NOGS External Affairs Committee March 2012 Report by Mike Fogarty

NOGS External Affairs Committee March 2012 Report By Mike Fogarty

AAPG Book your field trips and short courses by 14 March

ACE will be held 22-25 April 2012 at the Long Beach Convention & Entertainment Center in Long Beach, California, under the theme Directing the Future of E&P: Starring Creative Ideas and New Technology. More than half the field trips and three short courseshave already sold out. Ensure AAPG has secured additional blocks of your spot in the field trip or short course you're interested in by registering early. To rooms. Please click here for additional help us better anticipate the number of attendees and avoid premature cancellation of information. field trips and short courses, please register well before 14 March 2012.

KiddieCorp makes it easy for working parents to attend

ACE registrants now have the option of quality child care while attending the convention. KiddieCorp provides quality activities that children will enjoy and peace of mind that parents will appreciate. Parents are urged to secure their child's spot by 21 March by registering online. Don't miss the star-studded lineup of events planned for this annual meeting:

 5 luncheons  5 forums/special sessions  400+ oral presentations  700+ poster presentations

Be sure to check out the Itinerary Planner, your online tool to review the abstracts and plan your trip. The next fee increase will be 2 April, soregister now to save up to $100, depending on registration type.

Click the image above to download a .pdf of the Technical Program & Registration Announcement. It is a large file; please be patient while downloading.

See the latest technologies, products and services

The Exhibition will be held in Halls A , B and C of the Long Beach Convention & Entertainment Center during these hours: Sunday, 22 April 5:00 p.m.–7:30 p.m. (Icebreaker Reception) Monday, 23 April 8:30 a.m.–5:30 p.m. Tuesday, 24 April 8:30 a.m.–5:30 p.m. Wednesday, 25 April 8:30 a.m.–12:00 p.m.

Click here to see our floor plan and list of exhibitors. Benefits of attending

No matter what stage of your career, there's something for you at the AAPG 2012 ACE. Here are some great reasons to attend:

 Stay on top of industry trends  Develop a technology roadmap for your company  Learn from product demonstrations  Develop new markets  Network with international geoscientists  Students, see "real" professionals in action AAPG Events Feed

Washington Watch

Politics Puts Keystone XL Pipeline in Limbo

By DAVID K. CURTISS, AAPG Executive Director I first wrote about the Keystone XL pipeline in this column back in September 2010. At the time, the project was nearing the end of a review by the U.S. Department of State for a Presidential Permit. Fast forward nearly 1½-years later, and not only has the permit not been approved, but the project has become a rallying point for environmental groups opposed to oil development, particularly from Canada’s oil sands. The White House’s denial of the proposal in mid-January did not scuttle the pipeline, and President Obama said, “This announcement is not a judgment on the merits of the pipeline but the arbitrary nature of a deadline …” While not dead, any timeline for the pipeline proposal is certainly muddled. Meanwhile TransCanada’s chief executive officer, said in a statement, “Plans are already under way on a number of fronts to largely maintain the construction schedule of the project.” Thus, the conversation continues. First proposed by TransCanada in September 2008, the 36-inch diameter Keystone XL pipeline is designed to bring crude oil from Canada as well as U.S. producing regions to refineries along the Gulf coast. It is an expansion of the existing Keystone pipeline system. And after completion the entire system will carry 1.3 billion barrels of oil per day – more than double its current capacity. Canada is the largest supplier of crude oil to the United States by a significant margin. This is a mutually beneficial relationship that underpins the world’s largest trading partnership. The Keystone XL project requires a Presidential Permit, because it crosses the U.S.-Canadian border. And part of the review involves preparing an environmental impact statement (EIS). The EIS, released in April 2010, was criticized by the U.S. Environmental Protection Agency for being too narrowly focused on the pipeline itself and not considering the potential impact of both the production and consumption of the crude oil in the pipeline. Of particular concern to EPA was the impact on greenhouse gas emissions. This sentiment was echoed by congressional critics and environmental groups, and their collective efforts forced the postponement of a decision while the State Department gathered additional data. After nearly one year of review and nine public meetings in Texas, Kansas, Montana, Nebraska, South Dakota, Oklahoma and Washington, D.C., the State Department announced last November that it needed yet more information before rendering a decision. It revised its target date to the first quarter of 2013. The announcement drew howls of protest from Republicans and supporters of the pipeline project. They charged that the Obama administration was intentionally stalling to appease environmental groups, as well as avoid the issue until after the 2012 election.

Politics certainly played a role in the decision to delay the permit. That’s not a criticism, but rather a characteristic of the policy-making process. And in this instance the president really does face a thorny political problem, with two important constituencies on opposite sides of the issue: labor unions support it and environmental groups oppose it. But the core reason for the delay articulated by the State Department was growing concern in the state of Nebraska about the pipeline running through the Sand Hills, which federal officials described as including “a high concentration of wetlands of special concern, a sensitive ecosystem, and extensive areas of very shallow groundwater.” This public concern was real. And the Nebraska legislature convened in special session to review the matter. It passed a law requiring the Nebraska Department of Environmental Quality to review and certify all pipeline projects to be built through the state. It also was clear from the debate that the pipeline would have to be rerouted away from the Sand Hills. TransCanada publicly supported the legislature’s action and indicated its desire to work cooperatively to find a suitable route for the pipeline.

Meanwhile, back in Washington, D.C., tempers were running short as policy makers labored to pass a payroll tax relief extension before leaving for Christmas. In an attempt to force the president’s hand, congressional Republicans inserted a provision in the bill that required him to decide on the Keystone XL permit by Feb. 23. If the president had granted the permit it would have delivered a victory to the project’s supporters – but a political one, as opponents would have filed a blizzard of lawsuits claiming that the federal review process was short-circuited. Denying the permit avoids that court battle, but provides the president’s political opponents with a ready-made sound bite in an election year. And one that is particularly potent if oil prices spike. And so, once again, the Keystone XL pipeline is in limbo. But if you can tune out the clamor and din of the debate and see past the political posturing and point scoring, your focus is drawn to a pipeline project that generates jobs, economic activity and enhanced energy security. All of that wrapped up with a heightened sensitivity to prudent and necessary environmental safeguards. It’s time to get on with it.

GEO-DC: Governmental Affairs Committee Report

By Paul Britt, DPA Governmental Affairs Committee Chairman

EC Charged Governance Board with Search for New GEO-DC Director Governance Board Chairman Pete MacKenzie is spearheading the effort, setting up an ad-hoc committee for the search process, following former Geo-DC Director David Curtiss’ move to AAPG Executive Director in August. President Obama Delays Keystone XL Pipeline Decision Until after 2012 Election Excerpt from the New York Times, Nov 10: WASHINGTON — The Obama administration, under sharp pressure from officials in Nebraska and restive environmental activists, announced Thursday that it would review the route of the disputed Keystone XL oil pipeline, effectively delaying any decision about its fate until after the 2012 election. The State Department said in a statement that it was ordering a review of alternate routes to avoid the environmentally sensitive Sand Hills region of Nebraska, which would have been put at risk by a rupture of the 1,700-mile pipeline carrying a heavy form of crude extracted from oil sands formations in Alberta to refineries in Oklahoma and the Gulf Coast. The move is the latest in a series of administration decisions pushing back thorny environmental matters beyond next November’s presidential election to try to avoid the heat from opposing interests — business lobbies or environmental and health advocates — and to find a political middle ground. President Obama delayed a review of the nation’s smog standard until 2013, pushed back offshore oil lease sales in the Arctic until at least 2015 and blocked new regulations for coal ash from power plants. Oil industry officials, some unions and the Canadian government said they were disappointed because the action delays what they call the economic benefits of the $7 billion project. Jack N. Gerard, president of the American Petroleum Institute, said of the president’s decision, “This is all about politics and keeping a radical constituency, opposed to any and all oil and gas development, in the president’s camp in 2012. Whether it will help the president retain his job is unclear but it will cost thousands of shovel-ready opportunities for American workers.” Andrew MacDougall, a spokesman for Stephen Harper, the Canadian prime minister, said, “While we are disappointed with the delay, we remain hopeful the project will be decided on its merits and eventually approved.” TransCanada said that it would work with the State Department to find a new route, but warned that delay could kill the project, and with it tens of thousands of construction and related jobs and billions of dollars in tax revenues. “If Keystone XL dies,” said Russell K. Girling, the company’s chief executive, “Americans will still wake up the next morning and continue to import 10 million barrels of oil from repressive nations without the benefit of thousands of jobs and long-term energy security.”… GAC Note: Criticism from Canada ranges from moderate to severe. There is even talk growing to build a terminal to sell the oil to China. This continues to be a contentious issue. Sources in Canada are citing unprecedented “political risk” in the U.S., long considered to be the most stable business environment in the world. The same issues were raised as offshore rigs were leaving the Gulf of Mexico following the drilling moratorium following the BP blowout. Background: The pipeline would stretch almost 1,700 miles (2,735 kilometers) across Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas. Pipeline advocates, including Republicans in Congress, have pushed for swift approval of the project they said would help keep down future energy costs and create 118,000 jobs. Critics, including Nebraska’s governor and U.S. senators, have cited the risk of an oil spill in the Ogallala aquifer, which supplies 30 percent of the water used in the U.S. for agriculture. MMS > BOERME Reorganization Finalized The reorganization will be responsible for transforming BOEMRE into three separate bureaus: the Bureau of Ocean Energy Management (BOEM), the Bureau of Safety and Environmental Enforcement (BSEE) and the Office of Natural Resources Revenue (ONRR). BOEM will exercise the conventional (e.g., oil and gas) and renewable energy-related management functions of MMS not otherwise transferred pursuant to Secretary Salazar’s Order 3299 including, but not limited to, activities involving resource evaluation, planning and leasing. BSEE will oversee the safety and environmental enforcement functions of MMS including, but not limited to, the authority to inspect, investigate, summon witnesses and produce evidence, levy penalties, cancel or suspend activities, and oversee safety, response, and removal preparedness. The royalty and revenue management functions of MMS including, but not limited to, royalty and revenue collection, distribution, auditing and compliance, investigation and enforcement, and asset management for both onshore and offshore activities will be transferred to ONRR. Spring CVD The Fall CVD was cancelled, or rather, not organized this year due to the move by GEO-DC staffer David Curtiss into Executive Director for AAPG, creating a gap in the office. We plan to continue CVD this spring and are seeking a suitable time frame. EPA Finalizes Rule to Regulate CO2 Geologic Sequestration EPA website: EPA has finalized requirements for geologic sequestration, including the development of a new class of wells, Class VI, under the authority of the Safe Drinking Water Act’s Underground Injection Control (UIC) Program. These requirements, also known as the Class VI rule, are designed to protect underground sources of drinking water. The Class VI rule builds on existing UIC Program requirements, with extensive tailored requirements that address carbon dioxide injection for long-term storage to ensure that wells used for geologic sequestration are appropriately sited, constructed, tested, monitored, funded, and closed. The rule also affords owners or operators injection depth flexibility to address injection in various geologic settings in the United States in which geologic sequestration may occur, including very deep formations and oil and gas fields that are transitioned for use as carbon dioxide storage sites. President Unveils 2012-2017 Outer Continental Shelf Oil and Gas Leasing Program BOEM Website: A 5-year program consists of a schedule of oil and gas lease sales indicating the size, timing, and location of proposed leasing activity the Secretary determines will best meet national energy needs for the 5-year period following its approval. An area must be included in the current 5-year program in order to be offered for leasing. Section 18 of the OCS Lands Act prescribes the major steps involved in developing a 5- year program including extensive opportunities for public comment. A 5-year program balances energy needs, environmental considerations, and numerous other factors required under Section 18. The proposed 2012-2017 Outer Continental Shelf Oil (OCS) and Gas Leasing Program for the establishes a schedule that is used as a basis for considering where and when oil and gas leasing might be appropriate over a 5-year period. As required by the OCS Lands Act, a new program—to cover the years 2012-2017—is under development. Secretary Ken Salazar announced the second draft program decision, the Proposed Program, on November 8, 2011. The Bureau of Ocean Energy Management (BOEM) released the Proposed Program decision document (with supporting analyses) and the Draft Programmatic Environmental Impact Statement (EIS) immediately after the announcement. Details are available at http://www.boem.gov/5-year/2012-2017/.

President-Elect’s Column By Charles Sternbach, DPA President-Elect

In order to facilitate communication and to better engage councilors, the DPA EC originated a survey in the fall of 2011. This survey was sent to DPA Councilors late September. Results were collated in early October. DPA thanks the councilors for many good ideas, suggestions, and a high response rate of 87.5% (14/16). Results of this survey were shared with DPA leadership at Mid-year meeting in Plano, Texas Nov. 5, 2011. Highlights will be briefly summarized here for all DPA members. Councilors suggested ways to improve communications with leadership, DPA, and AAPG membership. Several new growth ideas include expanding courses on topics like: geosteering, economic analysis, seismic attributes, advanced petrophysics, and addressing shale play “above ground issues” like fracking, reserves, politics, and how to communicate with media. DPA ethics courses are quite popular among the geosciences community. A suggestion was made to perhaps share these with other professions (and markets) like doctors, lawyers, realtors, journalists. Proposals were made for growing DPA visibility, impact, and member service. The opportunity to develop a one-day program based on prospect and geological analysis of play development (“scout” checks) is under serious consideration. Opportunities to expand DPA programs on prospect generation, screening, review, and marketing are also being considered. AAPG/DPA “Discovery Thinking” forums are being planned for upcoming meetings. If “a prospect is the fundamental unit of thought” (quote by DPA member Jeff Lund), surely DPA can sharpen our thinking! One of DPA’s recruitment strategies is to focus on proven leaders in AAPG and other successful organizations. Preparing/updating a brief message of DPA benefits was suggested to aid recruitment. Suggestions for expanding global presence include: featuring role model DPA leaders from National Oil Company’s to help inspire future global participation. Professional organizations have been identified for potential DPA member growth. Councilors want to increasingly involve young professionals. One councilor suggested that: “AAPG/DPA continue to convey the fine work of members in anecdotes to public, policy makers, and government leaders”. Other suggestions based on technology: improve membership application process, web-services, communication, information sharing, webinars of classes and meetings, social networking. Thanks to DPA Councilors and leadership for ideas to improve and energize DPA! For a member list in your respective area, do not hesitate to ask contact Norma Newby for assistance.

Dates and Plans for DPA Functions

The 2011 AAPG Mid-Continent Section Meeting was in Oklahoma City, Oklahoma, from October 1-4, 2011. A DPA luncheon during the meeting included Royola Dougher, Senior Economic Advisor with the American Petroleum Institute, as keynote speaker.

2012 Annual Convention and Exhibition, 22-25 April, Long Beach, California

DPA/PROWESS Luncheon, 24 April 2012, Long Beach, California  "Following Your Convictions: Even When the Going Gets Tough" Dr. Sally M. Benson, Director of the Global Climate and Energy Project at Stanford University, Stanford, California  "Building A Diverse and Sustainable Geoscience Workforce" Dr. Sharon Mosher, Jackson School of Geosciences, University of Texas at Austin, Austin, Texas

2012 Southwest Section Meeting, 19-22 May, Fort Worth, TX

2012 Rocky Mountain Section Meeting, 9-12 September, Grand Junction, CO

2012 Eastern Section Meeting, 22-26 September, Cleveland, OH

2012 AAPG ICE Meeting, 30 September - October 3, Singapore

2012 GCAGS Meeting, 21-23 October, Austin, TX