Community Benefits Plan

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Notes

• Agenda was approved (moved & seconded & voted)

• DEP staff and CBC members introduced themselves

• JH (and later JM) expressed gratitude for those who helped to secure more funding for plugging abandoned wells

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Agenda Item: MERP Grant/Program Overview / DEP Strategy

1. JH presented portions of “Methane Emissions Reduction Program for Marginal Conventional Wells” and provided the slides after the meeting.

2. The funding that the CBC is working with was from the Inflation Reduction Act, through the U.S. Department of Energy (DOE).

3. The aim is to put people to work using these funds set aside for “marginal” assets; West Virginia has about 63,262 MCWs (Marginal Conventional Wells), which are vertical wells that produce less than 90 mcf (thousand cubic feet) per day.

   1. Clarification - a well doesn’t have to be an actively producing well to be considered marginal; consider adding “including wells that are idle” when speaking of MCWs
   2. Clarification - number of MCW wells that are “holding leases” is unknown
   3. Clarification - a MCW producing just under this maximum amount, e.g. 80 mcfd, could be considered to be a “good” economic asset to some operators

4. Slide 5: There are over 25,000 wells in 0-0.1 mcfd production range, while 279 wells are making more than 50 mcfd

5. Slide 6: Over 1000 operators have 1-10 wells, and 9 operators each have more than 1000 wells, representing 45% of MCWs

6. Slide 11, map: CEJST (Climate and Economic Justice Screening Tool) has criteria to determine “disadvantaged communities” and that includes almost all of WV. We have to spend at least 40% of our funds in these areas. 72% of our MCWs fall within these areas

7. Slides 12-14 Role of CBC and the Administrator

   1. This is a ~$38 million grant, not enough to plug every MCW
   2. Administrator will be involved in community engagement, well nomination & prioritization, field oversight
   3. CBC Project Launch Phase - establish a forum for meaningful dialogue - landowners, mineral owners, O&G industry, laborers, environment will all be affected by the grant, so we seek their input
   4. CBC maintenance phase - keep tabs on our progress implementing the grant

8. Slides 15-19 Well Prioritization Plan, will put packages together and will try to attract a lot of different vendors, including small companies

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Agenda Item: CBC Goals and Objectives

1. Serve as an advisory board making sure we hear your opinion and also all of the other affected voices

2. Approve the prioritization model

3. Maintenance role to ensure we’re on track for our Community Benefits obligations

   1. Clarification - operators will need to voluntarily nominate their wells; we need to reach out to them to inform them & allay potential fears.
   2. Clarification - a surface owner may not nominate an orphan well, since it doesn’t meet the definition of an MCW, but our new webpages include a self-nomination form to start to process of possibly accessing state funds for abandoned well plugging
   3. Clarification - a DEP inspector cannot require someone to apply for plugging nor appear that we’re forcing them to apply. Many stakeholders can recommend a well - ultimately it’s the operators’ decision whether to nominate it.

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Agenda Item: Identification of Focus Areas / Strategies for Public Engagement

1. No one present at the meeting is opposed to making these meetings public

2. Keep these ideas going and work on deploying them at next meeting. Think about where the meetings should be, who the people are, and how to get the people there.

   1. CB’s organization sends a newsletter to dues-paying members, many of which are likely operators of the smaller numbers of MCWs

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Agenda Item Tabled for Next Meeting: Workforce Development

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Action Items

• Jason will share the EOI (Expression of Interest) for the Administrator
• Jason will share the Abandoned Well Plugging website url that just went live today
• Jason will let this group know what is needed to make these meetings public
• Jason will ask you all to sign a form to document your participation so that he can release the $200 reimbursement
• Jason will share the PowerPoint presentation slides that were used today
• Members will be prepared to suggest strategies at the next meeting for:
  • Stakeholder meetings (where the meetings should be, who the people are, and how to get the people there)
  • Workforce development

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Meeting Adjourned at 11:30 A.M.

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Next Meetings

The next meeting will be September 17, 2024, 10:00-11:30 a.m. Virtual meetings seem to be OK with everyone.

The October meeting will be October 15, 2024, 1:00-2:30 p.m.

The November meeting will likely be November 19, 2024, 1:00-2:30 p.m. (may have to coordinate with the Administrator on their availability as well)

Documents

• CBC Kickoff Meeting Notes

  August 27, 2024

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Notes

1. Agenda was approved (moved & seconded & voted)

2. Meeting minutes were approved (TH moved, AC seconded)

   1. Charlie Burd’s statement was clarified to be that most operators in his organization have 300 wells or less, but one has several thousand. There are about 12 that own ~2600 horizontal wells.

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Reports: Chair

1. Methane Emissions Reduction Program (MERP) grant RFP submittal: We prepared the Expression of Interest to invite applicants to be the Administrator, but we were told it must go out as an RFP (Request for Proposals); this opens it up to non-engineering firms. We are working on this; it will introduce a delay. JH will share the RFP when it is finished.

2. Public meetings: We will proceed as if these meetings are under the “open meetings” rules. All are open to the public; there is a link on our website and published on WV SOS office. It will become a permanent meeting link once we start our regular meeting time.

3. Membership compensation: the solution is to become temporary employees of the agency. If anyone has questions about the ramifications, e.g. do we need to make disclosures to the Ethics Commission, we can discuss them. If you want your time to be volunteer, you don’t have to be paid. $200/meeting is available plus travel expenses reimbursable up to $175, like legislators are paid for interim sessions.

4. Website is up, URL was shared with you. We will post minutes of the last meeting there and the agenda for next meeting, at least 5 days prior to the next meeting. Clarification of the purpose of the Orphan Well Reporting Form - this will not be the nomination tool for the purpose of this grant. The audience is mainly people who have a well on their property that would like to know more about it. If we need to adapt how it works, we can consider that. DM also commented that the API number can be obtained higher in the form, to speed up the answer.

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Old Business: CBC Purpose(s) Recap

1. To serve as an advisory board to direct the actions of this group; the Administrator will coordinate most of the future activities. This is DEP’s alternative to being in the position of using grant funds for our regulated community. CBC will approve the prioritization model.

   1. If we don’t get a rush of nominations, we’ll have to work on publicizing the opportunity. An Oil & Gas workshop could be a possibility, had done those in the past.
   2. JH described the committee makeup that will review bids for the Administrator role.

2. Work on work force development; review the Community Benefits Plan to ensure we’re on track We are delayed on Administrator selection, so we need to begin the public meetings.

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New Business: Identification of Focus Areas/Strategies for Public Engagement

1. Explain to the public why they should come/why they should care: “What should we include in the prioritization model?” “What matters to you?”

2. Public meeting spaces: focus on geographic areas that have the highest concentration of MCWs. Reviewed map: all except southeast, eastern and northern panhandles.

   1. 5-6 Locations
      1. Glenville - has university (non-biased), smaller operators nearby
      2. Parkersburg area, WVUP or similar organization
      3. Sistersville volunteer fire dept was recently used
      4. Fairmont [Elkins, Buckhannon]
      5. Beckley, Logan, Huntington
   2. Consider offering an online option to submit comments for those who can’t make it to a meeting, also captures eastern panhandle group

3. Date/time (DEP to plan these since Administrator selection will be delayed)

   1. Some should be lunchtime, some evening
   2. Need majority of dates selected before generating a press release
   3. Wednesdays aren’t good due to church, Monday night football bad, so Tues or Thurs best.
   4. Nov 7, 12, 14, 19, 21 are options on Tues and Thurs in November

4. Those to inform:

   1. County farm bureaus (TH can help publicize to them - email lists and call chains)
   2. County Commissioners, legislators that serve a particular region
   3. Groups with an environmental focus: AC can help publicize to watershed network and WV Climate Alliance

5. May need security

6. Format? Presentation style with opportunities for people to make comments? Open house style with stations? Who will collect the comments?

   1. Stations work well to eliminate grand-standing
   2. Public Information Office may have advice

7. JH will draft a message saying what we’re trying to do, then a later message about specific places/times of public meetings

   1. DEP press release, radio ads, other publicity methods

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New Business: Workforce Development (Standing Agenda Item)

1. JW discussed some challenges to address:

   1. Planning for employee needs in longer term future; 10 years of work better than 2 years
   2. Existing companies could consider expanding to this area - get that information out to contractors/contractors associations, Glenville, CTCs
   3. Projects that will be financially viable for them, e.g. AML (Abandoned Mine Lands) learned that larger packages can be helpful because the variability would even out
   4. Training - and then contractors need to be employing them at competitive wages after they are trained
   5. Besides competing with plugging projects in other states, also NewCorps, chips plants being built in Columbus, highway work (JW recently served on panels regarding nuclear, AML, well plugging, infrastructure)
   6. DEP could send out pre-bid announcements through Justin’s networks so people could explore the idea. JW cited AML approach of an open house with project package to scrutinize & ask questions.

2. Penn State offers Top Corps, which may be broadening to include well plugging

3. DM had shared in an email on 8/29/24 the following apprenticeship approach in PA.

4. Discussion of roles/jobs, some of which require experience/art (rig operator), but other roles (rig hands) are primarily labor, then people may move into the more experienced roles. Also truck driving, water hauling, etc.

5. JH will create a survey for our plugging contractors to learn what their needs are

6. DM cited exit interviews: Those who left the field said “it is hard work”

7. CB can reach out to IOGCC to see what other training programs are in nearby states.

8. AC will share Baker Welsh’s model for workforce component in CA

9. CB can reach out to Dorinda Byers

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Alana Reviewed Action Items

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Open Discussion

DM is concerned about number of drillers who will apply for this; they may not be accustomed to applying to the government for grant money. Start simple with a one-page form. JH agreed, and noted we will all need to promote the program, possibly having to allay fears the government won't’ be using this as a tool to come after them. It was noted that some producers have drilling and also plugging companies.

Adjournment at 11:27 a.m.: TH moved, JW seconded, all approved.

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Action Items

• Jason will share the RFP (Request for Proposals) for the Administrator
• Members may complete the paperwork to receive reimbursement, if desired.
• DEP will begin planning the public meetings’ locations and dates
• Jason will draft a message about the public meetings, saying what we’re trying to do, then a later message about specific places/times of public meetings
• Members will seek input on workforce development needs from the stakeholders, as noted in red font above

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Next Meetings

October 15, 2024, 1:00-2:30 p.m. and November 19, 2024, 1:00-2:30 p.m.

Documents

• Finalized Agenda
• Meeting Notes

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Notes

1. Agenda was approved (TH moved, DM seconded)

2. Meeting minutes were approved (JW moved, DM seconded)

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Reports: Chair

1. Public Meetings - locations chosen generally reflect the scheme we discussed during previous meeting, providing options for southern, northern, and high-concentration/Ritchie county areas:

   1. Nov 7, 6-8 pm – DEP HQ (virtual option as well)
   2. Nov 13, 6-8 pm – Fairmont, WV (Kingmont Community Building)
   3. Nov 14, 6-8 pm – North Bend State park
   4. Format will include introduction of the grant program by JH, then probably an opportunity to meet at tables for more one-on-one discussions, if enough people are present for that to make sense. Not a standard public meeting, since there is no permit or rules in question. A few surface owners may attend in addition to mineral owners and industry. We could consider presenting draft factors/model, including inviting them to consider “sensitive receptors” such as schools. Jason has a meeting scheduled with Dorinda Byers to discuss topics related to workforce development
   5. JH will inquire about an email address to which people can submit electronic comments.

2. Methane Emissions Reduction Program (MERP) grant timeline, specifically the 11/15 deadline for the well prioritization plan, is not as flexible as we had thought. DEP has drafted the RFP (Request for Proposals) for the Administrator; JH will share the RFP when it is published.
   However, an Administrator will not be engaged in time for this deadline.

   1. JH asked, and there was agreement, that the CBC can help to develop the prioritization plan at our next meeting, because we will have in-hand the feedback from the public meetings. DM emailed the group a list of factors to consider using. Prioritization normally used for plugging abandoned wells with WV state funding would not apply. MERP grant guidance says we have to prioritize with respect to proximity to disadvantaged communities; not as well-defined as simply “methane reductions.” It is not clear whether the number of wells under consent order should be considered.
   2. The plugging contracts will likely consist of groups/packages. There is support for this among CBC members, because of the efficiencies of geographical proximity. The US Dept. of Energy/NETL’s PRIMO tool could be useful - allows user to enter weights for factors and define idea groupings of wells within X miles, etc. (See fact sheet about PRIMO copied at the end of these meeting notes) JH will share a presentation about PRIMO where it was tested in PA. Some factors, like distance from a school, would have to be analyzed with GIS separately, then entered into PRIMO tool.
   3. This program is entirely voluntary; operators cannot be forced to nominate a well. The Administrator, once engaged, will lead the nomination process, obtaining information from the operators. If landowners flag wells, those would have to be incorporated into the process as well.
   4. Methane Emissions Quantification (MEQ) will have to be performed on each well.

3. DEP learned recently that we received the 2023 tax year funding for state well plugging program, which was $9 million, so current balance is $15 million; JH is looking into developing some contracts for every abandoned well in a county.

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Old Business:

Covered during “Reports,” above

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New Business:

Public meeting invitees - see brainstormed list from September meeting, plus:

1. Legislative representatives
2. County Commissions
3. Constituencies represented by CBC members
4. Farm Bureau
5. WV Land & Mineral…
6. WV Press Association

Adjournment at 2:00 p.m

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Action Items

• (from last time) Jason will share the RFP (Request for Proposals) for the Administrator
• DEP will share the press release about the public meetings
• JH will share a presentation about PRIMO where it was tested in PA.
• JH will inquire about an email address to which people can submit electronic comments.

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Next Meeting

November 19, 2024, 2:00-3:30 p.m. (virtual meeting); note the time is different from previous meetings.

Documents

• Finalized Agenda
• Meeting Notes

Meeting minutes will be posted when they become available.

Documents

• Finalized Agenda