docVolume 59, Issue 1 - Association of Desk and Derrick
download 
Report Transcription
Volume 59, Issue 1 - Association of Desk and Derrick
Volume 59, Issue 1 Page 1 Volume 59, Issue 1 Page 2 The Desk and Derrick Journal The Association of Desk and Derrick Clubs Inside this Issue: ADDC Board of Directors 3 Editors Corner 4 ADDC President’s Letter 5 2009 AIMEE – Best Industry Article 6 Around The Association 7 Certification Seminar 8 ADDC Long Range Planning Committee 9 Advertising Rates 9 Regional Meetings 10 NAPE Expo 12 Houston is Waiting 13 The purpose of the Association shall be to promote the education and professional development of individuals employed in or affiliated with the petroleum, energy, and allied industries. Cover Photo Photos from WIPC entries and various field trips offered at Convention and Region Meetings. 14 4:53 PM Page 1 16 creTrust was cational purpose rick Edu for the k and Der ociation The Des ents who the Ass ts to stud 1982 by e hip gran ated in rgraduat g scholars of unde t average of awardin ed two years grade poin plet 3.0 ick com a ts ing have e up and Derr . Applican e maintain tion mad of Desk of ncial need ciation study whil al organiza r field ng fina The Asso l education d with the onstrati d in a majo rnationa or allie and dem a degree or affiliate energy, is an inte ADDC loyed in pursuing oleum, stries. ick must be iduals emp ining full the petr allied indu of indiv and Derr ted to e of obta gy, and tion , four Desk m, ener objectiv study rela rma eles oleu the first Ang Info petr n the stry. les with MS; Los 1951 whe industri the in the indu Trust scho Jackson, began in to form loyment cational ans, LA; ther emp Edu Orle rick time d toge site. ut the Clubs (New k and Der , TX) joine througho ADDC Web s women Houston about Des on the cros and and to ue lable CA; uniq ay, men is avai in 1987 esent a ion. Tod dation arships cated da repr Associat others ADDC Foun are dedi and Cana st who bers, and ted the e— States es in United , its mem stry’s fine Knowledg ADDC crea d industri ociation “Greater of the indu Ass allie to: ion the and s sect assist to our mot energy, program mitted oleum, ects and and com in the petr nal proj d ADDC Service.” g educatio is sustaine es. The Greater ort for developin ociation e industri well as ial supp the Ass to thos rams as or part rmation ose of related s. nal prog ides full her info The purp educatio work site on prov ects. Furt the monthly industry Foundati nal proj lable on including through trips to educatio on is avai ications s and field various and publ ing, C Foundati ses seminar Leas ADD cour and study labout the m, Land Industry site. been deve Petroleu at: ntals of logy have ADDC Web rmation oleum Fundame oleum Geo more info as Petr tical Petr ADDC for cation ty of Tex e 107 act and Prac Edu ersi Suit g Cont et, the Univ . Continuin 51st Stre s are 5 oped with (PETEX) seminar 5153 East homa 7413 n Service ses and Extensio Tulsa, Okla when cour ructors. earned ified inst the s Units are EX-cert or call stry is rick Club d by PET in our indu and Der , 5th presente ication of Desk reviator vital publ 9 ociation Oil Abb Desk & Another 622-174 The Ass Standard tion of at 918Derrick Associa l the bell.net Desk & Wel by d ulsa@sw with Penn develope in ess is adot unction Edition able tool ail addr s in conj pens e-m Club an indis rmation Derrick book is es. Info g. This industri Publishin tasks energy e writing gas and ler, has mad the oil, stries simp in the book ted indu ncy to included its rela consiste gy and s added within ener the year through and has rts. repo industry xp 2nd ed.q 7/6/2006 ? Derrick Desk & DC) What is Clubs (AD 18 18 2009 AIMEE – Best President’s Letter Founder’s Message A. in the U.S. cover addc eab 19 20 o r g d c . . a d w w w The Desk and Derrick Journal Contact Information Audra Horton [email protected] The Bit of Fun Energy Activity Book, with PetroMolly and PetroMack, was created to explain how hydrocarbons and their byproducts are used to make modern products we use every day. . Printed In Memoriam Purpose rved rights rese Clubs. All From Our History To enhance and foster a positive image to the global community by promoting the contribution of the petroleum, energy and allied industries through education by using all resources available. ick and Derr on of Desk Party at the Palace Mission Statement ciati © Asso Update From the Industry The Association of Desk and Derrick Clubs (ADDC) is an international educational organization made up of individuals employed in or affiliated with the petroleum, energy, and allied industries. Second Edition These Activity Books are available for purchase in U. S. Imperial Version, Canadian Metric Version, and Spanish Version. The order form is on the ADDC website at www.ADDC.org The Desk and Derrick Journal (DDJ) is the official publication of the Association of Desk and Derrick Clubs, an international energy education organization. Mailing address for Correspondence: The DDJ is published by the Association of Desk and Derrick Clubs with offices at 5153 E. 51st Street, Suite 107, Tulsa, OK 74135-7442 to provide news of ADDC and allied industry to its members. Association of Desk and Derrick Clubs 5153 E. 51st Street, Suite 107 Tulsa, OK 74135-7442 Byline and credited articles represent the views of the authors. Publications in the DDJ neither implies approval of the opinions nor accuracy of the facts stated. Bulk mailing rate postage paid at Tulsa, OK. Volume 59, Issue 1 Page 3 2010 Association Board of Directors Donna Siburt, President Dominion East Ohio Tuscarawas Valley, Region I Jennifer Smith, Region I Director Mactech Mineral Mgt., Inc. Penn-York Angelia Duplessis, President-Elect ConocoPhillips Westbank, Region III Kathy Deshasier, Region II Director Atlas Gas & Oil Bay Area Judi Adams, Vice President Shell Exploration Houston, Region IV Keith Atkins, Region III Director Murphy Oil Corporation El Dorado Marilyn Carter, Secretary Canadian Natural Resources Ltd. Alberta Foothills, Region VII Star Hasse, Region IV Director Fairway Resources, LLC Dallas Linda Clark, Treasurer A Plus Well Service Farmington, Region V Cheri Rogers, Region V Director Strata Production Company Roswell Reginia Garner, Immediate Past President Silver Oak Drilling Artesia, Region V Andrea Conner, Region VI Director Chesapeake Energy Corporation Oklahoma City Assisting the Board Lynne Dunstan, Region VII Director Canadian Petroleum Discovery Ctr. Edmonton Brenda Snow, Executive Assistant Bakerwell Inc Tuscarawas Valley, Region I Andre` Martin, Manager Association Distribution Office Sheryl Minear, R.P., Parliamentarian WolfePak Software Abilene, Region V 2010 ADDC Board of Directors Front row: Judi Adams, Angelia Duplessis, Donna Siburt, Reginia Garner, Marilyn Carter Back row: Linda Clark, Star Hasse, Cheri Rogers, Sheryl Minear, Kathy Deshasier, Keith Atkins, Jennifer Smith, Lynne Dunstan, Andrea Conner Page 4 The Desk and Derrick Journal Editor’s Corner When Audra asked me to write an editor’s letter for our first issue of The Desk and Derrick Journal, I just said okay and went about my business. But then she reminded me a few minutes ago, my article is due. Uh-oh! So I start by digging out all my old copies of The Journal and reading some of the Editor’s Comments. And then I started looking at the pictures. And then I started reading some of the articles. And the next thing I know, it’s dark outside and I was supposed to go home several hours ago. What great pictures you have taken! What great articles you have written! Wow, those are some really good Presidents’ Letters. You guys are amazing. But….yes, you should have known there would be a “but.” You need to continue taking great pictures and sending them to us. And you need to continue writing informative articles and sending them to us. We can’t publish a great Desk and Derrick Journal without you. In reading some of the articles we are including in this issue, I really and truly learned something. And isn’t that what we are all about? I’ve been in the oil and gas industry for 32 years and I am still learning something every day. Desk and Derrick has, by far, been the best learning tool I have used in my career. We have some of the most educated, hard-working, dedicated members in any organization. But all that education needs to be shared. If we don’t impart our knowledge to the next generation working in this industry, what will happen? Will they be dedicated as we are? Or will they go to work, draw a paycheck, and go home? The more I learned about the energy industry, the more excited I got. I LOVE this industry, my job, Desk and Derrick! Please take a few minutes and write an article about something you have experienced in your Desk and Derrick travels or something you feel we all need to know. Your editors will thank you and your readers will thank you! I’ll get off my soapbox now and let you get busy reading. Enjoy your first issue and let us know what you think. We want to hear from you. Don’t forget your Regional Meetings coming up – they are listed in this issue. Happy reading, Debbie DDJ Editors and Representatives Editors: Debbie English Audra Horton Chisholm Operating Inc Geological Research Center Donna Siburt, ADDC President, Board Contact Region Representatives: Region I – Christine Wolfe Region III – Virginia Calhoun, St. Mary Land & Exploration Region IV – Connie Harrison, Valero Energy Corp. Region V – Kate Ediger, First Roswell Company Region VI – Region VI – David Willis, Chesapeake Energy Corporation Region VII – Maureen McClean, Imperial Oil Resources Volume 59, Issue 1 Page 5 ADDC President’s Letter Donna Siburt Page 6 The Desk and Derrick Journal 2009 AIMEE First Place - Best Industry Article ON THE MOUND By Mel Christensen RPM Consulting, Inc. BATTER UP! The Colorado legislature has been throwing fast balls at our industry and we better learn to smack’em or end up fielding a bunch of foul balls…for a very long time. After our last two general membership meetings you are aware that there are a NUMBER of pieces of legislation being proposed that will affect oil and gas exploration in the state of Colorado. The two major issues being addressed during this current Colorado legislative session are: revised rules for developing Colorado’s oil and gas resources; and, state tax revenue from oil and gas production. Let’s tackle the revised rulemakings first. Just about a year ago, our newly elected Governor, Bill Ritter, signed into existence HB 1341 which changed the composition of the Colorado Oil and Gas Conservation Commission (COGCC). Prior to this change, the commission consisted of seven commissioners, five of whom were required to have substantial experience in the oil and gas industry. Now, there are nine commissioners, only 3 of whom are from the industry. The executive directors of the Department of Natural Resources (DNR) and the Department of Public Health and Environment (CDPHE) are exofficio members. As well, seats were given to a representative from local government, experts in environmental or wildlife protection, soil conservation or reclamation, and the final member is to be actively engaged in agricultural production and be a mineral royalty owner. Proponents of the change consider it a long overdue correction to an industry which was, essentially, being selfregulated. The changes are to encourage a more balanced approach to developing Colorado’s natural resources. As one can imagine, opponents to the change see it as the proverbial open door to layer upon layer of regulation further restricting access to, and inhibiting economic development of the same resources. The fact that a draft of proposed rule changes for the COGCC was released for public comment on March 31, 2008 (less than a year since the new composition of commissioners) gives considerable merit to the latter opinion. While researching this article I noticed that the vast majority of websites and publications about oil and gas these days are NOT from our industry. Almost every article written is from yet another citizen movement or semi-government organization looking to monitor, regulate, reduce and restrict the development of oil and gas in Colorado. It isn’t that I don’t want our industry to be good corporate citizens. It is how far reaching will the new commissioners be in their effort to balance oil and gas development with concerns about the environment, wildlife protection, soil conservation, agriculture and public health of our citizens? And how much is it going to cost? At the top of the next inning we’ll take a closer look at the proposed rule changes. Later in the game we’ll pop up a little Severance Tax 101. There’s going to be a ballot issue in our next state election to revise this tax that is levied on oil and gas production. Let’s be prepared to prevent a legislative double-play and cast a smart vote for our industry and our state. u Volume 59, Issue 1 Page 7 AROUND THE ASSOCIATION In 2009, the Desk and Derrick Club of Ardmore, Oklahoma awarded five (5) $500 scholarships to high school seniors in the Ardmore area. The money was raised at the American Petroleum Institute’s (API) golf tournament. Kate Kyle from the Texoma Community Credit Union presented a program about how to avoid becoming a victim of identity theft to the Desk and Derrick Club of Wise County. Members of the Desk and Derrick Club of Oklahoma City and six (6) employees of Devon BI&T visited two wells in Caddo and Canadian Counties of Oklahoma. The first well was the Jackson #1-11H which is located in Caddo County and is producing from the Woodford Shale formation. This is a horizontal well that is 14,000 feet deep and runs 1 mile horizontally.“Redesigning Success for 2010” was presented by Donna Lawrence at the club’s January meeting. The program was both motivational and informative regarding how to re-evaluate your life and remove obstacles out of your way which enables you to better live life fully. The Desk and Derrick Club of Wichita Falls spent the weekend of February 5-7 working at the World of Wheels Car Show, which is one of their major fundraisers. Randy Harly with Environmental Services (ESA) presented a program entitled “Spill Response” to the Desk and Derrick Club of Tyler in January. Mr. Harly is a former director for the Texas Railroad Commission. The Redd Earth Desk and Derrick Club held a Leadership Training class on Saturday, January 16th, at the Chaparral Energy offices. Joe Wishunk, a Pipeline Compliance Safety Specialist with Chaparral Energy, LLC presented the club’s January program about the Dangers of H2S. Linda Gau, 2009 Region VI Director, installed the 2010 officers of the Butler County Desk and Derrick Club at the club’s December 3, 2009 meeting. Linda attended a tour of the Frontier Refinery conducted by Larry Ross during her visit. At the January meeting of the Desk and Derrick Club of Grande Prairie, Melody Mateev, Safety and Environment Coordinator with ATCO Electric, presented a program to the members entitled “Winter Driving Myths”. The program informed the members about how to be prepared for winter conditions. Christine Wolfe of the Buckeye Desk and Derrick Club has planned a series of programs covering the topic of refining. “What is Crude Oil?” was the topic of the club’s February program and was presented by Dennis Sutton. In February, the program “Refining 101” was presented to the members. The speakers for the January meeting of the Alberta Foothills Desk and Derrick Club were Pauline Scoffield and Kate Vasicek from the Environment Division of the Government of Alberta. Pauline spoke on the Water Act and Kate’s topic was on the Alberta Environmental Protection/Enhancement Act as they relate to the Oil and Gas Industry. The Desk and Derrick Club of Enid has been busy preparing for the March Desk and Derrick Awareness Month. They attended the Enid City Council Meeting on March 2 at which time the Mayor proclaimed the month of March was Desk and Derrick Awareness Month in Enid. “Continued on page 8” Page 8 The Desk and Derrick Journal “Continued from page 7” Robert Smith, a geology professor at Cisco College, presented a program about rocks to the members of the Desk and Derrick Club of Abilene in January. Mr. Smith brought a collection of rocks which are used in the production of oil and gas as well as rocks that are used for medicinal purposes including a example containing arsenic. The Desk and Derrick Club of Great Bend promotes Desk and Derrick Awareness Month each year with an educational energy exhibit at the Spring Home Expo. The booth caters to the younger attendees. The children are given prizes for participating in the games. The themes range from “Diggin’ for Dinos”, “Alternative Fuels”, “Solar Powered Races”, “Life without Oil”, and “Hard Hat Harry”. The Desk and Derrick Club of Tulsa’s theme this year is “Going for the Gold”. They are currently involved in finalizing plans for three (3) field trips and have arranged for most of their speakers for this year. The club has already added nine (9) new members during the first three months of this year. The Desk and Derrick Club of Wichita has set a goal this year to encourage more participation by their members in the club’s field trips, get-togethers and monthly programs. The club is paying registration fees for several members attending the April Region VI Meeting in Great Bend. Several members of the Desk and Derrick Club of Houston helped in hosting a booth for ADDC at the Winter NAPE Meeting in Houston. They informed more than 1000 individuals about Desk and Derrick. Members of the Desk and Derrick Club of Dallas, the Desk and Derrick Club of Fort Worth and the Desk and Derrick Club of San Antonio visited the Mammoth Digs Site in Waco, Texas. This site was discovered in 1978 and is the only known discovery of a nursery herd (female mammoths and their offspring). This is North America’s largest known collection of Columbian mammoths that died in a single event. u Association of Desk and Derrick Clubs Certification Seminar By Committee Chairman Marsha Bundy, Region II, Desk and Derrick Club of Little Egypt At convention in Houston, Texas, the Certification Committee will present the second program of the six-course curriculum, Land and Leasing. The seminar will be held Thursday, September 23, 2010. The six courses will be presented at Convention on the following schedule: Land and Leasing - 2010, Drilling - 2011, Completion and Production - 2012, Marketing 2013, and Accounting - 2014. The course on geology was presented at the 2008 convention in Midland, Texas. Are you looking for an effective way to increase your value at work? Do you want to further expand your knowledge of the petroleum industry? This is an easy and inexpensive process available to all members and any interested parties. In just six years, you too can have a Petroleum Technician certificate. The Association of Desk and Derrick Clubs, with support of the ADDC Foundation, is very proud of this program which provides an outstanding educational program meant to increase your value to your employer and the petroleum industry. I hope to see you in Houston! u Volume 59, Issue 1 Page 9 PAYING IT FORWARD: FIRST IN A SERIES: HOW TO GROW YOUR MEMBERSHIP By: Connie Harrison, ADDC Long Range Planning Committee Chairman, San Antonio Club How do we go about getting new members? Where do we look for them? We seem to be out of options for gaining new members! These are the questions and comments that I have heard within my own club as well as from members around the association. When I became President of the San Antonio Club my goal was to grow the membership and sustain them. The San Antonio Club is one of eight members of the Bexar County Energy Coalition. The other organizations that make up the Coalition are: SPE, API, COPAS, STGS, SAAPL, SIPES and SAGS. All of these organizations hold monthly meetings and events for their members just as we do. (I got to know many of these people while serving on the committee for the Annual Energy Coalition Blowout. We have a dinner and dance each year and all proceeds go to the eight organizations’ scholarship fund). This has proved to be a great way to network and to get speakers for meetings, etc. As I pondered these questions about membership I began to look for other places to find new members. All the while it was right before me in the form of the Coalition. I now have my name on all of the organizations that make up the Coalition and attend their monthly meetings . I have been given time on their agendas to speak about Desk and Derrick. They allow me to put out our brochures at their meetings as well as the Foundation brochures and Educational Trust brochures. This has proven to be a fertile ground for imparting knowledge of our Association and to get speakers for our meetings. But more importantly we are getting positive response to our invitations to our meetings and subsequent membership to our club. We have gained two speakers and three new members so far. While you might not have an Energy Coalition, I am sure you have many of these organizations in your community. I urge you to reach out to them, to go to their meetings when you can and begin to educate these organizations about Desk and Derrick and learn about them. It is a “win - win formula”. u The Desk and Derrick Journal ADVERTISING RATES (Ad copy sizes stated in columnar widths, based on a 2-column page.) Size: 9" 5" Members/ Clubs $100.00 $50.00 Rates: Member Business $130.00 $70.00 Non-Member Business $175.00 $90.00 4 ¾" 2 ½" $100.00 $70.00 $130.00 $95.00 $175.00 $120.00 4 ¾" $100.00 $150.00 $200.00 9" $200.00 $200.00 $25.00 $10.00 $275.00 $250.00 $35.00 $10.00 $350.00 $300.00 $60.00 $10.00 Width Height Vertical Sizes 1/2 Pg 1/4 Pg 3 ¼" 3 ¼" Horizontal Sizes 1/2 Pg 1/3 Pg 7 ¼" 7 ¼" Horizontal Sizes Outside Back Cover Only 1/2 Pg 7 ¼" Other Full Page Column (4 issues) Business Card Patron Saint (one Line) 7 ¼" 3"x2" Page 10 The Desk and Derrick Journal REGION I Jennifer Smith, Director Hosted by Penn York Oil & Gas Affiliates May 13-16, 2010 Holiday Valley Resort & Conference Center Ellicottville, NY Educational Opportunities: Field Trip: Learn about the Clean Vehicle Education, then take a trip on the Mardi Gras Express Quad 4400’ lift to the Warming Hut to hear from the President and COO of American Refining Group, the oldest continuously operating refinery in the country Seminar: Capture the Butterflies, a seminar by Theresa Adams, Past ADDC President REGION II Kathy Deshasier, Director Hosted by Bay Area Desk and Derrick May 13-15, 2010 Grand Beach Hotel Traverse City, MI Educational Opportunities: Field Trip: M-Tex facility at Northwest Michigan College and Cherry Capital Airport NMC Flight School Seminar: Innovative Means to Sequester Carbon Dioxide by Bob Mannes REGION III Keith Atkins, Director Hosted by Desk and Derrick Club of Houma April 21-25, 2010 Ramada Inn Houma, LA Educational Opportunities: Field trips: Nabors/Swamp Tour; Swamp Tour/Weatherford; Nabors/Weatherford Seminars: Human Resource Hot Topics; Digital Scrapbooking REGION IV Star Hasse, Director Hosted by Desk and Derrick Club of Dallas March 25-27, 2010 Hilton Hotel Rockwall, Texas Educational Opportunities: Field Trip: Haynesville Rig Trip; City Tour Seminars: How to Drill and Complete a Haynesville Shale Horizontal Well; Nanotechnology and the Energy Industry – Today and Tomorrow; Theft and the Energy Industry Volume 59, Issue 1 Page 11 REGION V Cheri Rogers, Director Hosted by Desk and Derrick Club of Abilene April 8-11, 2010 Hilton Garden Inn Abilene, Texas Educational Opportunities: Field Trip: Proppant Specialists, LLC, a sand and gravel mining company; Loadcraft Industries, rig manufacturing Seminar: Rocks in Your Everyday Life, by Carolyn Easley REGION VI Andrea Conner, Director Hosted by Desk and Derrick Club of Barton County April 22-24, 2010 Highland Hotel & Convention Center Great Bend, KS Educational Opportunities: Field Trips: Linde Global Helium and West Wind Energy LLC Tours; Kansas Wetlands Educational Center – Cheyenne Bottoms; T & C MFG & Operating, Inc Seminars: Hybrid Car by Darcy Wedel; Baker Petrolite by Rob Bowman & Paul Lambert REGION VII Lynne Dunstan, Director Hosted by Desk and Derrick Club of Edmonton, AB May 25-29, 2010 Fantasy Hotel, West Edmonton Mall Edmonton, AB Educational Opportunities: Field trips: Canadian Petroleum Discovery Centre & Leduc Number 1; Regent Energy Group, Ltd.; Top-Co LP Seminars: The Future of Energy by Bas Visser; Insight Into Crisis Therapy and Education by Dorthe Flauer Page 12 The Desk and Derrick Journal NAPE EXPO by Pat Cook, Barbara Landrum and Judy Lile A ttending a NAPE Expo in Houston is a rewarding experience for Desk and Derrick. NAPE provides a central arena for oil and gas companies to introduce oil and gas prospects via exhibit booths to energy professionals. NAPE Expo (formerly the North American Prospect Expo) was created in 1993. It is described as the world’s largest E&P (upstream) expo. It provides a marketplace for the buying, selling, and trading of oil and gas prospects and producing properties through the exhibit booths. It was held once a year until 2005 when Summer NAPE was added. In 1993 there were 88 companies exhibiting and 780 attendees in a hotel ballroom. Since that time, it has grown to more than 16,000 attendees with 950 exhibiting companies that command the entire George R. Brown Convention Center. Summer Nape draws 5,500 attendees and 400 exhibiting companies each August. The event for 2010 is planned for August 19-20. NAPE Expo brings prospects and producing properties from around the world, capital formation, services and technologies all together in one location, creating a pure market place to establish strategic alliances for doing business and initiating purchases and trades. Who attends NAPE? Decision makers in the upstream oil and gas industry and the teams of people who assist with those decisions. That includes company executives, geologists, geophysicists, landmen, engineers, bankers, investors, and lawyers. NAPE Expo and other participating entities have contributed over $885,000 to wounded soldiers through the America’s Heroes program. Funds are presented at each year’s Industry Luncheon. The Association of Desk and Derrick Clubs is an “Endorsing Organization” and is provided a booth at no cost for the February and August Expos. The booth is set up with panels explaining our purpose and photos related to the industry. We provide information about ADDC, the Educational Trust, the Foundation, and the Bit of Fun Energy Activity Book. This book is a very popular item, and copies were given to people who had connections with schools in their area. It is very rewarding to have attendees stop at the ADDC Booth and say they know about ADDC. This year, members of D&D clubs in other states stopped by to say “Hi.” And we were pleased to have the opportunity to visit with several attendees who had received scholarships from the Educational Trust. We had donations for door prizes, which were very popular, and gave us the opportunity to collect business cards. We gave away luggage handle covers with “Association of Desk and Derrick Clubs” printed on them. We also had laser pointers to give out. A booth must have something to give away to attract visitors! Desk and Derrick members helping at the booth this year included Judi Adams, Patricia Cook, and Barbara Landrum from the Houston Club, and Theresa Adams from the Westbank Club. u Volume 59, Issue 1 H Page 13 Houston is Waiting By Pat Cook, General Arrangements Chairman ouston is Waiting to WOW Desk and Derrick Members in 2010. Where can you go for the best in entertainment, sports, cultural arts, and dining? Look no further than Houston, Texas. Home to a respected and energetic cultural arts scene, the oldest African-American theater in the Southwest, and the brains behind United States space exploration, Houston is as diverse a city as they come. As The New York Times stated in a recent feature, “Maybe that’s what makes Houston such an unusual and wonderful place—there are so many different Houstons to see.” Houston’s climate encourages year-round recreation. Gulf beaches, a boardwalk, lakes, 165 public and private golf courses, countless swimming pools and tennis courts, and hundreds of parks make getting out and about a pleasure. The normal maximum temperature in September is 90 degrees. At 634 square miles, the City of Houston could contain the cities of New York, Washington, Boston, San Francisco, Seattle, Minneapolis, and Miami. For a long while, Houston has had one of the most exciting food scenes anywhere. Home to more than 8,000 restaurants, Houston offers everything from fine dining to hole-in-the-wall Tex-Mex. You’ll find every variety of ethnic food found in America, from a slew of wonderful Chinese restaurants to fine Japanese sushi bars. Houston’s enormous Vietnamese population has not only led to a boom in good seafood but also in a variety of Vietnamese restaurants. You can get your fill of Gulf Coast Creole food, South and Central American, Cuban, Korean fare, and Spanish tapas at a variety of fine restaurants—not to mention Houston’s Italian restaurants of every style. Whether you’re experiencing a space shuttle landing at Space Center Houston or splashing around in more than two million gallons of water at Six Flags SplashTown, Houston’s and the surrounding area’s attractions are full of adventure. Explore the world’s oceans from inside Moody Gardens’ 12-story Aquarium Pyramid in Galveston, then appreciate science and nature in the Rainforest and Discovery Pyramids. Place bets on horses at the Sam Houston Race Park or greyhounds at the Gulf Greyhound Park. For history buffs, visit the San Jacinto Battleground, which marks the spot where Texas won its independence from Mexico, or the Lone Star Flight Museum, a large collection of restored aircraft and photo archives housed in a hanger. Step back in time at the George Ranch, a working ranch, where visitors can experience more than 150 years of Texas history. Houston is one of five cities in the United States with resident companies in the four disciplines of the performing arts—Houston Ballet, Houston Grand Opera, Houston Symphony, and Alley Theatre. Houston’s 17-block Theater District is home to all of them, as well as musical theater performances by Theatre Under the Stars and Broadway in Houston and innovative local groups like Dominic Walsh Dance Theatre and Da Camera. The Museum District is within walking distance of Hermann Park—home of the Houston Zoo, Japanese Gardens, and Miller Outdoor Theatre. The Museum District is home to 18 museums including the Museum of Fine Arts, Houston, the Houston Museum of Natural Science, The Children’s Museum of Houston, The Menil Collection, the Contemporary Arts Museum Houston, and many more. Visitors to the Museum District can view one of only two Rembrandt paintings in Texas, one of the most highly renowned Surrealist collections in the country, the top collection of gems and minerals in the world, and a 7,400-square-foot model of the human body. Through art cars, oranges, and houses covered in cans, Houston embraces folk art and unique spaces. Only in Houston can you find a chicken-shaped coffin, on display at the National Museum of Funeral History, whose tagline is “every day above ground is a good one.” The Orange Show Center for Visionary Art is a major preserver and presenter of Houston’s folk art, organizing the annual Art Car Parade—the oldest and largest of its kind—and preserving notable sites like the Beer Can House and The Orange Show, a 3,000-square-foot monument to the creator’s favorite fruit. “Continued on page 14” Page 14 The Desk and Derrick Journal “Continued from page 13” Houston has all kinds of hidden gems like these throughout the city—it simply takes a little exploring to find them. Some of the newest features at the Houston Zoo are the Wildlife Carousel, with 64 hand-carved animals representing endangered species, and Natural Encounters, the highly anticipated renovation of the Zoo’s small mammal building that features meerkats, otters, and vampire bats. Stoll along the Kemah Boardwalk and choose from a variety of family-friendly restaurants, ride the Ferris wheel and train for fun, or just watch the sailboats from your table. For you sports enthusiasts, Houstonians have had many reasons to cheer on the home team. The Killer “B’s” led the Houston Astros to victory as the 2005 National League Champions. Seven-foot-six-inch Yao Ming has added a dose of star power to the Houston Rockets as one of the most popular players in the NBA. Native Houstonian Gary Kubiak is coaching the Houston Texans to victory. Houston Dynamo, Houston’s professional soccer team, won back-to-back MLS Cups in 2006 and 2007. With three major airports, Houston is one of the nation’s premier international gateways, linking the region to more than 175 destinations. George Bush Intercontinental Airport ranks 3rd in the United States for non-stop destinations and is the largest hub airport for Continental Airlines. Houston boasts the world’s largest medical center—The Texas Medical Center. Medicine is a growing economic force in Houston, employing more than 65,000 people and comprising 42+ institutions, with a combined operating budget of more than $5.4 billion. The Desk and Derrick Club of Houston invites you to enjoy these and many other opportunities to see how Houston can WOW you at the 59th Annual ADDC Convention to be held at the Hilton Houston Westchase Hotel on September 22-25, 2010. Ya’ll come now, you hear! u Update From the Industry Oil & Gas Tax Provisions in President Obama’s Proposed 2011 Budget The information below was obtained from the Independent Petroleum Association of America’s Web site, ipaa.org. For more comments about this topic you can visit their Web site as well as the Texas Alliance of Energy Producers’ Web site, texasalliance.org. Natural gas and oil provide 65 percent of America’s energy. New wind energy and solar energy require new natural gas turbines to run when the wind doesn’t blow and the sun doesn’t shine. American natural gas is essential to meeting any clean energy agenda associated with global climate. American natural gas and oil are essential to any energy security plan. America’s independent natural gas and oil producers develop 90 percent of US wells, produce 82 percent of US natural gas and produce 68 percent of US oil. Independent producers reinvest over 100 percent of American oil and natural gas cash flow back into new American production. Lower natural gas and oil prices and the tight credit market are limiting investment capital; drilling activity is down over 25 percent since a year ago. Intangible Drilling and Development Costs (IDC) – IDC tax treatment is designed to attract capital to the high risk business of natural gas and oil production. Expensing IDC has been part of the tax code since 1913. IDC generally include any cost incurred that has no salvage value and is necessary for the drilling of wells or the preparation of wells for the production of natural gas or oil. Only independent producers can fully expense IDC on American production. Eliminating IDC expensing would remove capital that would have been invested in new American production – such as the emerging shale gas resources throughout the country. “Continued on page 15” Volume 59, Issue 1 Page 15 “Continued from page 14” Percentage Depletion – All natural resources minerals are eligible for a percentage depletion income tax deduction. Percentage depletion for natural gas and oil has been in the tax code since 1926. Unlike percentage depletion for all other resources, natural gas and oil percentage depletion is highly limited. It is available only for American production, only available to independent producers, only available for the first 1000 barrels per day of production, limited to the net income of a property and limited to 65 percent of the producer’s net income. Percentage depletion provides capital primarily for smaller independents and is particularly important for marginal well operators. Eliminating percentage depletion would remove capital that would have been invested in maintaining and developing American production. Passive Loss Exception for Working Interests in Oil and Gas Properties – The Tax Reform Act of 1986 divided investment income/expense into two baskets – active and passive. The Act exempted working interests in natural gas and oil from being part of the passive income basket and, if a loss resulted, it was deemed to be an active loss that could be used to offset active income as long as the investor’s liabilities were not limited. Most natural gas and oil producers in the United States are Small Business Owners. Natural gas and oil development require large sums of capital and producers frequently join together to diversify risk. To qualify for the exception, the producer must have liability exposure and definitely be at risk for any losses. If income/loss, arising from natural gas and oil working interests, is treated as passive income/loss, the primary income tax incentive for taxpayers to risk an investment in oil and natural gas development would be significantly diminished. Geological and Geophysical (G&G) Amortization – G&G costs are associated with developing new American natural gas and oil resources. For decades, they were expensed until a tax court case concluded that they should be amortized over the life of the well. In 2005 Congress set the amortization period at two years. Later, Congress extended the amortization period to five years for large major integrated oil companies and then extended the period to seven years. Early recovery of G&G costs allows for more investment in finding new resources. Extending the amortization period would remove capital from efforts to find and develop new American production. Marginal Well Tax Credit – This countercyclical tax credit was recommended by the National Petroleum Council in 1994 to create a safety net for marginal wells during periods of low prices. These wells – that account for 20 percent of American oil and 12 percent of American natural gas – are the most vulnerable to shutting down forever when prices fall to low levels. Enacted in 2004, the marginal well tax credit has not been needed, but it remains a key element of support for American production – and American energy security. Enhanced Oil Recovery (EOR) Tax Credit – The EOR credit is designed to encourage oil production using costly technologies that are required after a well passes through its initial phase of production. For example, one of the technologies is the use of carbon dioxide as an injectant. Given the increased interest in carbon capture and sequestration, carbon dioxide EOR offers the potential to sequester the carbon dioxide while increasing American oil production. Currently, the oil price threshold for the EOR tax credit has been exceeded and the oil value is considered adequate to justify the EOR efforts. However, at lower prices EOR becomes uneconomic and these costly wells would be shutdown. Tertiary Injectants Deduction – In addition to repealing the Enhanced Oil Recovery tax credit, the budget request would repeal the current deduction for the cost of the injectants – such as carbon dioxide. The costs for injectants, such as carbon dioxide, are legitimate annual expenses comparable to a farmer being able to deduct the cost of fertilizer that is used to increase crop yields. Manufacturing Tax Deduction – Congress enacted this provision in 2004 to encourage the development of American jobs. All US manufacturers benefitted from the deduction until 2008 when the oil and natural gas industry was restricted to a six percent deduction while other manufacturers will grow to a nine percent deduction. While many producers’ deductions are capped by the payroll limitation in the law, it is another tax provision that provides capital to America’s independent producers to invest in new production. Taken together, these tax changes would strip billions of investment dollars from US natural gas and oil production. u Information obtained from IPAA’s (Independent Petroleum Association of America) website ipaa.org Page 16 The Desk and Derrick Journal Party at the Palace Article from “Do You Remember When…” a booklet for ADDC published by Val Williams The Party at the Palace Frances Hawley Region II Little Egypt Club This is the tale of a small town girl’s sudden and alarming acquaintance with the big city, big city ways, and big city prices. The date is not important but the place and occasion are. The year was 1964, and I was one of the lucky Board Members of the Association of Desk and Derrick Clubs (women of the petroleum industry) who would be meeting in the city of San Francisco for one grand and glorious convention. The entire Board (fifteen of us) were required to be there two days prior to convention to untangle some of the various messes that usually plague any woman’s club. Like the others, I was elated, upon my arrival, to see the beauty of the Sheraton Palace where we would be staying. I had been assigned my roommate, a lovely girl from Borger, Texas, weeks before. In fact, we had corresponded, discussing the possibility of my using our room for a social hour, in order that the members of my region could meet the newly elected director, who was to replace me for the ensuing year. (It had become a practice for the outgoing director to arrange a party for the incoming director.) All the plans were made, and approval had been granted me to use $40.55, left over from regional funds, for the party. A friend was in charge of invitations, and two others were to serve as hostesses. At the last moment I learned that numerous members had decided they couldn’t miss seeing San Francisco --- so to convention they must go. That fact alone started me thinking, “will $40.55 be enough for a social hour?” I dismissed the thought, thinking “we can always serve punch.” The thing that hadn’t occurred to me was that we might not have enough room. This became apparent as I opened the door to the twin bedroom, to which my roommate and I were assigned. There was hardly enough room for the two of us and our luggage. Taking stock of the situation, I knew that I was faced with a dilemma. Some 100 women were invited to my room to a party on Saturday night, which was, of course ridiculous. There wasn’t even standing room for half that number and how was I to rent a larger suite and buy the essentials for a party with a mere $40.55? My own financial status wouldn’t permit my footing any of the bill, not if I were to eat regularly. Something had to be done and fast. I didn’t even bother to unpack, just powdered my nose, did a masterly job with the lipstick, squirted on some of my most potent perfume (My Sin), kicked off my walking shoes and put on my heels (they’re not too good for my arches, but do a lot more for my legs) and got ready to proceed with my line of action. First, I picked up the telephone and asked to speak to the hotel manager. Luckily, he asked me to come right down. His secretary ushered me into his office, and I sat down, dropped my gloves nonchalantly into my lap, and said, “Sir, I have a problem,” and proceeded to tell him that my room was much too small to host a party for 100 women. He apologized for the size of the room and said there was nothing else available. He explained that the other directors had rented suites “Continued on page 17” Volume 59, Issue 1 Page 17 “Continued from page 16” for their parties weeks in advance. It was at this point that the subject of money also crossed his mind, and he asked “How much can you spend?” I hesitated for a moment and replied, “$40.55”. He leaned back in his chair, looked at me in shocked disbelief, and said, “You’re kidding.” “No, I’m not kidding, and if my room were of any size, I could have a party for $40.55.” I could see that my line of approach hadn’t been too effective, thus far, so very sweetly I asked, “What would you suggest I do?” Without a moment’s hesitation, he answered, “I’d cancel it.” “Cancel it? How can I do that? The invitations are sent out, the guest of honor has been informed, and I just have to have a party!” With this outburst, he reached for his appointment book, studied it for a moment, and asked, “How would you like to use the Presidential Suite?” I thought to myself, “Either he misunderstood me when I said I had only $40.55, or he’s gone off his rocker.” Finally, I got out the all-important question, “How much?” He laughed softly and said, “Nothing, but you know you’re quite a talker. Are all the girls from the Midwest like you?” He then took me in to meet the catering manager and asked that I be provided as nice a party as possible. That statement immediately alerted the catering manager to ask, “How much can you spend?” Again, I had to bring up that measly sum of $40.55, which was the subject of the day. His next words were, “Did you plan something in the way of a fruit punch?” I had planned something with a punch but certainly not fruit punch! Soon I learned that champagne punch, which I preferred, was $35 a gallon and would serve only 40 to 50 persons. He finally agreed to let us have one and one-half gallons for $40. Very emphatically I told him that we just had to have two gallons and began to visualize spending my meal money. At this point, he closed his price book, grinned at me and asked, “Mrs. Hawley, if I let you have two gallons for $40, would you do me one little favor, could you throw in an extra $5 tip for the boy who brings the punch up to the suite?” I agreed, thinking that it wouldn’t hurt to miss one or two meals. The night of the party arrived, the door of the Presidential Suite was opened to us, and there stood a beautifully draped table, complimented by a crystal punch bowl and sparkling champagne. Overhead, crystal chandeliers glittered in the evening sunlight. It was worth all the words and conniving I had used to acquire it. Soon guests were arriving in numbers, all of them marveling at the gaiety and beauty of our party. My big moment came when the Association officers arrived, saying that they couldn’t miss such a lovely party, and that everyone at convention was wondering how we were able to use the Presidential Suite. Our Desk and Derrick President, Penny Eades of Dallas, told me that everyone else had to pay $200 for party arrangements. She was a good friend and often confided in me, and whispered in my ear, “Frances, how in the world did you swing this?” I answered, with a note of laughter in my voice, “Penny, it wasn’t easy.” And went on to greet other guests and to see how the punch was holding out. u *********************************************************************************** Frances M. Hawley joined the Desk and Derrick Club of Salem, (later Little Egypt), Region II, in 1953, and served as Region II Director in 1964 Page 18 The Desk and Derrick Journal From Our History SHREVEPORT Desk and Derrick Club visits J. B. Beaird Co., Inc., subsidiary of American Machine & Foundry Co., and one of the largest manufactures of heavy steel products in the Southwest. Members making the tour on March 15 are shown with personnel of the host company who guided them through the plant. Left to right: Jim Riseden, Beaird Sales Representative, Bob Mitchell, Beaird Adv. Mgr., Virginia Gay, Frank Bryant, Beaird Sales Representative, Lou McKinney, Liz Cotton, Lula Wingfield, Virginia Dunnan, Jo Anne Manning, Jo Bradshaw, “Chuck” Hilburn, Beaird Sales Representative, Nettie Binder, Joy Popejoy, Eunice Spence, President of Shreveport club, Eva Sanders, Elouise Jouett, Bobbie McMullan, Shirley Clark, Ethel Green, Marie King, LaVerne Hitcock, Archie Singletary, Beaird Personnel Manager, Minnie Mae Slaid, John L. Tullis, Executive Vice President of J. B. Beaird and Ty Adams, Beaird Sales Representative. In the background (center) is a 30M-gallon tank with 250 lbs. working pressure and built according to ASME Code. This photo was taken from the Summer, 1958 Oil and Gal Journal. In Memoriam Frances M. Hawley, 88, of Odin, IL died Sunday, January 10, 2010 at Salem Township Hospital in Salem, IL. Frances was employed for over 35 years as a Senior Clerk II for Texaco, Inc. She joined the Desk and Derrick Club of Salem, (later Little Egypt), Region II, in 1953, serving in several offices including Region II Director in 1964. If you knew Frances, you knew that what she said was what she meant! Other organizations she belonged to were: St. Lawrence Catholic Church, St. Monica’s Altar Society, Home Extension, Reading Link, and was President of the Texaco Retiree’s Club for 12 years. She was inducted into the Phi Theta Kappa National Honorary Society at age 60, while attending Kaskaskia College. Frances was named Odin Citizen of the year for her many hours teaching children to swim, and received several writing awards. She was preceded in death by her husband, Chuck, in 1992. Clara “Stormy” Forrest, as she was known to all, joined the Tulsa Club in 1955. In 2000, she was made an Honorary member and was also named “Star of the Year”. She was a behind the scenes member helping the club with postage, and cash contributions. Although she was unable to attend meetings, she always sent money monthly and also wrote a little note to go along with it. Stormy passed away September 21, 2009 at the age of 98. u Volume 59, Issue 1 Page 19 0 Page 20 The Desk and Derrick Journal The Desk Journal The and DeskDerrick and Derrick Journal Page 20 A s s o c i a t i oAns soofc i a t i o n o f D e s k a n d DD ee rs rki cakn dC D l uebr rsi c k C l u b s 3 E . 5 15s 1t 5S3t rEe.e5t ,1 sStuSi ttree e1t 0, 7S u i t e 1 0 7 Tulsa, OK 74135 Tulsa, OK 74135 www.addc.org www.addc.org “From the Fall, 1972 Oil and Gal Journal” PRSRT PRSRT STDSTD POSTAGE U.S. U.S. POSTAGE PAID PAID TULSA, OK TULSA, OK PERMIT #2146 PERMIT #2146
