<p> Artificial Lift R&D Council Meetings of the Board of Directors</p><p>Meeting No. Date & Time Contact Information Agenda Minutes 10 Wednesday, Feb. In Person at 2009 Gas See below. See below. 25, 2009, 6:30 pm Well Deliquification Workshop, over Dinner</p><p>Gray shaded boxes contain old information. Yellow shaded boxes contain agenda/minutes from previous meetings. Blue shaded boxes contain agenda/minutes for the upcoming or most recent meeting. Action item parties are shown in bold red.</p><p>1. Attendees  The people listed below attended the ALRDC Board meeting on Wednesday, Feb. 25, 2009. Attendees: Feb. 25, 2009 In Person - Ronda Brewer - Mark Garrett - Lynn Rowlan - Scott Campbell - Larry Harms - Rob Sutton - Bryan Dotson - Norm Hein - Benny Williams - Cleon Dunham</p><p>By Proxy - Hal Rabbino</p><p>Excused Absence - Paul Bommer - Jim Lea - Tom vanAkkeren</p><p>- Dan Dees </p><p>Quorum - A quorum (eight or more members) is present</p><p>2. Old Business  Gas Well Artificial Lift Recommended Practices. Agenda and Minutes: Feb. 25, 2009 - The next meeting of the Recommended Practices group is scheduled for Friday, Feb. 27, 2009, here in Denver. - Not much progress has been made since the last meeting. - We’ll see how this progresses at the meeting on Feb. 27. - We need to review this at the next ALRDC Board meeting and see if it should continue or be dropped. - Further discussion of this was deferred until the next ALRDC Board Meeting.</p><p> Financial Status. Agenda and Minutes: Feb. 25, 2009 - The final budget report for 2008 is attached. - The ALRDC Income/Expense report is attached. ALRDC Board Meeting April 24, 2008 Page 2</p><p>- The current balance in the ALRDC account as of Feb. 10, 2009, is $244,749.10. - The final 2008 ALRDC Financial Status was received for information by the ALRDC Board.</p><p> UT Student. Agenda and Minutes: Feb. 25, 2009 - Tony Lau, a student at UT, is still working on ALRDC issues. - There was no progress on an Intermittent Gas-Lift short course, since Ali Hernandez is still committed in Venezuela. - This was received for information by the ALRDC Board.</p><p> ALRDC Grant or Scholarship. Agenda and Minutes: Sept. 8, 2008 - This process is being followed. - This expense is actually covered by the Workshop. - This is not an ALRDC matter and will be removed from future ALRDDC Board meeting agen- das.</p><p> Business from Last Meeting. Agenda and Minutes: Feb. 25, 2009 - Shell has officially declined to allow us to have access to papers produced by Wally Gilbert. - What is the status of accessing information that was owned by Harold Winkler? - Can we gain access to information from the Southwestern Petroleum Short Course? - Information from Harold Winkler. - Lynn Rowlan has looked at information that Harold Winkler has. He has col- lected some of the information. - Some of it is very interesting and should be shown to people. - Ronda Brewer will organize scanning of some documents by one or more students at Texas Tech. The scanned documents will be in PDF format. - Ronda Brewer will send the PDF’s to Cleon Dunham. - Cleon Dunham will have the PDF’s placed in the ALRDC Library.</p><p>- Information from the Southwestern Petroleum Short Course. - The SWSC Board has said that it is OK to place the abstracts on the ALRDC Li- brary. - Ronda Brewer will send the abstracts to Cleon Dunham. - Cleon Dunham will place them in the ALRDC Technical Library.</p><p>3. New Business </p><p> Annual Review of ALRDC Direction Agenda and Minutes: Feb. 25, 2009 - Per the ALRDC By-Laws, we are to review the direction of ALRDC at each annual meeting. - The bylaws state: - The Board of Directors shall review the direction of ALRDC at each annual meeting. Any proposed change(s) to the direction of ALRDC shall require the concurrence of three mem- bers of the Board of Directors. Any proposed change(s) shall be documented and distrib- uted to the members at least one week before the Board meeting. Approval of the change(s) shall require an affirmative vote of a majority of directors present at the annual meeting, provided that a quorum exists. - The officers of the Board were polled and they don’t wish to propose any changes in direc- tion. - Do any three members of the Board wish to propose changes? - There were no proposed changes to the direction of ALRDC. - Some Board members are not clear on the current direction of ALRDC. - To clarify this, Cleon Dunham will send the current version of the ALRDC brochure to the members. Done. ALRDC Board Meeting April 24, 2008 Page 3</p><p> Vote on Formation of Sub-Committees Agenda and Minutes: Feb. 25, 2009 - The following is taken from the ALRDC By-Laws. - The Board of Directors may adopt a resolution establishing one or more committees dele- gating specified authority to a committee, and appointing or removing members of a com- mittee. A committee will include one or more directors and may include persons who are not directors. If the Board delegates any of its management authority to a committee, the majority of the committee will consist of directors. The Board may also delegate to the president its power to appoint and remove members of a committee that has not been del- egated any management authority of the Board. The Board may establish qualifications for membership on a committee. - We have formerly approved four sub-committees for: ALRDC Scholarships, ALRDC Web Site Oversight, ALRDC Staff Compensation, and ALRDC R&D Projects. - We need to approve new ones for: Nominations, Budget, Finding Catalogs, Find Computer Programs, Find Library Documents, Promote Yellow Pages, and ALRDC Award. - These sub-committees have been informally formed and staffed, but they need to be officially created by vote of the Board. - It was moved and seconded to approve these sub-committees. - Norm Hein objected on the basis that there is not a written description of the Scope and Re- sponsibilities for each sub-committee. - This motion was tabled until the next ALRDC Board Meeting. - Before the next Board Meeting, Cleon Dunham or the designated chairperson of the sub- committee will prepare a Charter or Description of the Scope and Responsibilities for each sub-committee. Done.</p><p> Report of the ALRDC Nominations Sub-Committee. (For each sub-committee, the chair’s name, where there is one, is highlighted.) Agenda and Minutes: Feb. 25, 2009 - Members are Cleon Dunham, Larry Harms, and Benny Williams. - The class of 2012 is in place. - We still need more members for some of the sub-committees. Are there volunteers? - And per the By-Laws, additional members don’t need to be Board members. - Ronda Brewer objected to the rule that additional sub-committee members don’t need to be members of the Board of Directors. - Ronda Brewer will prepare a proposed amendment to the By-Laws to change this rule at the next Board meeting.</p><p> Report of the ALRDC Budget Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Ronda Brewer, Lynn Rowlan, and Cleon Dunham. - The proposed 2009 ALRDC Budget is attached. It is up for discussion and vote at this meet- ing. - It is kept up to date on a monthly basis. - The proposed 2009 Budget was approved.</p><p> Report of the ALRDC Scholarships Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Paul Bommer, Ronda Brewer, Scott Campbell, Cleon Dunham, Norm Hein, Jim Lea, and Lynn Rowlan. - There has been discussion of increasing the number of ALRDC scholarships or increasing the amount per scholarship. - There is no increase to do either of these in the current proposed budget. - If we increase the amount, should we add more schools, give more to a select number of schools, or increase the total by $25,000 so we can give two scholarships at all five schools? - The Scholarship sub-committee will bring a recommendation to next Board Meeting. - Norm Hein asked to be removed from this sub-committee. Done. ALRDC Board Meeting April 24, 2008 Page 4</p><p> Report of the ALRDC Web Site Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Dan Dees, Cleon Dunham, Jim Lea, and Lynn Rowlan. - Development, maintenance, and support of the ALRDC web site have been turned over to AppSmiths, Inc. - We are monitoring their work on a monthly basis. - A copy of their status report is attached. - We are working on the Technical Library. - The mass e-mail facility is being used frequently. - The status of work on the ALRDC Web Site will be reviewed at the next Board meeting.</p><p> Report of the ALRDC Staff Compensation Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Bryan Dotson, Larry Harms, and Rob Sutton. - Recommendations for staff compensation for 2009 are due at this meeting. - Larry Harms handed out a proposed Compensation Sub-Committee Charter. - The Sub-Committee will come to the next Board meeting with a proposal for the future. - It was voted and approved to pay the staff at the current level until it is changed by the Board. - The draft Charter was amended to strike the requirement of having only Board members from “producing companies” as members of the sub-committee and to have the sub-commit- tee consist of three Board members who can not accept ALRDC compensation.</p><p> Report of the ALRDC R&D Projects Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Bryan Dotson, Cleon Dunham, Mark Garrett, Norm Hein, and Benny Williams. - Are there recommendations to bring to the Board? - Lynn Rowlan suggested that we might form some type of relationship with TUALP and share in their R&D program in some way. - Or are there worthwhile R&D programs at other schools: A&M, Mines, TU, UT, etc. - By March 15, Norm Hein, the chairman of this sub-committee, will propose a draft Scope and Responsibilities. - Lynn Rowlan will investigate potential relationship with TUALP. - Norm Hein will draft a spreadsheet of existing R&D projects.</p><p> Report of the ALRDC Find Case Histories Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Paul Bommer and Cleon Dunham. - Who is willing to be chair? - Paul Bommer is wondering what kind of data base we wish to build. He is thinking perhaps we should categorize some examples of different well types. - There was no further discussion of this sub-committee.</p><p> Report of the ALRDC Find Catalogs Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Scott Campbell and Cleon Dunham. - Who is willing to be chair? - Scott Campbell is developing ideas for this. - There was no further discussion of this sub-committee.</p><p> Report of the ALRDC Find Computer Programs Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Member is Cleon Dunham. - More members are needed. - Who is willing to be chair? - There was no further discussion of this sub-committee.</p><p> Report of the ALRDC Find Technical Library Documents Sub-Committee. Agenda- andMembers Minutes: are ScottFeb. 25,Campbell, 2009 Cleon Dunham, and Mark Garrett. - Who is willing to be chair? ALRDC Board Meeting April 24, 2008 Page 5</p><p>- There was no further discussion of this sub-committee.</p><p> Report of the ALRDC Promote Yellow Pages Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Scott Campbell and Cleon Dunham. - Who is willing to be chair? - Scott Campbell thinks that every booth holder at our shows should be required to purchase and maintain a yellow page spot if they already do not do that. - We need to market this as an oilfield reference spot as well. - Lynn Rowlan volunteered to be on this sub-committee. Done. - After discussion, the idea of requiring exhibitors to advertise on the ALRDC Yellow Pages was rejected in preference to requesting them to advertise on the Yellow Pages.</p><p> Report of the ALRDC Award Sub-Committee. Agenda and Minutes: Feb. 25, 2009 - Members are Cleon Dunham, Mark Garrett, Jim Lea, and Lynn Rowlan. - There has been some discussion of potential award winners, but so far there is no process in place for selecting award winners, how often this will be done, what the award will be, etc. - This sub-committee is to bring a recommendation to the next Board meeting.</p><p> Discuss idea brought forward by Bryan Dotson. Agenda and Minutes: Feb. 25, 2009 - Regional/Basin Deliquification Workshops - There is a thirst out there for more deliquification training/conferences. - I found this out when David Simpson held an SPE ATW on low pressure gas well facilities, and a lot of the feedback we got was "I wanted more on deliquifica- tion". - Also, in my opinion (and some agree with me), we're not engaging the inflow part of the problem. - We don't get much reservoir engineering interaction. Rarely do we see measured FBHP. - Even with the downturn, I think there is demand out there for: - a) more training/interaction and - b) more basin-play specific interaction. - Who should do it? ALRDC? SPE? The commercial conference makers? - The existing ALRDC charter permits ALRDC to hold Workshops and Forums. - The Permian Basin Artificial Lift Forum could be a possible format for an ALRDC Forum on Gas Well Deliquification to follow. - We could pilot test this for the San Juan Basin. - Cleon Dunham will draft a document on what this might look like for the San Juan Basin. Done.</p><p> Discuss idea brought forward by Bryan Dotson. Agenda and Minutes: Feb. 25, 2009 - Where are we going with ALRDC? - Primary action today is education/tech transfer/networking. - Sponsoring/organizing R&D; I know Norm is going to talk about that? - Then all that ties into succession planning and do we need to have full-time employ- ees. - I know this is big and messy and you need a manageable agenda, but... </p><p>- There was no further discussion of this at this meeting.</p><p> Next Meeting. Agenda and Minutes: Feb. 25, 2009 ALRDC Board Meeting April 24, 2008 Page 6</p><p>- The next meeting of he ALRDC Board of Directors will be on April 23, 2009 in Lubbock.</p><p> Final Comments. Agenda and Minutes: Feb. 25, 2009 - There were no further comments.</p>