skills training will provide a great quality of life. What is quality

PHOTOS COURTESY OF CRAFT TRAINING CENTER

Craft Training Center

of life? The four major components are what you eat, what you wear, where you live and what you drive. All of our students at CTC understand this concept and are attaining training credentials that will impact their quality of life in a positive manner.” The middle school program has been so successful that it received a 2014 Community Star Award for “The Future of America Summer Camp.” Also preparing for future careers are high school students who take welding classes during the school year and upperclassmen who may take summer welding classes. Students may start their training as early as their freshman or sophomore year in high school. This past year, over 250 students from 16 school districts enrolled in the training program. The NCCER curriculum helps school districts meet new requirement of House Bill 5 for career pathways to earning credentials, certifications and licenses. All classes meet or exceed Texas Education Agency requirements, and through CTC programs, students can earn high school graduation credit, NCCER certification, Del Mar College Continuing Education credit and CTCCB graduation credit. High school students also participate in local, state and national competitions during the year. One student whose life has dramatically

PHOTOS COURTESY OF CRAFT TRAINING CENTER

WITH THE NCCER CERTIFICATION, STUDENTS ARE EMPLOYABLE THROUGHOUT THE COUNTRY changed is John Partington from West Oso High School in Corpus Christi. “The reason I stayed in school was because of the CTC – it changed my life. Now I will be the first person in my family to graduate from high school!” School counselors recently toured the site as part of the Education to Employment Partners Industrial Tour and were impressed by what they saw and heard from the students. One counselor commented, “I had no idea that students could graduate from the CTC and start off making more money than I make with a fouryear degree. I will definitely encourage more students to look at a career in the trades.” Outstanding training programs for middle school, high school and adult students is one reason CTC was recently presented a CURT (Construction Users Roundtable) Workforce Development Award. Providing national and international recognition, CTC received the award for “extraordinary, exemplary and innovative training and education programs, which encourage individuals to pursue a career

in the construction industry and/or enhance an individual’s construction skills.” Not only was CTC recognized for its highly effective training programs, but also because of its strong partnerships with industry, local school districts, Del Mar College, and state and local government officials. The CTC state-of-the-art facility is located on a 30-acre site that recently completed an expansion to add more classrooms and an industrial training area to the space that includes 98 welding booths, 25-station computer NCCER Assessment Center, and labs for electrical, instrumentation and welding classes. Additional information about CTC programs can be found by visiting the Center at 7433 Leopard Street, Coastal Compass in La Palmera Mall, Facebook or by visiting the website at www.ctccb.org. The Coastal Bend has a treasure; it is called the Craft Training Center of the Coastal Bend! For more information email jcunningham@ edexcellence.org or call 361-813-9946. SEPT/OCT 2014

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BUSINE S S

THE NEW AGE TRAVELER BY: KIM BRIDGER

here’s something odd about the “new age.” Just about the time we figure out a new piece of technology, it becomes old and changes again. Nothing stays new very long. But customers at Corpus Christi International Airport (CCIA) will surely enjoy new technology that is on the way to the terminal. If you travel frequently, you are aware of the various ways to check the status of your flights. Armed with your confirmation or flight number, you can check flight status on airline websites and various other sites and apps that give you the information in real time. If your air travels take you to or from Corpus Christi, you can soon add CCIA’s website to your list of choices. At CCIA, the flight information system and flight status monitors that are currently placed around the terminal are displaying some pretty old technology. The system has served us well, but is long overdue for an upgrade. No longer will our airline representatives have to manually enter flight delays and cancellations. In early fall, CCIA will install upgrades and new display screens that will give customers the absolute, most up to date information available. It will come in to the system automatically. Customers will be able to access the information from various locations inside the terminal and on our website and mobile website. Right about the time we got used to checking in for a flight from our home computers, the airlines and TSA began to transition to something called “mobile check-in.” This has been available at larger airports for a while now. Here at CCIA, mobile check-in came on line earlier this year and is now being used by many of our frequent flyers. The process for using mobile check-in is pretty simple. Just keep in mind that each airline is slightly different and you simply need to follow their prompts when doing it for the first time. Wishing you safe and hassle-free travels in the new age of airports when there is surely something new just around the corner. For more information: www.corpuschristiairport.com, Kim Bridger is the Marketing Manager at CCIA and can be reached at kimb@ cctexas.com. For More Information visit www.corpuschristiairport. com

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JUST ABOUT THE TIME WE FIGURE OUT A NEW PIECE OF TECHNOLOGY, IT BECOMES OLD AND CHANGES AGAIN

PHOTOS COURTESY OF CCIA

Tracking Flight Status & Mobile Check-in

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OCTOBER 1-2, 2014, AT THE OKC OILFIELD EXPO.

● Speak with technical experts ● Over 300 exhibitors ● Find solutions that ensure ● Focus on deal-making effciency and compliance

OCTOBER 1-2, 2014 | COX CONVENTION CENTER | OKLAHOMA CITY, OK

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SEPT/OCT 2014

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A TRUE TECHNOLOGY PARTNER BY: LIZ MASSEY KIMMEL

igh Touch Technologies delivers technology solutions and the people who drive them. Whether providing hardware or software, network security or managed IT solutions, cloud, colocation, or a host of other services, keeping people at the center of technology helps deliver technology solutions to small and mid-size businesses in all 50 states and seven countries. Based in Wichita, Kansas, with offices in Dallas, Denver, Kansas City and Corpus

Christi, High Touch serves business clients in multiple industries. As a complete Information Technology (IT) solution provider, High Touch partners with their clients to provide custom solutions that fit their business needs such as: · · · ·

Managed IT Services Cloud & Data Center Services VoIP Voice and Data Solutions Software Development

Cecil Johnson, Account Executive with High Touch Technologies in the Corpus Christi, Texas market, says, “The Eagle Ford Shale boom has been a huge boost to many existing businesses, as well as new start up companies. The challenge for many is having a strong and up-to-date technology infrastructure. Clients we have encountered have technologies and infrastructure that have not grown at the level of their business growth and now they are working to catch up. These companies could not have predicted the growth they would experience as the result of the Eagle Ford Shale boom and were caught a little off guard. High Touch works with companies to make sure that their technologies infrastructures are up to date and have a strong and scalable structure

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for continued growth and success without having to reinvent their infrastructure every year.” Karnes City, Texas was one of those entities caught off guard. Don Tymrak, City Manager, explains how High Touch Technologies saved them from a technology infrastructure overload. “August 2010 cast Karnes City into a new light. We became the epicenter of the Eagle Ford Shale Play. First, it was the influx of people and vehicles putting stresses and strains on the infrastructure of the city. Second, several city departments, spread across the city, did not have an efficient means of communication – communication is at the heart of success. We needed to keep pace, moving forward, connecting everything in the city. Thus the relationship with High Touch Technologies began. High Touch determined our needs in terms of color, coming to the city council, asking for information rated either green, yellow or red. Green meant good to go, working fine. Yellow meant border line, will need replacing soon, and red meant needed upgrade as of yesterday! The council gave High Touch permission to color them green! High Touch Technologies has lived up to their name, taking us from where we were to where we needed to be in the most cost effective way, and they are still providing that high touch of service level second to none. With constant vigilance and monitoring of our ongoing needs, they are responsive and diligent, often preventing problems before they actually happen!” Partnering with High Touch allows businesses to shift focus to their core business needs instead of spending resources managing and maintaining IT infrastructure. This avoids overloading a full-time employee with additional IT tasks for which they aren’t qualified, which could be detrimental to the company’s hardware, data

PARTNERING WITH HIGH TOUCH ALLOWS BUSINESSES TO SHIFT FOCUS TO THEIR CORE BUSINESS NEEDS INSTEAD OF SPENDING RESOURCES MANAGING AND MAINTAINING IT INFRASTRUCTURE or worse. Businesses that aren’t large enough for an IT staff can rely on High Touch’s certified professionals to handle those IT tasks for a fraction of the cost of hiring internally. Some of the many benefits of partnering with High Touch as a Managed IT Services provider include: · Reducing system downtime · Improved quality and reliability of network and computer systems · Disaster and Data backup and recovery · Improved network security · Preventative, timely, and remote maintenance At High Touch, you receive industry expertise and the stability of a company that has been in business since 1984. They will be your true technology partner.

For more information contact Charly at charlyh@hightouchinc. com, 316-462-4260 or Cecil Johnson at cecilj@hightouchinc. com, 361-737-0640. Or visit www. hightouchtechnologies.com

TAP INTO YOUR POTENTIAL

SHALE IS BOOMING AND THE COMPETITION IS GROWING. Don’t let your business get left in the dust—we’ll steer your marketing to a new level of success. Services may include but are not limited to:

VISIT SHALEMAG.COM/MARKETING OR CALL 210.240.7188 FOR ADDITIONAL INFORMATION. SEPT/OCT 2014

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ECONOMIC IMPACT OF THE EAGLE FORD SHALE TOUR Conducted by the University of Texas at San Antonio in Conjunction with STEER and ANGA. The networking events will consist of stops in Houston, San Antonio, Corpus Christi and Laredo, Texas.

PRE-SALE TICKETS AVAILABLE NOW $25.00 Tickets at the door $45.00

Tour Dates SAN ANTONIO, TX / September 23, 2014 Sonterra Country Club 901 Sonterra Blvd, San Antonio, TX 78232

LAREDO, TX / September 25, 2014 Texas A&M International University 5201 University Blvd, Laredo, Texas 78041

CORPUS CHRISTI, TX / September 26, 2014

SPONSORSHIPS ARE STILL AVAILABLE

For more information go to www.shalemag.com. Click on the Economic Impact of the Eagle Ford Shale tab.

Congressman Solomon P. Ortiz International Center 402 Harbor Dr., Corpus Christi, Texas 78401

HOUSTON, TX / September 30, 2014 Houston Club 910 Louisiana St, Houston, TX 77002

Join our other partners in sponsoring this event. Sponsorship is limited. This will be a sold out event in all cities.

SA Hispanic Chamber

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CC Hispanic Chamber

TAMACC

C OMM U N I T Y

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LIFESTY LE

A HAVEN IN THE HILL COUNTRY Kick Back, Breathe Deep, Create Experiences at Boot Ranch BY: RANDY E. PRUETT

THE TEXAS HILL COUNTRY is one of the most beautiful regions in the country. Rolling hills, spring-fed rivers and lakes, diverse art and music offerings, specialty shopping, unforgettable wildflowers and sunsets, to the best wine, food and hospitality – it’s a favorite destination for Texans and out-of-state visitors alike. “Here you’ll find a delicious tension between rural and refined,” writes Jeannie Ralston for The New York Times. “With the vineyards and boutique farms (lavender, olives), some people make comparisons to Napa Valley or even Provence (France). But those assessments ignore something fundamental: The Hill Country – being Texas at its finest – is like nowhere else in the world.” Creating special places requires understanding today’s needs and the history, traditions and character of place. Exceptionally located on the property and peering over the golf course’s signature 10th hole, the Overlook Cabins at Boot Ranch preserve a bit of Hill Country history and architecture. “Each half-acre Overlook Cabin features turnkey plans for one- or two-bedroom cabins, guest cottages, barn-style garages and outdoor courtyards,” says Sean Gioffre with Boot Ranch. “With the charm of Fredericksburg in

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mind, the Overlook Cabins feature historic details and local materials.” The design team includes Austin-based Chas Architects and Rachel Mast Interior Design. Boot Ranch is the Texas Hill Country’s finest private golf and family community nestled on more than 2,000 rolling acres – just five miles north of Fredericksburg. The master-planned retreat offers a variety of living options and the clubhouse features expansive vistas, a spa, bar, casual and fine dining. Featuring a Hal Sutton-designed championship course, it has been ranked among the Top 10 in Texas seven times by The Dallas Morning News. “Undoubtedly, this place bears the pride of Texas. With local attractions, a family focus and first-class amenities, the people who live at Boot Ranch really do have it all,” says Andrew Ball. “Whether someone is seeking respite in a customized retreat, entertaining friends during a golf weekend or enjoying peaceful country nights, an Overlook Cabin is an ideal setting for people to reconnect.”

For more information contact Gioffre or Ball with Boot Ranch at (830) 997-6200, info@ bootranch.com and visit www.bootranch.com.

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EAGLE FORD NEWS is dedicated to sharing news, information, events, jobs, resources, opinions and conversations related to the Eagle Ford Shale. We have the largest Facebook page dedicated to Eagle Ford, where we encourage two way communication from our fans and members. www.facebook.com/EagleFord You can also join our conversations on LinkedIn and Twitter

News where you get to participate. SEPT/OCT 2014

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LIFESTY LE

ROGERS LACY AND FRANK LLOYD WRIGHT

ot every Texas wildcatter leaves a larger-than-life legend or a big fortune. But that doesn’t mean they didn’t have vital impact, lead fascinating lives or achieve historical significance. Witness Rogers Lacy, born in Longview in 1882. When he died in 1947, the estate he left was $20 million worth of debt – a whopping $200 million in today’s dollars. That alone tells you that in the lively boom and bust game of oil and gas wildcatting that he was up to some major wheeling and dealing. Most of the best-known wildcatters were oil men, as was Lacy. But he also was canny enough to put down cash on NG when Black Gold was the prime resource currency. Like most original wildcatters, Lacy had tried many ventures when young and laid bets down on a number of business plays. But he was a pioneer who knew that there was mucho dinero to be made in them there East Texas prairie fields, starting Texas Caddo

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Land and Oil Co. in 1913 (his title on his letterhead read “Capitalist”). He purchased 200 acres in the primarily NG Willow Springs Gas Field in the Roaring ‘20s, and in 1940 started supplying NG to Longview with his Southern Gas company. Following common original wildcatter form, Lacy left school young after seventh grade. His first venture was running a nursery and coaxing fruit trees up out of the soil rather than oil and gas. He owned a mercantile store and invested in land, later applied for a Dallas broadcast TV license, and did win-some/lose-some drilling in the abundant East Texas patch in such fields as the Hawkins and Carthage – where the company he left behind remains active – and Rodessa Limestone. Lacy would undoubtedly be better known today if perhaps he’d lived a bit longer. After the end of World War II he had engaged Frank Lloyd Wright to design a hotel to be sited in downtown Dallas at Commerce and Ervay Streets. It was big news in the Big D and made waves in the national architecture community, and deservedly so. The plans were years ahead of the time with a then rare and now prevalent interior atrium as well as an innovative skyscraper design with a concrete core from which floors were cantilevered outward, enabling large glass floorto-ceiling window curtain walls on the exterior to open rooms up to the surrounding vistas. It took elements of Wright’s now historic prairie home design upwards into the sky. The famed architect touted the 826-room hotel as being “beyond anything in the nation” and boasted how it would “glisten in the night.” The entrepreneurial wildcatter wanted to name it the Rogers Lacy Hotel and Wright preferred calling it the Lone Star. As was common on many Wright projects, he showed little budgetary

BY: ROB PATTERSON

restraint and thought huge on tower design and aesthetic flair, yet despite his renown had yet to have one of his skyscraper plans even break ground. But the skyrocketing projected costs left the project on the drawing boards even before Lacy passed away. (Elements from the hotel design did show up in Wright’s only real highrise that was constructed, the Price Tower in Bartlesville, Okla., built for – hardly coincidental here – an oil pipeline and chemical firm as its headquarters.) Though Lacy’s death left his business holdings with a potentially crushing debt load, he was wise enough the year before he passed to reorganize his privately-held ventures into a corporation. The lawyer who did so, Jack Price, took over the running of R. Lacy Services and in time got it back on solid fiscal footing. It continues to operate today in the energy, land and cattle businesses. “Rogers Lacy was not as famous as H.L. Hunt and didn’t have a company as big as some of the majors,” notes current R. Lacy president Dick Dial. “But if he lived another 20 years, the company could have been as big as Exxon or he could have been broke.” Two years ago the Texas Independent Producers and Royalty Owners Association honored Lacy with its Legacy of Achievement Award. If the hotel had been built, it surely would have rivaled Houston’s Shamrock Hotel built by wildcatter Glenn McCarthy, despite the Shamrock’s celebrity-studded headline-grabbing opening in 1949. The Lacy/Wright building would certainly have become an iconic presence on the Dallas skyline and, unlike the Shamrock, still standing today. But even without Lacy exercising any edifice complex he may have had, he still left his distinctive imprint on the Texas energy industry.

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LIFESTY LE

MAKE TIME TO TOAST AND CELEBRATE BY: DAWN ROBINETTE

PUTTING TOGETHER A GREAT CELEBRATION IS A LOT LIKE WORKING THE SHALE: PUT THE RIGHT TEAM IN PLACE AND THINGS JUST FLOW

SHALE OIL & GAS BUSINESS MAGAZINE

ver wonder where the idea of toasting came from? Some trace it back to the 1600s when people would add toasted bread to a drink to help flavor it, while others believe it’s a twist on an ancient sacrifice, offering a sacred liquid to the gods in exchange for a wish. Since the sacred liquid in the Shale is oil and everyone wants the boom to be long and prosperous, sacrificing for success takes on a whole new meaning! (Besides, who wants to drink anything with toast floating in it?) That makes it your duty to raise a glass and help ensure things keep flowing and what better way to do that than with your team? With the 24/7 hustle and rush of business today, you and your team deserve to pause and revel in all you’ve accomplished. Before you close the books on this year, take time to toast, celebrating—and ensuring more—success, the end of the year, a great season or the upcoming holidays. Everyone making history in the Texas oil and gas industry right now definitely deserves to be toasted and the experienced hands at Don Strange of Texas, Inc. can make your celebration flow, no pressure required. For more than 60 years, businesses across the country—and around the world—have relied on Don Strange of Texas to help them celebrate and the renowned caterer certainly knows a thing or two about toasting: they’ve poured more than three million flutes of champagne for happy party goers over the years, not to mention glasses of wine, beer and specialty drinks. Like many working the Shale today, the team at Don Strange does it their own way, striking just the right chord with traditional and authentic cuisines of incomparable culinary taste and presentation, not to mention memorable cocktails that always shake up an event, like the special “Shale Shaker” created to mark the success and hard work that deserves some fun across the Shale. Putting together a great celebration is a lot like working the Shale: put the right team in place and things just flow. Don Strange Signature Service means you get everything you need to make a celebration sizzle, delivering fabulous flavor and more, bringing it all to you. All you need is your calendar: make the time and they’ll make sure your glass is filled with the right beverage to toast your success. From arranging tents on your site, turning your SEPT/OCT 2014

SHALE SHAKERS RECIPE 2 PARTS KAHLUA 1 PART ENCHANTED ROCK VODKA LEMON ZEST SHAKE AND POUR OVER ICE. GARNISH WITH LEMON ZEST. office into a working party or offering an array of venue options for you to mark the holidays, toast a great year, or celebrate a big win, Don Strange can give your celebration a special “flare”. So whether you want to explore one of the company’s amazing venues, including The Settlement – Circa 1850 in Bulverde, the Don Strange Ranch in Welfare and the Buckhorn Saloon and Museum on San Antonio’s River Walk, or celebrate anywhere across the wide-reaching shale, rest assured that Don Strange delivers. Once the team starts cooking and fresh flavors fill the air, no one can resist drilling down and having a good time. Make a sacrifice, shake it up and raise a glass! Whether your bubbles of choice come from mineral water, beer or champagne, pour it on and toast your year. Let Don Strange mix up a batch of Shale Shakers that will make the gods, and your guests, happy. From the tailgate of a truck to a buffet in the boardroom, flavors and fun are sure to flow. For more info: To discuss celebrating your success, email Di-Anna Arias at di-anna@donstrange.com or call her at (210) 434-2331. Visit the Don Strange website at www.donstrange.com

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SEPT/OCT 2014

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LIFESTY LE

CELEBRATING 25 YEARS OF EXCELLENCE Joshua Creek Ranch

SPECIAL TO SHALE

vision to become Texas’ premier wingshooting destination for discriminating sportsmen began in 1990 on a pristine stretch of land along Joshua Creek and the Guadalupe River in the scenic Texas Hill Country. Today, that vision and so much more has become a reality for Joshua Creek Ranch and its many guests, members, staff and owners. For the past two-and-a-half decades, Joshua Creek Ranch has been nurtured by a relentless passion and everlasting commitment to wildlife habitat stewardship and excellent service to hunters from all over the world. “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 wingshooting experience in Texas. That, coupled with outstanding accommodations and gourmet meals, is why I make multiple trips each year to Joshua Creek Ranch,” mentioned

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Robert L. Potter, retired President, FMC Technologies, Inc. in Houston, Texas. From quail hunts behind pointing and flushing dogs and European-style driven pheasant shoots to Whitetail and trophy Axis deer hunting, fly-fishing for rainbow trout and sporting clays shooting on a breathtaking 15-station Hill Country course, Joshua

Creek Ranch just keeps getting better every year. In fact, this 25th Anniversary year Joshua Creek Ranch will expand its highly awarded upland bird hunting experience to include decoyed mallard duck hunting. Also, the addition of a new 10,000+ square-foot lodge overlooking Joshua Creek with a state of the art conference facility will bring Ranch accommodations to an even higher level of comfort and luxury. “As an avid wing shooter of thousands of birds each year, I can honestly say Joshua Creek Ranch represents the best of the best when it comes to premier wingshooting lodges. When you combine a great hunting experience with five-star lodging and dining, you’ve got a real winner. The new conference facilities under construction will truly make Joshua Creek Ranch a firstclass destination for corporate retreats, conferences and client entertainment,” remarked Cornelius Dupré, Chairman and CEO, Dupré Energy Services, Houston, Texas. For more than 25 years now, the leadership, staff and guides at Joshua Creek Ranch have always made it a top priority and commitment to ensure that guests are surrounded by warm, Texas hospitality and treated to a first-class hunting and outdoor adventure, regardless of their experience level. “In addition to the excellent service, hunting guides, bird dogs, food and lodging, the thing I enjoyed most about Joshua Creek Ranch was how they tailor the whole experience to their guests. Whether you’re an avid hunter or beginner, you won’t feel out of place at Joshua Creek Ranch. I could not have had a better time bird hunting for quail & pheasant, fly fishing for rainbow trout and shooting sporting clays – all in one trip to one destination,” said JT Keating, SVP of Marketing, SignaCert, Austin, Texas. Just 45 minutes northwest of downtown San Antonio, Joshua Creek Ranch provides guests a world-class experience in the field plus gourmet dining and exceptional lodging with spectacular views. Recognized as one of only five Beretta Trident Lodges for Excellence in Upland Bird Hunting in the U.S. and the only one in Texas, an Orvis Endorsed Wingshooting Lodge and recipient of the 2013 Award of Excellence from Sporting Classics Magazine for Hunting Lodge of the Year, Joshua Creek Ranch truly represents the best of the best.

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JUST 45 MINUTES NORTHWEST OF DOWNTOWN SAN ANTONIO, JOSHUA CREEK RANCH PROVIDES GUESTS A WORLD-CLASS EXPERIENCE IN THE FIELD PLUS GOURMET DINING AND EXCEPTIONAL LODGING WITH SPECTACULAR VIEWS.

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For more information visit www.joshuacreek.com or call (830) 537-5090 SEPT/OCT 2014

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LIFESTY LE

JOSHUA CREEK RANCH OFFERS UP SOME SEASONAL RECIPES: PHEASANT ENCHILADAS 18 Pheasant Legs 1 can Rotel Tomatoes 1 ½ onion 4 cups cheddar cheese, shredded 6 stalks of celery Enchilada Sauce (see below for recipe) 3 serrano peppers, chopped Corn Tortillas

Cook pheasant, 1 onion and celery in water. Season with salt and pepper. When tender, cool pheasant and carefully remove all meat from bone and tendons. Saute 1/2 onion, chopped, and serrano peppers until soft. Mix meat, Rotel tomoatoes, onions, 1 cup of cheese and serrano peppers. Season to taste with salt and pepper. Add a little enchilada sauce to moisten, if necessary. Briefly dip tortillas into hot oil. Place 3 to 4 tablespoons of meat mixture on tortilla and

roll. Place into greased baking dish. Cover with enchilada sauce and top with remaining cheese. Cover with greased tin foil and bake at 350 degrees for 30 minutes until cheese is melted.

ENCHILADA SAUCE 1 can cream of celery 1 tbsp chili powder 2 cans of enchilada sauce (Old El Paso) 1 tsp paprika 1 can Rotel Tomatoes 1 tsp cumin ¼ stick of Velveeta, cubed Combine all in saucepan and bring to a boil. Simmer until needed. Serves 12

SHRIMP POPPERS WITH HONEY ANCHO GLAZE

Lay jalapeño next to shrimp and wrap in bacon. Secure with toothpick. Grill over medium high heat until shrimp turns pinkish white, about 3-5 minutes. Flip shrimp to cook other side. Paint cooked side with honey ancho glaze. When shrimp is cooked, paint remaining side with glaze. Serve immediately.

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HONEY ANCHO GLAZE 8 dry cascabel chiles 4 cloves garlic 1 tsp cumin ½ tsp salt ¼ cup olive oil ¼ cup orange juice concentrate ½ cup honey 1 tbsp apple cider vinegar Remove stems from cascabel chiles. Place all ingredients in blender and pulse until well mixed. Delicious on shrimp quail and chicken.

PHOTOS COURTESY OF JOSHUA CREEK

16 large shrimp, peeled and deveined 8 slices bacon, halved and cooked slightly 16 slices pickled jalapeños

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SEPT/OCT 2014

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LIFESTY LE

RETURN TO GLORY The Dobie West Performing Arts Theatre

BY: JIMMY PERKINS / PHOTOGRAPHY: MATT GOMEZ

ON NEW YEAR’S EVE 1946 the small South Texas town of George West would have been bustling with excitement. It was on this day that William Glasscock opened the West Theatre on Main Street. As was the custom, the movie theatre had a small stage and Red River Dave performed his brand of western music and most likely entertained the crowd

MARY ANN PAWLIK AND GLYNIS HOLM STRAUSE

SHALE OIL & GAS BUSINESS MAGAZINE

with his trick roping as well. The movie that premiered that night was “One More Tomorrow” starring Anne Sheridan and Dennis Morgan. No doubt Red River Dave and the Hollywood film were a big draw on New Year’s Eve 1946, but come summer the West Theatre was also one of the few buildings in town with air conditioning, thus ensuring its popularity regardless of the entertainment. Like many movie house theatres in small Texas towns, the glory days came to an end in the early 60s when television captured America’s entertainment attention. The theatre remained vacant for many years. During the 1980s, it was remodeled and used as an office building. Then in 2000 it was deeded to the George West Storyfest Association, Inc., a local non-profit organization dedicated to preserving the rich heritage of storytelling. George West sits pretty much in the middle of Live Oak County SEPT/OCT 2014

which is the home county of the great Texas folklorist, writer and newspaperman, J. Frank Dobie. The Downtown Revitalization Committee of the George West Chamber of Commerce wanted to see the theatre restored. So a committee was formed to begin the renovation. Shortly after the committee was formed, Mary Ann Pawlik was asked to chair the committee. The theatre was registered as a 501(c)(3) nonprofit entity and the fundraising began in earnest. The city started off the giving with $15,000 and that was quickly followed by major donations from The First National Bank of George West, Valero and numerous citizens from the community. Pawlik wrote numerous grants and the theatre received $65,000 from The Sparks Foundation and another $25,000 from American Electric Power (AEP). Pawlik is not your typical committee chair. Rugged South Texas determination is quietly masked behind a sweet grandmotherly smile. I’m not sure anyone would be able to say no when she asked for something. Additionally, this was a community in action and the project required the effort of many people. Virginia Horton and Lamon Bennet were also integral to the success of the renovation as well as several other dedicated members of the community. Many fundraisers were held including the selling of theatre seats for $100 each, local business donations came in, the raffle of an all-terrain vehicle, and the selling of ‘Sidewalk Stars’ for $5,000 each. Much of the success of the fundraising is a direct result of the increased incomes of many families and businesses that are benefitting from the oil and gas boom in the Eagle Ford Shale. ConocoPhillips continues to be a strong community supporter and has donated in excess of $10,000 to support the theatre’s ongoing success. On Jan. 3, 2010, the newly christened Dobie West Performing Arts Theatre opened without heat and a chilly 19-degree outdoor temperature for a special performance. Veteran Los Angeles actor John Mueller performed his Buddy Holly stage show to a sold out house. Mueller was a friend of Pawlik’s daughter Kim who had passed away the previous summer, and he performed the show as a benefit in her memory. July 21, 2012 marked the official opening of the new Dobie West Theatre. With the support of the dedicated volunteers, the community and the continued financial support from many businesses including ConocoPhillips, the theatre is going strong. On Aug. 8 and 9, the Dobie West Performing Arts

WITH THE SUPPORT OF THE DEDICATED VOLUNTEERS, THE COMMUNITY AND THE CONTINUED FINANCIAL SUPPORT FROM MANY BUSINESSES INCLUDING CONOCOPHILLIPS, THE THEATRE IS GOING STRONG

Theatre presented “Dividing the Estate,” written by Texas native Horton Foote, and directed by George West native Glynis Holm Strause. The play is set in a small Texas town in 1987 and the Gordon family is on the verge of bankruptcy. The land is essentially all they have left and they have gathered to discuss the pros and cons of dividing and selling the

estate. Along the way they discover the hope that oil drilling in the area may actually make its way to their land and save them from ruin. What follows is a very Texas-centric debate that also reveals the different levels of greed, compassion and desperation in each family member. The local cast ranging in age from 12 to 80 years delivered a wonderful performance,

individually and collectively. One particular standout performance was that of family matriarch Stella Gordon, played by a certain retired George West High School English teacher and drama instructor. The talented local actress had plenty of support on stage and off. As it turns out Director Strause was a former student, who was a member of the Drama Team, that went to the U.I.L. State Competition in 1969 under the guidance of none other than Mrs. Mary Ann Pawlik. For more information visit www.facebook.com/ DobieWestTheatre

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FUNDING OUR FUTURE MORE THAN TWO MILLION TEXAS STUDENTS ARE VULNERABLE TO DROPPING OUT OF SCHOOL.

EVERY $1 DONATED PROVIDES A CHANCE AT A BRIGHTER FUTURE FOR A STUDENT IN NEED

To ensure that students stay in school and prepare them for further education and the workforce, it is necessary to provide a student-centered, comprehensive approach to the many challenges students face. Communities In Schools (CIS) of Texas programs, with the assistance from the Texas Education Agency (TEA) and school districts, are a part of the solution to help keep students in school. The students who tend to need assistance from CIS endure a variety of life struggles. For example, students in one parent households, children in foster care, children struggling with the loss of a parent(s) due to death or incarceration, financial instability or inability to provide essential necessities such as clothing, food or housing, have an increased likelihood of dropping out of school. The program places particular emphasis on mentoring students in middle school, when they are most vulnerable to dropping out for a variety of reasons. CIS of Texas programs work with students from Kindergarten through grade 12, and provide services tailored for children in need through mentoring, counseling, tutoring, clothing and food resources. In addition to helping students, CIS of Texas also assists parents with education on parenting skills, literacy, English or Spanish language, college and career readiness, job training, how to manage finances, etc. because family involvement is essential to a child’s success in school. The nonprofit evaluates its impact through the achievements of the youth they serve. CIS of Texas programs securely monitor student data and track education outcomes of the participating students. The data yielded is used to grow and improve the program. The following statistics are the case-managed outcomes for the 2012-2013 school year:  98% stayed in school  94% promoted to the next grade  94% eligible to graduate, graduated  93% targeted for behavior, improved  89% targeted for academics, improved  79% targeted for attendance, improved CIS of Texas programs and services help thousands of children and families throughout the state of Texas—and they depend on the generosity of supporters. The majority of each program’s budget must be raised from the local communities and businesses. Despite limited resources, the programs have made tremendous progress in keeping our young people in school—and there is more that they can do. Every $1 donated provides a chance at a brighter future for a student in need. Each contribution helps to bridge the gap between basic educational needs and quality interventions to reach struggling youth.

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Your assistance will help CIS programs deliver essential support that provides thousands of Texas students with the tools necessary to succeed in life. Donations made to CIS of Texas fund the services that will get us closer to a stronger, more educated population. Your commitment helps give our youth the opportunities and resources they need to be successful. SHALE Magazine is happy to be a donor to this worthy nonprofit. A portion of the funds raised by the ticket sales for the SHALE Magazine four city tour on the Economic Impact Research of the Eagle Ford Shale will go to CIS of Texas. The funding provided by the tour will go toward funding the nine local CIS of Texas programs surrounding the cities on the tour: Houston, San Antonio, Corpus Christi and Laredo. CIS of Texas is partially funded by the Texas State Legislature and administered by the Texas Education Agency. The CIS of Texas State Office is directed by Julie Wayman, State Director, CIS of Texas at the Texas Education Agency, and supported by her staff, known as the Program Resource Center (PRC). The PRC assists the CIS of Texas State office with the administration of the program, and provides technical assistance in several areas and training to the 27 CIS of Texas programs. All programs are independent 501(c )(3) nonprofit entities, and although they are largely state funded, they must individually raise the majority of their funding at the local level with community and corporate support. The nonprofit is actively working to increase the awareness of its programs and services. Although the program has been in existence in Texas since 1979, many people are not aware of the program and what they do. The CIS of Texas staff at the local program are a dedicated group of over 1,400 professionals in various positions; many social workers who selflessly assist the students in the program with their various needs. Collectively they have over 10,000 unpaid volunteers who assist the programs with tutoring, mentoring, activities, fund-raising, etc. They have many businesses, community and faith-based groups who also assist the programs in various ways. There are many ways that people can become involved with CIS of Texas programs, not only through cash donations, but also with in-kind donations (supplies, meeting space, transportation, etc.), mentoring, tutoring, serving on a board, and more. For more info: To learn more about resources available through CIS of Texas or to provide a donation or volunteer, visit www.cisoftexas.org.

SEPT/OCT 2014

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JUST SAY “OUI!” The McNay Brings Paris to San Antonio with Intimate Impressionism from the National Gallery of Art

CRAVING A PARISIAN ADVENTURE? Leave your passport at home and head to the McNay Art Museum to celebrate the best of French culture, food, cuisine and art. San Antonio’s international flavor will take on a distinctly French accent this fall when the McNay Art Museum hosts Intimate Impressionism from the National Gallery of Art, an extensive exhibition of Impressionist and post-Impressionist paintings on its first-ever worldwide tour. Organized by the National Gallery of Art, Washington, the exhibition will be on view at the McNay Sept. 3, 2014 – Jan. 4, 2015, and is comprised of nearly 70 paintings, including work by Pierre-Auguste Renoir, Édouard Manet, Claude Monet, Paul Gauguin and Vincent van Gogh. The collection features a selection of intimately scaled still lifes, portraits and landscapes that are among the most beloved paintings at the National Gallery of Art. The exhibition is visiting Rome, Tokyo, San Francisco, Seattle and San Antonio, making

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the McNay the only opportunity to see the collection outside of the West Coast. The collection has never toured before and once a current renovation of the collection’s home at the National Gallery of Art is complete, these masterworks will return to their traditional home in Washington, making Intimate Impressionism a once in a lifetime opportunity to enjoy in San Antonio. “The opportunity to share an exhibition of this prominence, and one that is so closely linked to our permanent collection, is a wonderful way to celebrate 60 years of sharing great works of art with San Antonio,” explains William J. Chiego, Director of the McNay Art Museum, which is celebrating its 60th anniversary throughout 2014. “Many of the artists featured in Intimate Impressionism are also featured in the McNay’s permanent collection, giving visitors a unique opportunity to see under one roof superb paintings by true masters.”

PHOTOS COURTESY OF MCNAY

BY: DAWN ROBINETTE

ENJOYING ART FROM DIFFERENT ANGLES

THE COLLECTION FEATURES A SELECTION OF INTIMATELY SCALED STILL LIFES, PORTRAITS AND LANDSCAPES THAT ARE AMONG THE MOST BELOVED PAINTINGS AT THE NATIONAL GALLERY OF ART.

When the museum opens its doors to Intimate Impressionism from the National Gallery of Art this fall, visitors will be greeted by a fantastic calendar of events and activities to entertain and delight everyone from the seasoned art aficionado to the casual observer who simply enjoys viewing beautiful works of art. To complement the exhibition, the McNay will feature special music performances, films, workshops and lectures created to entertain and engage guests and enhance the experience of viewing the Intimate Impressionism exhibition. For instance, “OUI! Wednesdays”, a first of its kind series to be held on Wednesdays throughout the run of Intimate Impressionism, will allow McNay visitors to fall in love with French countryside, culture and cuisine during this weekly accompaniment to Intimate Impressionism. The McNay is also offering an array of special tours spotlighting different aspects of the collection for adult groups of 10 or more. From lunch and a tour to savoring sweet treats, coffee or cocktails with friends, “Bonjour Impressionism”, “Tour D’Art & Lunch”, “C’est Magnifique” and “Lovingly Marion” are a few of the special Intimate Impressionism tours created to help you savor every minute of the special exhibition. And to make sure no one misses the opportunity to enjoy Intimate Impressionism, the McNay is hosting a special family day on Sunday, Oct. 26. Held from 1:00-4:00 p.m., “Bonjour Les Artistes!” will let visitors travel to Paris without leaving San Antonio, celebrating Impressionist artists while featuring activities throughout the museum. The event is free, allowing visitors to enjoy the museum and the Intimate Impressionism exhibition at no charge and is the only opportunity to see the masterworks featured in Intimate Impressionism at no cost throughout the exhibition’s stay in San Antonio.

PHOTOS COURTESY OF MCNAY

For more info: The McNay is offering extended hours for Intimate Impressionism from the National Gallery of Art with access to the museum and exhibition for $20. For more information on the McNay and the exhibition, as well as tour information and a full calendar of events, visit www.mcnayart.org.

SEPT/OCT 2014

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OIL & GAS BUSINESS MAGAZINE

September 15 SHALE Oil & Gas Business Magazineâ&#x20AC;&#x2122;s partners have contributed fantastic items for our first online charity auction benefiting Communities In Schools of Texas!

Please help us give back to the community! www.shalemag.com/charitybuzz

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Communities In Schools of the Coastal Bend greatly appreciates the support and partnership of Shale Oil & Gas Business Magazine

A PRIVATE OASIS IN THE TEXAS HILL COUNTRY

Our expanded Ranch Club complex is the perfect paradise for rest, relaxing and recreation. Just steps from Clubhouse Village, it now offers many additional resort-style amenities including four separate swimming pools, Jacuzzi, Ranch Club Grill featuring a wood burning pizza oven, a luxurious open-air pavilion for lounging and seating for up to 300, lighted hard-surface tennis and sport courts, and much more.

To learn more please contact Sean Gioffre at 830-997-7693 / sgioffre@bootranch.com or Andrew Ball at 830-997-6200 / aball@bootranch.com. bootranch.com

SEPT/OCT 2014

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SEPT/OCT 2014

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FOR ADVERTISING INFORMATION PLEASE CONTACT: ADAKU@NHOMETX.COM 210.386.6531

enowned for upland bird hunting and driven pheasant shooting, Joshua Creek Ranch hosts equally spectacular seasonal migratory dove hunts in South Central Texas’ finest dove hunting corridor. From mid September through mid October, experience an all-inclusive customized itinerary for migratory dove hunting, quail hunts behind pointing and flushing dogs, and European-style driven pheasant shoots. And new this season, decoyed mallard duck hunting. Joshua Creek Ranch, just 40 minutes NW of San Antonio, is the only place to “have it all” in the field plus gourmet dining and superior lodging with spectacular views. Well-traveled sportsmen agree – At Joshua Creek Ranch you’ll experience the most challenging and exciting wingshooting in Texas. “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, Retired President, FMC Technologies, Inc. Houston, TX”

Joshua Creek Ranch is celebrating its 25th season of outstanding client satisfaction and earning Orvis Endorsement and designation as a Beretta Trident Lodge.

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Opening Doors in San Antonio Since 1974

Winner of 2006 Historic Preservation Award This totally renovated home from top to bottom offers spacious rooms with high ceilings, wood floors, beautiful moldings and a grand wood staircase. Master suite opens to study or exercise room. Fourth bedroom or game room with full bath covers entire third floor with great views. Nicely landscaped & lighted yard with a new Gary Pool (salt water)

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 KingRealtors.com tabitha@kingrealtors.com

TABITHA KING 210.414.4255 84

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SEPT/OCT 2014

THE STUDIOS at

CARRIZO SPRINGS

Our new rates are as fOllOws: 2 Bedroom Suites

1 Bedroom Suites

$49.95/night/man, Double Occupancy

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No long term contracts â&#x20AC;&#x201C; just the nicest, cleanest, most secure housing facility in the Eagle Ford Shale area at a great rate. Almost 500 beds and four separate dining halls to serve you.

855-842-7799 (CORPORATE) 830-876-3642 (THE STUDIOS - LOCAL) www.studiosatcarrizosprings.com

facebook.com/StrattonOilfieldSystems

SEPT/OCT 2014 @OilfieldHousing SHALE OIL & GAS BUSINESS MAGAZINE Follow us on Twitter

 S C ENE 

ON THURSDAY, AUG. 21, SHALE Magazine and its exclusive VIPs gathered to honor Arturo Henríquez, Our last issue’s cover party and the Chief Procurement Officer at PEMEX. Henríquez traveled in from Mexico City for the event and was greeted by an enthusiastic audience at The Palm Restaurant in Houston’s Galleria area. Henríquez spoke eloquently about the historic reforms championed by President Enrique Peña Nieto and answered several questions from the guests. PHOTOGRAPHY: MALCOLM PEREZ

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SEPT/OCT 2014

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SHALE OIL & GAS BUSINESS MAGAZINE

 S C ENE 

Eagle Ford Shale Consortium Elected Officials Meeting, UTSA Downtown Campus

THE EAGLE FORD CONSORTIUM held a ‘Summer Session’ for elected officials on Aug. 15 at the UTSA Downtown Campus. Discussions took place on transportation, infrastructure, and water, as well as municipal, county and statewide issues that should be addressed before the 84th Legislature which begins January 2015. Leodoro Martinez, Chairman of the Eagle Ford Consortium, and Bob Velasquez, Director of the Eagle Ford Shale Community Development Program, welcomed the audience to the meeting. Both elaborated on the focus of the meeting and stressed the importance of elected officials in South Texas playing a vital role in their communities. Guest speakers included Railroad Commissioner David Porter, Darrell T. Brownlow, Ph.D., Noe Hinojosa, and Nancy Beward.

SHALE OIL & GAS BUSINESS MAGAZINE

SEPT/OCT 2014

Our Texas pride runs deep.

Thatâ&#x20AC;&#x2122;s why everything we do is designed to protect the environment and the state we love. Our dedication to high standards of safety and compliance while processing non-hazardous oilfield drilling byproducts is paramount. We work with the best engineering firms to build state-of-the-art facilities that utilize world-class technology and strategically place them in the Eagle Ford Shale to keep our state clean.

We treat Texas right.

(210) 782-9534

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How can Port-A-Cool evaporative coolers improve your facility? Maintain OSHA requirements and avoid heat stress Sustainability: - Retain employees - Attract new employees - Reduce operating costs - Increase cash flow - Decrease lost work time

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Evaporative coolers built to Class 1 Division 1 specifications Effective cooling in any environment Port-A-Cool is the world leader in portable evaporative cooling Visit us online at www.port-a-cool.com or call 936-598-5651 SEPT/OCT 2014

SHALE OIL & GAS BUSINESS MAGAZINE

ď&#x201A;ľ S C ENE ď&#x201A;ľ ON JULY 9, 2014, Silverback Homes held a ribbon-cutting ceremony at their newest development in Kenedy, Texas called Las Colinas. Local officials from the City of Kenedy and The Kenedy Chamber of Commerce, along with executives from Silverback Homes were in attendance. Silverback Homes is developing over 300 single-family homes and more than 25 multi-family homes in this growing city. This will provide area residents with a permanent housing solution amid the Eagle Ford Shale boom. Silverback Homes is offering affordable homes with a variety of floor plans to meet the needs of the community. For more information contact Silverback Homes at www.silverbackhomes.com or email cherise@silverback.com

SHALE OIL & GAS BUSINESS MAGAZINE

SEPT/OCT 2014

ET EVAPORATOR TECHNOLOGY The Evaporator is a floating unit designed for effective operation in small areas, especially flow back pits, drilling reserve pits and sites containing large particles or highly corrosive water. The unit is durable, simple to use and easy to maintain â&#x20AC;&#x201C; a reliable way to manage excess water.

ELIMINATING WATER DISPOSAL Instead of hauling your water off location evaporate it away at a fraction of the price

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HYDRO CONSTRUCTION Hydromulching and Land Reclamation Services Specializing in Oil and Gas Construction Projects

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Hydromulching // Matting // Curlex // Erosion Control Blankets // Silt Fencing and Stakes // Seed, Grass, and Fertilizer

903.312.3815 // ryan@wemakegrassgrow.com SEPT/OCT 2014

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 S C ENE 

1 ON TUESDAY, JULY 22, The Texas Alliance of Energy Producers and the South Texas Wildcatters Host Committee gathered at the Plaza Club in downtown San Antonio to honor a true American hero. “Energy Honors Yesterday’s Heroes Today” featured an inspiring speech by Major Ed Pulido, U.S. Army (Ret.). ON AUG. 17, 2004, Major Pulido hit an improvised explosive device

while serving with the Coalition Military Assistance Training Team in Iraq. Due to the extensive injuries to his left knee, doctors had to amputate his left leg. Major Pulido was awarded the Bronze Star with Valor, Purple Heart, Meritorious Service Medal, and Joint Service Commendation and Achievement Medals for his heroism and valor on that day.

1/ From left to right, Alex Mills, President Texas Alliance; Major Jannet Rose; Major Ed Pulido; and George Rogers Chairman of the Board Texas Alliance 2/ Alex Mills, President Texas Alliance and Vietnam Veteran, with Major Ed Pulido 3/ Major Jannet Rose, a veteran of Iraq, introduces Major Ed Pulido 4/ Major Ed Pulido delivers his inspiring story

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Photos by Jimmy Perkins SHALE OIL & GAS BUSINESS MAGAZINE

SEPT/OCT 2014

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 S C ENE 

ON SATURDAY, AUG. 16, the Eagle Ford SHALE Invitational Clay Shoot took place at Joshua Creek Ranch in Boerne, Texas. There were more than a hundred shooters participating to benefit and raise awareness for Fisher House, Inc. - an organization providing housing for military families while their loved ones receive treatment. Host, Joe Manak, and Executive Director of Fisher House, Dwayne Hopkins, agreed it was a successful event and are eagerly anticipating next year’s event. For more information visit www.fisherhouseinc.org

SHALE OIL & GAS BUSINESS MAGAZINE

SEPT/OCT 2014

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F I E L D . S A F E RANCHHAND.COM 800.366.9712

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SHALE OIL & GAS BUSINESS MAGAZINE

 S C ENE 

39TH ANNUAL Convention and Business Expo Hosted by Texas Association of Mexican American Chambers of Commerce (TAMACC) SHALE attended the 39th Annual Convention and Business Expo hosted by the Texas Association of Mexican American Chambers of Commerce (TAMACC) in McAllen, Texas. This convention had it all: trailblazing leaders, expert facilitators, amazing awardees, stellar speakers, an abundance of businesses and networking opportunities. In attendance, many elected officials and diplomats spoke to TAMACC guests on issues that we are facing in our communities and that, together, we can change. Discussions touched on the many business opportunities that are available and reminded attendees that Texas is open for business. For more info: Email president@tamacc.org.

Photo by Mark Montemayor

Left to Right - Omar Garcia, Kym Bolado, Senator Juan “Chuy” Hinojosa, and Gloria Perez SHALE OIL & GAS BUSINESS MAGAZINE

SEPT/OCT 2014

IADC ACCREDITED INTRODUCTORY WELL CONTROL eLEARNING IN SPANISH & ENGLISH

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Toggle the audio between Spanish and English during the learning session. Select the Spanish language option to alternate the script.

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The oil industry is experiencing unprecedented growth and requires thousands of workers at various levels. PetroEd provides a fast-track approach to lucrative oilfield jobs.

Aprenda en Español

A growing number of oilfield workers speak Spanish as their primary language. PetroEd addresses this emerging dynamic by offering its best selling Introduction to Well Control eLearning course in a dual language format.

eLearning Your Way

Courses are now available on most popular mobile devices.

PetroEd® eLearning courses give students access to an interactive, rich-media learning program, and are accredited by the International Association of Drilling Contractors (IADC). Students who successfully complete the PetroEd Introduction to Well Control course will qualify for Introductory Level WellCAP® certification.

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Business Agreements now available: HALOFlight would like to extend coverage to your employees for an annual rate of $12 per employee household. What’s the bottom line? An average emergency helicopter transport exceeds $15,000. As a Guardian Member, if you or a member of your household require our service, your insurance (if any) would be billed and HALO-Flight would accept that as payment in full. It’s that simple! Contact Stephanie Knox, Marketing Director stephaniek@haloflight.org 361.265.0509

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SHALE OIL & GAS BUSINESS MAGAZINE

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KELLER WILLIAMS LUXURY

10 DOMINION DRIVE

SAN ANTONIO, TX 78257

www.morsatransportation.com info@morsatransportation.com

210.336.2039

Our mission is to transport your freight with the utmost care and speed. Our commitment to our clients is to offer the best service at the most competitive rates. No fuss, no stress, leave it all to us. We will promptly respond to your request and make sure we keep you updated on the status of your cargo during the entire process. With ten years behind us, we specialize in dedicated services and Hot Shot services!

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Supply Leader in the Oil & Gas Industry • Fracking and Pressure Pumping Parts and Supplies • Centrifugal Pumps - New and Remanufactured • Drilling and Workover Rig Parts and Supplies • Well Head Equipment & Valves (1 13/16 - 5 1/8 10k) • Coil Tubing Parts and Supplies • Flow Back and Well Testing Supplies • Production Parts and Supplies • Cementing Pump Parts/Supplies/Equipment VP SALES 2733 Hwy 44 West Alice, Texas 78332 361-664-2999 1-800-664-2264 sales@vpsales1.com

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SHALE Oil & Gas business magazine is an industry publication that showcases the significance of the South Texas petroleum and energy markets.

SHALE’s mission is to promote economic growth and business opportunity that connect regional businesses with oil and gas companies. It supports market growth through promoting industry education and policy, and it’s content includes particular insight into the Eagle Ford Shale development and the businesses involved. Shale’s distribution includes industry leaders and businesses, services workers and entrepreneurs

connect. share ideas. discuss.

OIL & GAS BUSINESS MAGAZINE

http://www.linkedin.com/company/shale-oil-&-gas-business-magazine SEPT/OCT 2014

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SHALE COVER PARTY JOHN LaRUE OIL & GAS BUSINESS MAGAZINE

featuring

CELEBRATING

SEPT/OCT ISSUE

IF YOU WOULD LIKE AN INVITATION PLEASE EMAIL ASHLEE@ SHALEMAG. COM

THURSDAY

OCT 9

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WWW. S H A L E M A G . COM SEPT/OCT 2014

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