2018 Q3

National Association of Division Order Analysts July / August / September 2018

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NADOA N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s G R O W T H T H R O U G H E D U C T I O N

Volume MMXVIII • No 3

www.NADOA.org

Contents Feature

NADOA 2018 Officers President Cheryl Hampton 1st Vice President Jason Lucas 2nd Vice Presiden t Luanne Johnson, CDOA Treasurer Stephanie Moore, CDOA Corresponding Secretary

Articles

In This North Dakota Unclaimed Property................................ 5 Legal Updates Federal Climate Lawsuit Dismissed........................... 18 Texas Murphy Exploration & Production v. Adams. ....... 18 U.S. Shale Energy II v. Laborde Properties............ 19 Legislative Update – Oklahoma SB168 Revisions........ 20 Institute Thank You Notes............................................ 21 President’s Corner. .................................................1 Decimal Points.......................................................3 Division Order $al.................................................3 Certification...........................................................4 In Memoriam.........................................................6 New Members.........................................................7 Counterpart Connection.........................................8 2018 NADOA Board/Committee Chairs...............28 Calendar of Events. ..............................................30 Issue

Donna King, CDOA Recording Secretary Jennifer Lujano

The NADOA News Magazine is a quarterly publication of the National Association of Division

Order Analysts PO Box 44009 Denver CO 80201

Subscription: By membership to NADOA, at $75.00 per year. News Magazine Editor Rona L. Erickson, CDOA Kaiser-Francis Oil Company Ronae@KFOC.net 918.491.4319 Associate Editor April Luedecke, CDOA April.Luedecke@anadarko.com

Graphic Design Paul Beach

On the Cover: Country Music Hall of Fame and Museum. Photo Courtesy of Nashville Convention and Visitors Bureau.

All rights reserved. No part of this publication may be reproduced/copied without written permission. Editorial disclaimer: The contents of this newsletter are intended for member use only and any other use without permission from the NADOA Board of Directors is strictly prohibited.Articles published herein represent the view of the authors; publication neither implies approval of the opinions expressed nor accuracy of the facts stated and NADOA accepts no liability for misprints.

President’s

Corner

Cheryl Hampton 2018 NADOA President

It’s hard to believe summer has come to an end, school is back in session and the 45th Annual Institute has come and gone. Thank you to all who attended this year’s Institute at the beautiful Gaylord Opryland Hotel & Resort in Nashville. The NADOA Board and Institute Committee were absolutely blown away by the numbers this year! With the ups and downs in the industry, it isn’t always easy to pick a city and hotel to hold Institute, especially when those decisions are made two years in advance. We have had to tighten up our budget these past few years and the individuals on the Board and Institute Committees have done an exceptional job keeping to their budgets. Decisions are made based on what is best for our members and our association. NADOA Institute is the best educational experience in the business. We began offering workshops on the Wednesday before Institute starts a few years ago at no additional cost to attendees. I believe we had the largest Wednesday attendance this year! Where else can you get three days of education for the price of two? Remember, you’re never too old to learn new things! I know that I learn something new at every class I attend even though I’ve been to a class on that subject before. As we move into the Third Quarter we start looking toward the end of the year. NADOA will offer one more webinar in November. The 2018 Board will meet with the 2019 Board to assure a smooth transition of offices and conduct end of the year business. I encourage each and every one of you to join NADOA next year and to get involved. We’ll have more on how you can do that in the next issue. I hope those of you who attended Institute got to meet at least one person you didn’t know before. Even though our members are spread out across several states, our industry is quite small. What a great way to network and get to know your fellow Division Order Analysts! Isn’t it great when you’re sitting in that meeting at work and a co-worker says they really need some information from such and such company but have no contacts and you can say that you have a contact there? A contact you made through NADOA at Institute…or from being on a committee? Never pass up an opportunity to meet other analysts or further your education. Not only will you benefit yourself, but you just might make some pretty good friends!

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N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s

NADOA

Decimal Points

2018 NADOA Article Deadlines

April Luedecke, CDOA Associate Editor

Rona Erickson, CDOA Editor

Fourth Quarter........................ November 9

Regional Reporters

NADOA DIRECTORY UPDATES Remember that the NADOA Directory is “self-service”. If your name, contact information, employer, mailing preference or certification status changes, please remember to update your profile in the directory so fellow analysts and friends can find you. The information in the direc- tory is also the means for NADOA to contact you with email blasts, surveys, ballots and the NADOA News Magazine.

ABADOA

Steptoe & Johnson PLLC dan.swiger@steptoe-johnson.com Donna King, CDOA donna.king@forwardlandllc.com Sharon Siemer, CDOA sharon.siemer@anadarko.com

CAPDOA

DADOA

DALWORTH Lewis Box, CDOA

lbox@comstockresources.com

HADOA

Dale Bender, CDOA dalebender1433@yahoo.com

MAADOA

Angie Coady, CDOA

acoady@vessoil.com

PBADOA

Shawn Thompson shawn.thompson@pxd.com Rebecca Helt, CDOA rebecca.helt@wpxenergy.com

SADOA

If you have a suggestion for someone to act as a Regional Reporter to help NADOA keep abreast of current legislation and legal issues for your region, please submit the name or the name of the firm. Jackie Clotfelter, CDOA jclotfelter@hannaoilandgas.com North Dakota Kimberly A. Backman kbackman@crowleyfleck.com New Mexico Zachary P. Oliva zoliva@kolawllp.com Louisiana Arkansas

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CANDIDATES FOR CERTIFICATION Publication of the following “Certified Division Order Analyst” applicant(s) fulfills the requirement as stated in the Voluntary Certification Policy, III C.2 which states: “…applicant’s name will be published in the NADOA Newsletter or other official publication of NADOA.” This allows the NADOA membership an opportunity to present objections to the certification of the applicant. Any objection to the certification of the applicant must be in writing and signed by a NADOA member or non-member who qualifies his knowledge and objection of the applicant. All such letters will be considered confidential and must be received by the NADOA Certification Committee at the following address within thirty (30) days following the last day of the month in which the Newsletter or other official publication of NADOA was published: NADOA Certification Committee P O Box 44009 Denver CO 80201 If the objection warrants denial of the certification or temporary withholding of certification, the applicant will be notified by Certified Mail.

CANDIDATES FOR CERTIFICATION Richard Codopony – Birmingham, AL Laurie C. Frances – Frisco, TX Valerie Hill – Tulsa, OK Jobeth Hines-Lorraine – Sealy, TX Evelyn Kastner – Windsor, CO Terri McDearman – Houston, TX It’s hard to believe another NADOA Institute is in the books and that fall is upon us! As always, it was wonderful to see everyone again. Speaking of Institute, now is the time to access the Certification Self-Service and record your attendance at NADOA Institute. Institute is identified in the system as “NADOA 2018 45th Annual Institute”. If you also attended Wednesday classes, be sure to enter both the “Wed only” and “Thurs & Fri” pre-authorized credits. Institute is a “Grand Ole Opportunity” to earn a lot of credits from a single event. Don’t miss out

CANDIDATES FOR RECERTIFICATION Melodie Ballard – Plano, TX Vicki Danielson – The Woodlands, TX Alyce Hoge – Foster City, CA Lamar Voight – Fort Worth, TX Diane Wehrenberg – Tulsa, OK William ‘Quint’ Withers – Jackson, MS

CERTIFICATION Brenda Dickey, CDOA

Certification Committee sends reminders to enter employment credits. The Committee approves credit submissions and also performs a courtesy review of CDOAs about six months prior to recertification. Aside from the things I mentioned, keeping certification credits entered timely is the responsibility of the individual and is not monitored by the Committee. The system is available 24/7 for you to review your progress and plan accordingly. We have a lot vying for our attention these days. Personally, I have my certificate hanging just above my desk as a constant reminder to keep my credits updated. Put your certificate where you can see it. Put a reminder on your calendar. Put a string on your finger. Whatever works for you. I used to work with a lady that would call her home answering machine to remind herself that the next day was “jeans day” at work. Do whatever it takes to protect this hard-earned achievement of yours. We know how important your certification is to you. Once again, thank you for the opportunity to serve as your Certification Committee Chair.

by failing to claim it in the system. CDOAs have 60 days from the event to enter their credits in the system per the Voluntary Certification Program Policy and Procedures (IV. Recertification, Section B). Also, be sure to claim your employment credits within 90 days of your CDOA anniversary date . (IV. Recertification , Section A.3). For instance, CDOAs with July 1 effective dates must enter their employment credits by September 30. The

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Unclaimed

Property

1707 North 9th Street PO Box 5523 Bismarck, ND 58506-5523 Phone: (701) 328 – 2800 Fax: (701) 328 – 3650

land.nd.gov

Jodi Smith, Commissioner

July 2018

MEMORANDUM

TO: Unclaimed Property Holders FR: Susan Dollinger, Unclaimed Property Administrator RE: 2018 Unclaimed Property Reporting

ELECTRONIC REPORTING It is time once again to begin preparing annual unclaimed property reports. New this year is the requirement to report electronically. The Division anticipates North Dakota Administrative Rule 85-03 to become effective October 1, 2018. North Dakota accepts electronic reports from all software programs that produce reports in the standard NAUPA II format with either an .hrs or .txt extension (Ex: HRS Pro, UPExchange, Tracker, Chesapeake). Once the report is prepared, holders can either burn it to a CD and submit it with the remittance, email it, or contact unclaimed@nd.gov for secure electronic upload instructions. If you are not currently reporting electronically, free software is available at: https://www.unclaimed.org/reporting/. Please note, this software only generates the file. The file must still be submitted to the state. PRIORITY OF REPORTING The first priority for holder reporting is to report abandoned property to the state of the owner’s last known address. The second priority is to report to the state of incorporation of the business if the owner’s address is unknown. In other words, if abandoned property is being held for owners with addresses in states other than North Dakota, the holder should report that property to each state. NEGATIVE REPORTING A Negative or zero report reflects that no unclaimed property is being held and while it is not a statutory requirement; the submission of a negative or zero report is strongly encouraged and deemed a best practice by most corporate legal and accounting advisors. QUESTIONS If you have additional questions, please visit our website. (https://land.nd.gov/Unclaimed). The holder reporting manual will answer many frequently asked questions regarding deadline, remittance, reciprocity, safe boxes, due diligence and many other topics pursuant to North Dakota Century Code 47-30.1. (https://land.nd.gov/docs/ UnclaimedProperty/UP%20Holder%20Manual.pdf

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Kathy Lynn Lape McLelland By Nora Marquez

Kathy McLelland passed away on May 31, 2018. Kathy was an enthusiastic Division Order Analyst who worked in the oil and gas industry for Gulfmark Energy, SABCO, Kinder Morgan, Inc. and LINN Energy. She volunteered on the Houston Association of Division Order Analysts board of directors

as a Director (2007-2008), First Vice President (2009), President (2010) and Past President (2011). Kathy also volunteered as a co-chairman on the National Association of Division Order Analyst Institute Committee for several years. Those in the oil and gas industry who knew Kathy well knew that she was always willing to

Wanda Kay Davenport Wanda Davenport passed away on Saturday, June 9, 2018. Wanda worked for several companies in Oklahoma City, including Harding & Shelton, Inc. and Ricks Exploration, Inc., prior to becoming an Independent contractor. She was known as a hard worker and a good friend with a ready smile and infectious laugh. A long-time member, Wanda volunteered often for CAPDOA and NADOA, serving many times on NADOA Institute Committees and representing NADOA at the annual Marginal Well Commission event (now Oklahoma Oil & Gas Expo). She had an active church and social life and many friends as well as being survived by a sister, nieces, nephews, aunts and an uncle. She will be remembered with great fondness. help where it was needed. She was fairly quiet, but was the first person to ask what she could do to help. Kathy is survived by her husband, James McLelland, Jr., her daughter Haley Keith and stepson Mason McLelland. Her passions were family, friends and travel - which she did quite often. She loved to spend her time outside of work to see the world with her family and friends. If there was an adventure she could find, she would be there. Kathy especially loved to spend time on the beach with her family or on the water with her husband James. She also was a fan of all of the Houston sports teams and Sugarland teams. Her favorite type of music was rock music and she made sure to attend every Kid Rock concert that came into town. Kathy was always thinking of others. She had a kind soul and enjoyed life to the fullest. If you were lucky enough to call her your friend, you knew that she had a beautiful heart. Kathy will be greatly missed, but we will always remember her dedication to our industry and her courage to live and love life. Good friends never say goodbye, they simply say “See you soon”.

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NADOA Welcomes the following NEW MEMBERS!! Apache Corporation Daniela Haynes Equinor US Sandy Hood

Rockcliff Energy, LLC Cory Roesler

BlackBrush Oil & Gas, LP Jill West

Foundation Minerals, LLC Susyn Chanchom FourPoint Energy LLC David Deagle Lee Vaskey

RSP Permian

Carla Adams

Chesapeake Energy

Sabinal Energy LLC

Dustin Gallup Stacy Parker

Jessica Harriman

SM Energy

Citizen Energy

HighPoint Resources Arielle Poitra

Kory Lough

Joey Stubbings

SRC Energy Inc

Crawley Petroleum Corp Katie Jones Dallas Production Inc. Jennifer Scott

Hilcorp Energy Company Steve Cagle Diana Weldon

Ellen Britt Magdalena Luczak Lindsey Morris

IBM

Steptoe & Johnson PLLC Kevin DeHart

Lisseth Martinez

Diamondback Energy

Logan Swearengin

Marathon Oil

Tri-Energy Asset Management Jobeth Hines-Lorraine

Kassandra Kangieser

Earthstone Energy, Inc.

Meredith Holland

Montego Minerals Leah Jones

Truth Resources LP Vivi Reeves Ultra Petroleum, Inc. Jake Stransky Venado Oil & Gas Mark Kemp Venado Oil & Gas, LLC Kelli Uresti

Eclipse Resources

Reginald Johnson Brett Shaffer Jenna Shaffer

Morningstar Partners LP Libby Chambers Rachel Cluiss

Brenna Johnson Laura Martinez Haley Stackhouse

Encana Services Company Ltd. Kimberly Esser Energen Resources Corporation Shane Giglio

Noble Energy

Seth Jortner

XTO Energy Inc Kelly Ball

Enerplus Resources (USA) Corporation Joseph Dickerson Jon Goldberg

Range Resources Corp. Tyler Jacobs

James Hawkins Russell Mullins Ann Parr Joseph Rodriguez Cindy Sloan Esperanza Zuniga

Stephanie Kinsman Tracy McRae

EnLink Midstream Sarah Lujan

Repsol Oil & Gas USA, LLC Lauren Wesorick Resource Royalty LLC Christy Ewert Rock River Minerals, LP. Crystal Ikeler

EOG Resources

Audrey McCauley

Zachry Exploration, LLC Lauren Martin

EQT Production Company Brian Gerginski

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Counterpart

Connection

Kaprice Pearson Local Association Coordinator

………………………………… Local Reporters for 2018 Magazine ABADOA: Inactive

APPALACHIAN BASIN ASSOCIATION OF DIVISION ORDER ANALYSTS (ABADOA) Association Based in the Pittsburgh, Pennsylvania Area Serving NY, OH, PA, WV (Inactive)

ALTDOA:

Inactive

CAPDOA:

Melissa Martin – Melissa.Martin@chk.com

DADOA:

Lauren Roswold – lauren.roswold@whiting.com

………………………………… ARKLATEX ASSOCIATION OF DIVISION ORDER ANALYSTS (ALTDOA) Association based in the Shreveport, LA Area (Inactive) ………………………………… CAPITAL ASSOCIATION OF PROFESSIONAL DIVISION ORDER ANALYSTS (CAPDOA) Association based in the Oklahoma City, OK Area

DALWORTH: Melanie Finnegan

– Mfinnegan@comstockresources.com

HADOA:

Cosette Barnett – cosetteb@gmail.com

MAADOA:

Diana Richecky – diana@dukedrilling.com

PBADOA:

Nicki Scoggins – Nicole.Scoggins@pxd.com

SADOA: Jamie Meyer – Jamie.Meyer@williams.com …………………………………

N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s

Speaking of networking opportunities, we are still looking for some new officers for the CAPDOA board this year. These volunteer positions offer numerous benefits through serving our organizations. The time commitment is pretty minimal, but the benefits are enormous. Through serving you have structured opportunities to meet with other analysts as well as other professionals throughout the industry. You will have the chance to practice skills you may not do often in your day job. Finally, you have the benefit of serving your community in helping to provide great learning opportunities for yourself and our analysts. But don’t take it from me, check out what some of our current and past board members have said! • “Serving on the CAPDOA Board has given me an opportunity to make valuable connections with other division order analysts in the industry. You also gain insight into the local and national organizations.” ~Valerie Wible, current Director • “Serving on the board has given me the opportunity to re-connect with former colleagues and meet new industry professionals. Professional development is important to me and being involved in an organization that encourages networking and continuous education is invaluable. In my current VP role, I strive to gather new and diverse speakers and find other ways to enhance our members’ experience. I look forward to serving CAPDOA either as an officer or active member for years to come!” ~Whitney Katigan, current Vice President • “I have enjoyed the time I spent on the CAPDOA board! I was able to get to know other DO Analysts on a one on one basis and put names to faces of many that were before mere acquaintances. You build friendships and when I need to reach out to a company I know who I can count on for help.” ~Roxanne Heath, former board member • “Serving on the Board takes me out of my comfort zone forcing me to grow as an individual. While I enjoy a lazy afternoon of reading on my back patio, I also don’t want to become stagnant. If you’re the type of person who enjoys stretching yourself, I encourage you to run for an office. ~ Sherry Werth, current Director If you are interested in serving on the CAPDOA board, please reach out to Sherry Werth at sherry.werth@roanresources. com . We promise to teach you everything you need to know! Here at CAPDOA we have wrapped up the summer and are getting back to business. Our August speaker was Sydnie Davidson. Ms. Davidson is the Manager of the Oil and Gas Public Assistance Department of the Oklahoma Corporation Commission. She gave us some very helpful tips on navigating the OCC and the Tax Commission’s websites. This information will be very useful for our analysts! Hope you had a great summer friends!

CAPDOA has had a number of great events this year, but our Seminar so far takes the cake! Our Vice President, Whitney Katigan, put together a phenomenal group of speakers that were diverse, educational, and even entertaining. We kicked off seminar with an enterprise overview of the industry and how Division Orders fits into the whole oil and gas industry. We also had the always entertaining Gayle Riggs come tell us (finally!) why geologists take field trips. The seminar was also populated with a few out of town guests from FourPoint Energy and Longpoint Minerals in Colorado who helped us to understand the current increases in mineral buying and the impact on Division Order Analysts. There was much food for thought in that presentation! The seminar was rounded out with Maria Simpson and April Jorgensen speaking on the benefits of the Women’s Energy Network. The organization is doing great work in our community and provides wonderful networking opportunities for our analysts. Finally, we heard from Dr. Tom Massey on emotional intelligence and how we can continue to understand ourselves better and improve each day. Many thanks to Whitney on such an incredible line up!

April Jorgenson

For more information regarding CAPDOA, please visit our website at www.capdoa.org.

Zane Mellinger

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………………………………… DALWORTH ASSOCIATION OF DIVISION ORDER ANALYSTS (DALWORTH) Association serving the Dallas/Fort Worth, TX Area

Calling all Denver Division Order Analysts ... We want you on the 2019 DADOA Board! Interested in growing your network and helping plan local luncheons and educational seminars? Contact the 2018 President, Stan Vargas, for more information: Stanley.Vargas@encana.com 2019 Positions available: President,Vice President, Secretary,Treasurer and Director Check us out: www dadoa org

DALWORTH 2018 BOARD President: ............................................................................Melanie Finnegan 1st Vice President: .......................................................................... Lewis Box 2nd Vice President:.............................................................. Jennifer Dodgen 3rd Vice President: .............................................................. Kimberly Ginter Recording Secretary: .............................................................. Sharon Clute Corresponding Secretary: ............................................................ Eli Murray Treasurer: ........................................................................Angela Korthauer Director – Compliance: ......................................................Brenda Lunsford Director – House: ....................................................................... Vickie Coles Director – Hospitality: ...........................................................Megan McKee Director – Historian: ......................................................... Cindy Marhanka Director – Scholarship: ................................................................Kay Brown Board Advisor: ............................................................................... Lewis Box NADOA Liaison: ...............................................................Melanie Finnegan For information regarding DALWORTH, please visit our website at www.dalworth.org. ………………………………… DENVER ASSOCIATION OF DIVISION ORDER ANALYSTS (DADOA) Association based in the Denver, CO Area Denver Association of Division Order Analysts’ “DADOA” year has been jam packed with bimonthly luncheons and two educational seminars! In April we hosted an Unclaimed Property Seminar and in May a Texas & Colorado Spring Seminar. Both were a huge success and we thank all our wonderful presenters and everyone who attended! Special shout out to Sandi Rupprecht who helped organize the two events. We hope to see you at one of our two remaining luncheons this year on: September 17 and November 19!

For more information regarding DADOA, please visit our website at www.dadoa.org. ………………………………… HOUSTON ASSOCIATION OF DIVISION ORDER

ANALYSTS (HADOA) Association based in the Houston, TX Area

HADOA Summer Seminar June, 2018 Driving south on I-45 mid-June, I noticed the dash thermometer had climbed to a scorching 100f. Then longingly I thought of HADOA colleagues chilling to refreshment provided by Fortis Minerals at Local Pour, Woodlands, which I missed due to a previous commitment. Heard Local Pour is a great venue! Fortunately, I managed to attend all the speakers for the day at HADOA’s Summer Seminar, warmly hosted also by Fortis Minerals, at its stunning Spring campus. HADOA Board would like to express our appreciation for the kind hospitality and also give a shout out to all our great speakers!

Morning started refreshingly with a quick breakfast and then on to our first speaker, Gail Borden, left, of Benchmark Communications, who reminded us that flexibility is key for effective communication. A less effective way to communicate was

N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s

also revealed through our role playing. JUST DO IT works better for exercise than office situations. Better to establish a rapport before launching into our demands! Mid-morning found the group listening intently as George Snell of Snell Law Firm helped us through the suspense of royalty payment issues. He recommended references such as “Texas Title Standards” and “Texas Division Order Statute.” Major perk was offered as George welcomed phone calls at his office. The billing clock starts ticking only when he puts advice in writing. Let’s take him up on the offer and keep those phone calls coming into Snell Law Firm. Just prior to lunch we heard from Natalie Lea on equipping owners for success: knowledge is power. Among her great tips are that we communicate with owners early in the process, continuously improve communication and marry education with preparation. And remember, knowledge isn’t power until applied! A light sandwich and salad lunch fortified us for the afternoon speakers. We enjoyed a double blessing with Cyndi Harwell Nielsen, who gave the skinny on Legislative Updates and had her husband, Paul Nielsen complete the Q&A after the group put our heads together to interpret mineral reservations, whether floating or fixed. Kacie Bevers spoke on Case Law. Engaged in a bit of audience participation, Kacie briefed a few cases and we voted our best guess on court rulings. One specific case involved the question of royalty payment responsibility. There have been numerous conflicts on the payment obligations issue. Is the Lessee under Oil and Gas Lease, or the Operator under Joint Operating Agreement responsible? Will leave you in suspense regarding the correct answer! Curt Horne, Paradigm Land LLC was last on the docket with Conveyances, giving a warning on real estate fraud occurring through an Agent under Power of Attorney. Another interesting tidbit, AIFs and Trustees are unable to assign their responsibilities. Curt kindly kept it brief, sensing that the crowds were getting thirsty! Thanks to HADOA’s Board for making this happen, and for keeping us on schedule! And thanks again to Fortis Minerals and each of our inspiring speakers! Looking forward to NADOA’s big event at Gaylord Opryland Resort, Nashville, September 5-7, 2018. See you there! For additional information regarding HADOA please view our website: www.HADOA.org. ………………………………… MID-AMERICA ASSOCIATION OF DIVISION ORDER ANALYSTS (MAADOA) Association based in the Wichita, KS Area Be sure to check out our website at maadoa.org. It has useful links to

various operations in Kansas.

Diana Richecky, MAADOA Secretary diana@dukedrilling.com 316-267-1331 ………………………………… PERMIAN BASIN ASSOCIATION OF DIVISION ORDER ANALYSTS (PBADOA) Association based in the Midland, TX Area

PBADOA has had a very busy quarter PBADOA was excited to host our first social on August 9. We know that life can get a little crazy and wanted to encourage our members to relax and interact on a more personal level. We were pleased with the turnout and

look forward to hosting another event very soon. September has been a busy month! As a result of corporate support and local scholarships, we were very pleased to see many PBADOA members, including the entire board, at the 2018 NADOA Institute in Nashville. Our September 20 luncheon will feature Emily Statton Smith, Senior Counsel for Pioneer Natural Resources. She will be discussing case law updates and recent issues in conveyancing. Fall is just around the corner and that marks the time for PBADOA Board Elections. We want to encourage all our members to consider serving on the local Board. Please contact any of the current officers or visit our website at www.pbadoa.org if you would like more information. I have had the privilege of being the Director of Publicity this year. I have really enjoyed the position. Not that I am very creative, but I have had the opportunity of being able to create our invitations for our monthly luncheons and create the PowerPoint presentations that continuously run at our luncheons before our speaker starts. It has definitely helped me learn new technology, such as the social media part of the position. I have enjoyed getting to know the other board members that work for other companies. It has been a great experience and I would definitely serve on the board in the future. I was also able to get some feedback from some of the past board officers. Mindy Warren, CDOA, CPLTA says, “I had the privilege and pleasure of being President on the PBADOA Board exactly 20 years ago. I had been in the industry only 8 years before that and had only worked for 2

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very small companies. There were little to no opportunities to network and meet others in my field back then. Email and social media were not the norm then. Serving on the Board changed everything. I got to know every single person in the organization and have maintained strong alliances from those years to this day. Many of those associations were the only reason I was able to succeed in the development of my career over the last 30 years. I am grateful even now for my privilege of being on the Board and encourage anyone, old or new to the industry, to get involved and take your career path to higher levels.” Another past board member Vicki Jones says, “I have served on numerous committees and served at different positions on the board. Every time I volunteered, I met new people and made new friends. Serving on the board has helped me connect with other business contacts, network with old contacts and help me appreciate all the work that is done behind the scenes. It is an awesome opportunity and I would highly encourage everyone to serve at least once. If you are like me, I enjoyed it so much, I kept serving.” For more information regarding PBADOA, please visit our website at www.pbadoa.org. ………………………………… SOONER ASSOCIATION OF DIVISION ORDER ANALYSTS (SADOA) Association based in the Tulsa, OK Area The SADOA Summer Seminar was held on June 6 at the OSU Tulsa campus.We had a great turnout with fantastic speakers who covered restricted property interest, retained acreage clauses and post production costs, private trusts as owners of minerals, how to enhance our personal productivity, the value of continued education, and we had a “good discussion about bad conveyances.”Thank you to all of our speakers and to all of those who attended. Congratulations to Joey Stubbings at Citizen Energy II, the lucky winner of the SADOA $1,000 scholarship to attend the 2018 NADOA Institute! Our August 8 luncheon at the Tulsa Country Club featured Randy Foutch, Chairman and CEO of Laredo Petroleum who spoke on solar and wind energies and their impact on the oil and gas industry.The October 10 luncheon will feature Kacie Bevers of Steptoe and Johnson; her topic is: Curative Game Plan: Title Curative Issues and Game-Winning Solutions. On

December 6, SADOA will host the Holiday Dinner Meeting at the Gilcrease Museum; we are excited to try a new location! October not only brings nicer weather, but it also brings the SADOA 2019 Board elections! Serving on the Board is a great way to give back, improve your connections, and provide fresh perspective.Are you good at taking notes? Perhaps Secretary is the position for you! Do you enjoy organizing get-togethers? You would be a natural 2nd Vice President or Director! We have several positions available, so if you have ever considered running for the board, or if you know someone who would be a great fit, please reach out to Lisa Daniels at (918) 863-7177 or ldaniels1027@gmail.com I am serving as the 2018 SADOA Second Vice President and my duties were to plan and present the Annual Summer Seminar. I was nervous, as I had never held a board position before but accepted the challenge. Long story short, despite the self- inflicted stress, the Summer Seminar went off without a hitch and was a great success. I am very grateful I decided to step out of my comfort zone and accept this position. I have made great friends, met some wonderful people and have all around just enjoyed being a part of the action. I would encourage anyone even considering a position on their local or national board to “just do it!” You’ll be glad you did. ~ Cyndi Bryant Serving on the board has been exciting; you meet many individuals that you know by name but can now put a face with. You also gain knowledge about the other companies within the industry as you meet individuals or find topics for a newsletter. ~ Janet Cavanah Serving as the 2018 SADOATreasurer has allowed me to see what goes on “behind the scenes” regarding planning the SADOA luncheons, summer seminar and Christmas party and has given me a greater appreciation for those who served in the past. Serving does require time and commitment, however the benefits of meeting and working with fellow colleagues has definitely been time well spent. ~ Carrie Hughes For more information regarding SADOA, please visit our website at www.oksadoa.org. …………………………………

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NADOA 2018 Regional Seminar By Jeff Kliewer, CDOA, Education Chair

• “Curative Game Plan: Title Curative Issues and Game- Winning Solutions” —Kacie Bevers, J.D. – Attorney | Steptoe & Johnson PLLC • “Case Law Update: The Biggest News from Texas Courts” —Kacie Bevers, J.D. – Attorney | Steptoe & Johnson PLLC • “Division Order Calculations” —Donna King, CDOA – Manager | Forward Land LLC • “Bridging the Gap of Communication between Division Orders & Royalty Owners” —Jeff Kliewer, CDOA – Lead Division Order Analyst | Concho Resources Inc. • “Community Leases” —Michael S. Browning, J.D. – Attorney | MSB P.C. (Without any committee members vetoing it, I took the chance to plug myself into the speaker lineup to share some thoughts from my research on a topic I’m very passionate about. Hopefully it was helpful!) With that said, I’m very grateful for the other speakers who volunteered their time to prepare, travel, and present. We were privileged by their willingness to share with us! With the help of our sponsors, each attendee was provided a seminar manual and a goodie bag; and a number of door prizes were given out throughout the day as well. With the reviews in, the consensus is that the seminar was a success! I’m grateful for those who volunteered to help organize the seminar including Jennifer Lujano, Kaprice Pearson, Lauren Dauer, Cheryl Hampton, Donna King, Jason Lucas, Sandi Rupprecht and Chris

On July 31, a group of land professionals from Austin, San Antonio, Houston, Midland, Oklahoma City, and even Denver converged in New Braunfels, TX at the New Braunfels Convention Center for the 2018 NADOA Regional Seminar. It was well attended with 45 registrants,

5 speakers, and 2 board member volunteers. It was our pleasure to host division order analysts, division order techs, lease and title analysts, owner relations analysts, landmen, attorneys, and others, most of whom are NADOA members, but others who are not. What a great opportunity to demonstrate to the non-members the excellent educational and networking opportunities that NADOA has to offer! Six hours of credits were offered for those who are a CDOA, CPLTA, or CPL; and each presentation educated us on different aspects of the oil and gas industry. The list of topics and speakers included the following: • “Unrecorded Agreements and the Duty of Inquiry” — Melissa Munson, J.D. – Attorney | Steptoe & Johnson PLLC

Tucker. This wouldn’t have happened without your help. Thank you!

G r o w t h T h r o u g h E d u c a t i o n - J u l y / A u g u s t / S e p t e m b e r 2 0 1 8

Colorado Ballot Initiative #97

2500’ Setback Requirement for Oil and Gas Development GIS-Based Impact Assessment July 2, 2018 Colorado Oil & Gas Conservation Commission

• An estimated 54% of Colorado’s total land surface would be unavailable for new oil and gas development by adopting the buffer zone setbacks and federal land exemption proposed by initiative #97. Of the non-federal land in Colorado, 85% would be inaccessible using these same criteria. • 78% of Weld County surface land (85% of non-federal land) would be off-limits to new oil and gas development. In Colorado’s top five oil and gas producing counties combined, 61% of the surface acreage (94% of non-federal land) would be unavailable. • “Vulnerable areas” buffers, which initiative #97 defines to include a range of surface hydrologic features, would have a significantly larger impact than “occupied structure” buffers on making surface lands inaccessible to new oil and gas activity.

PERMANENT SPORTS FIELDS, AMPHITHEATERS, PUBLIC PARKS, PUBLIC OPEN SPACE, PUBLIC AND COMMUNITY DRINKING WATER SOURCES, IRRIGATION CANALS, RESERVOIRS, LAKES, RIVERS, PERENNIAL OR INTERMITTENT STREAMS, AND CREEKS, AND ANY ADDITIONAL VULNERABLE AREAS DESIGNATED BY THE STATE OR A LOCAL GOVERNMENT. THE PEOPLE OF THE STATE OF COLORADO HEREBY ESTABLISH THAT ALL NEW OIL AND GAS DEVELOPMENT NOT ON FEDERAL LAND MUST BE LOCATED AT LEAST TWO THOUSAND FIVE HUNDRED FEET FROM AN OCCUPIED STRUCTURE OR VULNERABLE AREA. FOR PURPOSES OF THIS SECTION, THE REENTRY OF AN OIL OR GAS WELL PREVIOUSLY PLUGGED OR ABANDONED IS CONSIDERED NEW OIL AND GAS DEVELOPMENT. Note that the 2018 initiative #97 exempts “federal land” from the 2500-foot setback requirement. Other differences from the 2016 initiative include defining “vulnerable areas” (roughly equivalent to “area of special concern”) to include reservoirs but not riparian areas; and proposing to allow state or local governments the right to designate “vulnerable areas” independently. This report does not directly analyze the extent to which mineral development would be impacted by the decrease in surface acreage available for new oil and gas development

Colorado ballot initiative #97, received by the Colorado Secretary of State in January 2018, is currently in the signature-collecting phase (through August 6, 2018) for inclusion on the November ballot. Similar to initiative #78 proposed in 2016, initiative #97 would designate 2500-foot buffer zones around “occupied structure” and “vulnerable areas” (see Appendix for full text). Initiative #97 proposes changing the Colorado Revised Statutes, as opposed to the 2016 initiative that aimed to modify the state constitution. At the request of COGCC commissioners, the potential impact of initiative #97 on surface lands available for oil and gas development has been prepared. There are subtle, yet significant, differences in the language of the proposed 2018 initiative versus the 2016 version. This analysis addresses those changes and incorporates new GIS information building upon a study published by the COGCC in 2016 (methods and technical details of that study are available here).

Initiative #97 states:

“OCCUPIED STRUCTURE” MEANS ANY BUILDING OR STRUCTURE THAT REQUIRES A CERTIFICATE OF OCCUPANCY OR BUILDING OR STRUCTURE INTENDED FOR HUMAN OCCUPANCY, INCLUDING HOMES, SCHOOLS, AND HOSPITALS.

“VULNERABLE AREAS” MEANS PLAYGROUNDS,

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facilities or hydraulic fracturing operations. This report also does not attempt to quantify economic impacts resulting from the reduction of available surface acreage for new oil and gas development facilities or hydraulic fracturing operations. DATA & ANALYSIS The methodology and data sources for this study remain nearly identical to those used for the COGCC 2016 report titled 2500’ Mandatory Setback from Oil and Gas Development (available on the COGCC website at http://cogcc.state.co.us/documents/library/Technical/ Miscellaneous/Init_78_Proposed_2500ft_Setback_ Assessment_Report_20160527.pdf ). • Excluding federal surface land as identified via US Bureau of Land Management (BLM) GIS data (https:// navigator.blm.gov/data?keyword=d8420fd21cd3f159). • Using the most recent USGS National Hydrography Dataset (NHD) information.  Updating existing Colorado address point data and incorporating new address point data for counties that were not available in 2016. • Removing USFWS National Wetlands Inventory (NWI) GIS data from the analysis as riparian areas are not explicitly mentioned in the initiative #97 language. 1 As was the case in 2016, there are limitations and assumptions associated with using address point data to represent occupied structures, and no aggregated GIS data was available for public and community drinking water sources, playgrounds, permanent sports fields, amphitheaters, public parks, and public open spaces. Additionally, address point data was not available for the following counties: Baca, Cheyenne, Crowley, Jackson, Kiowa, Morgan, Phillips, Prowers, Otero, Washington, and Yuma. Because of data access restrictions, address point data for the following counties is from 2016 or prior: Fremont, Las Animas, Lake, Lincoln, Logan, and Moffat. RESULTS Geographic Information System (GIS) calculations show the proposed 2500-foot buffers of initiative #97 could preclude oil and gas development on more than 54% of the total land surface area of Colorado (Table 1). If considering only non-federal land, 85% of the land Changes made for this study include:

surface would be unavailable. As was the case in 2016, the proposed buffers for “vulnerable areas” (that includes lakes, rivers, perennial or intermittent streams, and creeks) would be the most impactful. The proposed federal land exemption, which in Colorado would be an estimated 36% of the state’s total surface area, does keep land available for oil and gas development in western Colorado, but has little impact on lands east of the Rockies including in Weld County. For Weld, an estimated 78% of surface land (85% of non-federal land) would be inaccessible to development with proposed buffers in effect. Maps prepared for this report show the potential areal impact of proposed buffers statewide (Figures 1 – 3). The GIS datasets used to generate these maps (available on the COGCC website at http://cogcc.state.co.us/documents/data/ downloads/ gis/2018_Init_97_2500ft_Buffer_Zones.zip) allow for more localized analysis. ______________________ 1 Note that if local and/or state governments were to designate all wetlands as “vulnerable areas” in addition to what initiative #97 already proposes, an estimated 495,000 acres (<1% of the state’s total land, and primarily located in the San Luis Valley region) could also be placed off-limits to oil and gas development.

DEPTH. KNOWLEDGE. SCALE.

At Concho, we believe our success is the net result of our assets and resources working together to achieve our strategy. It’s our top-tier team, our in-depth knowledge of the Permian Basin, and the scale of our operations that have made us an industry leader and the largest pure-play Permian operator.

LEARN MORE AT WWW.CONCHO.COM

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2500' Buffer Zone for “Occupied Structure” AND "Vulnerable Areas"

Total Surface Area

Federal Surface Area

Non-Federal Surface Area

2500' Buffer Zone for “Occupied Structure”

2500' Buffer Zone for “Vulnerable Areas”

% of Non-Federal Surface Area

% of Total Surface Area Acres

% of Total Surface Area

Acres

Acres % of Total

Acres

Surface Area Acres

Statewide

36,287,528 54.5%

85.4%

66,620,310 24,126,153 36.2% 42,494,157 63.8% 13,726,084 20.6%

32.3% 35,388,811 53.1%

83.3%

Weld

2,005,435

78.1% 37.7% 60.6% 26.6% 86.1% 61.4%

85.0% 99.8% 99.9% 99.8% 96.6% 93.6%

2,568,948

210,603

8.2% 2,358,345

91.8% 1,076,897 37.8% 270,574 60.7% 394,938 26.6% 170,076 89.1% 514,030 65.7% 2,426,515

41.9% 14.3% 36.3%

45.7% 1,856,685 37.8% 712,661 59.8% 658,432 30.9% 548,682 18.9% 2,616,301 34.6% 6,392,761

72.3% 37.6% 60.5% 26.6% 85.7% 59.9%

78.7% 99.6% 99.7% 99.8% 96.2% 91.3%

Garfield La Plata

713,842 659,119 548,864

1,893,530 1,177,938

62.2% 715,592 39.3% 660,101 73.4% 549,988 10.9% 2,719,832 34.3% 7,003,858

1,087,758

427,657

Rio Blanco Las Animas

2,064,877 1,514,889

8.2%

2,627,077 6,554,338

3,051,421

331,589

16.8%

Top 5Producing Counties

10,666,534 3,662,676

22.7

Table 1 – Surface area impact of proposed 2500’ buffers (with federal land exemption) statewide and for top five oil and gas producing counties. Table 1 – Surface area impact of proposed 2500’ buffers (with federal land exemption) statewide and for top five oil and gas producing counties.

Figure 1 – 2500’ buffer zones for “occupied structure”. No addressed location data available for counties outlined in yellow.

Figure 2 – 2500’ buffer zones for “vulnerable areas”.

Figure 3 – 2500’ buffer zones for both “occupied structure” and “vulnerable areas”. The top five oil and gas producing counties in Colorado are outlined in blue. Unshaded areas would be the only non-federal land available for new oil and gas surface development.

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Legal

Update Federal Judge dismisses Climate Lawsuit

In what may prove to be a precedent-setting decision, on June 25, 2018, U.S. District Judge William Alsup dismissed the climate liability lawsuit brought by the cities of Oakland and San Francisco against five oil companies. “We must weigh this positive: our industrial revolution and the development of our modern world has literally been fueled by oil and coal. Without these fuels, virtually all of our monumental progress would have been impossible. All of us have benefitted. Having reaped the benefit of that historic progress, would it really

be fair to now ignore our own responsibility in the use of fossil fuels and place the blame for global warming on those who supplied what we demanded?” Judge Alsup decided that Congress and the president are best suited to determine what to do about human greenhouse gas emissions from the use of fossil fuels, rather than cities, states or the judiciary being allowed to set U.S. domestic and international energy and climate policy, which would violate the division of powers set by the U.S. Constitution.

TEXAS

Murphy Exploration & Production Co.—USA v. Adams

On June 1, 2018, the Texas Supreme Court reversed the judgment of the court of appeals and issued a narrow 5-4 opinion interpreting an offset clause in a 2009 oil and gas lease. The majority holding was that the language “offset well” does not necessarily refer to a well to protect the leasehold against drainage, concluding that the clause referred to a well drilled anywhere on the leased premises that was drilled to a depth required by the lease. The four dissenting justices criticized the majority opinion for disregarding the common understanding of the meaning of “offset well” language as designed to protect the leasehold from drainage. Dissenters also noted that the Court’s interpretations essentially stripped the lessors of the leasehold protections the offset clause may have been designed to protect and rendered the word “offset”, as used in the lease, meaningless.

event a well is completed as a producer of oil and/or gas on land adjacent and contiguous to the leased premises, and within 467 feet of the premises covered by this lease, that Lessee herein is hereby obligated to, within 120 days after the completion date of the well or wells on the adjacent acreage, as follows: (1) to commence drilling operations on the leased acreage and thereafter continue the drilling of such off-set well or wells with due diligence3 to a depth adequate to test the same formation from which the well or wells are producing from on the adjacent acreage; or (2) pay the Lessor royalties as provided for in this lease as if an equivalent amount of production of oil and/or gas were being obtained from the off-set location on these leased premises as that which is being produced from the adjacent well or wells; or (3) release an amount of acreage sufficient to constitute a spacing unit equivalent in size to the spacing unit that would be allocated under the lease to such well or wells on

The lease contained the following provisions:

“It is hereby specifically agreed and stipulated that in the

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