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Transcript of Basin Resources Winter 2014
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BaSiN RESoURcES6
www.basinresourcesusa.com • WiNTER 2014
Don Vaughan
puBliSHER
Cindy Cowan Thiele
EDiTOR
Dorothy Nobis
CONTRiBuTiNG WRiTERS
Josh Bishop
CONTRiBuTiNG pHOTOGRApHER
Suzanne Thurman
DESiGNER
Shelly Acosta
Clint Alexander
Aimee Velasquez
SAlES STAFF
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www.basinresourcesusa.com
Basin Resources magazine is published four times ayear by Majestic Media. Material herein may not bereprinted without expressed written consent of the pub-lisher. Opinions expressed by the contributing writersare not necessarily those of the publisher, editor orBasin Resources magazine. Every effort has been madeto ensure the accuracy of this publication. However thepublisher cannot assume responsibility for errors orommissions. © 2014 Basin Resources magazine.
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Fall 2014
column 8School of Energy expansion
Keynote Speaker 46San Juan Basin Energy conference set for march 24-25
BLm refutes claims 50
pNm, pRc set hearings 56
Energy News 59
change of power 14midterm election results bode well for energy industry
partners with Navajo Nation 20Raytheon working on $4.4 expansion
methane Hotspot 10Reports explanation shows ‘ignorance about fracking’
ipaNm 13photo contest winners
contents
34
27
HoNSTEiN oiL BUyS FRaLEy & compaNyEmployee satisfaction,
customer service drivescompany’s success
40
coNSTRUcTioNoN ScHEDULE
New School of Energygetting rock star level
attention
Toxic mixKemKey has a solution that
eliminates chemical cross contamination
BASIN RESOURCES8
www.basinresourcesusa.com •WINTER 2014
The San Juan College School of Energy will offer nine new
degree/certificate programs next spring. The addition and ex-
pansion of these programs comes at the request of our industry
partners who direct, support and understand the importance of
training provided by the School of Energy.
While the new degrees and certifications will assist all of our
students, as the dean of the School of Energy, I hope we can
reach another sector of our community that will benefit from
the training and, ultimately, the jobs that training will provide.
That important sector is the United States military, our veter-
ans who dedicated their lives and their service to protect our
country and preserve our freedoms. Many of those veterans re-
turn home only to discover that good jobs are hard to find. The
experiences they had, the lessons they learned, and the knowl-
edge they gained while in the military aren’t always understood
or appreciated by potential employers.
In addition to readjusting to a normal family life, veterans
are also striving to find a place in the job market so they can
provide for their families. It can be difficult and it can create
additional stress on people who have endured the ultimate
stress – fighting on and off the battlefield.
It is probable that no other segment of our population can
truly relate to and understand the challenges offered by the oil
and gas/energy industry. They understand and value the team-
work needed in the industry and they appreciate all the indus-
try does for our country. They’re not afraid of hard work
because they honed a good work ethic while serving in the
military. They respect good leadership, they understand the im-
portance of safety, and they recognize the need for beneficial
policies and procedures.
The oil and gas/energy industry has added millions of jobs
in recent years, and the opportunity to create more jobs is
likely. Recent elections indicate that the Keystone pipeline is
expected to receive Congressional approval, giving thousands
of people good jobs with good pay and benefits. Who better to
help fill those jobs than our veterans?
There will be a need for people who are skilled in environ-
mental, health and safety fields. There will be a need for main-
tenance mechanics, petroleum production operators, occupa-
tional health, safety and environmental professionals, and other
jobs. Those who earn their degrees and certifications through
the School of Energy’s programs will be recruited by our in-
dustry partners, because they know the experienced instructors
and staff at the SoE are dedicated and committed to the success
of each and every student. The industry reaches out to the
School of Energy for employees and comes to the school annu-
ally, doing interviews and recruiting from our students. The
solid reputation the school has in the industry attracts students
from throughout the country, and our industry partners are
eager to hire them when they complete their training.
The School of Energy provides scholarships to veterans and
to others who need financial assistance. As the dean, I work in-
dividually with many students, helping them find the financial
rAnDy PAchEco
DEAn of School of EnErgy
SAn JuAn collEgE
Along with new degree/certificate programs School of Energy will work to attract veterans
* Pacheco 22
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BASIN RESOURCES10
www.basinresourcesusa.com •WINTER 2014
Dorothy Nobis
Basin Resources
the “cloud of methane” hovering over
the Four Corners has scientists debating
whether the cloud has evolved because of
natural gas production and processing.
Eric Kort of the University of Michigan
authored a study that was printed in octo-
ber in the journal Geophysical Research Letters.
in his study, Kort stated that the “hot spot,”
which covers 2,500 square miles, could be
produced from agriculture, forest fires and
the mining and processing of fossil fuels. in
his study, however, Kort states the sources
include heavy production of a fuel called
coalbed methane, which exists as a gas in
the pores and cracks of coal deposits, as
well as from two power plants – the Four
Corners Power Plant and the san Juan Gen-
erating station.
Kort also stated that the observation pe-
riod – gathered from 2003 to 2009 – pre-
dates the widespread use of hydraulic frac-
turing, called fracking, near the hot spot.
therefore, the methane emissions didn’t
come from fracking, but from leaks in previ-
ously established natural gas production and
processing.
John byrom, president and chief execu-
tive officer for DJ simmons, an independent
oil and gas company based in Farmington,
took exception to Kort’s statement.
Report’s explanation shows ‘ignorance about fracking’
Methanehotspot
BASIN RESOURCES 11
WINTER 2014 • www.basinresourcesusa.com
“This shows his ignorance on the fracking topic,” Byrom
said. “We’ve been fracking in this basin since at least the early
1960s.”
Researchers used observations by the European Space
Agency’s Scanning Imaging Absorption Spectrometer for At-
mospheric Chartography (SCIAMACHY) and a Los Alamos
Lab ground station for independent validation. Researchers
found that from 2002-2009, the Four Corners area released
about 650,000 tons of methane into the atmosphere.
Scientists at NASA and the University of Michigan re-
leased the information about the cloud of methane over the
Four Corners in late October.
Byrom was reluctant to call the study a “scare tactic,” he
did say he thinks people are taking advantage of the informa-
tion and providing it at a time when President Obama is ag-
gressively attempting to reduce America’s greenhouse gas
emissions.
A Nov. 25 editorial on The New York Times website ad-
dressed President Obama’s pledged to reduce America’s
greenhouse gas emissions 17 percent below 2005 levels by
2020. The president also pledge a 26 percent to 28percent
cut by 2025. “The first target will be hard to reach – and the
second virtual impossible – without a determined effort on
his part to cut methane emissions from the oil and gas indus-
try” the editorial stated.
Calling the timing of the study “interesting,” Byrom said
those involved in the study have not yet provided the scien-
tific data for public review. “If there’s a scientific study, let’s
see it,” Byrom said.
Byrom also said that since the San Juan Basin is sur-
rounded by mountain ranges which create a bowl, the hot
spot would be brighter here than in other areas of the coun-
try, which also benefit from the oil and gas industry.
“The fact that the rocks that contain the gas that we drill
for in the center of the basin are bent upward and are ex-
posed at the surface, like the rim of a partially buried bowl,”
Byrom explained. “This rock is known to leak hydrocarbons
where they are exposed.”
Rock formations, including the Mesa Verde and Fruitland
Coal formations, have been emitting emissions for years,
Byrom said. “There’s a lot of leakage of gas where the pro-
ducing rocks come to the surface around the rim of the
basin,” he explained, “it’s been going on for millions of
years.”
Byrom also understands the need for the oil and gas in-
dustry to work together to help minimize emissions. “I’m
not an expert,” Bryom said, “but if there are questions raised,
let’s study them. The (oil and gas) industry is dedicated to
reducing vapor emissions. We’ve already made a lot of
“There’s a lot of leakage of
gas where the producing rocks
come to the surface around the
rim of the basin. It’s been
going on for millions
of years.”
— John byrom
president
dJ simmons
BASIN RESOURCES12
www.basinresourcesusa.com •WINTER 2014
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progress recovering vapors so they no
longer go into the atmosphere.”
Working together – and sharing the
necessary information and data – can do
more to reduce emissions than a map
showing a brightly colored spot over the
Four Corners area, Byrom added.
By studying the concerns, sharing sci-
entific information and working together,
Byrom believes solutions can be found.
“But having people say we need to get
rid of oil and gas – that’s just absurd.”
An article on the thinkprogress.org
website also addressed the hot spot and
the study. The article states that “The
Obama administration’s Climate Action
Plan has a whole strategy to cut methane
emissions, which includes proposed EPA
regulations to reduce methane from land-
fills, standards for oil and gas operators
to reduce venting and flaring, and part-
nerships with the dairy industry to vol-
untarily reduce methane emissions from
cows.”
Byrom has another explanation for the
hot spot over Farmington, however.
“Everyone knows that Farmington is the
breakfast burrito capital of the world,” he
said. “So I think that’s what’s causing
that hot spot.”
WINTER 2014 • www.basinresourcesusa.com
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BASIN RESOURCES 13
IPANM 2014 photo contest winnersThe premise that man and nature cannot co-exist, that where
man encroaches, wildlife scatters and dies out, is simply untrue.
In New Mexico oil fields, many species of wildlife use equip-
ment in a productive manner. Birds will use elevated surfaces as
foundations for nests. Deer, such as caribou, use the equipment for
a windbreak and warmth.
There is so much wildlife in the oilfield that in 2004 the Inde-
pendent Petroleum Association of New Mexico created a photo
contest where oil field workers and others could win cash prizes
for the best photo or video demonstrating wildlife adapting to
manmade changes in their environment.
Photo contest winners
1st place: Paul Sikora II, Farmington, N.M. – $1,000
2nd place: Bill Royce, Farmington N.M. – $500
3rd place: Douglas McClean, Roswell, N.M. –$250
1st place: Paul Sikora II, Farmington, N.M.
2nd place: Bill Royce,
Farmington N.M.
3rd place: Douglas McClean,
Roswell, N.M.
BASIN RESOURCES14
www.basinresourcesusa.com •WINTER 2014
Now that the dust has settled on the 2014 midterms, we can
get a sense of how things will change in Washington under a
Republican-controlled Senate – and energy will be front and
center.
Republicans and Democrats have very different views on en-
ergy development and policy. The past six years have seen tax-
payer dollars poured into green-energy projects that have
embarrassed the administration and promoted teppan-style re-
newables that chop up and fry unsuspecting birds midflight and
increase costs for consumers and business. Meanwhile, Republi-
cans have touted the job creation and economic impact avail-
able through America’s abundant fossil-fuel resources.
Voters made their preference clear: Republicans won more
seats, and with bigger majorities, than anyone predicted.
The day after the election, the Friends of the Earth, wasting
no time, sent out a dramatic fundraising pitch, opening with:
“The election’s over — the planet lost.” (You may not have even
known that the planet was on your local ballot, but apparently
it was.)
The email’s proclamation, once again, exposes the environ-
mentalists’ agenda: “President Obama hasn’t always done the
right thing for the environment. He should have denied the
Keystone Pipeline years ago, he should be rolling back
unchecked fracking, and he should have taken stronger action
on climate both at home and in international negotiations.”
Thankfully, though ideologically aligned with them, he at-
tempted to appease and didn’t take the extreme level of action
Friends of the Earth would have liked.
The Keystone pipeline remains a strong possibility, though
the Canadians have nearly given up on us. While it failed in a
recent vote, Republicans plan to make it a top priority when
they take over in January.
Fracking is regulated at the state level, which mostly allows
it to continue to increase America’s energy freedom – resulting
in lower prices at the pump. Because more than 96 percent of
the wells drilled in America today use the decades-old – but
new-and-improved – technology of hydraulic fracturing, a fed-
eral fracking ban, like that which environmental groups have
been trying to pass through city and county initiatives, would
virtually shut down our booming energy economy. President
Obama tried, but he couldn’t pass a cap-and-trade bill – even
when his party controlled both houses. Nor could he get a new
Kyoto-style international treaty ratified. Most of the western
world is now retreating on the climate pledges made in a differ-
ent political era.
Friends of the Earth is correct, though. The email states: “Now,
with both the Republican Senate and the House salivating and
Marita k. noon
exeCutive DireCtor -
energy Makes aMeriCa great inC.
Change of power, Change in poliCy
Midterm election results bode well for energy industry
BASIN RESOURCES 15
WINTER 2014 • www.basinresourcesusa.com
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ready to sink their teeth into our most
basic environmental laws, the President’s
environmental legacy is truly at stake.”
The Republicans are likely “salivating” –
though not specifically about “basic envi-
ronmental laws.”
Big changes in energy policy are in the
works. Not just because Republicans
want to destroy the president’s “legacy,”
but because a wealthy country is better
able to do things right. A growing econ-
omy needs energy that is efficient, effec-
tive and economical – which is why
countries such as China and India will
not limit energy availability and why Re-
publicans want to expand access in the
U.S.
What energy policies might the Re-
publicans want to “sink their teeth into”?
Federal lands
President Obama likes to brag about
the increased U.S. production of oil and
gas. In his post-election press conference
he stated: “Our dependence on foreign
oil is down.” While the statement is true,
it falsely implies that he had something
to do with that fact.
Reality is, as a Congressional Re-
search Service report makes clear, while
oil production has increased
61 percent on state and
private lands, it has de-
creased 6 percent on federal
land where the administra-
tion has authority. Addition-
ally, the report points out,
applications to drill on federal
lands take nearly twice as long to
process under the Obama administration
than they did previously.
Not only has the White House dis-
couraged drilling on federal lands, Presi-
dent Obama has used his pen to lock up
federal lands with potential development,
such as the newly designated Organ
Mountain Desert Peaks National Monu-
ment – which blocks production without
analyzing the economic impact. “Every
time they lock up federal lands, whether
through national monuments, conserva-
tion areas, or wilderness areas,” Steven
Henke, President of New Mexico Oil and
Gas Association, told me,
“they eliminate the poten-
tial for royalties from the
federal estate. Those funds
benefit both the state and
federal government and reduce
the burden to the taxpayers.”
For example, one prediction has
drilling in the Arctic National
Wildlife Refuge (ANWR) becoming a
part of the Republican Party’s vision of
energy independence. Alaska’s senior
Senator: “Lisa Murkowski has long ar-
gued that drilling in ANWR would help
reduce the national deficit.”
Not all federal lands have oil and gas
BASIN RESOURCES16
www.basinresourcesusa.com • WINTER 2014
or other mineral-extraction, potential, so
a reversal of policy may not increase
production by the 61 percent seen on
state and private lands – but it could
mean the U.S. not only passes Saudi Ara-
bia in oil production, it leaves it in a
dust storm.
Oil and natural gas exportsBefore the new Congress is sworn in,
we already hear a lot of talk about lift-
ing the ban on oil exports that was put
into place in response to the 1970’s
Arab oil embargo. Reuters reports that
Senator Murkowski: “has fought to relax
the ban all year by issuing a series of pa-
pers detailing how such exports have
been allowed in the past, holding a pri-
vate meeting on the subject with Com-
merce Secretary Penny Pritzker, and
hinting that 2015 could be the time to
introduce ban-ending legislation.”
With the Republicans now in charge
come January, Murkowski will become
the Chairman of the Energy and Natural
Resources Committee. She is expected to
start by “holding hearings, pressuring
Obama administration officials, and test-
ing the level of support from party lead-
ership.”
“Policy makers need to catch up with
the industry,” said Harold York, an ana-
lyst of the refining sector at Woods
Mackenzie. He projects that easing the
crude oil restrictions “would lead to $70
billion in investment spending in the
U.S. oil sector and further economic
stimulus.”
Different from crude oil, the law cur-
rently allows liquefied natural gas (LNG)
exports, but the Energy Department has
dozens of applications for LNG export
terminals languishing on some bureau-
crat’s desk. Just six applications have
been approved in the past year. Biparti-
san support exists for expediting the per-
mitting process – especially in light of
Russia’s stranglehold on natural gas sup-
plies to many of our European allies.
Legislation must be drafted and passed
to allow exports to non-European free-
trade countries.
Environmental Protection Agency President Obama’s Clean Power Plan
(CPP) has widespread opposition within
the Republican Party – including state
governors who struggle to interpret the
regulations but who are asking the right
questions regarding the impact on their
individual states. Even coal-state Democ-
rats, such as Senator Joe Manchin (D-
W.Va.), have concerns with the CPP.
The CPP has the potential to prema-
turely shutter hundreds of coal-fueled
power plants when viable options exist
WINTER 2014 • www.basinresourcesusa.com
for the plants’ replacement. This winter, Massachusetts is ex-
periencing a 37 percent increase in electricity rates over last
year because plants closed without sufficient infrastructure for
their replacement.
The CPP plus the many other regulations – such as those
coming on ozone and methane – have many lawmakers con-
cerned about the EPA’s impact on grid reliability and the
economy. President Obama is not likely to sign any legislation
designed to rein in his personal priorities, but Republicans can
make changes in EPA appropriations.
In a post-election analysis webinar, Scott Segal, founding
partner of the Washington, D.C.-based Policy Resolution
Group, declared Obama’s approach to greenhouse gas emis-
sions – specifically the CPP which projections show may cost
$42 billion – is the number one priority of the Energy and
Natural Resources and Environment and Public Works Com-
mittees. He believes the committees’ oversight will look at reli-
ability, cost, and, benefits. Segal said: “I think you can expect
tailored legislation to focus on these topics. You can expect use
of the Congressional Review Act for resolutions of disapproval
when these regulations become final. You can also look to the
appropriations process. ... that might mean an Interior and En-
vironment appropriations bill might have a rider, not that sets
aside the CPP entirely, but that makes narrowly targeted
changes to that plan. Then the president would be confronted
with a choice: ‘Do I essentially shut down the EPA, or do I
work with Republicans in the House and Senate to reform my
proposal?’”
The Endangered Species ActThe ESA is in dire need of revision, updating or outright re-
peal. Though well-intended in the beginning, it has more re-
cently been used as a funding tool for environmental groups
BASIN RESOURCES18
www.basinresourcesusa.com •WINTER 2014
and a way for them to block economic ac-
tivity, such as oil-and-gas extraction, and
ranching, farming, and mining.
Earlier this year, a group of 13 GOP
lawmakers released a report, which called
for an ESA overhaul, though CBS News
called the changes “unlikely, given the
pervasive partisan divide in Washington,
D.C.” CBS continues: “The political hur-
dles to overhaul are considerable. The ESA
enjoys fervent support among many envi-
ronmentalists whose allies on Capitol Hill
have thwarted past proposals for change.”
Reports now declare: “Climate change
compromises may be easier with China
than with Congress.”
What does Inhofe have in his power?
Andrew Wheeler, EPW staff director
when Inhofe previously was chairman,
says: “I know he won’t hesitate to conduct
oversight of the Democratic Obama Ad-
ministration.”
The E&E report projects: “Among the
topics Inhofe would likely zero in on:
EPA’s rules to clamp down on greenhouse
gas emissions from power plants, a contro-
versial EPA proposal to clarify the scope
of the Clean Water Act and the science
underpinning federal environmental rules.
EPA management could also be the topic
of some oversight hearings.” Wheeler
added: “I think his climate work will
probably be focused more on the EPA reg-
ulation.”
The $3 billion pledge to developing
countries is subject to Congressional ap-
propriations. In a statement from Inhofe’s
office, he vows to work with his col-
leagues “to reset the misguided priorities
of Washington in the past six years.”
He says: “The President’s climate
change agenda has only siphoned precious
taxpayer dollars away from the real prob-
lems facing the American people.”
The National Journal states: Republi-
cans “want nothing less than to send
money to poor countries to fight climate
change.”
As a part of this shift, watch for environ-
mental activists to be more aggressive on the
state level – pushing for increased mandates
for renewables and more regulation and/or
bans on hydraulic fracturing.
“I think his climate work
will probably be focused
more on the EPA regulation.”
— andrew wheeler
ePw staff director
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www.basinresourcesusa.com •WINTER 2014
25-year partnership
with Navajo Nation
BASIN RESOURCES20
WINTER 2014 • www.basinresourcesusa.com
BASIN RESOURCES 21
$4.4 million expansion plans at Diné
Faciliy set for completion in 2015Dorothy Nobis
Basin Resources
A contractor has yet to be selected and a
design has yet to be completed, but the en-
thusiasm and excitement of political, tribal
and business leaders who are anticipating
the construction of a new raytheon ware-
house likens to children waiting for santa
Claus. the new facility, located on Navajo
Nation land, will span 30,000 square feet
and will be located adjacent to the main
site. it is the result of three years of collab-
oration between the Navajo Nation, the
state of New Mexico, san Juan County,
and raytheon.
Drawing of new 30,000-square-foot warehouse.
www.basinresourcesusa.com •WINTER 2014
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resources they need to complete our programs and to find good jobs.
If you’re a veteran or know a veteran, or if you are a civilian look-
ing for a career that is challenging and exciting and which offers
great pay and benefits, please call us at 505.327.5705.
The oil and gas/energy industry continues to grow and needs
trained employees. You will be surprised at the small investment you
will make when you attend our classes and I encourage you to invest
in your best resource – YOU.
Pacheco continued from 8
Raytheon partnered with the state of New Mexico and Navajo
Nation to fund the expansion project. Upon completion, the
Navajo Nation will retain ownership of the site, and Raytheon will
lease the manufacturing space.
“Our NAPI facility has delivered exceptional production and
safety metrics, making it the ideal location for us to expand our
high-rate production capability,” said Louise Francesconi,
Raytheon Missile Systems president. “We look forward to building
on its success with this expansion.”
The new warehouse will enable Raytheon to increase produc-
tion efficiency, while reducing risk to materials and products.
Raytheon provides state-of-the-art electronics, mission systems in-
tegration and other capabilities in the areas of sensing, effects and
command, control, communications and intelligence systems. In
addition, the company provides cyber security and a broad range
of mission support systems.
Raytheon is headquartered in Waltham, Mass., and had sales of
$24 billion in 2013. With 63,000 employees worldwide, the
company is a technology and innovation leader specializing in de-
fense, security and civil markets throughout the world.
Construction on the $4.4 million warehouse is expected to
begin in early 2015, said Matthew Ryan, plant manager of the
Raytheon Dine’ Facility. Funding of the building is being
“Raytheon’s plan is a very long-term
partnership with the Navajo Nation to grow
the abilities and responsibilities of Navajo
team members, while increasing the size of the
Raytheon presence with the Navajo Nation.”
— MATTHEW RYAN,DINé FACILITY
PLANT MANAGER
BASIN RESOURCES 23
WINTER 2014 • www.basinresourcesusa.com
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provided by the Navajo Nation,
which will lease it to Raytheon.
The building design is being
funded by the State of New Mex-
ico.
In addition to adding to the
footprint of the current facility,
the new warehouse construction
will provide jobs to the area.
“Many construction jobs will be
created during the project,” Ryan
said. “The completed facility will
ensure the retention of over 40
employees long-term at the entire
Raytheon Dine’ Facility.”
The partnership between
Raytheon and the Navajo Nation
has been built on economic devel-
opment.
“Raytheon is always looking
for approaches to be a great part-
ner to the Navajo Nation,” Ryan
BASIN RESOURCES24
www.basinresourcesusa.com •WINTER 2014
added. “Efforts include active searches for more work at the
Raytheon Dine’ Facility, which provides employment oppor-
tunities, support of Navajo schools to develop needed techni-
cal skills, and support to numerous Navajo organizations that
promote health and education.”
Raytheon has been adding to the economic foundation of
the Navajo Nation for 25 years.
Construction is anticipated to be completed by fall of
2015.
“Raytheon’s plan is a very long-term partnership with the
Navajo Nation to grow the abilities and responsibilities of
Navajo team members while increasing the size of the
Raytheon presence with the Navajo Nation,” Ryan said.
At the NAPI facility, Raytheon currently assembles parts of
12 missile and munitions programs for the U.S. Army, Air
Force, Marine Corps and Navy.
Raytheon Company, with 2006 sales of $20.3 billion, is
an industry leader in defense and government electronics,
space, information technology, technical services, and business
and special mission aircraft. With headquarters in Waltham,
Mass., Raytheon employs more than 80,000 people world-
wide.
Courtesy photo
Ben Shelly, president of the Navajo Nation, gives remarks at the groundbreaking.
www.FlyGreatLakes.com1-800-554-5111Four Corners Regional Airport
1300 W. Navajo St. Farmington, NM • 505-599-1395
www.IflyFarmington.com
�������� �� ��������
BASIN RESOURCES 27
WINTER 2014 • www.basinresourcesusa.com
Dorothy Nobis
Basin Resources
A partnership between a father and son
in 1982 in Española, N.M., has grown into
a company that hasn’t forgotten its core
belief in doing business – taking care of its
customers and its employees.
rod honstein and his father, roy,
started honstein oil & Distributing Com-
pany to distribute Chevron fuels and lubri-
cants in the santa Fe/Las Vegas, N.M.,
area. roy had been a distributor for
Chevron in Española, N.M., since the late
1950s, and rod had been an area sales
manager for the construction machinery
division of FiAt, based at its North Ameri-
can headquarters in Chicago.
Honstein oil buys
Fraley & CompanyEmployee satisfaction, customer service drives company’s success
Photos by Josh Bishop
BASIN RESOURCES28
www.basinresourcesusa.com •WINTER 2014
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Originally doing business out of a small rented warehouse in
Santa Fe, Honstein Oil outgrew that facility in four short months
and moved to a larger building on Airport Road in Santa Fe. In
1985, the company purchased Smith Oil Company in Santa Rosa
and Moriarty, expanding its territory. In 1992, the company ac-
quired Champion Oil, a Phillips 66 distributor in Santa Fe, which
gave Honstein Oil a retail site in the capital city and the opportu-
nity to add two FUELlink cardlock locations.
Big Bear Petroleum in Albuquerque was the next acquisition
for the company, once again expanding its market. A Chevron
convenience store/gas station was added to the company’s retail
presence. Two additional retail stores were added in 1999 and in
2004 Honstein Oil again expanded with the acquisition of Gun-
derson Oil Company in Grants.
In 2013, Honstein Oil became a part of the Brad Hall & Asso-
ciates (BHA) family, which became a major stockholder and
strengthened the company’s financial position and its market
presence.
Growth continued when the company acquired Fraley & Com-
pany, a successful marketer in the Four Corners. Fraley’s presence
in the oil and gas sector, as well as mining and agriculture, added
to the strength of Honstein Oil.
While growth is exciting, it also brings challenges, said Jason
Allee, Honstein Oil’s general manager.
“The largest challenge we faced was creating synergies between
two companies when we purchased Fraley,” Allee said. “This was
not the type of purchase where we came in and changed every-
thing. We took what Fraley had and tripled it, nearly overnight.
With that, we needed all former Fraley employees to buy into our
new vision.”
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BASIN RESOURCES30
www.basinresourcesusa.com •WINTER 2014
Learn more about Encana’s operations in San Juan:
encana.com/sanjuan
Growing technology to responsibly grow assets.
Pioneering new technologies allows Encana to optimally grow its assets in the San Juan while minimizing disturbance to nearby communities.
e about Encana’n morLear
encana.com/sanjuan
ations in San Juan:s opere about Encana’
encana.com/sanjuan
“The largest challenge we
faced was creating synergies
between two companies
when we purchased Fraley.”
— Jason allee
Honstein oil
General ManaGer
Allee has personal knowledge of the area. He and his father
owned Farmington Oil Co., in Farmington, which was sold in
2007, and he continued to run the company for seven years. Dur-
ing that time he managed two different mergers and acquisitions.
With that experience, he knew firsthand the challenges of creat-
ing a culture where employees can thrive and be excited about
change.
“Most people inherently fear change and the biggest challenge
is to create confidence in them and share the vision for the future.
We have had tremendous success in this endeavor and employ-
ees seem to be happier than ever,” Allee said.
Rewarding employees who provide new ideas and methods of
operation that benefit the company is also a priority for Honstein
Oil.
“We have spent much energy focusing on how to properly give
our employees ‘buy in’ into the company,” Allee said. “Not stock,
but pride. With this, we have created several unique and, we con-
sider, groundbreaking pay structures from the top (level of man-
agement) to the commercial drivers. In addition, we have unique
safety incentives and many surprise spot checks that are rewarded
with gift cards and other financial means.
The success of the company isn’t guaranteed with the happi-
ness of employees, however. “Our secret to success is our people
and our unified mission of taking care of the customer,” Allee
said. “Customer service drives our success. We see a lot of poten-
tial for growth and we’re currently experiencing exponential
growth, even exceeding our expectations.”
“Of course, our success is directly tied to the local oil and gas
economy,” Allee added. “We are cautiously proceeding forward
with a lot of excitement.”
The challenges that face the oil and gas/energy industry are
many and Allee said planning and investing is done with caution
as well. “The oil and gas industry’s greatest challenge is the politi-
cal risks, driven by health, safety and environmental issues. In ad-
dition, an unclear energy policy makes it very difficult to plan and
invest for the future.”
Twin Stars, a locally owned equipment maintenance and natu-
ral gas compressor leasing company in Bloomfield, has been a
client of Honstein from the beginning of its operations in the
Four Corners.
“Chevron lubricants have helped us get superior run time out of
our equipment, which gives us peace of mind and the competitive
edge we need to maintain our service and quality equipment repu-
tation,” said Roger Armstrong, Twin Stars general manager.
“It’s not surprising at all that we get great service from Hon-
stein,” Armstrong added.
“Jason Allee and his crew have always given us the best service
of any lubricants and coolants supplier in the area. It all comes
down to the great results we have had for many years with
Chevron lubricants, along with the exceptional customer service
and relationship we’ve developed with Jason and his people.”
“We know we can count on Honstein and Chevron lubricants
to deliver consistent quality products at a fair price. And if we
need help resolving any issues, they are right there for us with all
the resources they can get their hands on,” Armstrong said.
“Twin Stars is a service oriented company and our reputation
BASIN RESOURCES 31
WINTER 2014 • www.basinresourcesusa.com
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BASIN RESOURCES32
www.basinresourcesusa.com •WINTER 2014
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means everything to us,” Armstrong
said. “Honstein understands that and
does everything they can to help us
serve our clients at the level they’ve
come to expect from us.”
With a long history of success, Hon-
stein Oil is confident it will continue to
be a major player in the oil and gas in-
dustry. “Our work environment is very
collaborative and we are always trying
to discover newer, better and different
ways to accomplish our business and
customer goals,” states the company’s
website. “Our organization doesn’t have
a lot of layers of management, which
means that employees can, at any time,
get all the way to the top with any
issue, problem or concern. We try hard
to foster an environment where innova-
tion and customer service is rewarded.
The bottom line is, we just enjoy our
work and providing our customers with
great service.”
BASIN RESOURCES34
www.basinresourcesusa.com •WINTER 2014
KemKey has a solution that eliminates
chemical cross contamination
Photos by Josh Bishop
4
Dorothy Nobis
Basin Resources
in the 30 years randy brown has been
in sales and management for the special
chemistry industry, he has seen, heard and
experienced a lot.
Most important to brown over the
years was the numerous incidents he was
aware of that involved chemicals being
transferred into the wrong tanks.
While many of those incidents were
not life threatening and involved just the
ruination of a tank were chemical, there
were incidents that caused property dam-
age, evacuations and, unfortunately, death.
“Many of the accidents were never re-
ported nor had investigations done out-
side of the plant/company where the in-
cident took place,” brown said.
“No one was hurt and the results were
contained within the confines of the
plant.”
“there have been many instances/acci-
dents,” brown added. “A good example is
the incident where PNM put acid into a
tank of chelant, making a brown cloud.
No one was hurt, but $55,000 of chemi-
cals were wasted and the cost of cleanup
is unknown.”
brown decided there needed to be a bet-
ter way of ensuring the right chemicals
were placed in the correct tanks. “it is not
possible to plug a 110-volt appliance into a
220-volt receptacle,” he said. “you can’t put
diesel into a gasoline car. you cannot con-
nect an acetylene cylinder to the oxygen
connection for a cutting torch. Not every
house key works in every door lock.”
brown’s vision was to help the industry
make it impossible to transfer the wrong
chemical into the wrong tank. “i was in-
spired to produce a product when i was in
a meeting with Los Alamos National Lab,”
he said. “they had an incident and were
in the process of expanding and restarting
the facility that had the accident. they
(LANL officials) asked me how they could
make sure that it would not happen again.
i told them they needed different fittings
for each chemical.”
BASIN RESOURCES 35
WINTER 2014 • www.basinresourcesusa.com
BASIN RESOURCES36
www.basinresourcesusa.com •WINTER 2014
Brown created fittings that were spe-
cific for each chemical, color-coding
them to make it easier to put the correct
chemical into the correct tank. He con-
tacted a patent attorney and filed a patent
application in September of 2012. With
the help of friends and the Merrion
Foundation, Brown started his business,
KemKey, and displayed his product at his
first trade show in June of 2013.
PNM became his first customer and
the University of New Mexico became
his second. “We have interests in New
Mexico, and in Florida, New Jersey,
Ohio, the United Kingdom, Brazil and
Australia,” Brown said proudly. I con-
tracted with a testing lab to test our fit-
tings and to compare results with the
industry standard, as well as one of our
higher quality competitors.”
The results of that testing showed
KemKey’s product was better than the
competition – so much better that Brown
believes Los Alamos National Laboratory
and Sandia National Laboratory will be
interested in his products.
Ed Munoz, a lab and plant operations
supervisor for PNM, said the San Juan
Generating Station has had several inci-
dents that could have been catastrophic
when incompatible bulk chemicals were
mixed together.
“After one of our last incidents, I
started researching these types of events
and it seems it happens on a very fre-
quent basis industry-wide,” Munoz said,
“and some have had the effect of endan-
gering life and property.”
“Because of our own experiences, I
was very open to anything that could de-
crease these chemical hazards,” Munoz
added.
Brown had been an account manager
for one of PNM’s chemical distributors
and had become a trusted associate to
Munoz. “When Randy approached me
with this novel concept of fittings that
were made for each family of chemical,
this immediately caught my attention. He
brought me prototypes of his product
and I told him I would be his first cus-
tomer.
Munoz took the concept to the engi-
neering and safety staff, who agreed that
using Brown’s products, would reduce
the probability of mixing incompatible
hazardous chemicals.”
“We have installed these bulk delivery
fittings at our facility and are in the
process of making sure all bulk chemicals
that are delivered onsite are set to this
standard,” Munoz said. “I believe this to
be a revolutionary concept that can make
industries that use hazardous bulk chemi-
cals a lot safer.”
Brown’s goal is to become profitable
BASIN RESOURCES 37
WINTER 2014 • www.basinresourcesusa.com
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BASIN RESOURCES38
www.basinresourcesusa.com •WINTER 2014
by June, 2015. “This is an interest-
ing concept in that there are only
two ways for the company to go,” he
said. “It can collapse and never get
any footing (which no one who has
seen the concept believes because it
makes so much sense), or it will be-
come an industry standard over
time. I estimate that the chemical
quick-connect market is about $500
million in North America and sev-
eral billion dollars worldwide.”
KemKey is located in Edgewood,
N.M. and has two employees. With a
future that looks promising, Brown
is optimistic and confident. “In the
future, instead of asking for a stan-
dard cam-locking fitting, industry
will order the correct KemKey
Safety coupling for the job,” he said.
For more information visit
www.Kemkey.com.
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BASIN RESOURCES 41
WINTER 2014 • www.basinresourcesusa.com
Financing Options Available • Blueprints with estimates (not guesstimates)
505-327-75253005 Northridge Drive, Suite K
www.basinelectricnm.com
• Residential Projects• Commerical Projects
• Industrial Projects
• New Construction
• RemodelingAdditions
• Service Calls
• Repair &Replacement
SPECIALIZINGIN
ConstruCtion
on sChedule
Photos by Josh Bishop
New School of Energy getting
rock star level attention
Dorothy Nobis
Basin Resources
san Juan College school of Energy’s new facility
continues to be a source of interest in the community.
“the amount of attention this building is receiv-
ing was unexpected,” said Jeremiah hayes, project
manager for Jaynes Corporation, contractor for the
facility.
“i guess once people catch the vision and passion
behind the mission and purpose of the school of En-
ergy, it becomes contagious. We have loved walking
different delegations from private and public entities
through the construction site and showing off the
skills of our team.”
the construction has gone well, hayes said. “the
college has been a delight to work for and our crews
BASIN RESOURCES42
www.basinresourcesusa.com •WINTER 2014
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are amazing. The workers are putting a lot
of blood, sweat and tears into the building
and it is humbling to watch these trades in
action.”
The 65,000-square-foot building will
bring together, under one roof, three satel-
lite offices for the School of Energy. Cur-
rently, offices are on South Hutton Avenue,
30th Street and at the Quality Center for
Business on the San Juan College main
campus on College Boulevard.
“Having the entire staff all together in
the same building will facilitate service and
assistance to our students and will bring
our team together for the first time in a
long time,” said Randy Pacheco, dean of
the School of Energy.
“The new facility will provide office
space for our instructors and staff, as well
as classrooms, study areas, work bays for
our programs and meeting rooms for our
industry partners.”
Construction on the project began in
February, and completion is expected in the
early spring of 2015. The planning and
timing of the construction was carefully
scheduled by the Jaynes Corp. team. “We
sequenced construction so that the temper-
ature sensitive systems will be complete be-
fore we experience freezing temperatures.
The interior of the building will be heated
for work to continue,” said Hayes.
“The amount of attention
this building is receiving
was unexpected.”
— Jeremiah hayes,
ProJect manager
Jaynes corPoration
BASIN RESOURCES 43
WINTER 2014 • www.basinresourcesusa.com
www.sjunitedway.org(505) 326-1195(505) 326-1195(505) 326-1195 .sjunitedwwww.sjunited g.orayy.orw.sjunited
BASIN RESOURCES44
www.basinresourcesusa.com •WINTER 2014
����������������� ���������
“The outside of the building will be
nearly complete before the holidays and
progress will look slower from the
street,”
“But don’t be fooled,” Hayes added
with a smile, “There is a team of busy
badgers diligently installing the finishes
on the inside.”
Working with the San Juan College
staff on the project has been a positive
experience, Hayes said.
“Our relationship with the various de-
partments and representatives of San Juan
College has been nothing short of a de-
light,” he said. “It takes a lot of work to
establish and maintain a trusting culture
in any relationship, but I think we have
excelled due to the wonderful folks we
get to work with. This project has an air
of excitement and anticipation and even
fun that, I believe, most of us are experi-
encing. It truly is one of the best projects
I’ve had the privilege to be a part of.”
“We are excited that the new School of
Energy is on schedule,” said Dr. Toni
Hopper Pendergrass, president of San
Juan College. “It is going to be a beauti-
ful facility that expands the campus of
San Juan College and one that will pro-
vide the capacity to serve more degree
and certificate seeking students in the en-
ergy industry. The partnership with
Jaynes regarding this major project has
been both positive and enjoyable.”
BASIN RESOURCES46
www.basinresourcesusa.com •WINTER 2014
Jeff Balmer, San Juan Basin asset manager for Encana, speaks March 18, 2013 at San Juan College during the San Juan Basin Energy Conference. – File photo
BASIN RESOURCES 47
WINTER 2014 • www.basinresourcesusa.com
SIERRA CHEMICALS
���������������������� ������������������������������������������
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Dorothy Nobis
Basin Resources
the 2015 san Juan basin Energy Con-
ference, set for March 24-25 at san Juan
College, will have a keynote speaker who
is familiar to many in san Juan County
rick Muncrief, who was named WPX
Energy inc.’s Chief Executive officer in
May, has ties to the san Juan basin, and
will speak to the expected 750 attendees
on March 24. Muncrief worked for Cono-
coPhillips and burlington resources lo-
cally and spent five years with Continental
resources before taking the helm at WPX.
Muncrief ’s return to Farmington is an-
ticipated by many who knew him.
bill standley was a classmate of
Muncrief ’s in the Leadership san Juan
Class of 1996. standley, former mayor of
Farmington and now a municipal judge,
remembers Muncrief as a man of intelli-
gence, integrity and “such a nice guy,” he
said.
“When rick left the community, we lost
a great contributor to the city of Farming-
ton,” standley said. “he was involved at
many levels, including the community,
schools, and his church. he just stood out
as a member of Leadership san Juan and
he was a pleasure to be around.”
standley also said tjat if he were a mem-
ber of a board of directors of a major oil
and gas company, he would invest in a
chief executive officer of Muncrief ’s cal-
iber. “i’m sure WPX will reap the rewards
of its investment by hiring rick.”
Nancy shepherd was one of the organ-
izers of Leadership san Juan and she is not
surprised at the success Muncrief has en-
joyed.
“rick is definitely a neat guy,” shepherd
said, adding Muncrief is typical of those
who graduate from the program. “People
have leadership qualities when they partic-
ipate (in Leadership san Juan),” she said.
“the program helps them expand (their
knowledge) and helps them look at things
differently.”
San Juan Basin Energy Conference set for March 24 – 25
Rick MuncRief keynote speakeR
It’s always satisfying, Shep-
herd added, to see a graduate
of Leadership San Juan enjoy
the success Muncrief has. “It
was a loss when Rick and his
wife, Gail, moved, but we’re
proud of him.”
For Muncrief, coming back
to San Juan County and the
San Juan Basin is much like a
homecoming.
“My family and I spent more
than a decade in Farmington
earlier in my career,” Muncrief said. “I
learned a lot and grew tremendously, both
personally and professionally. I feel very
connected to the community, the state and
the industry in the San Juan Basin.”
“It’s always an honor to return to the area
where we have so many friends and close ac-
quaintances,” Muncrief added.
Muncrief is a third-generation oil and gas
professional, and his children are continuing
the family tradition. Muncrief ’s grandfather
worked on work-over rigs for a time, along
with being a sharecropper. His father spent
his career in pipeline, compressor and plant
construction. Now, Muncrief ’s son works for
Samson Resources, an independent oil and
natural gas company engaged in the explo-
ration, development and production of oil
and natural gas from properties located on-
shore in the United States. His
daughter works for ExxonMobil.
Muncrief recently made news in
southwestern Pennsylvania when
he announced WPX has decided to
divest itself of its Marcellus Shale
assets. WPX has about 160 active
wells in dry gas areas in southern
Pennsylvania, and has been drilling
in the Marcellus since 2010.
Muncrief and the board of directors
of WPX decided to focus on New
Mexico and two other areas of the
country in which WPX has assets. Colorado,
which has natural gas liquids, and North
Dakota, along with New Mexico, where the
company drills for oil, offer a positive return
on investment, a spokesman said of the three
states.
The continuing drop in oil prices and the
opportunities for natural gas will be a focus
during the San Juan Basin Energy Confer-
BASIN RESOURCES48
www.basinresourcesusa.com •WINTER 2014
“It’s always an honor to return
to the area where we have so
many friends and close
acquaintances .”
— RICK munCRIef
WPX eneRgy InC.
BASIN RESOURCES 49
WINTER 2014 • www.basinresourcesusa.com
Juan College School of Energy and the CEO
of Four Corners Innovations, sponsors of the
event.
“The conference will give those attending
the opportunity to discuss and receive in-
sights into the future of energy and the mar-
ket it serves,” said Pacheco. “We expect the
2015 conference to attract the same industry
professionals who came in 2013, and who
are willing to share their visions and knowl-
edge of the industry. The conference encour-
ages networking and provides a positive
environment for leaders to discuss their con-
cerns and their expectations of the future of
oil and gas and electrical generation.”
Dr. James Henderson is on the steering
committee for the conference and also is ex-
cited about what attendees will hear and dis-
cover during the 2015 event.
“The conference will provide insights into
what’s happening with PNM (Public Service
Company of New Mexico and the San Juan
Generating Station), the coal mines and the
two power plants,” Henderson said. “Our
speakers will share their thoughts on where
we are and what the challenges and opportu-
nities are for the oil and gas/energy indus-
try.”
In addition to Muncrief, speakers expected
to participate in the conference include Ken
McQueen, also of WPX; David Martin, Sec-
retary of the Mew Nexico Energy, Minerals
and Natural Resources Department; Dr. Dan
Fine, research associate for the New Mexico
Center for Energy Policy/ New Mexico In-
stitute of Mining and Technology; Steve
Henke, president of the New Mexico Oil and
Gas Association; and Marita Noon, executive
director of Citizens' Alliance for Responsible
Energy, a lobby group funded by New Mex-
ico oil and gas industry interests, and the ex-
ecutive director for Energy Makes America
Great Inc.
Other speakers have been invited to par-
ticipate in the conference and those names
will be released when they are confirmed.
This is the second San Juan Basin Energy
Conference. The first one, held in March of
2013, was a great success, with more than
450 people attending.
“The tremendous response from the lead-
ers in the industry to our first conference,
and the success we enjoyed from it, has set
the bar pretty high for the 2015 conference,”
said Randy Pacheco. “We anticipate about
700 people to attend the 2015 conference.
The cost of oil, the direction and future of
the oil and gas/energy industry, and the vi-
sion of industry leaders will make this con-
ference, just like the 2013 one, an event that
will bring together people who have invested
their time, experience and talents to an in-
dustry that remains the backbone of our eco-
nomic foundation.”
The conference is hosted by San Juan Col-
lege, New Mexico Tech and Four Corners
Innovations. For additional information, visit
the conference web site at www.sanjuan-
basinenergy.org; or call 505.566.3676.
BASIN RESOURCES50
www.basinresourcesusa.com • WINTER 2014
Dorothy Nobis
Basin Resources
An official at the Farmington Field of-
fice of the bureau of Land Management,
bLM, has refuted allegations by environ-
mentalists that inspectors at the bureau of
Land Management have been negligent in
protecting the environment from oil and
gas drilling.
A 34-page letter, in late october, from
the san Juan Citizens Alliance, the Chaco
Alliance, WildEarth Guardians and the
Western Environmental Law office, out-
lined issues with the bLM’s Farmington
Field office and its approval of Mancos
shale drilling permits.
BLM
refutes
claims
Groups call for Four Corners fracking moratorium
* Fracking 54
WINTER 2014 • www.basinresourcesusa.com
The Bureau of Land Management announced a second call for
public nominations over a 30-day period to fill three positions on its
national Wild Horse and Burro Advisory Board. To be considered for
appointment, nominations must be submitted via email or fax by Dec.
20, 2014, or postmarked by the same date. The BLM announced its
second formal request for nominations in the Nov. 18 Federal Regis-
ter at www.gpo.gov/fdsys/pkg/FR-2014-11-18/pdf/2014-
27273.pdf .
Those who have already submitted a nomination in response to
the first call for nominations (published in the Federal Register on
Aug. 29, 2014 (79 FR 51601), do not need to resubmit. All nomina-
tions from the first and second calls will be considered together dur-
ing the review process.
Nominations are for a term of three years and are needed to repre-
sent the following categories of interest: wild horse and burro advo-
cacy, veterinary medicine (equine science), and public interest (with
special knowledge of protection of wild horses and burros, manage-
ment of wildlife, animal husbandry, or natural resource management).
The board advises the BLM, an agency of the Department of the
Interior, and the U.S. Forest Service, an agency of the Department of
Agriculture, on the protection and management of wild free-roaming
horses and burros on public lands administered by those agencies.
The board generally meets twice a year and the BLM director may
call additional meetings when necessary. Members serve without
salary, but are reimbursed for travel and per diem expenses according
to government travel regulations.
The Advisory Board comprises nine members who represent a bal-
ance of interests. Each member has knowledge or special expertise
that qualifies him or her to provide advice in one of the following
categories: wild horse and burro advocacy; wild horse and burro
BLM board nominations
Second call for nominations for
Wild Horse and Burro Advisory Board
BASIN RESOURCES52
www.basinresourcesusa.com •WINTER 2014
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CCUUTT CCOOSSTT.. NNOOTT CCOOVVEERRAAGGEE
research; veterinary medicine; natural re-
sources management; humane advocacy;
wildlife management; livestock management;
public interest (with special knowledge of
equine behavior); and public interest (with
special knowledge of protection of wild
horses and burros, management of wildlife,
animal husbandry, or natural resource man-
agement).
Individuals shall qualify to serve on the
board because of their education, training,
or experience that enables them to give in-
formed and objective advice regarding the
interest they represent. They should demon-
strate experience or knowledge of the area
of their expertise and a commitment to col-
laborate in seeking solutions to resource
management issues.
Any individual or organization may nom-
inate one or more persons to serve on the
advisory board; individuals may also nomi-
nate themselves. In accordance with Section
7 of the Wild Free-Roaming Horses and
Burros Act, federal and state government
employees are not eligible to serve on the
board.
For those interested, please submit a nom-
ination letter and full resumé. The following
information must be provided: the
position(s) for which the nominee wants to
be considered; the nominee’s first, middle,
and last name; business and home addresses
and phone numbers: email address; present
occupation/title and employer; education
(colleges, degrees, major field of study); ca-
reer highlights; qualifications: relevant edu-
cation, training, and experience; experience
or knowledge of wild horse and burro man-
agement; experience or knowledge of horses
or burros (equine health, training, and man-
agement); and experience in working with
disparate groups to achieve collaborative so-
lutions. Applicants must also indicate any
BLM permits, leases, or licenses held by the
nominee or his/her employer; indicate
whether the nominee is a federally registered
lobbyist; and explain why the nominee
wants to serve on the board. Also, at least
one letter of reference from special interests
or organizations the nominee may represent
must be provided.
Nominations may be submitted by email,
fax, or regular mail. Email the nomination to
[email protected]. To send by the U.S. Postal
Service, mail to the National Wild Horse
and Burro Program, Department of the Inte-
rior, Bureau of Land Management, 1849 C
Street, N.W., Room 2134 LM, Attn: Sarah
Bohl WO-260, Washington, DC 20240. To
send by FedEx or UPS, please send to the
National Wild Horse and Burro Program,
Department of the Interior, Bureau of Land
Management, 20 M Street, S.E., Room 2134
LM, Attn: Sarah Bohl, Washington, DC
20003. Or fax to Ms. Bohl at 202-912-
7182. For questions, please call Ms. Bohl at
202-912-7263.
The BLM manages wild horses and
burros as part of its overall multiple-use and
WINTER 2014 • www.basinresourcesusa.com
sustained-yield mission. Under the authority of the 1971 Wild Free-
Roaming Horses and Burros Act, as amended, the BLM manages and
protects wild horses and burros while ensuring that population levels
are in balance with other public rangeland resources and uses.
The BLM manages more than 245 million acres of public land, the
most of any federal agency. This land, known as the National System
of Public Lands, is primarily located in 12 western states, including
Alaska. The BLM also administers 700 million acres of sub-surface
mineral estate throughout the nation. The BLM’s mission is to manage
and conserve the public lands for the use and enjoyment of present
and future generations under our mandate of multiple-use and sus-
tained yield. In fiscal year 2013, the BLM generated $4.7 billion in
receipts from public lands.
As part of President Obama’s all-of-the-above strategy to continue
to expand safe and responsible domestic energy production, a Bureau
of Land Management oil and gas lease auction netted over $83 mil-
lion in revenues from the sale of 31 federal leases totaling 13,282.01
acres in Chavez, Eddy, Guadalupe, and Lea counties. The highest bid
per acre for a 640-acre parcel was $21,000 in Lea County.
BLM oil and gas leases are awarded for a period of 10 years and
for as long thereafter as there is production in paying quantities. The
revenue from the sale of these federal leases, as well as the 12.5 per-
cent royalties collected from the production of those leases, is shared
between the federal government and the state of New Mexico. Fifty-
two percent of the revenue generated goes to the federal government
and 48 percent to the state where leasing occurs. The sale netted
$83,080,090. The state of New Mexico will receive about
$39,878,443.
The Mineral Leasing Act of 1920 and the 1987 Federal Onshore
Oil and Gas Leasing Reform Act authorize leasing of federal oil and
gas resources. The 1987 law requires each BLM state office to con-
duct oil and gas lease sales on at least a quarterly basis. BLM lease
sales are competitive and conducted by oral bidding.
Sale dates for 2015
Information pertaining to specific sales is listed by sale date. This
includes sale notices, results, public comment opportunities, environ-
mental assessments, protests and other documents.
Note: Not all documents may be available at a given time. They
will be added as they become available.
www.blm.gov/nm/st/en/prog/energy/oil_and_gas/lease_sale_n
otices
• January 21, 2015 Lease Sale
• April 22, 2015 Lease Sale
• July 22, 2015 Lease Sale
• October 21, 2015 Lease Sale
BLM oil and gas lease salenets more than $83 million
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BASIN RESOURCES54
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The letter states the BLM continues to
issue permits for hydraulic fracturing (frack-
ing), but hasn’t analyzed how the process
affects the environment.
In the letter the groups demanded the
U.S. Bureau of Land Management put the
brakes on fracking in northwestern New
Mexico until the agency can safeguard the
climate, clean air and water, and the region’s
cultural heritage.
Dave Mankiewicz, assistant field manager
for the Farmington BLM office, said the of-
fice has 18 inspectors and funds an addi-
tional five Navajo inspectors and four
Jicarilla Apache inspectors.
“They are all fully trained and inspect
about 5,000 wells each year,” Mankiewicz
said.
Reports that the Farmington office has a
shortage of inspectors have been exagger-
ated Mankiewicz added. “We’re down
three (inspectors),” he said, “because people
have retired, transferred or quit. And there’s
no funding (to replace them).”
BLM inspectors are trained to do produc-
tion inspections, drilling inspections, aban-
donment inspections, workover inspections,
environmental inspections, records verifica-
tion, undesirable event inspections and al-
leged theft inspections, according to the
BLM’s web site.
“We look at all of the environmental im-
pacts before we issue permits,” Mankiewicz
said. “We look for endangered species,
groundwater and air quality, among other
things. We’ve been fracking in the (San
Juan) basin since the ‘60s and we don’t be-
lieve we’ve impacted the groundwater at
all.”
Neil Kornze, BLM director, told repre-
sentatives of the American Petroleum Insti-
tute at a meeting in Washington recently,
that the BLM has a shortage of inspectors,
declining budgets and a record number of
wells on public lands that the agency must
address.
A fee system has been proposed in Presi-
dent Obama’s budget, would allow the
BLM to recruit more than 60 new inspec-
tors throughout the country, which Kornze
said is needed.
“It is critical that we increase our inspec-
tor efforts to ensure that taxpayers are get-
ting a fair return on public resources,”
Kornze stated in a BLM media release.
Despite having a full staff of inspectors at
the Farmington office, Mankiewicz said his
inspectors are diligent in their efforts to en-
sure that before permits are issued locally,
all inspections have been completed and en-
vironmental issues have been addressed.
“I’m comfortable with what we’re doing,”
he said.
Fracking continued from 50
BASIN RESOURCES56
www.basinresourcesusa.com •WINTER 2014
Dorothy Nobis
Basin Resources
in october, PNM filed a settlement
agreement with New Mexico regulators,
asking for permission to implement a re-
vised state plan for the san Juan Generat-
ing station to comply with federal
environmental regulations while mini-
mizing the cost to customers.
the agreement would allow the addi-
tion of renewable energy. PNM would
cut water use and seven different emis-
sions at the plant by about 50 percent.
the settlement, however, was not ap-
proved, said susan sponar, senior Com-
munications representative for PNM.
“there will be hearings on our request
starting Jan. 4, 2015, through Jan. 15,
2015, if necessary. A final decision will
come sometime later, likely in the early
spring,” sponar said.
if the request is approved as submitted,
sponar added, customers would not see
some of the expected 7 percent increase
until 2018; however some costs would
be passed on earlier.
“For example, we have asked for ap-
proval to build 40 megawatts of new
solar under a separate request,” sponar
said. “if approved, those costs would be
passed along to customers
in 2016.”
With solar remaining a
positive alternative to the
emissions problem, PNM
hopes to extend its cus-
tomer rooftop solar pro-
gram through 2019. the current
program is only approved through 2016.
the lower costs of solar panels – about
half of the cost of PNM’s first solar in-
stallations in 2011 – along with a 30
percent federal tax benefit that is in place
through 2016 (after that, it
drops to 10 percent), helps
make solar a cost-effective
choice for PNM and its cus-
tomers, sponar added.
“however, as you know, the
sun does not always shine, so
solar must be used along with other re-
sources that are available around the
clock – coal, natural gas and nuclear,”
sponar explained.
the closures of Units 2 and 3 at the
coal-fired san Juan Generating station
have caused some concerns about a possi-
ble loss of jobs at the station.
“Although san Juan will only have
two operating units as opposed to four
after 2017, we will still have a workforce
at the plant,” sponar said. “today, we
have 310 employees at the plant and we
estimate we could need as many as two-
thirds that number, plus we will still need
contractors.”
January meetings
PNM, PRC set week-long hearings on plant’s future
BASIN RESOURCES 57
WINTER 2014 • www.basinresourcesusa.com
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PNM has also proposed building a
177 natural gas peaking plant on or near
the site. That, Sponar explained, will cre-
ate hundreds of jobs during the construc-
tion phase.
“PNM has also agreed to donate $1
million for workforce training for Navajo
students and (has) donated to Four Cor-
ners Economic Development Inc.,” she
said. “Finally we agreed that we would
not lay off any employees as a result of
the shutdown.”
The Environmental Protection Agency
is expected to propose a new ozone stan-
dard in December.
Depending on where the standard for
ozone is set, San Juan County, which is
where the San Juan Generating Station is
located, could be designated as not
attaining the standard for ozone. If that
happens, the New Mexico Environmental
Department would have the responsibil-
ity of bringing the county into compli-
ance, Sponar said, and would look at all
sources of NOx and volatile organic
compounds, since those are pollutants
that form ground level ozone.
Nitrogen dioxide (NO2) is one of a
group of highly reactive gasses known as
“oxides of nitrogen,’ or “nitrogen oxides
(NOx).” Other nitrogen oxides include
nitrous acid and nitric acid. EPA’s Na-
tional Ambient Air Quality Standard uses
NO2 as the indicator for the larger group
of nitrogen oxides. NO2 forms quickly
from emissions from cars, trucks and
buses, power plants, and off-road equip-
ment, the EPA’s web site states. In addi-
tion to contributing to the formation of
ground-level ozone, and fine particle pol-
lution, NO2 is linked with a number of
adverse effects on the respiratory system.
With the implementation of the state
plan for regional haze, Sponar added,
San Juan Generating Station should not
have to install additional controls to fur-
ther reduce emissions, especially with the
two unit shut down.
Also expected in December is a ruling
by the EPA regarding the handling of
coal ash. “Although this rule will not di-
rectly address how we currently manage
coal ash (which is used as reclamation
material in the adjacent mine pits), it will
likely influence the Office of Surface
Mining as it drafts a rule next year to
cover mine placement of ash,” Sponar
said. “In general, we believe that the
plant, because we dry handle our ash,
will be able to continue with our current
ash handling method. And we believe
our actions at the plant put the state in a
good position to comply with recently
proposed federal carbon regulations.”
PNM believes its proposal is the most
cost-effective choice for complying with
federal haze regulations and will put
New Mexico ahead toward compliance
with recently proposed carbon regula-
tions. The company further states that it
has done an analysis of thousands of
“This case was settled by some
of the parties via a stipulated
agreement (stipulation) and
the hearings in January
will address the merits
of that stipulation.”
— Patrick Lyons
Prc commissioner
for District 2
www.basinresourcesusa.com •WINTER 2014
power supply replacement strategies and believes its proposal to
use carbon-free nuclear and solar power, along with natural gas –
which emits about half the carbon of coal – is the most cost-ef-
fective and most balance option.
“We have worked to strike the right balance between reliable
power, the environment and affordability,” Sponar said of PNM’s
efforts. “Closing two units at the plant will reduce our coal power
by 30 percent and it will reduce water use and seven emissions
from the plant by about 50 percent, including greenhouse emis-
sions.”
In an email, Patrick Lyons, the PRC Commissioner for District
2, said hearings will begin in January 2015, and will be con-
ducted by Hearing Examiner Ashley Schannauer.
“These hearings will address PNM’s ‘Application of Public
Service Company of New Mexico for Approval to Abandon San
Juan Generating Station Units 2 and 3, Issuance of CCNs for Re-
placement Power Resources, Issuance of Accounting Orders and
Determination of Ratemaking Principles and Treatment,’ case 13-
00390-UT,” Lyons said. “This case was settled by some of the
parties via a stipulated agreement (stipulation) and the hearings in
January will address the merits of that stipulation. The hearing ex-
aminer will issue a recommended decision on the stipulation. The
parties may file exceptions to the recommended decision. The
five-member commission at the NMPRC will then be briefed on
the recommended decision and the parties’ exceptions during one
of the Regular Open Meetings and vote on the hearing exam-
iner’s recommended decision.”
Lyons cannot comment further on the settlement request be-
cause he is one of the five commissioners who will decide the
case, and can’t offer an opinion or judgment until the case is
heard.
Scott Eckstein, a San Juan County Commissioner and Mayor of
Bloomfield, supports PNM in its efforts to diversify its power
generation with new technologies.
“PNM is a very vital industry in our community, not only in
providing energy but in providing much needed jobs in a tough
economy,” Eckstein said. “I would hope the PRC takes all of this
into consideration when deciding on the future, and I have faith
that they will make the right decision.”
Dr. James Henderson is the chairman of the board of directors
for 4 Corners Economic Development (4CED) and said he hopes
PNM and the New Mexico Public Regulations Commission can
agree to a settlement when the hearings are held in January.
“PNM supports and is a member of 4CED and is as concerned
about the economy and job force in San Juan County as we are,”
Henderson said. “PNM has been very responsive to the require-
ments EPA has put before it. It is the hope of 4CED that the is-
sues will be resolved and PNM will continue to provide jobs that
are needed by our residents and our local economy.”
E N E R G Y N E W S. . . . . . . . . . . . . . . . . . . . . . . . . .
Across the Nation
Crude oil and lease condensate pro-
duction in the United States exceeded
8.6 million barrels per day (bbl/d) in Au-
gust, a production volume not observed
since July 1986, according to EIA’s latest
Petroleum Supply Monthly.
More than half of total U.S. produc-
tion was accounted for by record produc-
tion from three basins in three states.
Production from the Permian Basin in
Texas and New Mexico accounted for
1.66 million bbl/d, while the Eagle Ford
Shale in the Western Gulf Basin, also lo-
cated in Texas, produced 1.57 million
bbl/d. The Bakken Shale in North
Dakota’s Williston Basin accounted for
1.13 million bbl/d.
Domestic production has increased
dramatically over the past four years, in-
creasing from 5.4 million bbl/d in Janu-
ary 2010 to its current level, driven by
increasing production from shale and
other tight formations. During 2014
alone, 10 states (the three states previ-
ously mentioned in addition to Okla-
homa, Colorado, Wyoming, Utah, Ohio,
West Virginia, and Pennsylvania) have set
monthly production records since 1995,
and accounted for more than 64 percent
of total U.S. production during August.
Although down from 2,031 rigs in
2008, U.S. oil and natural gas rig counts
have been increasing over the past two
years. A total of 1,904 rigs were actively
drilling during August, 1,578 of which
were targeting liquids. Notably, once pro-
duction starts, three-fifths of all the wells
produce both oil and natural gas. Of the
1,904 active rigs, 62 rigs were operating
offshore while the remaining 1,842 rigs
were drilling onshore.
Now typical of the industry, horizontal
Crude oil, lease condensate production
now at highest levels since 1986
BASIN RESOURCES 59
WINTER 2014 • www.basinresourcesusa.com
* Crude Oil 61
BASIN RESOURCES60
www.basinresourcesusa.com •WINTER 2014
Coal stocks at electric power plants,
which totaled 121 million tons at the end of
August, are relatively low in both absolute
and days of burn terms relative to recent his-
torical norms. This is true both nationally
and in the Upper Midwest. About two-thirds
of coal used to generate electric power
moves from coal mine to power plant either
fully or partially by rail.
Power plants in the Upper Midwest oper-
ated at very high rates during last winter's
extreme cold weather, burning lots of coal.
As these plants rebuild their stockpiles, many
operators want shipments of coal well above
the levels they received in 2013.
Issues with delivery by rail are making it
more difficult to ship larger volumes of coal
and rebuild stockpiles at coal-fired power
plants. Although the rail problems are real,
their role should not be overstated. Despite
the problems on the rail system, particularly
in the Upper Midwest, coal car loadings year
to date through Oct. 25 were up slightly
from last year (0.3 percent). Loadings have
been on an upward trend in recent weeks:
during four weeks in October, coal car load-
ings averaged 4.7 percent higher than the
comparable weeks in 2013.
Four very small plants in Minnesota have
shut down to conserve coal stocks, but not
because they ran out of coal. Rather, grid
operators have opted to dispatch other units
during the fall shoulder season, when they
have the option to dispatch non-coal units to
conserve coal stocks for use during winter,
the peak period for power demand in Min-
nesota and other states in the north of the
country.
There have also been reductions in oper-
ating levels (utilization rates) at plants in sev-
eral other states as a result of concerns about
coal availability. Operators have substituted
higher-cost power from other sources, such
as natural gas-fired generation, to make up
the difference. In addition, some power
plants have increased their purchases of coal
moved by truck to their power plants, at sig-
nificantly higher cost compared to usual rail
shipments.
At an individual plant, stockpiles can be
viewed in terms of days of burn. The days-
of-burn calculation takes into account both
the current stockpile level at a plant and its
estimated consumption (burn) rates in com-
ing months to approximate how many days
the plant could run at historical levels before
depleting its existing stockpile. EIA calcu-
lates days of burn by averaging the most re-
cent three years of historical data and
applying that to the upcoming three months.
EIA groups coal plants into three days-of-
burn categories: those with less than 30 days
of burn, 30 to 60 days of burn, and those
with more than 60 days of burn. EIA ex-
cludes from the categorization plants that
rely on lignite or waste coal, as these plants
rely on coal from mine-mouth sources (lig-
nite mines or waste piles and ponds) and do
not maintain stocks comparable to other coal
plants.
At the end of August 2014, the amount
of coal capacity with less than 60 days of
burn was 63 percent of the total, compared
to only 42 percent at the end of August
2013. Within that group, the percent of ca-
pacity with less than 30 days of burn for
those same months rose to 23 percent, up
from 13 percent in 2013.
Railroads faced weather-related problems
last winter that curtailed deliveries. This year
railroads have had to accommodate record
grain harvests (up 16 percent this year) and
increasing amounts of petroleum and petro-
leum products shipments (up 13 percent this
year) vying for space on railroad networks.
Total U.S. rail traffic has increased for every
commodity type tracked by the Association
of American Railroads, and year-to-date traf-
fic (through mid-October) is 4.5 percent
higher compared with the same period last
year.
Coal fired power plants stockpilesare smaller than in recent years
BASIN RESOURCES 61
WINTER 2014 • www.basinresourcesusa.com
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rigs represent the most common
rig type with 1,330 active drilling
operations in August, while 374
vertical and 210 directional
drilling rigs were operational, re-
spectively. Higher rig counts,
along with improvements in
drilling productivity, are expected
to increase U.S. liquids production to
nearly 9.7 million bbl/d by December
2015.
U.S. oil production has been increasing
monthly at an average of 62,000 bbl/d
since 2010. EIA forecasts that previous
production highs set in the 1970s will be
surpassed before the end of 2015. This is
especially notable as Alaska production
provided up to 2 million bbl/d of total
U.S. production volumes during high pro-
duction years in the 1980s. Decreases in
Alaska production are related to natural
reservoir decline and reduced exploration
along the North Slope; however, discover-
ies in southern portions of Alaska’s Cook
Inlet are adding new production capacity.
Production gains have been observed
across the Lower 48, with particular in-
creases in crude oil and lease condensate
production from shale and tight forma-
tions. Production estimates from EIA’s
Drilling Productivity Report confirm that
many top-producing reservoirs include
production involving horizontally drilled
wells, hydraulic fracturing reservoir stimu-
lation, and multi-well pad drilling. The
highest-ranked tight producing reservoirs
in 2014 include Texas’s Eagle Ford and
Wolfcamp formations, North Dakota’s
Bakken-Three Forks formations, New
Mexico’s top Spraberry and Bone Springs
formations, Oklahoma’s Woodford Shale
formations, Colorado’s Niobrara formation,
Utah’s Green River formations, Ohio’s
Utica and Point Pleasant formations, and
the Marcellus Shale formations in West
Virginia and Pennsylvania. – EIA
Crude oil continued from 59
BASIN RESOURCES62
www.basinresourcesusa.com • WINTER 2014
Increased natural gas production is
projected to satisfy 60 percent to 80 per-
cent of a potential increase in demand for
added liquefied natural gas (LNG) ex-
ports from the Lower 48 states, accord-
ing to recently released EIA analysis.
The report, Effect of Increased Levels
of Liquefied Natural Gas Exports on U.S.
Energy Market, considered the long-term
effects of several LNG export scenarios
specified by the Department of Energy’s
Office of Fossil Energy (FE). The study
also considered implications for natural
gas prices, consumption, primary energy
use, and energy-related emissions. Effects
on overall economic growth were posi-
tive but modest. A discussion of caveats
Increased natural gas production would
meet most demand from added LNG exports
BASIN RESOURCES 63
WINTER 2014 • www.basinresourcesusa.com
and limitations of the analysis is also in-
cluded.
In the export scenarios that EIA was
asked to analyze, LNG exports from the
Lower 48 states start in 2015 and increase
at a rate of 2 billion cubic feet (Bcf ) per
day per year, ultimately reaching 12, 16
or 20 Bcf/d. EIA also included a 20-
Bcf/d export scenario (Alt 20-Bcf/d) with
a delayed ramp-up to identify the effect of
higher LNG exports implemented at a
more credible pace.
EIA looked at these scenarios in the
context of five cases from its Annual En-
ergy Outlook 2014 (AEO2014) that re-
flect different supply and demand
assumptions. The cases used in the study
were: EIA’s Reference, Low Oil and Gas
Resource (LOGR), High Oil and Gas Re-
sources (HOGR), High Economic Growth
(HEG), and Accelerated Coal and Nuclear
Retirements (ACNR). The five AEO2014
cases used as baselines in the study al-
ready include some amount of LNG ex-
ports from the Lower 48 states. The LNG
exports in the AEO2014 baseline cases,
rather than the scenarios specified for this
study, reflect EIA’s own views on future
LNG exports.
LNG exports from the Lower 48 states
in the baselines have projected 2040 lev-
els ranging from 3.3 Bcf/d (LOGR case)
to 14.0 Bcf/d (HOGR case). Estimated
price and market responses to each pairing
of a specified export scenario and a base-
line will reflect the additional amount of
LNG exports needed to reach the targeted
export level starting from that baseline.
BASIN RESOURCES64
www.basinresourcesusa.com •WINTER 2014
Natural gas consumption varies widely by
region of the country.
The majority of households that heat
with natural gas are located in the Midwest
and Northeast. In the upcoming winter
months, homes in the East North Central
Census division are expected to consume the
most natural gas, but not as much as last
winter. Extreme cold weather in natural gas-
intensive regions caused unexpectedly high
consumption during the winter of 2013-14.
Residential and commercial consumers
use natural gas primarily for space heating.
The East North Central Census division
(Wisconsin, Michigan, Illinois, Indiana, and
Ohio) is the largest residential and commer-
cial natural gas-consuming division in the
country, making up 28 percent of all resi-
dential consumption and 24 percent of com-
mercial consumption in 2013.
Because the East North Central Census
division has the largest number of house-
holds heating with natural gas, its collective
response to changes in weather (as measured
by heating degree days) is greater than in
any other region (see maps below). The re-
sponse to changes in heating degree days in
the South Atlantic Census division (with
about 6 million homes which heat primarily
with natural gas) is similar to that of the Pa-
cific and Mid-Atlantic Census divisions
(where 10.2 and 9.4 million households, re-
spectively, heat with natural gas). This re-
sponse may be attributable to natural gas
used as a secondary heat source, such as nat-
ural gas fireplaces, or as the supplemental
heat source to air-source heat pumps. When
temperatures drop below a certain threshold
(usually around freezing temperatures), heat
pumps rely on a supplemental heat source.
The National Oceanic and Atmospheric
Administration projection is that tempera-
tures this coming winter will be closer to
normal.
The most recent Short-Term Energy and
Winter Fuels Outlook projects that residen-
tial and commercial prices will be higher
than they were last year, largely because
through 2014 (when utilities began buying
natural gas for the upcoming winter) prices
have averaged higher than year-ago levels,
and are currently higher than a year ago.
However, EIA projects lower residential
heating bills for consumers because of lower
consumption.
Natural gas is dominant heatingfuel in colder parts of U.S.
BASIN RESOURCES 65
WINTER 2014 • www.basinresourcesusa.com
Crude oil prices extended their losses the
first week of Decmber, falling to their lowest
levels in nearly 5 years after the Organization
of Petroleum Exporting Countries elected to
keep its output target unchanged, even after
one of the steepest slumps in oil prices fol-
lowing the global recession. NYMEX crude
prices fell to about $65 per barrel, while
Brent crude breached the $70 per barrel
mark. There is a possibility that prices could
fall further in the near term since it seems
likely that OPEC, which accounts for about a
third of global crude output, is looking to
maintain global market share while waiting
for higher-cost producers like the U.S. shale
industry to scale back production.
Before its recent decline, average monthly
Brent spot prices had traded within a narrow
$5 per barrel range, from $107 to $112 per
barrel, for 13 consecutive months through
July 2014.
During that period of low price volatility,
substantial oil supply disruptions in the Or-
ganization of the Petroleum Exporting
Countries (OPEC) were offset by increases in
U.S. production and weaker-than-expected
global demand. More recently, however, the
resumption of significant Libyan oil produc-
tion, combined with the weakening outlook
for global oil demand, has put downward
pressure on prices.
The sustained increase in Libyan produc-
tion over the summer – increasing from
200,000 barrels per day (bbl/d) in June to
900,000 bbl/d at the end of September –
has added supplies to an already well-sup-
plied light sweet crude market in the Atlantic
Basin, despite the fact that Libya’s recent pro-
duction has not come close to its previous
level of 1.65 million bbl/d in 2010 and
2011, before fighting that occurred during
the Arab Spring.
Over the past several years, increasing U.S.
light sweet crude production has significantly
reduced light sweet crude imports to the
United States. Those reduced imports, which
were sourced primarily from Africa, became
available to replace Libyan production lost
during a time of civil war and subsequent un-
rest. While Libyan production was disrupted,
supply and demand in the Atlantic Basin was
relatively balanced. However, as Libyan pro-
duction has returned and has remained
largely online despite internal unrest, the
price of Brent crude oil has fallen.
Although the return of significant Libyan
production has been an important factor put-
ting downward pressure on the Brent price,
weakening global demand, particularly in
Europe and Asia, is also important. Economic
growth in 2014 outside of the United States
has been slow, and recent data releases ap-
pear to confirm lower-than-expected growth,
particularly in Asia and Europe.
Lower demand, higher supply driveoil prices to lowest level in 5 years
BasiN resoUrces66
www.basinresourcesusa.com •WiNter 2014
advertisers directoryAllstate ....................................................52Viviana Aguirre900 Sullivan Ave., 505-327-4888B J Brown3030 E Main St., Ste X9, 505-324-0480Kelly J. Berhost1415 W. Aztec Blvd, Ste. 9, Aztec, NM505-334-6177Harold Chacon8205 Spain Rd. NE, Suite 209 CAlbuquerque, NM505-296-2752Dennis McDaniel, 505-328-0486Matt Lamoreux4100 E. Main St., 505-599-9047Silvia Ramos2400 E. 30th St., 505-327-9667
American Dream Realty .............................13Farmington, NM505-566-9901
Animas Environmental Services .................33Farmington, NM505-564-2281Durango, CO970-403-3084www.animasenvironmental.com
Animas Valley Insurance..............................72890 Pinon Frontage Rd.Farmington, NM505-327-4441www.aviagency.com
Antelope Sales & Service Inc. ....................585637 US Hwy 64Farmington, NM505-327-0918www.NMASSI.com
Armstrong Coury Insurance.......................39424 E. MainFarmington, NM505-327-5077www.armstrongcouryinsurance.com
Bailey’s Welding .......................................286175 Hwy 64Bloomfield, NM505-632-3739
Basin Electrical Contracting .......................413005 Northridge Drive, Suite KFarmington, NM505-327-7525www.basinelectricnm.com
Basin Well Logging Wireless ......................552345 E. MainFarmington, NM505-327-5244
BM Technology & Supply...........................232303 Bloomfield Hwy.Farmington, NM505-326-9144
Brady Trucking, Inc. ..................................685130 S. 5400 EVernal, UT 84078435-781-1569Farmington, NM Division505-598-5580Grand Junction, CO Division970-263-8791Williston, ND Division701-572-1522Bloomington, IL Division309-556-0077
Calder Services.........................................60#7 RD 5859Farmington, NM505-325-8771
City of Farmington....................................251300 W. Navajo St.Farmington, NM 505-599-1395www.IflyFarmington.com
Elite Promotional & Embroidery ................171013 SchofieldFarmington, NM505-326-1710
Encana.....................................................30www.encana.com/sanjuan
Four Corners Community Bank...................64505-327-3222 New Mexico970-565-2779 Coloradowww.TheBankForMe.com
Four Corners Innovations ..........................44505-566-3676www.sanjuanbasinenergy.org
Foutz Hanon.............................................572401 San Juan Blvd.Farmington, NM505-326-6644
Halliburton ...............................................48www.halliburton.com
Halo Services ...........................................1970 CR 4980Bloomfield, NM505-632-7007
Hands on Safety Service ...........................651901 E. 20th St.Farmington, NM505-325-4218
Harpole Construction ................................1660 RD 3961Farmington, NM505-325-1249
Highlands University.................................53505-454-3004nmhu.edu/energy
Honstein Oil .............................................3896 Road 4980Bloomfield, NM505-632-5730
IEI Industrial Ecosystems ..........................1549 CR 3150Aztec, NM505-632-1782www.industrialecosystems.com
Imagenet Consulting .................................51Farmington, NM505-327-7383
Mechanical Solutions, Inc. ...........................21910 Rustic PlaceFarmington, NM505-327-1132
Mesa West Directional ...............................31505-402-8944www.mesawestdirectional.com
Miller & Sons Trucking ................................41110 W. Sategna Ln.Bloomfield NM 87413505-632-8041www.powerinnovations.com
Morgan Stanley/JimLoleitt .........................124801 N. ButlerFarmington, NM505-326-9322www.morganstanley.com
New Image Powder Coating .......................212792 Inland StreetFarmington, NM505-326-2797
No Limit Motorsports ................................36Farmington, NM505-326-5477
Odessa Pumps..........................................49940 Hwy 516Flora Vista, NM505-334-1330
Park Energy ...............................................32050 Afton PlaceFarmington, NM505-258-4284www.parkenergyservices.com
Parkers Office Products ............................18Farmington, NM505-325-8852www.parkersinc.com
Partners Assisted Living ...........................54313 N. Locke Ave.Farmington, NM505-325-9600www.partnersassistedliving.com
Pumps and Service ...................................293440 Morningstar Dr.Farmington, NM505-327-6128www.pumpsandservice.com
QuickLane Tire & Auto Center ....................615700 East Main St.Farmington, NM505-566-4729
RA Biel Plumbing & Heating ......................63505-327-7755www.rabielplumbing.com
Reliance Medical Group .............................423751 N. Butler Ave.Farmington, NM505-324-1255 Occupation Medicine505-324-1255 Urgent Care1409 Aztec Blvd.Aztec, NM505-334-1772www.reliancemedicalgroup.com
Rush Truck Centers of New Mexico ..............96521 Hanover Road N.W.Albuquerque, NM 87121505-875-3410www.rushtruckcenters.com
San Juan College.......................................36Farmington, NM505-326-3311www.sanjuancollege.edu
Sanchez and Sanchez .................................5Farmington, NM505-327-9039
San Juan Casing Service ............................226101 E. Main St.Farmington, NM505-325-5835
San Juan United Way .................................43505-326-1195www.sjunitedway.org
Sierra Chemicals .......................................47104 Bison TrailAztec, NM505.334.0447www.sierrachemicals.com
Southwest Concrete Supply .......................312420 E. MainFarmington, NM505-325-2333www.southwestconcretesupply.com
The Spare Rib...........................................281700 E. MainFarmington, NM505-325-4800www.spareribbbq.com
Sunray Casino...........................................52Farmington, NM505-566-1200
TJ’s Diner .................................................47119 East Main StreetFarmington, NM
Treadworks ..............................................374227 E. Main St.Farmington, NM505-327-02864215 Hwy. 64 Kirtland, NM505-598-1055www.treadworks.com
Twin Stars, LTD.........................................67100 Iowa Ave.Bloomfield, NM505-632-92027169 Roswell Hwy.575-746-6690
U.S. New Mexico Federal Credit Union ........243024 E. Main St.Farmington, NM505-599-3610usnmfcu.org
Uncle Bob’s Auto & Truck..........................133995 Cliffside Dr.Farmington, NM505-436-2994
Vectra Bank ..............................................62Farmington, N.M.505-564-8652www.bectrabank.com
X-Chem, LLC .............................................45855-829-0001www.x-chem.com
Wagner Equipment....................................16905 Hwy 516Flora Vista, NM505-334-5522
Ziems Ford Corners ..................................325700 East MainFarmington, NM505-325-8826
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