2019 Q1

National Association of Division Order Analysts January / February / March 2019



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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 MMXIX • No 1


Contents Feature

NADOA 2019 Officers President Jason Lucas 1st Vice President Luanne Johnson, CDOA 2nd Vice Presiden t Lewis Box, CDOA Treasurer Jeff Kliewer, CDOA Corresponding Secretary Jennifer Lujano Recording Secretary Michelle Harris, CDOA The NADOA News Magazine is a quarterly publication of the National Association of Division


Colorado Supreme Court: COGCC v. Martinez. .......... 7 Legal Update: Newfield v. State of North Dakota. ........ 8 NDIC Rule Changes Reminder....................................... 9 Unclaimed Property Compliance.................................. 10 Tributes Carla McCarty, CDOA............................................... 24 Ellis Rudy, CDOA....................................................... 26

In This

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

President’s Corner. .................................................1 Decimal Points.......................................................2 Division Order $al.................................................3 Certification...........................................................4 Membership Recognition Nominations for 2019......5 Counterpart Connection.......................................13 New Members.......................................................19 2019 Institute.......................................................20 2019 Board/Committee Chairs.............................29 Calendar of Events. ..............................................31

Graphic Design Paul Beach

On the Cover: Fort Worth Skyline in Spring Photo Courtesy of Fort Worth Convention & 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.



Jason Lucas 2019 NADOA President

My name is Jason Lucas and I am honored to be the President of NADOA in 2019. We are so excited to have a great year! We currently are 1042 members strong. I am currently writing this fireside chat in a balmy 14 degree, windchill-adjusted 3 degree weather. First and foremost, thank you so much for being part of a wonderful organization. We would not be NADOA without all of you (sounded less obvious in my head). We are looking forward to an amazing 2019, but challenges await. For our Colorado friends, those challenges take the form of Senate Bill 19-181. The “Boulder Bill” tightens regulation of the oil and gas industry by allowing local governments to control permitting, among other measures. This bill would strip the regulatory commission of many functions and allow each local government to decide permitting regulations and other functions. Yet there is hope in the state, as citizens in Colorado voted against a proposition last November that would increase well setbacks to an unreasonable 2,500 feet – this rejection by voters saved a reported 43,000 jobs and an excess of $200 million in tax revenue in the first year alone. For our Industry, these challenges will come in both domestic and foreign forms. Domestically, the Permian Basin is setting records in U.S. energy growth, helping the U.S. to become a net energy exporter in 2020, and creating in excess of 10,000 jobs in the Texas last year alone. In order for continued energy independence, we need our leaders to stop beating the drum on lower gas prices without a grasp of full policy understanding. Things like the “Green New Deal” are all the rage amongst the uneducated. It would be analogous to me touting a regulation to limit time travel. Both are equally impossible. Foreign challenges include both Syria and Venezuela. These are more examples of geopolitics and oil intertwining to shape world history. It’s going to be an interesting year.

As always, be vocal in support of our industry. We accomplish many amazing things every day. I look forward to seeing what tomorrow holds! Thanks!


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Better together.

Decimal Points

We’re integrating industry leading land and accounting systems to deliver the best in class field-to-finance solution.

April Luedecke, CDOA Associate Editor

Rona Erickson, CDOA Editor

Regional Reporters


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















Dale Bender, CDOA dalebender1433@yahoo.com





Angie Coady, CDOA




Nicki Scoggins



Jane Green, CDOA

Contact us today to learn more! Call 1.833.369.7092 Email sales@ilandman.com



Jackie Clotfelter, CDOA jclotfelter@hannaoilandgas.com

North Dakota Kimberly A. Backman


New Mexico

Zachary P. Oliva





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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.

2019 NADOA Article Deadlines

Second Quarter...............................April 26 Special Institute Edition.....................June 7

Third Quarter........................ September 13 Fourth Quarter........................ November 8


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CERTIFICATION By: Eli Murray, CDOA NADOA Certification Chairman

The Certification Committee would like to extend a heartfelt thank you to Brenda Dickey and Heidi Davis for their years of service, and we are excited to welcome Bonnie Didrickson and Megan McKee to the team! The Certification Committee has held its first meeting, and we are excited about the changes in store for 2019. The 2019 Board has approved the following members to serve you in the coming year:



Eli Murray, CDOA Sherry Werth, CDOA Darryn McGee, CDOA Yolanda “Yoli” Bazan, CDOA


COG Operating, LLC

Recertification Credits

sherry.werth@roanresources.com dmcgee@protege-energy.com

Roan Resources

Recertification Applications Applications & Publications

Protege Energy LLC



Review Manual/Forms

Lewis Box, CDOA

LBox@comstockresources.com Bonnie.Didrickson@anadarko.com mmckee@rangeresources.com

Comstock Resources

Testing Policies

Bonnie Didrickson, CDOA Megan McKee, CDOA

Anadarko Petroleum Company

Range Resources

Many CDOA’s have had issues with the Self-Service system. The Certification Committee has worked diligently to alleviate any problems, and the majority of the glitches have been resolved. However, the Self-Service system is being upgraded to run on a newer technological platform, and the goal is to have the upgrades completed during the 2nd Quarter. These changes should not affect the CDOA point submissions, but should you discover any bugs, please contact me immediately. As a reminder, Recertification Credits must be added within 60 days of event attendance. Failure to timely enter the credits may result in forfeiture of those points. Employment Points may be requested during the 90 days following the anniversary of the CDOA’s individual certification year. If you have a January 1st effective date, you have from January 1st until March 31st to request employment points. If you have a July 1st effective date, you have from July 1st until September 30th to request

employment points. Please do not request employment points in July if you have a January effective date and vice versa. Lastly, the Committee is working on revising certain chapters within the Certification Review Manual as well as augmenting Part II of the test to more comprehensively test Division Order calculations. The goal is to present these proposed changes to the Board by the end of 2019 for implementation in 2020. Should you have any questions or concerns regarding such changes, please do not hesitate to contact me with your thoughts.

Thank you for the opportunity to serve you as the 2019 Certification Committee Chairman.

Eli Murray, CDOA emurray@concho.com

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.


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Tanya Almon – Mt. Vernon, IN Mary Frances Anglin – Oklahoma City, OK Lisa Buffaloe – Houston, TX Laurie Chase – The Woodlands, TX Amber Croisant – Oklahoma City, OK Mary Drennan – Dallas, TX Melissa Fontana – Houston, TX Jane Green – Tulsa, OK Lisa L Greer – Dallas, TX Michelle Harris – Oklahoma City, OK Jamie S Hausher – Tulsa, OK Christine Herron – Houston, TX Lesley Laidley – Houston, TX Gerald Llewellyn – Houston, TX Amanda Lynch – Oklahoma City, OK Darryn McGee – Tulsa, OK

Eli Murray – Dallas, TX Chris Nightingale – Houston, TX Jeff Shannon – The Woodlands, TX Amy Stiner – Oklahoma City, OK Christie Taylor – Wynnewood, OK Joyce Vaughn – Tulsa, OK Sherry R Werth – Oklahoma City, OK

Congratulations to the following new CDOAs!!

Charlene Bilski – Houston, Texas Crystal Pack – Houston, Texas Keith Voystoski – Houston, Texas

2019 Membership Recognition Awards It’s never too early to think about the accomplishments of our members and the companies that support them, but it can be too late. So, start thinking now about that special person and/or company who should be nominated to receive one of NADOA’s Special Recognition awards. the Division Order profession through demonstrated leadership contributions to the industry and the profession during their career.

Russell Schetroma Memorial Speaker’s Award:

NADOA will recognize the following at the 2019 Institute in Fort Worth, TX:

Presented to the individual who has contributed to NADOA’s growth and development by speaking, educating and sharing knowledge on numerous occasions to the NADOA membership, the Division Order profession and/or the industry during the past year. Corporate Award: Presented to the group/company that has contributed the most to NADOA’s growth and development, the Division Order profession, and/or the industry during the past year. Nomination form follows or may be found on the homepage of the NADOA website (www.NADOA.org) Please forward nominations to Sandi Rupprecht (srupprecht@enerplus.com)

Interaction Award: Presented to the NADOA member or affiliated organization who has demonstrated leadership in the promotion of the profession to the industry and the community. Education Award: Presented to the NADOA member who has achieved a level of unusual distinction in NADOA’s education activities, as demonstrated by their contribution of time and service to the betterment of Division Order professionals. Ellis Rudy Memorial Lifetime Achievement Award: Presented to the NADOA member who has exemplified

Deadline for nominations is May 31, 2019.


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2019 Nomination Form for NADOA Membership Recognition Awards

I would like to nominate ___________________________________________ for the award(s) marked below:

_____ Interaction Award : Presented to the NADOA member or affiliated organization who has demonstrated leadership in the promotion of the profession to the industry and the community. _____ Education Award : Presented to the NADOA member who has achieved a level of unusual distinction in NADOA’s education activities, as demonstrated by their contribution of time and service to the betterment of Division Order professionals. _____ Ellis Rudy Memorial Lifetime Achievement Award : Presented to the NADOA member who has exemplified the Division Order profession through demonstrated leadership contributions to the industry and the profession during his/her career. _____ Russell Schetroma Memorial Speaker’s Award : Presented to an individual who has contributed to NADOA’s growth and development by speaking, educating and sharing knowledge on numerous occasions to the NADOA Membership, the Division Order profession, and/or the industry during the past year. _____ Corporate Award : Presented to the group/company that has contributed the most to NADOA’s growth and development, the Division Order profession, and/or the industry during the past year. Please detail the nominee’s involvement in NADOA, the services they have performed and/or contributions they have made (You may attach a separate sheet if necessary).


____________________________________________________ (Please Print) ____________________________________________________ (Signature) ____________________________________________________ (Daytime Phone) Send nominations to: Member Recognition Awards Committee, c/o Sandi Rupprecht (srupprecht@enerplus.com) Nominations will be accepted through May 31, 2019


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Colorado Supreme Court COGCC v. Martinez No. 17SC297, 2019 CO 3

On January 14, 2019, the Colorado Supreme Court overturned a Colorado Court of Appeals ruling, and issued a unanimous decision that the Colorado Oil and Gas Conservation Commission (COGCC) properly declined to engage in rulemaking to consider the rule proposed by the Martinez group. Martinez proposed a rule that would, among other restrictions, have prohibited the COGCC from issuing any permits to drill a well for oil and gas “unless the best available science demonstrates, and an independent, third- party organization confirms, that drilling can occur in a manner that does not cumulatively, with other actions, impair Colorado’s atmosphere, water, wildlife, and land resources, does not adversely impact human health, and does not contribute to climate change.” The COGCC solicited and received public comment and allowed interested parties to be heard before declining to engage in rulemaking to consider this proposed rule since “(1) the rule would have required the Commission to readjust the balance purportedly crafted by the General Assembly under the Colorado Oil and Gas Conservation Act (the Act) and conditioned new oil and gas drilling on a finding of no cumulative adverse impacts, both of which the Commission believed to be beyond its statutory authority, and (2) the Commission was already working with the Colorado Department of Public Health and Environment (“CDPHE”) to address the concerns to which the rule was directed and other Commission priorities took precedence over the proposed rulemaking at this time.” Under the Act, the COGCC’s duties as a regulatory agency require it to “foster the development of oil and gas resources, protecting and enforcing the rights of owners and producers” and “to prevent and mitigate significant environmental impacts to the extent necessary to protect public health, safety, and welfare, but only after taking into consideration cost-effectiveness and technical feasibility”. The Denver District Court upheld the Commission’s decision; a division of the Court of Appeals reversed the district Court order in a split, published decision.

Martinez v. Colo. Oil & Gas Conservation Comm’n , 2017 COA 37,__P.3d__.

The Colorado Supreme Court reversed the judgment of the division, finding in favor of the COGCC and concluding that the Commission’s decision to decline to engage in rulemaking to consider the Martinez proposed rule was consistent with the applicable provisions of the Act and with the Commission’s authority to decide how best to marshal its resources to carry out its statutory duties. Opinions of the Colorado Supreme Court are available to the public and can be accessed through the Judicial Branch’s homepage at http://www.courts.state. co.us. Opinions are also posted on the Colorado Bar Association’s homepage at http://www.cobar.org.


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“GROSS PROCEEDS” Clause In North Dakota State Lease Means Gross Proceeds Actually Received By The Operator From The Gas Processor.

On February 14, 2019, the McKenzie County District Court granted summary judgment in favor of the operator in Newfield Exploration Company v. State of North Dakota, ex rel. the North Dakota Board of University and School Lands, Case No. 27-2018-CV-00143. The sole issue in the case concerns the interpretation of the gas royalty clause in the 1979 State oil and gas lease form, which provides: “Lessee agrees to pay lessor the royalty on any gas, produced and marketed, based on gross production or the market value thereof, at the option of the lessor, such value to be based on gross proceeds of sale where such sale constitutes an arm’s length transaction (emphasis added).” Newfield, as operator, entered into an arm’s length, third party gas purchase contract with an unaffiliated entity, ONEOK Rockies Midstream, L.L.C. and argued gross proceeds of sale is calculated from the amount of money it actually receives from the gas processor. The State asserted it should receive payment based on the amount of net proceeds ONEOK receives for the processed gas--without incurring any costs ONEOK deducts for making the gas marketable. In granting summary judgment in favor of Newfield, the District Court ruled that the lease term “gross proceeds of sale” was not ambiguous, and “requires Newfield to pay based on the gross proceeds it receives from the sale of gas. According to the Court, the State’s argument “strains the [lease] language beyond reason and this court is not persuaded, on the facts of this case, that Newfield is required to pay based on what a third party receives for the processed gas.”

At the present time, it is not known whether the State intends to appeal the District Court decision. The next State Land Board meeting is scheduled for February 28, 2019. For any question concerning the Newfield decision, please contact: Craig Smith, (701) 223-6585 or csmith@ crowleyfleck.com About the Author: Craig Smith is a Partner in the Energy, Environment and Natural Resources Department of Crowley Fleck PLLP. He joined the firm in 2009 after practicing with Fleck, Mather & Strutz, Ltd. in Bismarck, North Dakota, since 1988. He has extensive experience in all areas of oil and gas law, including the preparation of drilling title opinions, division order title opinions, and acquisition title opinions in North Dakota, Montana, and Wyoming as well as representing clients in multiple oil and gas administrative, regulatory and government affairs matters. This article first published by Crowley Fleck PLLP on February 15, 2019 and is reprinted here by permission of the author. Crowley Fleck prepared these materials for the reader’s information, but these materials are not legal advice. Crowley Fleck does not intend these materials to create an attorney-client relationship. Readers should not act upon this information without first obtaining direct professional counsel. Specifically, please do not send Crowley Fleck any confidential information without first speaking with one of their attorneys and obtaining permission to send them information.


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Rule Change


Upcoming Rule Changes Approved by the North Dakota Industrial Commission

On December 4, 2017, the North Dakota Industrial Commission (NDIC) adopted new rules and amended various existing rules codified in North Dakota Administrative Code (NDAC) Chapter 43-02-03 (Oil & Gas); Chapter 43-02-05 (Underground Injection Control); Chapter 43- 02-06 (Royalty Statements); Chapter 43-02-11 (Certification of Horizontal Shallow Gas Wells, Horizontal Reentry Wells, and Two-Year Inactive Wells); and Chapter 43-05-01 (Geologic Storage of Carbon Dioxide). These new and amended rules will become effective either April 1, 2018 or July 1, 2019, upon a determination of their legality by the Attorney General and approval by the legislative Administrative Rules Committee. There are numerous new rules and amendments to the above chapters. Of note are the amendments made to Chapter 43-02-06 regarding Royalty Statements, which become effective July 1, 2019. In addition to the existing requirements, the amendments to chapter 43-02-06 require that the Royalty Information Statement also include: a. The weighted average price for all oil, gas and natural gas liquids. The price must be the net price received by the producer after all deductions. b. The amount and purpose of any deduction made, identified as transportation, processing, compression, or administrative costs. c. The amount and purpose of each adjustment or correction made.

Also added to Chapter 43-02-06, was Section 43-02-06-01.1 regarding the Ownership Interest Information Statement. This new section also becomes effective July 1, 2019 and requires that: Within one hundred twenty days after the end of the month of the first sale of production from a well or change in the spacing unit of a well, the operator or payor shall provide the mineral owner with a statement identifying the spacing unit for the well (and the effective date of the spacing unit change if applicable), the net mineral acres owned by the mineral owner, the gross mineral acres in the spacing unit, and the mineral owner’s decimal interest that will be applied to the well. For a complete copy of all of the rule amendments, please See North Dakota Industrial Commission Order No. 28537, in Case No. 26062 at https:// www.dmr.nd.gov/oilgas/. _______________________________ About the Author: Kimberly A. Backman is a Partner with Crowley Fleck PLLP in Bismarck, North Dakota. She represents several large operators in the oil industry with her practice encompassing various areas of natural resource law with an emphasis on title examination. She is licensed in North Dakota and Montana and can be reached at kbackman@crowleyfleck.com and 701-223-6585.


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Property Unclaimed Property Compliance: A Moving Target By Quin Moore, Senior Associate, KPMG, LLP (Researched by Karen Anderson, Senior Manager, KPMG LLP)

The imposition of multi-state unclaimed property audits and the expansion of unclaimed property compliance requirements into the nuances of the oil and gas industry have caused an acute awareness by the NADOA membership of a business’s obligations under state unclaimed property statutes. As the state enforcement momentum continues, it has become even more important for oil and gas professionals to gain and maintain information about statutory and regulatory changes and trends in order to better manage the risks of potential non-compliance. This article assists in closing the gaps between annual updates by providing insight into changing compliance requirements, including due diligence and report preparation requirements, recently enacted legislation, and pending state legislative measures on the move in state legislatures. Selected Recently Enacted Legislation and Adopted Regulations Due Diligence Requirements Kentucky – HB 394 – Effective 7/14/2019 Kentucky HB 394 was signed into law as Kentucky’s version of the Revised Uniform Unclaimed Property Act (“RUUPA”). KY HB 394 included some sweeping changes, but those potentially impacting oil and gas companies include: - A new due diligence threshold of $50. - If the owner has consented to receiving

Kentucky State Treasurer if you do not contact us before (insert date that is thirty (30) days after the date of this notice).” - Potentially the most impactful, HB 394 left some uncertainty as to whether Kentucky law continues to exempt the reporting of mineral proceeds. The state communicated that for fall 2018, the exemption would apply. Administrators indicated additional guidance may be provided in March, 2019. Oil and gas companies will want to track this closely to ensure that compliance with Kentucky law is maintained. North Dakota - 85-1-1-1 - Effective 1/1/2019 – Letter content requirements North Dakota Administrative Code 85-1-1-1 includes new requirements for letter content. When performing due diligence, holders must include the following in the written or electronic notice: a deadline to respond, property type, property value, and UCP division contact information. Annual Reporting and Remittance Requirements North Dakota - 85-1-1-1 - Effective 1/1/2019 – Report content requirements North Dakota revised their administrative rules and adopted the following new reporting requirements which may have a significant impact on the oil and gas industry: - Electronic reporting is now required. - If available, reports must include an owner’s Social Security Number, account number, date of birth, and, specifically for mineral

electronic communications, the holder is required to send due diligence notice via first class mail and electronic mail, notwithstanding invalid email addresses. - Updated letter content requirements, including a letter heading that reads substantially as follows: “Notice. The Commonwealth of Kentucky requires us to notify you that your property may be transferred to the custody of the

proceeds, a legal land description, well number, recording information, and any other applicable information to describe the lease.

At the time of this writing, the North Dakota Department of State Lands, which administers the state’s unclaimed


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property law, had yet to issue details about their electronic report requirements and the exact report inclusions. Information, such as where the legal land description will be recorded in the reporting format, is not yet available. Note that the states of Arkansas, Oklahoma and Texas have similar reporting requirements for mineral interests.

written delivery of its best and final lease offer, option (1) will accumulate as a reserve interest and be subject to the quarterly reporting requirements. - “Reserved Interests” are defined as follows: all amounts payable for the use, development, extraction, production or sale of minerals due for an unknown or unlocatable interest owner. In sum, in very specific instances, oil and gas industry holders are required to report and remit amounts on a quarterly basis to the West Virginia unclaimed property department. While no formal administrative rule or law was enacted, Wyoming is now only accepting online reports. These reports must be formatted as a “.txt” file. The state no longer accepts compact disks (“CDs”) and email reports. To avoid penalties for late filing, businesses should ensure that they file reports via the state’s online portal and maintain confirmation of the uploaded report. _____________________________________________ Significant Bills on the Move and Pending in State Legislatures This section provides information about legislation that is currently making its way through state legislatures. While there are no guarantees that these bills will become law, they provide indications of unclaimed property trends. Nebraska LB 406 – Introduced 1/18/2019 – Eliminates aggregate reporting In addition to various internal state administrative changes, if enacted, LB 406 would: - Eliminate aggregate reporting (currently $25 threshold). Nevada SB 44 – Pre-filed 11/19/2018 – Eliminates aggregate reporting, codifies penalties SB 44 generally proposes amendments to the existing statute that would add provisions from the Revised Uniform Unclaimed Property Act of 2016. If enacted, some proposed changes pertinent to the oil and gas industry are: - The elimination of the current aggregate limit ($50). Wyoming - Effective after 11/1/2019 - Change to Reporting Requirements Annual Reporting and Remittance Requirements

Tennessee HB 2278 – Effective 4/24/2018 – Change to reporting deadline

As enacted, this bill changes the reporting deadline from April 30 to October 31 beginning in 2019. The Fall 2019 report should contain property reaching dormancy during or before the period of January 1, 2018, through June 30, 2019. Thereafter, the report must be filed before November 1 of each year and must include property reaching dormancy during the period twelve (12) months preceding July 1 of that year. Unless there are other reasons to file an unclaimed property report and remittance on or before the former April 30 th deadline, holders should exclude Tennessee from the spring reporting protocols, and ensure that any escheat applications are up to date with the current deadline and requirements. West Virginia HB 4268 – Effective 7/1/2018 – Potential quarterly report requirements West Virginia HB 4268, as enacted, has created confusion and concern throughout the unclaimed property community. Of particular concern is the requirement that for unknown or unlocatable interest owners, who did not consent to the development of oil or natural gas mineral property, a reserve interest must be reported as unclaimed property on a quarterly basis. This is required when the criteria, described below, is met: - The property to be drilled, or currently being drilled, is located in West Virginia. - In cases where there are seven or more royalty owners, if an operator or owner makes or has made reasonable efforts to negotiate with all royalty owners in an oil or natural gas mineral property and royalty owners vested with at least three fourths of the right to develop, operate, and produce oil, natural gas, or their constituents consent to the lawful use or development of the oil or natural gas mineral property. - If the nonconsenting cotenant does not elect to receive (1) a prorated share of production royalty or (2) net revenue as a working interest owner, within 45 days following the operator’s


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- A codification of the existing report delivery requirement which mandates that businesses deliver reports via a “business portal established by the Administrator” and that the holder make payment through that portal of the total amount due. - Adds a new penalty for a holder who fails to make a payment via the on-line portal. The penalty is mandatory and is an amount equal to the greater of $50 or 2% of the amount of the payment. Oregon HB 2274 – Introduced 1/12/2019 – Changes to Reporting Requirements, Payroll If enacted, this bill will: - Define Wages: “wages” means wages, commissions, bonuses or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card. - Reduce the dormancy period for “wages” and “unpresented payroll checks” from 3 years to 1 year. Businesses with past or current employees in Oregon may be impacted by the change in dormancy period if this legislation becomes law. Define Late Reporting: A Report will be deemed not timely received and filed under the Act if: (a) it is submitted after the required filing date; (b) payment is made after the required filing (c) it is incomplete or otherwise does not meet the requirements of the Act. - Pinpoint the factors the administrator may consider in triggering an audit, including, but not limited to whether : (a) A business fails to report types of unclaimed property typically reported by like businesses; (b) Amounts listed on a business’s unclaimed property report or amounts remitted by the businesses are not comparable to those received from similar Tennessee Administrative Code 1700-02-01 et. seq. – Rules Proposed 12/4/2018 – Changes to Reporting Requirements and Other Regulations If adopted these administrative rules will: -

businesses; (c) Governmental agencies or other reliable sources have provided information indicating that a business may be holding unclaimed property that has not been reported; (d) The unclaimed property division has received evidence or complaints of failure by the business to send any required notice to an apparent owner; and (e) An examination has been initiated by another state or more than one state. Authorize the use of estimation in examinations for periods where records were not maintained under T.C.A. § 66-29-126 and the records of the business available for the periods covered by the examination are insufficient to permit the preparation of the audit report. Conclusion: While keeping track of recently enacted and proposed legislative changes can be time-consuming, it is essential to maintaining unclaimed property compliance and avoiding the risk of non-compliance penalties and interest. As state legislatures shorten dormancy periods, implement new reporting requirements, and adopt expanded due diligence parameters, businesses that may have been compliant previously could be caught off guard if they suddenly become subject to penalties for non-compliance. KPMG LLP will continue to monitor unclaimed property legislative and regulatory changes and trends impacting the oil and gas industry. For questions or more information, please contact Quin Moore at 360-319-3624 or qmoore@ kpmg.com or Karen Anderson at 303-381-7020 or karenanderson@kpmg.com . The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG LLP. -


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Kaprice Pearson Local Association Coordinator

Local Reporters for 2019 Magazine:

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

ABADOA: Inactive ALTDOA: Inactive CAPDOA: Whitney Katigan –


DADOA: Lauren Roswold –

………………………………… 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: Kimberly Ginter –


HADOA: Sara L. Galloway –


MAADOA: Diana Richecky – diana@dukedrilling.com PBADOA: Kaprice Pearson – KPearson@concho.com SADOA: Jamie Donohue – jamie.a.donohue@cop.com


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priority for any successful organization. Whitney is the current President for the Capital Association of Professional Division Order Analysts in Oklahoma City and an active member of the National Association of Division Order Analysts, Women’s Energy Network and Women in Technology. She is married to an OSU Cowboy, Russell and they have a wild 3-year-old son, Harrison. Whitney loves to travel, golf and run. Her goal is to run 50 races in 50 states by the age of 50! For more information regarding CAPDOA, please visit our website at www.capdoa.org. ………………………………… DALWORTH ASSOCIATION OF DIVISION ORDER ANALYSTS (DALWORTH) Association serving the Dallas/Fort Worth, TX Area

CAPDOA 2019 BOARD President – Whitney Katigan Vice President – Kodi Foreman Treasurer – Amy Smith Secretary – Maryann Maimo Directors – Chasta Butler Amy Lofgren Hailey Price CAPDOA Advisor – Melissa Martin NADOA Director – Valerie Wible, CDOA

CAPDOA hosts bi-monthly luncheons in Oklahoma City with speakers ranging from title attorneys to executive coaches. They have approximately 175 active members with the largest attendance at the all-day Seminar held each June. The CAPDOA board welcomes new members from other disciplines like Lease Records and Owner Relations as they recognize the importance of knowledge sharing across Land Administration and other areas within the industry. CAPDOA provides a community of professionals focused on continuous development and strengthening industry knowledge.

DALWORTH 2019 BOARD President: . ....................................... Megan McKee, CDOA 1st Vice President: ....................................... Christy Ewert 2nd Vice President: ................................................... Open 3rd Vice President: . ................................. Kimberly Ginter Recording Secretary: .....................................Sharon Clute Corresponding Secretary: . ..........................Angie Roberts Treasurer: . ..............................................Eli Murray, CDOA Director – Compliance: ..............Melanie Finnegan, CDOA Director – House: ...........................................Vickie Coles Director – Hospitality: ... .Lindsay Grose & Lauryn Barnes Director – Historian: ................................ Cindy Marhanka Director – Scholarship: . ................................ Isabel Zhang Board Advisor: ............................Melanie Finnegan, CDOA NADOA Liaison: ...................................... Kimberly Ginter

Whitney Katigan – CAPDOA 2019 President Land Coordinator Flywheel Energy President, Capital Association of

Professional Division Order Analysts Whitney was born and raised in Oklahoma, graduating from the University of Oklahoma with a Bachelor of Arts in Journalism with Public Relations focus. She began her career with a financial technology solutions corporation before joining the oil and gas industry in 2010. Her experience is in Land Administration, starting as a Lease Analyst then moving to Division Orders. She has served on various leadership teams over the last 5 years including the Appalachia, Mid-Continent and Fayetteville assets as well as land and accounting system implementations. Whitney has a passion for developing strong, collaborative teams and believes culture and professional development must be a


March 12 – (DFW-ALTA) Dallas – Luncheon – Maggiano’s North Park April 11 – (DFW-ALTA) (Seminar) TBA April 23 – (DALWORTH) Dallas – Luncheon – Maggiano’s North Park May 14 – (DFW-ALTA) Fort Worth – Luncheon – Petroleum Club of Fort Worth


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June 11 – (DFW-ALTA) Dallas – Luncheon – Maggiano’s North Park

DADOA is looking forward to another wonderful year and hopes you will join us at one of our upcoming Luncheon Meetings. Upcoming Luncheons: Monday, March 18, 2019 11:15am Maggiano’s 500 16th St Mall #150, Denver, CO 80202 Sandi Rupprecht – 2019 DADOA President After serving as the 2017 NADOA president, Sandi Rupprecht is now ready to return to leadership at the local level. She is currently the Land Administration Supervisor at Enerplus Resources and has 10 great people working side by side with her. Sandi has been active in DADOA for many years. She served as DADOA President for three successive years. She has also been treasurer, Director and has chaired the education committee for 10+ years. As the Education Chair, Sandi has organized and participated in many educational seminars in Denver and has consistently found interesting speakers and topics to help provide local education to DADOA members. DADOA has been a part of her life for the past 30+ years. Her peers see her as a strong, organized leader who gets the job done efficiently. Her fiscal awareness in lean times as well as times where money was flowing has given her some tough issues to deal with; but she always has the best interest of DADOA in mind. Sandi has 5 grandchildren ages 6 to 14 and has been married for 41 years to Jim, her best friend. She has two beagles and a puggle that are precious and precocious. Sandi loves watching lacrosse, basketball, soccer, volleyball and flag football through her grandkids’ sports activities. For more information regarding DADOA, please visit our website at www.dadoa.org. ………………………………… HOUSTON ASSOCIATION OF DIVISION ORDER

June 20 or 25 - (DALWORTH) (Seminar) TBA July 23 – (DFW-ALTA) Fort Worth – Luncheon – Petroleum Club of Fort Worth August 20 – (DFW-ALTA) Dallas – Luncheon – Maggiano’s North Park September – Conference Month – No Meeting October 15 – (DALWORTH) Dallas – Luncheon – Petroleum Club of Fort Worth November 12 – (DFW-ALTA) Fort Worth – Petroleum Club of Fort Worth December 10 – (DALWORTH) Dallas – Maggiano’s North Park MEGAN McKEE - 2019 DALWORTH PRESIDENT Megan McKee is a Senior Division Order Analyst with Range Resources. She started working in division orders at the Range Resources Oklahoma City office in 2007 Analyst and she has previously served on the CAPDOA board and volunteered for various NADOA committees. Prior to going to work in Oil & Gas, she was an aviation search and rescue swimmer in the U.S. Navy. 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 and was relocated to their corporate office in Fort Worth in May of 2015. Megan is a Certified Division Order

DADOA 2019 Board: President: Sandi Rupprecht Vice President: Evelyn Kastner Secretary: Leslie Blancett Treasurer: Allison Blancett Director: Caitlin Coupens Director: Wendy Hopkins Director: Linda Osminer Board Advisor: Stan Vargas NADOA Director: Lauren Roswold

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


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………………………………… MID-AMERICA ASSOCIATION OF DIVISION ORDER ANALYSTS (MAADOA) Association based in the Wichita, KS Area

HADOA 2019 BOARD President: ..................................................................Victoria Frey 1st Vice President: .......................................... Stephanie Nguyen 2nd Vice President: ...............................................Heather Lister 3rd Vice President: ........................................... Jason Alexander Recording Secretary: . ....................................... Jennifer Kegans Corresponding Secretary: .................. Yolanda Bazan, CDOA Treasurer: ....................................................Dale Bender, CDOA House & Hospitality: .......................................... Amanda Blair Business & Rules Director: ............................ Christine Burton Advertisement Director: ...........................................Kassi Bevill Ways & Means............................................................Meha Gargi Historical Director.................................................Sara Galloway Board Advisor: ......................................April Luedecke, CDOA

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

Victoria Frey – HADOA 2019 President Victoria Frey is currently a Division Order Analyst at Black Stone Minerals in Houston, Texas. She graduated from the University of Oklahoma with Energy Management

PBADOA 2019 Board President: ....................................................... Courtney Poitevint Vice President.......................................................... Heather Liles Treasurer ..............................................................Jennifer Lujano Secretary ............................................................Kara Mondragon Director-Membership..............................................Lily Sanchez Director-Publicity...................................................... Sarah Lujan Director-Information Technology................. Amber Natividad Board Advisor. ................................................... Kaprice Pearson NADOA Liaison................................................. Kaprice Pearson PBADOA ended 2018 with our annual holiday celebration that included a few door prizes and the announcement of our 2019 Board. We were very proud to recognize two of our outstanding members at our celebration with special awards. Judy Moreland received PBADOA’s first Honorary Lifetime Achievement award. Judy has contributed her time and talents to the local and national associations. She has

and International Business degrees in May 2013 and began her career in Land Administration with BHP Billiton, where she learned the ins and outs of the oil and gas industry. She enjoys the inherit challenges of the Division Order position and is eager to continually learn and become more involved in the industry. She is serving as HADOA’s 2019 President, previously served on the 2018 HADOA Board of Directors as 1st Vice President, and on the 2017 HADOA Board of Directors as the Director of Advertising. Since moving to Houston, she has thoroughly enjoyed living in such a cosmopolitan city but remains a die-hard Oklahoma Sooner and Oklahoma City Thunder fan. In her free time, she enjoys traveling with family and friends, show jumping with her horse, Lando, and snowboarding.

For additional information regarding HADOA please view our website: www.HADOA.org.


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

encouraged and genuinely wants each person to succeed in their positions and is willing to help every individual achieve their goals. Simply stated Judy Moreland represents our industry in the most professional way! Jennifer Oden was the recipient of PBADOA’s 2018 Member of the Year award. Jennifer has held the offices of Vice President, President, and Board Advisor. PBADOA is very proud to recognize Jennifer’s hard work and dedication to our organization. We were saddened to learn of the passing of two individuals very special to PBADOA and our membership—Carla McCarty and Peggy Worthington. Carla Jean McCarty worked in the oil business for many years, most recently as a Division Order Analyst for Great Western Drilling Company. She retired in 2015 after 25 years of service. During that time Carla served on both the PBADOA and NADOA boards in many capacities. She was the 1997 PBADOA President and the 2003 NADOA President. Carla passed away on December 30, 2018 surrounded by her family. She will be remembered for her fun-loving personality and kind smile. Mindy Warren, wrote the following about her friend, “Carla McCarty was PBADOA President In 1997 and I was incredibly fortunate to follow in her footsteps as PBADOA President in 1998. There couldn’t have been a sweeter stroke of luck over my now 30-year career than this transition. I had only been in the industry 8 years and I was still struggling to find my place in an industry that was still mostly male dominant and still afforded few opportunities for women to be successful. Carla became a most treasured mentor and friend and she encouraged me with her insight and wisdom and taught me how to endure the cycles and how to passionately love what you do. She also taught me that the best gift you could give your career was to never stop learning about what you do. She lived to love her career yet somehow gently wove the love for her husband and family into all that she gave to the industry. To know her was to be forever blessed.” We recognize and honor the contributions Carla made to PBADOA. Our thoughts and prayers are with her family. Peggy Worthington was an independent landman who generously shared her time and knowledge at PBADOA luncheons and seminars. Peggy was a known for her integrity, honesty, and dedication. Her obituary read, “Failure was

never an option; she saw obstacles as lessons and ways to improve. She said the key to a successful career is to find something you love to do and do your best every day.” Peggy passed away on January 24, 2019. We extend our sincere condolences to her family.

COURTNEY POITEVINT – PBADOA 2019 PRESIDENT Courtney Poitevint is the Division Order Supervisor for Legacy Reserves Inc. Her career in oil and gas began 8 years ago. Prior to being in the oil and gas industry, she and her husband owned and operated a local hardware store.

Courtney has been an active member of PBADOA and NADOA since 2013. She served as the PBADOA Secretary in 2017 and as the PBADOA Vice President in 2018. She has also served on the seminar planning committee for the last 3 years. On a personal note, Courtney and her husband, Harrison, have been married for 16 years. They have 4 children and their free time is spent following their children from activity to activity. They are actively involved in their church and volunteer in the youth group. Courtney and her family live in the small West Texas town of Stanton, which is the same town that her great- grandfather homesteaded in 1894. Upcoming Events: Wednesday, March 20, 2019 – Monthly Luncheon at Midland Country Club Thursday, April 4, 2019 – PBADOA Annual Education Seminar at Midland Country Club 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


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