2009 International Sucker Rod Pumping Workshop

Meeting No. Date & Time Contact Information Agenda Minutes

1 Oct. 3, 2008 Teleconference See below. See below. 1:30 pm CDT (877) 226-9790 Code: 3834125 2 Dec. 9, 2008 Teleconference See below. See below. 1:30 pm CST (877) 226-9790 Access 2811975 3 Mar. 17, 2009 Teleconference See below. See below. 11:00 am CDT (877) 226-9790 Access 8246385 3 May 12, 2009 Teleconference 1:30 pm CDT (877) 226-9790 Access 8246385

People with actions items are highlighted in red. Status of action items is shown in blue.

Agenda items shown in Black Closed or finished items shown in Gray Past meeting shown in Yellow Next meeting shown in Light Blue

1. Attendees  The people listed below attended this teleconference or face-to-face meeting. Attendees: Oct. 3, 2008 - Ronda Brewer - Norm Hein - Chris Norris - Cleon Dunham - Bill Holmes - Lynn Rowlan Attendees: Dec. 9, 2008 - Ronda Brewer - Bill Holmes - Lynn Rowlan - Mike Brock - Chris Norris - Bill Sapp - Cleon Dunham - Tony Podio - Russell Stevens Attendees: March 17, 2009 - Ronda Brewer - Chris Norris - Russell Stevens - Cleon Dunham - Lynn Rowlan - Tom vanAkkeren - Bill Holmes - Bill Sapp

2. Learnings from 2008 workshop  What are key learnings from 2008 workshop? Agenda and Minutes: Oct. 3, 2008 - What are the key learnings from the 2008 Workshop? - Tony Podio o With regard to the meeting schedule, considering the difficulty in getting relevant pre- sentations from the operators (need to increase their participation) due to their very busy schedule, I think it would be better to schedule the workshop with the same present format on a 2 year cycle. o However another alternative could be to have a "workshop" one year focusing mainly Beam Pumping Workshop January 8, 2008 Meeting Page 2

on expanded schools and vendors' presentations on "what is new and available now" and then the following year have a "seminar" focusing mainly on operators’ experi- ences, theoretical presentations and emerging technology. The school schedule and number of offerings could be adjusted according to needs. This would allow more time to get presentations from operators.

- Ronda Brewer o We should move the meeting to another location. o A location could be Dallas, near the Dallas/Fort Worth Airport.

- Mike Brock o No comments.

- Chris Norris o No comments. - - Justin Conyers o No comments.

- Bill Holmes o First, we had very limited involvement from the operators in the presentations. This was mainly a vendor driven event. While the vendors had some good presentations, we need more participation from operators. The lack of participation, I think, is a re- flection of what we see through out the industry. That is, there is very little actual rod pumping experience left in the operating companies and the few of us that are left did not get motivated to pull together any presentations. I'm pointing fingers at myself here. I am wondering if we were to move the conference to Midland, which is in the heart of rod pump territory, that we might get more participation from the smaller in- dependent operators. One alternative might be to hold the conference in Houston and Midland on alternating years. If we do not rotate between Houston and Midland, we might want to consider holding the workshop every other year in Houston. o Also, I am thinking that we should probably consider moving the conference date to late October. We of course, need to make sure that we are not conflicting with other events such as the annual SPE meeting.

- Cleon Dunham o In general all of the Continuing Education courses were well received and should be repeated next time. o I do wonder if it might be a good idea next time to offer a new course on comparing the various types of pumping units since there are several in use and there seems to be a lot of interest in understanding when use of each type would make the most sense, the pros and cons of each, etc. Would someone like to develop and present a course like this? - Conventional - Mark II - Reverse Mark - Beam Balance - Air Balance - Rotoflex - Hydraulic - Others

- Norm Hein o I would be happy to do the course or work on it with someone else; however, isn't this part of Tom's school on sucker rod pump equipment? Beam Pumping Workshop January 8, 2008 Meeting Page 3

o We need to either change the month to have this in Houston (preferably later in the year) or change the location to Dallas or OKC or someplace less likely to be effected by the weather. Agenda and Minutes: Dec. 9, 2008 - Is there any discussion of the learnings from the 2008 Workshop? - There were no new comments. Agenda and Minutes: Mar. 17, 2009 - Is there any further discussion of the learnings from the 2008 Workshop? - There was no further discussion of this topic.

3. Workshop dates  Should we plan for a Sucker Rod Pumping System Workshop in 2009?  If yes, when?  If no, should we consider having one every other year, so in 2010, 2012, etc.? Agenda and Minutes: Oct. 3, 2008 - Do we want to continue with an annual Sucker Rod Pumping Workshop in 2009? - If yes, when do we want to hold it? - If no, when do we want the next one? - We agree to have the Workshop again in 2009. - Attendance has been growing every year.

4. Workshop venue and registrations  If there is to be a workshop in 2009, where should it be held?  What specific location – i.e. hotel? Agenda and Minutes: Oct. 3, 2008 - Where do we want to hold the next Workshop? - We agree to move the Workshop to the Dallas/Fort Worth area. - Ronda Brewer will look into potential hotels in that area. - We will have the Workshop on Sept. 15 – 18, 2009. Agenda and Minutes: Dec. 9, 2008 - Bennie Williams has been looking at venues in the Fort Worth area. - Can we select a venue for the Workshop on Sept. 15 – 18, 2009? - Ronda Brewer is getting more proposals from hotels in the general Dallas and Fort Worth areas. - When she obtains information on two or three that look like good possibilities, she will send the information to the Steering Committee for comment. - We will decide this by e-mail vote. Agenda and Minutes: Mar. 17, 2009 - The 2009 Sucker Rod Pumping Workshop will be in the Wyndham Hotel near the Dallas/Fort Worth (DFW) Airport in Dallas / Fort Worth, Texas. - Is there any other discussion of this matter? - There was no further discussion of this topic.

5. Schedule of Technical Sessions  What technical sessions should be included?  Sessions for 2008 included:  Technology, R&D  Design, Automation, Optimization, Challenges  Case Histories, Experiences, Best Practices Agenda and Minutes: Oct. 3, 2008 - This year we had three sessions in lieu of four. - What sessions do we want at the next Workshop? - We will stick with three technical sessions. - We should try to have a session (or at least part of a session) on beam pumping gassy Beam Pumping Workshop January 8, 2008 Meeting Page 4

wells. - The other session topics are OK. - We agree to end the Workshop at noon on Friday. Agenda and Minutes: Dec. 9, 2008 - Are there any further comments on the plan for the Technical Sessions for 2009? - There were no new comments on the proposed Technical Sessions. Agenda and Minutes: Mar. 17, 2009 - Are there any further comments on the plan for the Technical Sessions for 2009? - There was no further discussion of this topic.

6. Web Site  Any comments on the web site? Agenda and Minutes: Oct. 3, 2008 - Are there any comments on the web site? - Chris Norris likes the “hot links” on the Front Page of the site. - There were no other comments on the site at this time. Agenda and Minutes: Dec. 9, 2008 - Are there any comments on the web site? - There were no comments on the web site at this time. Agenda and Minutes: Mar. 17, 2009 - Are there any comments on the web site? - There was no further discussion of this topic.

7. Workshop advertising  How can we best advertise the workshop? Agenda and Minutes: Oct. 3, 2008 - How can we improve advertising for the Workshop? - Discussion of this was deferred until later. Agenda and Minutes: Dec. 9, 2008 - How can we improve advertising for the Workshop? - The Workshop announcement notice will be prepared when we know where the Work- shop will be held and can decide on the costs of attending the Workshop. - Cleon Dunham will send a notice to all members of ALRDC. This should go out in June, 2009. - Lynn Rowlan will send a notice to his contact list. This will go out in July, 2009. - All companies should send a notice to their contacts. Agenda and Minutes: Mar. 17, 2009 - Are there any comments on advertising at this time? - We’ll use our normal mailing lists. - We’ll place this event in the calendars of the various Industry Magazines. - Lynn Rowlan will use the mailing list from the Oklahoma City event. - We’ll try to get something in the SPE TIG. - We can ask Susan Beck to ask people in the Dallas area - We can ask Benny Williams to ask people in the Fort Worth area.

8. Technical presentations  Soliciting presentations is one of primary tasks of Steering Committee.  How do we want to review/approve presentations? Agenda and Minutes: Oct. 3, 2008 - Do we want to stick with 30 minutes for Presentations plus Q&A? - It is always a “very last minute” exercise to obtain the actual presentations. - Any comments on presentations at this time? - We will stick with 30 minutes for Presentations plus Q&A. Beam Pumping Workshop January 8, 2008 Meeting Page 5

Agenda and Minutes: Dec. 9, 2008 - Are there any thoughts or nominations for Technical Presentations for the 2009 Work- shop? - There were no comments on the Technical Presentations at this time. Agenda and Minutes: Mar. 17, 2009 - Are there any thoughts or nominations for Technical Presentations for the 2009 Work- shop? - Lynn Rowlan may be able to work with an Operator on a presentation. - Chris Norris may be able to come up with a paper this year. He’s now working for Lufkin Automation.

9. Exhibits  Soliciting exhibitors is another job for the Steering Committee. Agenda and Minutes: Oct. 3, 2008 - Any comments on Exhibits at this time? - We will target to have 15 Exhibitors at the 2009 Workshop. - Further discussion of this was deferred until later. Agenda and Minutes: Dec. 9, 2008 - Can we begin to find Exhibitors for the 2009 Workshop? - If we want to expand the numbers of Exhibitors, we’ll need to “think outside of the box” a little in terms of the companies we invite to participate. - People are asked to nominate new companies to Exhibit. - Cleon Dunham will contact them. - Lynn Rowlan will obtain a list of companies that Exhibit in Oklahoma City. Some of them may be good candidates for our Workshop. - Russell Stevens suggested that we could contact D-Jax. Ronda Brewer is already in contact with them. Agenda and Minutes: Mar. 17, 2009 - Are there any thoughts on Exhibitors for the 2009 Workshop? - Ronda Brewer has talked with NCX, Inc. in Amarillo. They may be interested in being and Exhibitor.

10.Sponsors  Soliciting sponsors is another job of the Steering Committee. Agenda and Minutes: Oct. 3, 2008 - Any comments on Sponsors at this time? - Discussion of this was deferred until later. Agenda and Minutes: Dec. 9, 2008 - Any comments on Sponsors at this time? - There were no comments on Sponsors at this time. Agenda and Minutes: Mar. 17, 2009 - Are there any thoughts on Sponsors for the 2009 Workshop? - There was no additional discussion of this topic.

11.Workshop costs  How much should we charge for the workshop?  Attendees  Students  Late fees  Exhibits Agenda and Minutes: Oct. 3, 2008 - The costs for the 2008 Workshop were: - Item Early Late Beam Pumping Workshop January 8, 2008 Meeting Page 6

- Workshop $300 $400 - One Course $150 $250 - Two Courses $250 $350 - Small Exhibit $500 $600 - Medium Exhibit $750 $850 - Large Exhibit $1250 $1350 - Any comments on Workshop Costs at this time? - The determination of the income and expenses from the 2008 Workshop is nearly com- plete. - We will decide on charges for the 2009 Workshop after we know more about likely costs to have it in the Dallas/Fort Worth area. Agenda and Minutes: Dec. 9, 2008 - Do we have any idea of the costs for having the Workshop in the Fort Worth area, relative to having it in the Houston area? - Will this affect the amounts we charge to attend the Workshop, or can we stick with the same costs as we used in 2008? (See the 2008 costs above.) - There was no discussion of costs at this time. - We will decide this when we know where the 2009 Workshop will be held and how much the Hotel will cost. Agenda and Minutes: Mar. 17, 2009 - Now that we know the location for the 2009 Workshop, can we nail down the registration costs for the Workshop, Continuing Education Courses, and Exhibits? The costs for 2008 are shown above. - One idea would be to increase the registration cost by $25 and send everyone a CD of the Workshop presentations. - We agreed to the following costs for the 2010 Workshop. - Early Late - Workshop $325 and $425 with a CD for all attendees. - One Course $150 and $250 - Two courses $250 and $350 - Small Exhibit $500 and $600 - Medium Exhibit $750 and $850 - Large Exhibit $1250 and $1350

12.General chair for the workshop  Suggestions of who to nominate for General Chair? Agenda and Minutes: Oct. 3, 2008 - Any comments on a potential General Chair for the next Workshop at this time? - Bill Holmes will be the General Chair for the 2009 Workshop.

13.Keynote speaker  Suggestions on who to nominate to be Keynote Speaker  When should keynote speech be held? Agenda and Minutes: Oct. 3, 2008 - Any comments on a potential Keynote Speaker for the next Workshop at this time? - Do we agree to have the keynote speech at lunch time on the first day of the Workshop? - We could consider the Richard Spears of Spears and Associates who gave the Keynote Address at the PCP Workshop. - Cleon Dunham will check with Ken Saveth to obtain contact information. Done. - Cleon Dunham has sent a note to Richard Spears. Agenda and Minutes: Dec. 9, 2008 - There has been no response from Richard Spears. - Shall we continue to try to contact him? - Cleon Dunham will try again to contact Richard Spears. Done. Beam Pumping Workshop January 8, 2008 Meeting Page 7

- Richard Spears responded that he can not do this in September.

Agenda and Minutes: Mar. 17, 2009 - Who are potential candidates to be the Keynote Speaker? - Chris Norris will ask Joe Clegg to be the Keynote Speaker.

14.Session chairpersons  Chairpersons are needed for each of the technical sessions.  Are there nominations? Agenda and Minutes: Oct. 3, 2008 - Any comments on a potential Session Chairpersons for the next Workshop at this time? - We can ask the members of the Steering Committee who are with Operating Companies. - Chris Norris will be a Session Chair. Agenda and Minutes: Dec. 9, 2008 - Are there others who are willing to be Session Chairs? - It is too early for people to commit to being Session Chairpersons at this time. Agenda and Minutes: Mar. 17, 2009 - Are there thoughts on who we can ask to be Session Chairs and Co-Chairs? - Lynn Rowlan suggested we ask the members of the Operating Companies to be Ses- sion Chairs or find them within their companies.

15.Breakout sessions and facilitators  What breakout sessions should be planned?  In 2008, there were three breakout sessions on: – What new, novel technology is needed, is coming? – What are your heavy oil problems, what are you doing to solve them? – What are your most common sucker rod pumping operating problems?  Are there suggestions for specific sessions?  Coordinators are needed for each breakout session.  Are there nominations? Agenda and Minutes: Oct. 3, 2008 - Any comments on a potential Breakout Sessions for the next Workshop at this time? - Any comments on Breakout Session coordinators? - We should keep the same three breakout sessions plus adding one on pumping gassy wells if we con’t get enough papers for a session on this. We could ask Mark Garrett to lead this session. Agenda and Minutes: Dec. 9, 2008 - Are we agreed to have four breakout sessions? - They will be on: - What new, novel technology is needed; what is coming? - What are your heavy oil problems? What are you doing to solve them? - What are you most common sucker rod pumping operating problems? - What are your strategies for pumping gassy wells? How well are they working? - Who will agree to facilitate these breakout sessions? - It is too early for people to commit to being Breakout Session Facilitators at this time. Agenda and Minutes: Mar. 17, 2009 - Are there thoughts on who we can ask to facilitate the Breakout Sessions? - Chris Norris will lead the Common Problems breakout session. - Lynn Rowlan will lead the Novel Technology breakout session. - We will ask Mark Garrett to lead the Gassy Wells breakout session. - We can ask Tenaris if they will lead or can find a leader for the Heavy Oil breakout ses- sion. Beam Pumping Workshop January 8, 2008 Meeting Page 8

16.Continuing education  What continuing education courses should be held?  In 2008, seven continuing education courses were held: – Beam Pumping 101, Basic Sucker Rod Pumping, Tom VanAkkeren – Beam Pumping 102, Sucker Rod String System Design, Norm Hein – Beam Pumping 103, Shooting & Interpreting Fluid Levels in Sucker Rod Wells, Lynn Rowlan – Beam Pumping 201, Sucker Rod System Troubleshooting, Problem Analysis, Solutions, Lynn Rowlan – Beam Pumping 202, Sucker Rod System Tear Down Procedures and Analysis, Russell Stevens and Mark Mahoney – Beam Pumping 203, Automation & Well Problem Indentation and Solutions, Cleon Dunham, Louis Ray, Gregg Hurst – Beam Pumping 204, Corrosion and Chemical Treating for Sucker Rod Lift, Norm Hein, Scott Mal- one  Are there nominations for instructors? Agenda and Minutes: Oct. 3, 2008 - Any comments on potential Continuing Education courses for the next Workshop at this time? - Any comments on Continuing Education instructors? - Attendance at the courses in 2008 was as shown here. The 2008 Course Subjects and Instructors are listed. o 101 --- 29 Basic Sucker Rod Tom VanAkkeren o 102 --- 24 Sucker Rod Design Norm Hein o 103 --- 33 Fluid Levels Lynn Rowlan o 201 --- 38 Troubleshooting Lynn Rowlan o 202 --- 11 Teardown Justin Conyers, Russell Stevens o 203 --- 26 Automation Cleon Dunham, Gregg Hurst, Louis Ray o 204 --- 11 Types of Pumping Units Norm Hein - We will have the Chemical Course 204 again in 2010. - We will have a course on the various types of pumping units in 2009. - Norm Hein will coordinate this course. Agenda and Minutes: Dec. 9, 2008 - Are there any comments on the plan for Continuing Education courses in 2009? - Are there nominations for Continuing Education course instructors? - We will have the new 204 Course on the various types of pumping units on the second day, September 26, 2009 Agenda and Minutes: Mar. 17, 2009 - Are there any comments on the plan for Continuing Education courses in 2009? - Are there nominations for Continuing Education course instructors? - The Continuing Education Plan as outlined above is OK with everyone.

17.Workshop finances  Propose to handle under the same format as for 2008.  75% of net income goes to ALRDC.  25% goes to SWPWC.  Is this OK? Agenda and Minutes: Oct. 3, 2008 - Any comments on handling of Workshop Finances for the next Workshop at this time? - This financing method for the Workshop is OK with everyone.

18.Steering Committee  We have a fairly complete steering committee.  Are any more members needed?  Nominations? Beam Pumping Workshop January 8, 2008 Meeting Page 9

Agenda and Minutes: Oct. 3, 2008 - Any nominations for new members of the Steering Committee at this time? - Does anyone want to be honorably retired from the committee? - The committee is already large enough. - No changes are needed in the Steering Committee. - Cleon Dunham will ask the current members if they wish to continue to serve. Done. Agenda and Minutes: Dec. 9, 2008 - John Pike of Lufkin has resigned for the Steering Committee. - A new person from Lufkin will join the committee. - Cleon Dunham is checking with Andy Cordova to learn who this is. - Cleon Dunham will continue to check with Andy Cordova. Done. - Andy Cordova responded already. It is George Trout. Welcome George. Agenda and Minutes: Mar. 17, 2009 - Are any changes to the Steering Committee needed? - No changes to the Steering Committee were suggested.

19.Other business and Final Comments  Any other business.  Action final comments. Agenda and Minutes: Oct. 3, 2008 - Are there any other items of new business or final comments? - Comments have been incorporated into the minutes given above. Agenda and Minutes: Dec. 9, 2008 - Is there any new business? - There was no other business and there were no additional comments. Agenda and Minutes: Mar. 17, 2009 - Is there any new business? - Bill Sapp – Consider allowing two passes per Exhibit. This was discussed and the idea was not accepted. - Cleon Dunham will update the ALRDC web site. Done

20.Future meetings  Date and time of next Steering Committee meeting?  Teleconference or face-to-face? Agenda and Minutes: Oct. 3, 2008 - The next meeting will be on Tuesday, Dec. 9, 2008 at 1:30 pm. Agenda and Minutes: Dec. 9, 2008 - The next meeting will be on Tuesday, March 17, 2009, at 11:00 CDT. Agenda and Minutes: March 10, 1009 - The next meeting will be on Tuesday, May 12, 2009, at 1:30 pm, CDT

21.Members of Steering Committee

Operating Companies Service Companies Consultants Universities Brock, Mike Beck, Susan Dunham, Cleon Brewer, Ronda Garrett, Mark Conyers, Justin Hein, Norm Holmes, Bill Diaz, Francisco Lea, James Martin, James Norris, Chris Podio, Tony Menges, Tom Rowlan, Lynn vanAkkeren, Tom Patterson, John Trout, George Watts, David Stevens, Russell Sapp, Bill Thomas, Sid Beam Pumping Workshop January 8, 2008 Meeting Page 10