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2017 Q1

16 4:20 PM February 22, 2017 Tricia Davis President of Texas Royalty Council, American Royalty Counc

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2017 Q1 Test

National Association of Division Order Analysts January/February/March 2017

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Royalty valuations

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Free estate and title transfer consults

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[email protected] • 1-800-950-6954 • www.LegacyRoyalties.com

ln Energy Transactions THE PROOF lS lN THE NUMBERS

$18B in recent complex energy transactions, including due diligence, joint venture agreements, asset acquisitions, and divestitures

1 of the largest due diligence teams nationwide

Managed divestiture of more than 2 million mineral acres in a single transaction Extensive experience in private placement and private equity financing

More than 200 attorneys and paraprofessionals devoted to the energy industry

More than 100 years experience in Energy Law

Top-ranked in Energy Law by Chambers USA, The Best Lawyers in America ® , and AV rated by Martindale-Hubbell

Sharon O. Flanery Chair, Energy and Natural Resources Department [email protected]

P L L C

www.steptoe-johnson.com

THIS IS AN ADVERTISEMENT

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

Volume MMXVII • No 1

www.NADOA.org

Contents Feature

NADOA 2017 Officers President Sandi Rupprecht 1st Vice President Cheryl Hampton, CDOA 2nd Vice Presiden t Jason Lucas Treasurer Michele Lawton Corresponding Secretary Luanne Johnson, CDOA Recording Secretary Stephanie Moore, CDOA The NADOA News Magazine is a quarterly publication of the National Association of Division

Articles

In This Legal Updates Legal Watch – Colorado. .............................................12 Legal Updates Ohio..........................................................................13 Pennsylvania.............................................................13 Texas Denbury vs Texas Rice............................................15 Injection Well Challenge.........................................18 Wyoming ..................................................................20 2017 Institute..............................................................21 President’s Corner. ........................................................1 Decimal Points..............................................................2 Cob Webs (NADOA social media). ................................2 Certification..................................................................3 Registered DOA ............................................................6 Interaction.....................................................................6 Webinar Update............................................................7 Counterpart Connection................................................8 New Members .............................................................11 Regional Seminars.......................................................30 2017 Board/Committee Chairs ...................................31 Calendar of Events. .....................................................32 Issue

Order Analysts PO Box 44009 Denver CO 80201

Subscription: By membership to NADOA, at $75.00 per year.

News Magazine Editor Rona L. Erickson, CDOA Kaiser-Francis Oil Company [email protected] 918.491.4319 Associate Editor Cheryl Hampton [email protected]

On the Cover: Texas State Capitol Building Photo Courtesy of Texas State Capitol Building

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

President’s

Corner

Sandi Rupprecht 2017 NADOA President

Greetings from Denver, Colorado. I am excited to start 2017 and to be able to serve as your NADOA president. So much is already happening in our industry that points to a brighter, more prosperous future. Companies are beginning to complete wells and increase drilling. Hiring is up and the commodity prices are going in the right direction…higher! My prayers are with those of you who found yourselves unemployed in 2016 that you will find better and more fulfilling industry positions in 2017. 2016 was a rough year for NADOA. The 2016 Board members had to deal with declining membership numbers, declining revenues and member layoffs along with rising expenses and lower attendance numbers for the 2016 Institute. I personally want to thank Brenda Pirozzolo for her leadership during 2016. Her Institute Co-Chairs, Lisa Buffaloe and Betty Davidson did a wonderful job leading the Institute Committee in hosting one of the best Institutes ever held. We had many new faces, a great program of speakers and fun activities. The 2017 NADOA Board met the last weekend in January to start on 2017 business. Thank you for taking the time to vote on updating your NADOA by-laws. The ballot measures passed overwhelmingly. The Board can now vote electronically, allow Board members who are unable to attend a meeting in person to be there via Go- To-Meeting and lastly, the Board may now change the association dues by a majority Board vote. Every Board member takes the responsibility of representing you, our members, very seriously. We have the future of the Association in mind for every decision we make and we stand for what is best for the Association. This includes keeping our dues at a reasonable rate by raising or lowering the dues based on the financial fitness we find ourselves in year by year. Preparation for the 2017 Institute on September 6-8, 2017 at the Lost Pines Resort in Bastrop, Texas has begun. Bastrop is just outside of Austin, Texas. We will once again host a Wednesday seminar free of cost for those of you who can extend your stay for a day of additional education. We will also be celebrating 30 years of our CDOA program. If you are a CDOA, you will want to be there for the special honors we are planning. Plans are being made for a couple of new activities; a skeet shooting competition and river rafting and of course, our yearly golf tournament is in the works. This year we are hosting a combined President’s reception and Welcome reception for Wednesday evening. You won’t want to miss the Wednesday or Thursday evening events. Institute Registration will open as soon as our list of speakers and topics are finalized. Check out the NADOA website regularly for details as we add them. We are offering an Early Bird Registration fee this year of $595 for members. The regular member registration price is $625. Both prices include the Wednesday education classes. Sign up early for the best deal. We will be updating our Facebook, Twitter, Instagram and LinkedIn accounts more often to keep you in the know. Be sure to join our pages and be the first to know what NADOA is doing. I hope you all find value in your NADOA membership. For a fee of only $75 per year, you have access to free webinars, a quarterly digital newsmagazine with timely articles and news regarding our jobs and industry, a member based tuition to attend our regional seminars and the annual Institute and an opportunity for peer networking. Our website lists open employment opportunities for members as they are given to us. Please remember to visit NADOA.org to begin your membership or to renew. If you are renewing, be sure to click on your profile and confirm that your contact information is up-to-date. I hope to meet many of you this year in Bastrop, Texas at the 44th NADOA Annual Institute: “Back to Our Roots…Deep in the Heart of Texas”.

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G r o w t h T h r o u g h E d u c a t i o n - J a n u a r y / F e b r u a r y / M a r c h 2 0 1 7

NADOA

Decimal Points NADOA has “gone digital” and we hope you enjoy the new magazine format. Please let us know if you have suggestions to make the transition from the printed page to electronic mode easier to negotiate. If you have a suggestion for someone to act as a Regional Reporter to help NADOA keep abreast of current legislation and legal issues for any open or unlisted states, please submit the name or the name of the firm.

2017 NADOA Magazine deadlines

Second Quarter.....................April 28, 2017 Special Institute Edition...........June 2, 2017 Third Quarter....................August 11, 2017 Fourth Quarter.............. November 3, 2017

Regional Reporters ABADOA

Steptoe & Johnson PLLC

[email protected]

CAPDOA

Chelsea Wright

[email protected]

DADOA

Sharon Siemer

[email protected]

DALWORTH

Lewis Box

[email protected]

HADOA

Stephanie Moore

[email protected]

MAADOA

Angie Coady, CDOA

[email protected]

PBADOA

Shawn Thompson

[email protected]

SADOA

Rebecca Helt, CDOA

[email protected]

Arkansas

Jackie Clotfelter, CDOA

[email protected]

North Dakota New Mexico Louisiana

Kimberly A Backman

[email protected]

Cob Webs

2

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

NADOA

Certification

Congratulations to the following new CDOAs!!

Courtney Jane Mayes

Hannah Yee

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

NADOA Certification Committee P O Box 44009 Denver CO 80201

If the objection warrants denial of the certification or temporary withholding of certification, the applicant will be notified by Certified Mail.

CANDIDATES FOR RECERTIFICATION

Carolyn Dean – Fort Worth, TX

Nora Marquez – Houston, TX

Barbara Reiff – Houston, TX

CANDIDATES FOR CERTIFICATION

Stephanie Ngoc Nguyen – Houston, TX

2017 Certification Committee Chair Brenda Dickey, CDOA Application and Publications Stephanie Franklin, CDOA Recertification Credits Eli Murray, CDOA Policies Heidi Davis, CDOA Recertification Applications Darryn McGee, CDOA Review Manuals/Forms Lewis Box, CDOA Testing Sherry Werth, CDOA

3

G r o w t h T h r o u g h E d u c a t i o n - J a n u a r y / F e b r u a r y / M a r c h 2 0 1 7

Certification There is nothing like implementation of a new certification system to keep things exciting! The Certification Committee thanks you for your patience during the downtime and while we continue to work out a few minor issues. Now that the system is up and we are in a new year, we should all “resolve” to log in frequently to claim credits and use the system to its full potential. That’s a New Year resolution even I can keep! Here are a few helpful hints for keeping your certification credit records up to date.

• All recertification credits must be entered in the system within 60 days of the event.

• Employment credits must be entered in the system within 90 days of your new certification year. Credits always pertain to the certification year just ended. An easy “hack” for this—look at the date on your certificate:

• January 1 - Enter employment credits January through March.

• July 1 - Enter employment credits July through September.

• Most all NADOA or location association events and webinars are already listed in the drop-down, but roll off after the time has expired to use them. Use the drop-down wherever possible. It will save you time and make it easier on the one approving credits. Please add Eli Murray (emurray@ rsppermian.com) to the distribution list for your local association events. • Remember that in-house training at your company will very likely qualify for either core or non-core credits. College classes, leadership classes and other external training may also qualify. Contact Eli to with any questions about these.

I hope you all have a wonderful year and that 2017 is a year of recovery for our industry. Thank you for the opportunity to serve as your Certification Committee Chair.

Brenda Dickey, CDOA

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

Adding Employment Points to the new CDOA program

• You will then get a box with a zero and ok button. In the box put the number of months you worked in the past year. (ie. 12 months – 12), then click on OK.

http://members.nadoa.org/

• Login to your CDOA account

• Then you will enter your account. • You will see once you click on the previous year that your employment points have been added.

• Once in you will get the following screen – click on the gray circle.

Employment Months – just says how many months you worked in the selected year. Total Employment Credits – This is gives you the total employment credits you have received during the current recertification period.

5

G r o w t h T h r o u g h E d u c a t i o n - J a n u a r y / F e b r u a r y / M a r c h 2 0 1 7

Want to become a Registered DO Analyst?

The certification committee is exploring the idea of adding a certification level to our certification program of “Registered”. This program for Division Order personnel would be similar to the RPL/CPL program for professional landmen. The committee encourages any and all input from our membership so we can gauge interest in the program. The idea behind adding a level of certification would be to encourage participation of DO Techs and Associate DO Analysts in the certification program and expand their knowledge of Division Orders. If you have any comments, questions, ideas, or concerns please email Lewis Box ( [email protected] )

INTERACTION By Julie Willis, Interaction Chair

Last year NADOA volunteers attended the NAPE Summit, NARO-OK, NARO-TX, NALTA and NARO National events. These volunteers represented our Association as liaisons between our industry, the negotiators and the royalty owners that we so often work with. They were a huge help not only promoting our Association but also educating the community in attendance. NADOA is kicking off another great year in this exciting industry by attending the NAPE Summit in Houston, Texas, February 15-17. Many thanks to Cheryl Hampton for setting up the NADOA booth and to Cosette Barnett, Jennifer Kegans, Heather Lister and April Luedecke for staffing the booth during NAPE. The booth was a busy place with many inquiries about the Mergers and Acquisitions book and lots of interest in the online availability of this information. There were several contacts made and attorneys who expressed interest in returning to speak or presenting a topic at Institute. 2017 is already looking much different than 2016 and we cannot wait to see what this year will bring. To celebrate another exhilarating season ahead stayed tuned to see NADOA’s upcoming new booth look later this year.

6

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

NADOA WEBINARS

Looking for additional ways to earn your CDOA credits? NADOA Webinars can now present up to 500 members at once! Participate with a coworker or individually and turn in those CDOA points. Please contact Yoli Bazan at [email protected] if you have any topics or speakers you are interested in hearing.

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February 22, 2017 Tricia Davis President of Texas Royalty Council, American Royalty Council

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