2017 Fall profiles small

New Look for Ute Water Services

Re-strategizing for safe and smart water hauling services - pg. 4

American Gilsonite Company

financially strong piece of Uintah Basin economy - pg. 8

State of Utah and Uintah Basin drilling data

ususbdc.org/library/drilling.htm - pg. 14

ubmedia.biz - 1

ARMC

Occupational Medicine Taking care of the employees that take care of you.

WorkPoint Occupational Medicine

Services Include: Pre-Employment Physicals

Mobile Clinics

DOT Physical

Respiratory Fit Tests

Drug Screens DOT and non-DOT

Audiograms

Drug Alcohol Tests

Wellness Programs/ Health Fairs

Pulmonary Function Tests Tailored Drug Screen Program

2 - ubmedia.biz

Work Related Injuries

590 E. 100 N. | Price, UT 84501 (435) 637-1697 1680 West Hwy. 40, Suite 202 Vernal, UT 84078 Phone: (435) 781-3053

IN THIS ISSUE Volumn 9 Number 2 October 2017

4: New Look for Ute Oilfield Water Services 6: UBTech connected to oil & gas industry

“Line Work — Done Right” • hot re-builds • substations • new construction, both overhead & underground • design • helicopter work

• remote/limited access projects • any job up to 138kV including energized work • maintenance • storm repair • troubleshooting

8: American Gilsonite Company 12: Gilsonite found to be the key to super lithium batteries

Towers From inner-city to mountain tops, we have the experience and ability to construct any tower you need.

Microwave Systems

14: State of Utah and Uintah Basin drilling data

From the largest high performance antennas, to the smallest “Line ork — Done right” of integrated panels, we work hard to deliver theW maximum path capabilities of your equipment.

• hot re-builds

High Voltage, Inc • substations

• new construction, both overhead & underground • design

435-781-1606 www.hvipower.com

• helicopter work • remote/limited access projects

• any job up to 138kV including energized work www.facebook.com/HVIPower • maintenance Powerline@HVIPower.com • storm repair TPratt@HVIPower.com • troubleshooting

“Line Work — Done right” • hot re-builds • substations

22: Speakers at energy summit have optimism for future

HigH Voltage, inc

• new construction, both overhead & underground • design • helicopter work

18: BLM fracking rules on Ute

Tribal lands remains unchanged

435-781-1606

26: Over the mountain: Basin oil transported to far away markets

www.hvipower.com

• remote/limited access projects

www.facebook.com/hvipower

• any job up to 138kV including energized work • maintenance • storm repair

powerline@hvipower.com TpraTT@hvipower.com

• troubleshooting

“Line Work — Done right” • hot re-builds

HigH Voltage, inc 435-781-1606

• substations • new construction, both overhead & underground

ubmedia.biz - 3

PHOTO: Ute Oilfield Water Services Facebook

Having well maintained trucks makes it possible for Ute Oilfield Water Service to provide reliable, safe and timely service.

New Look for Ute Oilfield Water Services Re-strategizing for safe and smart water hauling services Fort Duchesne, Utah – Ute Oilfield Water Services (U.O.W.S.) unveils new logo to launch its first phase of a restrategizing initiative aimed to strengthen safety and development of future services to meet both challenges and opportunities within the oil and gas industry. The change in its visual identity marks a milestone since the previous logo had been used since 2014.

“Our new logo communicates what U.O.W.S stands for today,” said Valentina Sireech, Ute Tribal Enterprises (UTE), LLC CEO. “We want to reflect our forward mindset and proactive approach with our new visual identity. With a much stronger business model, U.O.W.S. is committed to re-focusing on implementing safe and smart water hauling solutions to 4 - ubmedia.biz

our customers.”

The new logo utilizes an image of a horse, which reflects the cultural ties with the Ute Indian Tribe who are the “horse people.” The horse also represents the dedicated, capable, hard-working efforts of the U.O.W.S. team.

Along with a new logo, U.O.W.S. has introduced a website at www.uowsllc.com to showcase the company’s new mission, vision, values, and slogan.

“We are progressing, and it is time our branding identity reflects that,” said Latashia Redhouse, UTE Marketing Manager.

“This move represents our transformation to emphasize safety and resiliency within the ever-changing oil and gas industry.”

Ute Oilfield Water Services would like to encourage everyone

to visit their website at www.uowsllc.com.

About Ute Oilfield Water Services Established in 1999, Ute Oilfield Water Services (U.O.W.S.) has been providing water hauling services in the Uintah Basin’s oil and gas industry. With over 40 trucks running every day, U.O.W.S. emphasizes safety and team work to successfully complete projects. The company is a business operated under Ute Tribal Enterprises, LLC; the business arm of the Ute Indian Tribe.

For further information: Latashia Redhouse, (801) 656-8931 or email latashiar@utetribe.com

PHOTO: Ute Oilfield Water Services Facebook

EXCEPTIONAL PERFORMANCE IN THE UINTAH BASIN At EP Energy, we have a passion for finding and producing the oil and natural gas that enriches people’s lives. That passion drives us to execute on a proven strategy and deliver value from our assets, including a core program in the Altamont-Bluebell area. We’re committed to being an E&P industry leader known for extraordinary people, exceptional performance, and enduring partnerships across the Uintah Basin.

WWW.EPENERGY.COM

ubmedia.biz - 5

UBTech connected to oil & gas industry Lezlee E. Whiting UBTech

Environmental accidents in the energy industry make headlines. Not so much attention is paid to what is by far the larger story taking place on a day-to-day basis in Utah’s energy-producing regions.

That is the trend that sees energy producers taking a place at the table with regulators, environmental and recreational interests, preservationists and local governments.

It’s a trend that is taking companies beyond compliance and into collaboration when it comes to preservation and enhancement of the natural environment.

A case in point is what is happening these days in and around Nine Mile Canyon Road. This old dirt thoroughfare used to be a link between the Uintah Basin and Carbon County in horse-and-buggy days, and centuries before Columbus it was home to ancient Native Americans. The ancient ones left behind “the world’s longest art gallery” on the cliff sides in the form of petroglyphs and pictographs.

But now the road through this gallery serves as an access for heavy trucks hauling equipment for Bill Barrett Corp.’s massive West Tavaputs gas field.

The road is being resurfaced at the same time. That means the earth-moving equipment of contractor W. W. Clyde is sharing the same strip with the drilling and production equipment of Bill Barrett.

“Anyone who hasn’t driven through it doesn’t understand the scale of the operation,” declared Pam Miller, an archaeology instructor at USU Eastern in Price. This was not a remark made in anger or accusation. It was simply a comment to a handful of people around a table with her in Carbon County’s Event Center recently. Those people included a representative from Bill Barrett, commissioners from Carbon and Duchesne counties, the Bureau of Land Management. Miller represents the Nine Mile Coalition, an organization dedicated to protecting the natural and archaeological treasures of the canyon.

435-789-1430

Parts Sales Service www.KenworthSalesCo.com 6 - ubmedia.biz

Your Local Distributor Available 24/7 Dispatch: 435-828-6004 Dispatch: 435-828-6004 Fuel Sales: 435-406-9216 Sales: 435-406-9216 Fuel Sales: 435-828-5135 Sales: 435-828-5135 Lube Sales: 435-671-8998

Thanks for helping make the Uintah Basin Cardwell Country!

PHOTO: Cuortiousy of UBTech

Civil Engineering & Land Surveying - Surveying For Oil & Gas Exploration Permit Applications - Heavy Industrial & Commercial Construction Plans - Design & Grading Plans For Oil & Gas Exploration Pads, Compressor Sites, Roads, Bridges, Building Sites - Oil and Gas Produced Water Gathering and Evaporation Facilities - Evaporation Facilities, Water Proof Applications - Storm Water Pollution Prevention Planning - Water & Waste Water Analysis & Design - Structural Design UELS, LLC. dba: Uintah Engineering and Land Surveying Corporate Office: 85 South 200 East Vernal, Utah Ph: 435-789-1017 www.uintahgroup.com Ten Office Locations Serving: CO, KS, UT, MT, ND, NM, NV, SD, TX, WY, OK ubmedia.biz - 7

SUBMITTED PHOTO

American Gilsonite Company financially strong piece of Uintah Basin economy

LeeNichole Marett lmarett@ubmedia.biz

Despite a rocky couple of years, American Gilsonite Company is currently experiencing financial strength as a major player in the Uintah Basin Economy.

American Gilsonite Company, or AGC, is the world’s leading producer of the mineral Uintaite, commonly known by its trade name, Gilsonite. The company is based in the Uintah Basin, where it mines and produces this unique mineral.

“Gilsonite is a glossy, black, solid naturally occurring 8 - ubmedia.biz

hydrocarbon similar in appearance to hard asphalt and is believed to be found in commercial quantities only in the Uintah Basin in northeastern Utah,” stated a press release.

“Because of its unique chemical and physical properties, Gilsonite has been used in more than 160 products. The Company sells its products to customers in four primary markets: (i) oil and gas, (ii) inks and paints, (iii) foundry and (iv) asphalt.”

In October 2016, AGC and its affiliated debtors commenced a case under chapter 11 of title 11 of U.S. bankruptcy code.

According to UB Media article published at the time, “Chapter 11 allows a company to work with its creditors and a federal court to restructure the company in a way that will allow for the creditors to be paid. After a court-approved reorganization plan is approved by a majority of a company’s creditors, the company is allowed to continue operations free from lawsuits brought by creditors. Unlike Chapter 7 bankruptcy, Chapter 11 does not result in large-scale liquidation of a company’s assets.”

The plan at that time was to undergo financial restructuring that would “eliminate substantial indebtedness, significantly reduce debt service, and provide financing to restructure its balance sheet,” a press release stated.

In January 2017, AGC announced that its financial restructuring was complete and the company was again financially strong.

According to a news release, David G. Gallagher, President and Chief Executive Officer, said, “We have expeditiously emerged from this financial restructuring with a significantly stronger balance sheet and a sustainable capital structure.

The ad hoc committee of second lien bondholders was supportive and helpful in navigating and successfully completing the process. Today, American Gilsonite is well positioned both financially and operationally to build and drive the business for the benefit of our customers, employees, and business partners. A just outcome for an iconic company.”

Since emerging from the Chapter 11 process, AGC has gone on to have a strong showing in 2017.

SUBMITTED PHOTO

The Uintah Railway was in operation Between 1904–1939.

SUBMITTED PHOTO

•Engine/Transmission Service & Repair •Starters •Alternators •Clutch •Brakes

•Rear Ends •Drive Lines •Trailer Repair •Oil & Lube

And so much more!

“Taking Truck Repair to the Next Level”

435-781-6227 2767 E. Hwy 40 •Vernal East of Naples City Offices Fax: 435-781-6204 ubmedia.biz - 9

SUBMITTED PHOTO

In March, the company announced a new partnership with Adventus Material Strategies. The two organizations plan to work together to develop “an effective marketing and commercialization strategy to increase asphalt sales among business and government customers,” a news release stated.

The partnership benefits both companies. Though the partnership, AGC will be able to grow and diversify its customer base. Adventus will also be able to expand into specialty areas such as FAA work and specialty emulsion applications.

“We are excited about the combination of talent this partnership presents to our company, which enables us to provide a higher level of asphalt paving expertise to our clients,” said Gallagher. “The Adventus team has over 75 years of combined technical and sales experience in the asphalt industry. The company’s in-depth knowledge of the forces driving the asphalt market complement our company’s growth and expansion strategy.”

AGC also served as the 2017 hosts of the European Asphalt Symposium, held in Cologne, Germany. There, they had the opportunity to present advancements in Gilsonite asphalt modification technology to paving engineers from around the world.

Overall, it has been a strong year for American Gilsonite Company as they continue to be a major player in the Uintah Basin energy economy.

SUBMITTED PHOTO

SUBMITTED PHOTO

Moon Lake Electric Association, Inc. “Owned by those we serve”

~ Since 1938 ~

The power behind Duchense County’s oil industry! visit us on the web at mleainc.com

10 - ubmedia.biz

Christie’s Liquor Mon - sat 8aM-10pM sun 11-5 CaLL For Winter hours (970) 374-2034

ew n the t u ko c e Ch

Buy a full case of Beer

and receive $1 oFF!

Buy a case of Wine or Whiskey anD reCeive 10% oFF * see store for Details

29 Mi. to Dinosaur, Co. 1 Block s. on hwy 64 ubmedia.biz - 11

Gilsonite found to be the key to super lithium batteries

John Timmer Ars Technica

Most of the batteries we use, from our cell phones to our cars, rely on using lithium ions. As a result, their capacity is largely a product of how much lithium you can stuff into a given volume. Obviously, using a pure lithium electrode would provide the highest density possible. But there has been no way to control where the lithium ends up as a battery goes through charge/discharge cycles. The typical result is a set of lithium metal spines that short the whole system out.

As a result, a lot of effort has been put into finding other materials that can incorporate lithium into their structure.

This lowers the total lithium content but keeps the battery from shorting out. However, a new paper suggests an intriguing alternative, describing a material that ensures lithium forms a smooth coating on its surface with no spines. What’s this wonder material? A slightly modified version of asphalt.

Pavement from a chemistry perspective

Although the term “asphalt” is often used as a general term for blacktop pavement, it has a technical meaning as well: a viscous, semi-liquid hydrocarbon that’s one of the components of the paving material. There are several different types of asphalt, but the team here worked with something called gilsonite, which is close enough to a solid to be mined. Like other hydrocarbons, it’s a complex mix of molecules rather than a pure substance, and it contains things like nitrogen and sulfur due to its origin in biological material.

Using it for batteries is much less insane than it might seem given that many batteries already use various forms of carbon for electrodes. Many types of carbon conduct current well and form porous materials that can store a large volume of ions internally. But, as mentioned above, the team behind the new work (based at Rice University) wasn’t looking to store lithium within the asphalt; instead, they were hoping to have the asphalt structure a sheet of lithium metal on its surface.

To prepare the asphalt, the researchers heated off most of

George T. Weldon Construction Pipeline Construction Collection & Compression Locations Station Construction Excavation Trucking Services Hydro Vac Truck Excavation

SERVICES

Concrete Field Service-roustabout crews/ pumpers Plant Maintenance Welding Services Fabrication Gravel & Import material transportation

UTERO CERTIFIED WITH UTE TRIBAL BUSINESS LICENSE AND ACCESS PERMITS UTAH GENERAL ENGINEERING LICENSE Established in 1975, George T. Weldon Construction has offered its customers the highest quality in performance and integrity.

With our broad range of services we can take care of all your project needs.

Our Belief: Our customer’s deserve a contractor with integrity & professionalism.

We will make our customers interests our own.

Our Mission: Provide the best possible service, completed safely, with the most experienced supervision in the industry.

Our Goal: To be YOUR “One Stop Contractor”.

1050 South 1300 East Vernal, UT 84078 Office: 435-789-9059 Fax: 435-789-9015 WWW.GTWELDON.COM 12 - ubmedia.biz

the low-weight hydrocarbons and then treated the remaining solids with a strong basic solution (potassium hydroxide).

When re-formed into a solid, this material formed a highly porous solid that’s a bit like a sponge but much more porous—overall, its surface area was estimated at more than 3,000 square meters for each gram of material. The treatment with a strong base also chemically modified the hydrocarbons at the surface of the material, linking some of the carbon with oxygen. These oxygen atoms appear to help the surface interact with lithium metal.

To form an electrode, they needed something to improve its ability to conduct electricity. So, while the gilsonite was fragmented and suspended in a liquid, they mixed in some fragments of graphene ribbons. When this mix was used to form a porous solid, the ribbons were incorporated into it, making it evenly conductive. This turned out to be critical, as described below.

Once the asphalt was treated, the authors could add lithium to it simply by electroplating it. It formed an even coating on the surface. With that, the material was ready to be used as an electrode.

Testing 1, 2, 3...

Initial tests showed that it could run through repeated charge/discharge cycles without losing much capacity—at a charge transfer efficiency of over 95 percent, in fact. It also worked at a wide variety of charge/discharge rates, from tak-

ing 10 hours to discharge to taking as little as six minutes.

The team tested the same material without the graphene mixed in, finding that spines of lithium metal formed on the surface, which could short the battery out. The researchers ascribe this to charge being poorly distributed when graphene was absent, causing lithium to build up in specific locations on the battery.

With everything looking promising, they built a battery with it. To make the other electrode, they relied on a somewhat similar approach. Sulfur and lithium have a strong affinity, meaning pure sulfur is able to store lots of lithium ions. But pure sulfur also engages in lots of additional chemical reactions, many of which damage an electrode or the battery as a whole. To avoid this, the researchers reacted sulfur with carbon, chemically linking it to the electrode material.

The results were rather impressive. When all of the electrode materials were considered, the battery’s energy density was nearly 950 Watt-hours per kilogram. For comparison, the batteries in a Tesla are in the neighborhood of 250 Whr/kg.

As always, there’s no way to know at this point whether this tech can be commercialized. Lots of promising looking results don’t hold up under conditions needed for mass production. But this one has a major advantage in that gilsonite is cheap enough that we can afford to pave roads with it. And it’s interesting for the different approach it took to stuffing as much lithium as possible into a given volume of battery.

Vernal area Chamber Of COmmerCe “GOOD FOR BUSINESS, GOOD FOR THE COMMUNITY” • Networking Opportunities • Weekly Business Luncheons

Member-to-Member Benefits • Business Seminars • Referrals • Community Events

• Advertising Opportunities • Business Spotlight

BENEFITTING THE COMMUNITY THROUGH EVENTS: • Business Education • Health Fair • Water Conference • Business of the Year

• Recycling Program • Holly Days • Energy Summit • Trees for Charity • Business of the Month • Outstanding Public Service Award

(435)789-1352 • Fax (435)789-1355 • 134 West Main • Vernal, UT • 84078 www.vernalchamber.com • vchambermgr@easilink.com ubmedia.biz - 13

SUBMITTED PHOTO

State of Utah and Uintah Basin drilling data Utah State University Utah SBDC Network

In a Nutshell...

Nat Gas prices stayed higher than the same periods for 2016 over the summer and inventories were lower. The most notable indicator is the increase in drilling rigs. Last year at this time there were 4 rigs in operation. We now have 11 rigs in the basin. Applications for permits to dril in Duchesne County are 4 times higher than this time last year while Uintah County applications are up 30% over last year.

Changes of Note...

First, let’s look at basic economics, Supply & Demand.

High supply generally means prices drop. For example, sand is cheap but gold is expensive. High demand generally means prices go up. For example, if everyone wants a “Hatchimal” for Christmas a $20 toy starts selling for 14 - ubmedia.biz

$100. Nobody wants a “Pet Rock” so, you can buy one for a couple dollars.

Nat Gas inventories are at lower levels each reported month than they were in 2016 (lower supply). This has kept prices higher each reported month than they were in 2016. Higher prices mean that exploration and production are more willing to produce. They make more money.

So, leaving the summer months which usually sees a slow down, we are actually seeing solid increases in applications to drill, spudded wells and eventually there will be a related increase in completed wells.

What to watch...

We are still seeing a price channel (upper and lower price restrictions) in the crude oil market. Prices per barrel seem to be locked between $46 and $50. For a short period in September oil prices rose to around $52 and hovered there a while before dropping back down into the channel. Most analysts are estimating the average break-even price point for production at $42. So, when the price gets up around

$50 producers release more oil to make more money and greater supply drives the price down. When the price gets close to $46, they slow the flow because they don’t make as much money. Reduced supply causes the price to increase.

Here’s the catch. Those companies still have expenses to meet, people to pay, etc. If the price drops below $46 and stays there for a while, instead of going hungry, they will sell more oil and drive the price down further which means less drilling here in the basin. If the price goes above $50 and stays there a while, drilling will pick up because those

companies will want to sell more at that higher price.

Keeping in mind, all of that is driven by the nation’s economy in general. If the economy is slow, business doesn’t need as much petroleum. If the nation’s economy really takes off, so will the demand for energy.

Annualized = Projected based on current numbers.

APD=Application for Permit to Drill, Spudded=Started.

Apd, Spud and Completed numbers come from the Utah Division of Oil Gas & Mining. Rig numbers come from Baker Hughes. Price and inventory numbers come from the U.S. Energy Information Administration.

Advanced Towing & Automotive, LLC.

1380 E Main Street Vernal 789-8216 Heavy Towing & Recovery

Light Repair

Trailer Repair

Medium Towing

DOT Inspections

Road Side Repair

Light Towing

Fleet Repair w/ Service Tracking

Welding & Fabrication

Heavy Repair

Farm & Industrial Repair

Upfitting of Service Trucks

Compression Services Reliable Solutions for Your Natural Gas Compression needs CSI Compressco can help identify the perfect fit from our extensive fleet of gas compressors for your application. Our fleet is continuously monitored by our Satellite Based Fleet Monitoring System and is maintained by strategically positioned and highly trained Field Service Technicians.

Aftermarket Services Under New Ownership! Follow Us on

Mark

Gabe

Larry

Bill

CSI Compressco can provide Shop Services, Field Services and all required parts to overhaul or repair your existing equipment- or to completely rework your existing equipment to meet changing operating conditions. We can also provide complete Contract Maintenance services for your compression assets.

Regardless of your familiarity with compressor packages, you can rely on us to assist you in determining your overall compression needs and provide you with years of efficient, trouble-free operation.

4764 South 4625 East 435-789-8190 ubmedia.biz - 15

Proud To Serve our FriendS in The oilField

110, 80, 70, 60, 50, 40, 22 Ton Cranes Semis w/ Drop Deck Stretch & Flatbed Trailers

Oil & Gas Operations:

• Pump Jack Maintenance, Old & New • Gas Compressor Placement • Tank Removal & Placement • Set Modular Homes on Foundation • New Home Construction • Log Homes • Concrete Tilt-Ups • Bridges • Cell Towers •

Serving: Utah, Wyoming & Colorado Altamont Utah Office Number: (435) 454-3561 16 - ubmedia.biz

24 Hour Emergency Call Out Exhaust & Mufflers Custom Wheels Alignment Batteries Brakes We now offer automotive services Manager Treven Birchell

2027 South 1500 East 789-8324

Serving all your tire needS 2075 South 1500 East Vernal 435-789-8104

Stickman, Utah Drilling & Reaming the Western U.S.

Stickman Inc. is a sales and rental company that has consistently serviced the Rocky Mountains.

Though the oil and gas industry has been in an economic decline for a couple years, Stickman continues to thrive through company and product diversity. We began with a dominant presence in the oilfield, quickly followed with strong activity in the mining industry. Since, we have branched into Water Well Drilling and the construction industry by way of Exploration Drilling and the blasting of large water dam projects. Our willingness to increase our customer base, product options, and demographics, has allowed us to stay lean, yet successful in difficult times. Stickman is now doing business, one way or another, in the Western U.S. Peru, Mexico, Dominican Republic, Chili, Bahamas, and Alaska.

Stickman’s top priority is quality through excellent service and our motto remains:

“If we don’t have it, we’ll find it.”

• new drill bits 3”-36” • stabilizers

• drilling jars

• pipe dope

• hammer bits

• buy used drill bits

• rerun drill bits 3- 36” • roller reamers

• mud motors

• down hole

• float equipment

• mining & drilling

• string mills

• bit sheds

• shock subs

hammers

• float valves

supplies

1584 S. 1500 E., Vernal Office: (435)789-4343 Fax: (435) 789-4355 stickman.ut@hotmail.com

ubmedia.biz - 17

BLM fracking rules on Ute Tribal lands remains unchanged

Ashley Klinglesmith

Legal Assistant to Jeffrey Rasmussen*and Joanne Curry** Fredericks Peebles & Morgan LLP

On Sept. 21, 2017, in Wyoming v. United States, the Tenth Circuit decided that because the United States has already published its intent to repeal costly fracking rules which the United States published in March 2015, the Tenth Circuit would dismiss the appeals and the underlying district court suit related to those rules. Wyoming v. United States. The Ute Indian Tribe was the only tribe which participated in that District Court case and then in the appeal.

The Ute Indian Tribe, four states, and attorneys for oil industry groups obtained a preliminary injunction barring implementation of the March 2015 rules and then a permanent injunction. Those orders prevented BLM from imposing its new and costly rules on Indian lands and on federal lands.

The Tenth Circuit’s September 21 decision provides an

unusual situation by which the federal regulations that existed before March 2015 will remain in effect while the United States completes the procedural steps to formally repeal those same rules.

The only Court which has reviewed the March 2015 rules and the administrative record upon which BLM attempted to justify the rules issued a preliminary injunction barring the rules because the BLM had violated its statutory obligation to consult with tribes in good faith. That same court also held that even if BLM had complied with its statutory duty to consult with tribes, BLM would still have lost because it did not have lawful authority to adopt the rules.

The Court subsequently permanently enjoined the rules, stating it did not even need to determine whether BLM had properly consulted with tribes because BLM did not have authority to adopt the rules.

On appeal, the Tribe provided a thorough legal analysis of why BLM did not have rulemaking authority on tribal lands. And, as Judge Hartz noted in his separate partially

Serving The Basin For Over 30 Years

Casing - Clean, Drift and Inspection

Trash Basket Rentals

Hotshot Trucking

Portable Restroom Facilities

Security Services

Septic Services

Serving All Your Wireline Needs: • Perforating • Cased Hole Logging • Free Point Pipe Recovery • Pump Down Perforating • Dump Bailer Operations Radii Bond Tools, Just to name a few services.

2286 West 1600 South Roosevelt, Utah 84066 435-725-2344

1315 S. 1200 E. • Vernal • 435-789-6561 18 - ubmedia.biz

If you want TOP Quality Service give us a call.

You won’t be disappointed.

concurring and partially dissenting opinion, even though he agreed with the other two judges with regard to the complex procedural decision as it related to federal lands, the Court should have ruled in favor of the Tribe on the separate issue of Indian lands because the United States did not even attempt to respond to the Tribe’s correct legal analysis that BLM lacked rule-making authority over tribal trust lands.

The other two judges appeared at oral argument to be in agreement with the substance of the Tribe’s arguments, but decided it would be a better use of judicial resources to simply dismiss the appeal on the complex procedural question without issuing any ruling on the Tribe’s substantive argument. One of the judges disagreed, and in a partial dissent, Judge Hartz indicated that he thought the Tenth Circuit should reach this issue, stating: The Tribe has adequately raised the issues specific to it both in district court and in this court…” “Yet the other parties have failed to challenge the Tribe’s reasoning. I would treat that failure as a waiver and affirm judgment for the Tribe with respect to Indian lands. Resolving that matter would entail no waste of judicial resources.”

Although it appears the current BLM Administration has taken the position the March 2015 rules will not be implemented on the Uintah and Ouray Reservation, the Ute Indian Tribe intends to request that the Tenth Circuit

Hullinger Mortuary 457 East 300 North (104-15) Roosevelt, Utah 84066 Phone 722-2426

Each Life Has Value Funerals• Cremations • Headstones Prearrangements & Prepaid Funerals

Funeral Directors • Roger Hullinger • Tammy Haslem • John Hullinger For 24 Hour Funeral Service Information Call 725-2427 www.hullingermortuary.com

Wheeler Machinery Co. is the leading supplier of OPEN DECK & MATERIAL HAULING TRAILERS

Visit wheelercat.com/trailking or contact: Glen (Scooter) Barney 801-978-1620 or glbarney@wheelercat.com

ubmedia.biz - 19

reconsider its September 21, 2017 decision. The Tribe will ask the Court to adopt Judge Hartz’ position, and decide on the merits that BLM does not have rulemaking authority regarding fracking on tribal lands. The Tribal Business Committee issued the following statement regarding the decision in this case: The Tribe is confident that its legal analysis is correct, that BLM does not have rulemaking authority over fracking on tribal lands, and that the Tribe will eventually prevail on that issue. The Tribe is tired of these ongoing practices to treat and regulate Tribal lands as public lands. The United States could not even come up with a response to the Tribe’s thorough and careful legal analysis on the issue.

We hope that the Tenth Circuit will take this opportunity to decide this important issue of federal Indian law now, instead of allowing BLM to continue to violate both tribal sovereignty and federal law.

The Tribe also noted its displeasure with the American Petroleum Institute who had been working alongside the Tribe in Wyoming v. United States to prevent implementation of the March 2015 fracking rules, but who have responded to the Tenth Circuit’s decision by urging that the United States Congress transfer regulatory authority over fracking on tribal lands from the Tribes to the States.

The Tribe stated: In Wyoming v. United States, tribes, states, and the in-

You deserve more than just propane, you deserve

With Ferrellgas, you always have easy, flexible options for payment and service levels. And you’ll always be backed by our nationwide supply network and team of best-in-class experts, ready to help when you need it.

COME SEE OUR SHOW ROOM IN ROOSEVELT 360 South 200 East Roosevelt, UT 84066 20 - ubmedia.biz

(435) 722-5171 www.ferrellgas.com

dustry worked together to prevent the United States from interfering with state and tribal control over lands within their respective jurisdictions. We were dumbfounded, and obviously feel betrayed, that the American Petroleum Institute is now advocating to transfer tribal regulatory control over its lands to the states. Federal control would have been devastating to energy producing tribes and tribal economies.

State control would be far worse, and contrary to the most basic principles of federal Indian law. We call on the industry to disavow the anti-tribal sovereignty position of the American Petroleum Institute.

About the Ute Indian Tribe - The Ute Indian Tribe resides on the Uintah and Ouray Reservation in northeastern Utah. Three bands of Utes comprise the Ute Indian Tribe: the Whiteriver Band, the Uncompahgre Band and the Uintah Band. The Tribe has a membership of more than three thousand individuals, with over half living on the Uintah and Ouray Reservation. The Ute Indian Tribe operates its own Tribal government and oversees approximately 1.3 million acres of trust land which contains significant oil and gas deposits. The Ute Tribal Business Committee is the governing council of the Tribe. The Ute Indian Tribe is still engaged in legal battles with the state of Utah and local counties to protect the Tribe’s jurisdiction over lands that were specifically set-aside and reserved by the federal government for the benefit of the Tribe.

Where news & technology meet EXTINGUISHERS

Visit our Website today to see our updated website and enjoy your local news like never before.

SALES & SERVICE

Industrial Commercial Inspect Recharge Residential Oil Field Hydro-Test

All Types On Your Location

UBMedia

.biz

UINTAH BASIN STANDARD / VERNAL EXPRESS

Roosevelt office 722-5131

Vernal office 789-3511

VERNAL FIRE EXTINGUISHER COLD FIRE - SENTRY - ANSUL Fire Extinguishers

435-789-4844 1-800-748-5401 525 N 2500 W Vernal Mike Adams Owner Serving the Uintah Basin Since 1979

UBMedia's UBM Hacking Paving & Excavation LLC owned and operated by Darrell Hacking

UBMedia

.biz

UINTAH BASIN STANDARD / VERNAL EXPRESS

Contact Darrell Office: 435-789-5618 Cell: 435-828-5618 We are Licensed, Bonded and Insured.

UBMedia's

Laying asphalt inUBM the basin since 1996 40 Years K&K Sanitation Celebrating

Start earning points toward a $25 Sportsman’s Warehouse Rewards Card.

2015 W. Hwy 40, Vernal, Utah • 435-789-5800

K&K Sanitation has been hauling away trash that nobody wants quickly and efficiently for 40 years serving residential, commercial and industrial accounts.

The owners at K&K aren’t satisfied with business as usual, they are always keeping their eyes peeled for better ways to serve their customers. Come by and see them at their facility just a stones throw in front of their transfer station in Ballard.

3615 East Hwy. 40 Ballard • 722-1244 ubmedia.biz - 21

Speakers at energy summit have optimism for future

Bruce Tippets btippets@ubmedia.biz

Robert Rapier was extremely honored when he was asked to be the keynote speaker at 2017, annual Uintah Basin Energy Summit.

The two-day event was held before a packed house at the Uintah Conference Center.

Rapier currently lives in Phoenix, Arizona, but is from Texas. Rapier has appeared on 60 minutes, The History Channel, CNBC, Business News Network and PBS. He works in the energy industry and is the author of The Energy Strategist at Investing Daily.

“I think that this is the largest audience that I have ever done a keynote talk before,” Rapier said after his speech in an interview.

Rapier said the officials had the conference set up for 600 people.

“I was very impressed,” Rapier said.

Rapier made his second straight appearance at the conference.

“My passion is about educating people about energy,” Rapier said. “I think that the energy producers are often forgotten about. I wish people would be more aware of the importance of energy.”

Rapier expects oil prices to start climbing back up in rural Utah.

“What OPEC does is very important,” Rapier said.

Utah Lt. Gov. Spencer Cox opened the two-day conference. Cox has served as Utah Lt. Gov. since Oct. of 2013.

“I understand how important energy development is for our state and how important it is for rural people,” Cox said.

“We are doing more to get our state legislatures to spend more time in Vernal. You are very blessed here in Vernal to have some of the best legislatures in the state right here. I’m grateful for them.”

Utah Gov. Gary Herbert was in the country of Vietnam on a trade mission during the Uintah Basin Energy Summit before that he was in Singapore.

The trip is hosted by the World Trade Center Utah and includes meeting with Singapore Prime Minister Lee Hsien Loong, other government officials and business groups.

The mission also includes visits to the Vietnam operations

Newfield

Our Commitment to Utah Runs Deep… So do our assets.

Newfield came to Utah 13 years ago to build a business of lasting and growing value by investing in jobs, the economy and the community.

Our investments to date total more than $3 billion with another $14 million annually in mineral owner royalties and taxes to fund schools, roads, healthcare and other economic priorities. Our talented team of more than 300 Utah employees is the backbone that supports thousands of indirect jobs across the state. As good neighbors, we give back to the community with both our time and money to strengthen local organizations like the Ashley Food Panty, Children’s Justice Center, Wildlife Habitat Council and the Uintah Basin Medical Center.

Supporting the community where we live and work

22 - ubmedia.biz

RURAL PROFESSIONAL PROVEN SERVICE

PHOTO: Bruce Tippets

Uintah County Commisioner Duane Sheperd introduces Utah Lt. Gov. Spencer Cox during the annual Uintah Basin Energy Summit at the Uintah Conference Center.

WWW.ROCKYMTNFR.COM

WWW.ROCKYMTNFR.COM OCKYMTNFR.COM

www.jonesanddemille.com

435-828-0992

435-828-0992 435-828-0992

The Rocky Mountain’s lowest price for FR clothing!

1050 South 1300 East Vernal (Located in the Weldon Construction building) ubmedia.biz - 23

of Utah skin care and nutritional product company Nu Skin and the Singapore operations of Rio Tinto, which runs a copper mine in Utah.

“Nobody is more anxious to get him back in the state than I am,” Cox said.

Cox wanted to stress during his speech Herbert’s No. 1 priority in rural Utah is job creation. Herbert has been in his position since August of 2009 following the resignation of Governor Huntsman, who was appointed to serve as the United States Ambassador to China by President Barack Obama. In 2016, Herbert was re-elected to a second four-year term.

“This is critical to the success of our state and the success of the 25 counties that are not in the Wasatch Font,” Cox said. “Unfortunately gas production has declined every year since 2012. Utahans are more aware than anyone else in the state unique resources to take advantage of these opportunities that are in front of us.”

Cox told the crowd he wants to improve market access for all of our energy resources.

“We believe new investment in a pipeline is going to be critical in the future,” Cox said.

Herbert is well aware what is going on in the Uintah Basin area.

“It concerns the governor, the legislature and especially the county officials in these parts of the state,” Cox said. “We care about all energy sources and we are very lucky to live in

the state where we have access to all kinds of different energy.

Cox grew up in Fairview City where he served as a councilman and mayor before he was elected as a Sanpete County Commissioner.

“I’m a rural kid,” Cox said. “I’m really excited to be here in Vernal with so many good friends and people that I know.”

The opening day finished with a panel made up of Dr. Laura Nelson, Energy Policy Advisor to the governor of Utah, executive director, Utah Office of Energy Development; Kathleen Staks, Executive Director, Colorado Energy Office; David Ludlam, Executive Director, West Slope Colorado Oil and Gas Association; Bob Braddock, senior project advisor of Jordan Cove.

The panel talked about ways that significant political influence and resources from delegations of Utah and Colorado can address the challenges of facing the Uintah-Piceance basin area.

“A lot of these people talk during the year and this is the one time that they are all together,” Uintah Basin Commissioner Bill Stringer said. “It’s very important to share experiences and knowledge about what is going on. It’s important to the community that we have this kind of participation.”

Stringer said he has reasons to be optimistic for the future.

“That’s another good thing,” Stringer said. “You do hear caution from some.”

ENERGY SERVICES TRAINING Automation Well Control Drilling Workover Completion Petroleum Technology Hazwoper CDL - Truck Driving OSHA Training Institute

Safety Hazcom GHS Awareness Compliance Training H2S PEC SafeLand Lifts New Hire Respiratory & Fit Testing

SCHOLARSHIPS ARE AVAILABLE! 435.725.7100 4500 North 2000 West, Vernal 1100 East Lagoon Street, Roosevelt www.ubtech.edu Experience the Power of Technical Education

24 - ubmedia.biz

PHOTO: Bruce Tippets

Executive Director Kathleen Staks from the Colorado Energy office talks during a panel during the Uintah Basin Energy Summit at the Uintah Conference Center.

Staks was on the panel with Dr. Laura Nelson, left, David Ludlam and Bob Braddock.

is a global distributor of pipe and tubing, manual and actuated valves, fittings, flanges, gaskets, fasteners, instrumentation, power transmission products, mill and janitorial supplies, hand and power tools, machine cutting tools, safety products, personal protective equipment (PPE), electrical products, artificial lift equipment, pumps, drilling and production products, and industrial paint and coatings.

PHOTO: Bruce Tippets

Utah Lt. Gov. Spencer Cox speaks during the 2017, Uintah Basin Energy Summit at the Uintah Conference Center.

3200 West Hwy 40 Roosevelt, UT 84066 - PO BOX 252 Main: (435) 722-0653 Fax: (435) 722-0643

ubmedia.biz - 25

Over the mountain:

Basin oil transported to far away markets

Richard Shaw Contributing writer

There are two ways for oil that is produced in the Uintah Basin to get to market. One is by pipeline. The other is by truck. The death of the concept that a rail line could be built for a reasonable cost through Indian Canyon and into Carbon County to hook up with Union Pacific’s main line was shot down after some exhaustive investigation and planning work.

But that doesn’t mean train lines are still not important to the Basin. That is because a good deal of the oil that is produced does go onto trains before it goes to a refinery. But first it must come through the mountains to Carbon County.

While little oil is produced in Carbon County at the present time, there is a lot coming to the county from the Basin. That’s because the area has the only railroad line in eastern Utah that is located close to the oil producing operations. The enterprises that are doing this kind of work are called mid-stream businesses.

There are currently five facilities either operating or under development which are designed to transfer crude oil from trucks to railroad tankers. From there the oil is moved to refineries on the Gulf Coast or in the Northwest.

Presently all the oil that is transloaded in Carbon County is hauled by truck over Highway 191 though Indian and Willow Creek Canyons. That operation has met with some controversy because of the heavy traffic it has produced through both canyons.

A lot of oil is also shipped via truck, over U.S. Highway 40, a process that is also under scrutiny by the public, particularly along the Wasatch Front, where the oil is taken to be refined in facilities in North Salt Lake and Woods Cross.

Until recently the Salt Lake refineries have been able to keep up with the crude coming out of the Basin. A lot of it was coming not only through a pipeline that Chevron put in many years ago, but so much is being produced that trucks have been hauling it the 3.5 hours to the refineries in North Salt Lake almost non-stop for some time. But the entire system was getting over loaded. More trucks meant more trips with motorists along the Wasatch Front complaining frequently about the tankers. And the length of the trip was a problem too. One driver could really only do one shift and then another load had to be taken by another driver.

On top of that, the refineries in Salt Lake are at their capacity for taking the waxy crude that is produced from the wells in

With all the energy in the Uinta Basin, we still want to encourage conservation.

REMEMBER:

“If you conserve, you can save.”® For tips and rebate information to help make your home or business energy efficient, visit ThermWise.com.

Energy Ad_2016.indd 1 26 Profiles - inubmedia.biz

4/7/2016 3:39:44 PM

the Basin. So the companies that produce the oil it had to find an alternative. That alternative was refinery turns it into products that people can use. There is also some crude shipped to Hawaii where it is also refined.

When they decided to get into the oil hauling business, the company put in a special track just to handle the train tank cars.

They also have their own switch engines to move the cars around with certified train engineers to do the driving.

But loading crude oil isn’t like loading coal. When coal is loaded under a tipple the loaders have cab control of the train and computer control over the tipple. The coal is put into cars through the tipple and shut off between cars as the train moves at a very slow speed.

With the loading of oil there is actually the possibility of three moving parts. The trucks move, the trains can move and a third unit, a portable pump rig can move. Oil is put into cars through an access hatch in the middle of the top of the car. The pump rigs, which Savage had specially built, move from train car to train car down the side of them filling each car until it is full.

The rig stays in place until the car is full as trucks pull up along side it for unloading. Then all the fittings and attachments are connected so the oil can be pumped out.

The crews that load the tank cars are highly trained. When the operation began more than two years ago crews from North Dakota came down and spent two months here helping local operators so they could learn to do the process efficiently and safely.

Chevron sent people to train Savage personnel.

The process is a lot like attaching large garden hoses to spigots, except there are no threads. They are not only snapped on with a turn and a click, but they also have bands around the connectors to keep them tight. There are also other considerations such as making sure the static electricity lines are attached (the transfer of liquids from one vehicle to another can build up static electricity tremendously and cause explosions or fires) and all the devices for measuring how much is in the cars must be in place.

One of the concerns of many was the spillage of oil during the transfer process. But the company has taken great pains to be sure no oil is spilled. The Savage Energy Terminal has complied with all government agencies and worked closely with them to provide an environmentally safe transport service. The terminal’s location, which is no where near a water supply, and the development of a rock solid plan for containment were vital in the company’s decision to move forward with the operation. In fact management says that a large spill could occur on the company’s property and not a drop of oil would contaminate the area.

Once a line of cars is filled it is parked on a special track and Union Pacific hooks onto it for transport to Oregon.

How long the oil will flow into Carbon County through trucking operations is hard to say. There are a number of pipeline projects projected to not only carry oil to Carbon County, but also more to carry the material to Salt Lake.

Regardless, truck drivers and equipment transporting oil will be running in and out of the Basin and south into Carbon County for a long time.

SALES & SERVICE THROUGHOUT THE BASIN! Authorized Service for Cummins, Cat, & Paccar

VERNAL PETERBILT - 715 S. 1500 E. Naples - 435.781.2331

2015 W. Hwy 40, Vernal, Utah • 435-789-5800

www.sportsmanswarehouse.com ubmedia.biz - 27

Leon Ross Drilling

• Water Wells • Surface Holes • Mouse and Rat Holes • Angle Drilling • “Exploration” Conductor

Office - 435-722-4469

Leon’s Cell - 435-722-7842 • Sheri’s Cell - 435-722-7699 • Randy’s Cell - 435-724-2215 • Doug’s Cell - 435-724-2823 • Neal’s Cell - 435-722-7303

Email: rossleon@hotmail.com - www.leonrossdrilling.com

28 - ubmedia.biz