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GPA eBrief - May 2007

those preferring a hardcopy may download one here

To better serve our members, GPA will be altering the look and timing of many of our publications/communications with members. Please provide any feedback you may have.

Below is an outline of eBrief topics...follow specific links to the desired topic

*********FULL TEXT OF ARTICLES*********

Tech Talk – Activities of GPA’s Technical Committee and
Technical Sections

Technical Section Nomenclature
The naming nomenclature of the sections has changed. All technical sections will be referred to by their actual title rather than the letter designation. This will allow those less familiar with the activities a clear understanding of the technical sections roles.

Technical Committee and Section Leadership Changes
On March 14th Paul Sibal, ExxonMobil was named Vice Chairman of the Technical Committee. Mr. Sibal replaced Carl Soderman, DCP Midstream. Mr. Soderman was elevated to the Chair of the Technical Committee. The Operations and Maintenance Section (Section M) is now Chaired by Mike Brumley, Chevron USA. Mr. Brumley replaced outgoing Chair Mike Spinks, Enterprise Products. Ajey Chandra, Hess Corporation will serve as the new Vice Chair. Please welcome these three individuals to their new roles.

GPA Facilities Design Technical Section (Section A)
Design Practices Workgroup - The section has made considerable progress with its Design Practices Workgroup. To assist in the progress, Enterprise has agreed to allow GPA the use of its gas plant specifications which were developed with OPD. The section hopes to have work completed on the specifications in time to vote on them at the GPA Fall meeting.

Plant Spacing Guidelines – Work is continuing on the Plant Spacing Guidelines. Once completed, these guidelines could be used by facility designers to lessen the footprint of future plants.

GPA Analysis and Test Methods Technical Section (Section B)
34th School of Gas Chromatography - Preparations for the school are well underway. It will be held July 23rd – 27th at the University of Tulsa, Tulsa, OK USA. This is earlier than it is traditionally held due to a conflict with the PGA Championship Golf Tournament being held in Tulsa this year. We are expecting, and looking forward to another great week of training. If you would like to attend, or send a student to the school please visit this link: http://www.gasprocessors.com/PdfFiles/ChromoRegForm07.pdf

GPA Product Specifications Section (Section C)
This Section and the GPA Technical Committee recently co-balloted a proposed set of fractionation grade product specifications. The new specifications include ethane, ethane-propane mix, wet propane, iso-butane, n-butane, and natural gasoline. Although one negative ballot was received, it has been resolved. The proposed specifications will now be balloted to the GPA Board of Directors.

GPA Product Measurement Section (Section H)
They recently balloted drafts of TP-15 (Revised 2007) Calculation of Vapor Pressures, and TP-27 Temperature Volume Correction of Light Hydrocarbons. Both documents will be available in the near future. TP-27 will contain both FPS and SI units of measurement.

A review and update of GPA 2145-03 Properties of Light Hydrocarbons will soon be undertaken in order to meet the five year review requirement. Properties for ethylene and propylene will be included in the update.

GPA Operations and Maintenance (O&M) Technical Section (Section M)
Recruitment and Training of O&M Personnel – Group members are addressing one of the hottest topics around the industry these days…the need for new O&M personnel. They will coordinate GPA efforts, including assisting current educational programs (like the degree program at OSU Okmulgee), developing new programs at additional schools and facilitating discussions between member companies. As part of this initiative, Johnny Payne, BP, made a recruitment presentation to the O&M group in March. If you are interested in having Mr. Payne make the presentation to your group, contact Kenny Wheat, GPA, at kwheat@gasprocessors.com or 918-493-3872.

Topics of General Interest

GPA/GPSA Career Center
The Career Center was displayed at the GPA Annual Convention in San Antonio. We hope you had a chance to view the site and ask any questions you may have had. Promotions and exposure at the Convention has resulted in an increased activity on the site (such as job postings, browsing job postings, etc.).

To encourage additional activity, we are offering a Single, 30-Day Job Posting any time in May, June or July, 2007 to GPA/GPSA Members for $100 and to Non-Members for $200. Employers, go to http://careers.gasprocessors.com/hr, login (or register if you’ve never used the site before) and post your job using the appropriate Promotion Code listed below.

Members use: MJJ07MEM
Non-Members use: MJJ07NON

We need to grow the industry and what better way than by placing the right people in the right job! Help us help you by utilizing the site today!

OSU Okmulgee Natural Gas Compression Program
Enrollment continues to increase at the OSU Okmulgee Natural Gas Compression Program. Having 70 students currently enrolled and 30 expected to graduate, this program is a great success story. Gary Hobbie, OSU Okmulgee, said that he hopes to grow the program to accommodate approximately 100 students, graduating about 50 students per year. To sustain and expand a program such as this, Mr. Hobbie is continually searching for equipment donations from industry which is used to train the students. Mr. Hobbie has provided GPA a “wish list” of sorts shown below. For information on sponsoring a student and/ or donating equipment to the program, please contact Gary Hobbie at OSU Okmulgee (gary.hobbie@okstate.edu or 918-293-5392)

New GPA Member Companies
Welcome to new members of GPA...below are those joining Since October 2006... Also listed is their Official Representative.

ACCROVEN - Ali Balza
AKA Energy - Dennis Casto
Blackbrush Oil & Gas - Chris Stewart
Bluestem Pipeline - Doug Klaassen
Ceritas Energy - Ralph Neumann
El Paso Production - Dean Burton
Hanlon Gas Processing - Gregg Goodall
Kayne Anderson Capital Advisors - Ron Logan
Occidental Oil & Gas - Bill Boyer
Oil & Natural Gas Corp. - D. K. Ralli
PVR Midstream - Michael Wood
Rock Creek Energy - Ken Teague
United Gas Derivatives Co. - Husseiny Koteim

NGL Market Information Committee
This group welcomes a new leadership team. Dan Lippe, Petral Worldwide Inc., is now serving as Chair and Dennis Plato, Targa Resources, is the Vice Chair. An update of their committee activities will be highlighted in future issues of eBrief.

GPA Research Program
Today’s Research Ensures a Stronger Industry for Tomorrow

We are pleased to announce that all 2007 research projects have passed. The average pass rate of 90% validates that the industry believes in and appreciates the work accomplished by the program. We have listed each project and its pass rate below. We have six continuing projects (042 through 063) totaling $310K, and four new projects (071-074) totaling $220K. We also have received $25K from GPSA for work on the Data Base and the GPSA Engineering Data Book.

   #       Project Name...Pass %
042     Acid Gas Injection Design Data...91.00%
051      Mercury in Gas Processing Plants...91.76%
052     Methanol Distribution in Fractionation...89.55%
061      Glycol / Amines Transport Properties...89.94%
062      Inhibitor / Salt Effects on Hydrates...91.31%
063      Hydrocarbon Dewpoints Testing...89.72%
071      Solubility of Heavy Hydrocarbons in Amines...89.94%
072      Sulfur Species Distribution in 3 Phase Separators...89.30%
073      Oxygen Removal in Natural Gas...91.61%
074      Effect of Gas Gravity, H2S, & Salinity on Wet Natural Gas...89.92%

 

Message from Mark Sutton, Executive Director

Convention Thoughts
Now that the dust has settled on another GPA Annual Meeting it’s time to critique a little and look forward to next year’s meeting. From a staff perspective, the meeting in San Antonio went extremely well! Over 1,500 people attended the meeting – which made it our highest convention registration since 2001. Special congratulations are extended to Barry Oakes (Chair), Bob Purgason (Vice Chair) and the rest of the volunteers from the Program Committee for providing an outstanding program. Committee meetings, for the most part, were well attended and their work to keep the industry’s house in order continues. Our GPSA colleagues continued their tradition of maximizing the enjoyment factor of the event. They provided support, sponsorships and entertainment at the Tuesday night dinner (although DFW rain delays provided challenges). To everyone involved, please accept the thanks from those who attended the meeting – JOB WELL DONE!

The 87th Convention will be back in Grapevine, Texas, at the Gaylord Texan Resort and Convention Center on March 3-5, 2008. The Program Committee has been appointed by GPA President Gene Thomas and will be led by Chair Bob Purgason, Crosstex Energy. The committee will hold its first planning meeting next month in Scottsdale. Mark your calendars now and be sure to attend the gas processing industry’s premier event!

Strategic Planning
Just a brief update on what President Thomas provided to the membership in March regarding GPA’s strategic initiatives. Our Communications Initiative, led by Joel Moxley with Crosstex, is moving along rapidly. The Strategic Communications Team has interviewed four potential communications firms that responded to our Request for Proposals. Based on the results of that meeting, an agreement to work with Dollahon PR should be in place shortly. Membership should be seeing results of this effort within the next few months.

Our Legislative and Regulatory Affairs Initiative group, chaired by Rob Martinovich, DCP Midstream, is very close to finalizing a recommendation to the Board of Directors. This recommendation will include the strategic team’s position on how GPA will handle state and federal advocacy activities.

Our Domestic Chapter/International Affiliate Organization Initiative is also making excellent progress. After the March meeting, a GPA International Committee has been formed and the committee has been staffed by volunteers from international GPA affiliate organizations. In addition, we are seeing some recent signs of solid progress in developing a forum to exchange gas processing technical information in Southeast Asia. We’ll have more to report in future issues of the eBrief.

Bob Dunn with Prism Gas Systems is leading this issue and has had several meetings with various stakeholders of the GPA Domestic Chapter activities. Many great ideas have been discussed that would assist the chapters in serving their members and provide benefit to GPA. A Chapter Officers Leadership meeting has been scheduled for July 18 & 19 in Albuquerque, NM to further develop recommendations from the group.

Bill Puckett with Eagle Rock Energy has championed our Committee Participation and Restructuring Initiative. Since March, a survey (conducted at the Annual Meeting) was completed by attendees of the Operations & Maintenance and Facilities Design Sections. The survey focused on what services these committees could provide GPA membership and the industry right now, and in the future. A related survey has been distributed to all GPA Official Representatives and we ask that each company take a few minutes to provide their company’s perspective.

The last initiative that the Strategic Task Force is working on is that of the industry’s “graying” workforce. Alan Armstrong (Williams Midstream) and Henry Galpin (Pioneer Resources) have been diligently pursuing opportunities to highlight the midstream industry to several different universities and to educate college undergraduates on our business. Look for this effort to expand and contact either Alan or Henry if you would like to help.

Membership Demographics
Please allow me to use a little space here to give all of our U.S. GPA members a “heads-up” regarding a new effort to collect some important demographic information from the membership. This effort stems from our expanded legs and regs efforts and will allow GPA to better explain to legislators and regulators the breadth of our industry and the companies represented. Information we are considering collecting includes plant asset information (including miles of pipelines and certain processing details), select company tax data, and some employee demographic data. We would ask that, if the decision is made to pursue the collection of these data, each company make a good faith effort to collect and return the information is a timely manner.

PERC MOU
GPA and the Propane Education & Research Council (PERC) are in the final stages of signing off on a Partnership Agreement between the two organizations. A draft Memo of Understanding has been reviewed by GPA and returned to PERC staff for approval. The MOU would provide GPA’s R&D program with an additional $150,000 for projects beginning in 2008. Two potential projects have been identified to pursue, one involves methanol separation from propane technologies and the other would attempt to correlate freeze valve results and water/methanol content. These projects will be mutually beneficial to GPA and PERC.

LARAC and EHSC Update...Johnny Dreyer

Along with the traditional issues handled by these groups, additional issues have surfaced as the midstream industry becomes more visible to legislators and regulators. Much of this closer scrutiny is a result of the facility damage from the Gulf of Mexico storms in 2005. It highlighted the importance of the infrastructure operated and maintained by GPA member companies. Below is a synopsis of issues being addressed. Comprehensive activity information can be obtained from several sources: 1) provided links, 2) the committee minutes (available by logging in as a member on the GPA website (http://www.gasprocessors.com) or by 3) emailing your request to jdreyer@gasprocessors.com.

Legislative and Regulatory Affairs Committee
The Board of Directors approved the preparation of an Amicus Curiae brief in behalf of GPA to request a review by the Supreme Court of Texas of Targa’s appeal of the Apache v. Targa Resources case. The Appellate Court’s decision will have considerable impact on the interpretation of numerous existing gas gathering and processing contracts in the state of Texas that contain provisions relating to “lost gas” or “unaccounted for gas” but do not refer to both “lost and unaccounted for gas”. The brief can be downloaded here: http://www.gasprocessors.com/pdffiles/AmicusBriefFinal.052107.pdf


The Energy Information Administration (EIA) solicited comments on a proposed new “Natural Gas Processing Plant Survey”'. It call for the collection of information on the status and operations of natural gas processing plants for use during periods of supply disruption in areas affected by an emergency. The comments developed and filed by the LARAC Federal Issues Subcommittee can loaded here: http://www.gasprocessors.com/pdffiles/GPA_GasPlantSurveyComments.pdf

The Rahall bill (HR 2337) is unquestionably bad for many parts of the energy industry. It would make oil and gas exploration more difficult on federal lands (sec. 105), enhance best practices requirements for gas development on federal lands (sec. 106), increase the number of MMS audits related to gas leases (sec. 202), increase the penalties for failing to make federal royalty payments (sec. 203), increase the amount of interest that must be paid related to underpayments of federal royalties (sec. 212), and it increases surface owner rights and remedies (sec. 221). The bill is generating significant opposition from a wide range of energy interests. As bad as it is for gas, it is worse for air power generators because it would nearly eliminate that industry. It seemingly would also severely harm the energy transmission industry. The bill's climate approach calls for investment in a wide array of alternative energy programs (green buildings, hydropower, solar power on federal lands, biomass). It also includes a big carbon capture/sequestration program. The significant opposition will likely leave most of the controversial parts of the bill DOA. The first hearing on the bill will be Wednesday of this week before the House Natural Resources Committee at 10am EST. Although the date is subject to change, the bill is scheduled to be marked up in committee on June 6th. It will likely be dealt with on the house floor when the House takes up energy legislation--the date of which is unclear but Speaker Pelosi has stated that she wants energy legislation passed by July 4th.

Environmental, Health & Safety Committee (EHSC)
Jeff Gifford of Enogex has been elected Vice Chair of the EHSC. Please take the time to welcome Jeff and thank him for assuming this leadership role. Discussions have been initiated for a potential new GPA award for "environmental excellence" based on a set of reportable metrics such as energy savings/efficiencies, green house gas reductions and waste reductions. Additional information will be sent as the award is developed.

The Environmental Subcommittee held a meeting in April. An issues summary document can be downloaded here: http://www.gasprocessors.com/pdffiles/EnvScIssSum04_25_07.pdf

The Pipeline Safety Subcommittee welcomes new Chair Jeanette Jones, DCP Midstream. The group has a comprehensive list of issues that they handle. Their issues summary document was updated in March. It can be downloaded here: http://www.gasprocessors.com/pdffiles/EnvScIssSum04_25_07.pdf

The Safety Subcommittee activities will be discussed further in the next issue of eBrief. It will include a comprehensive report of the Safety Statistics compiled by the group.

Convention Information and Awards Presented

The 1500+ Convention Registrants represented 450 different companies and 18 countries. Below is a list of awards presented at this large gathering of industry personnel:

  • General Session
    • Hanlon - Mike Panatier
    • Katz - Ken Marsh
    • Company Safety Awards Division I - Enogex, Inc. & Kuwait National Pet. Co.
    • Company Safety Awards Division II - Chevron USA & Phoenix Park Gas Processors Ltd
    • Company Safety Awards Division III - Momentum Energy Group, LLC & Swift Energy New Zealand Ltd.
  • Presidents Luncheon
    • Citation - Karl Gerdes, Mike Lattal, Sam McVay
    • Recognition - David Kurtz, Craig Wentworth
    • GPA Presidents Award for Safety Improvement Aux Sable Liquid Products
      • ConocoPhillips
      • MarkWest Hydrocarbon, Inc.
      • Mustang Gas Products
      • ONEOK Hydrocarbon, L.P.
      • UNOCAL Canada (Chevron)
    • GPSA Safety Awards - Mustang Engineering, SNC-Lavalin GDS, Pearl Companies
    • Best Annual Convention Paper - William Manning, Rodney Madden, Gerry Goobie
  • Committee Meetings
    • Volunteer Award - Bob Tuttle, Operations & Maintenance Technical Section
    • Volunteer Award - Shari Janata, Safety Subcommittee
    • Volunteer Award - Jeanette Jones, Pipeline Safety Subcommittee
    • Leadership Award - Chuck Dehart, LARAC
    • Leadership Award - John Admire, Environmental Subcommittee

Events Calendar

Events that are scheduled for GPA, GPA Chapters and GPA Affiliated organizations can be found on the online calendar located at: http://www.gasprocessors.com/calendar.html. May, June and July events are listed for your convenience:

May
8 Permian Basin GPA Annual Regional Meeting, Clarion Hotel, Midland, TX
8 GCC Chapter (Bahrain), Annual Organization Meeting, Bahrain
8 North Texas GPA Spring Meeting and Golf Tournament, Bear Creek Golf Club, Dallas, TX
9 GCC Chapter (Bahrain), 15th Annual Technical Conference, Crowne Plaza Hotel, Bahrain
9 Houston GPA Luncheon Meeting, Houston Racquet Club, Houston, TX
11 Midcontinent GPA Spring Clay Shoot, Silverleaf Shotgun Sports, Guthrie, OK
18 GPA LPG Charity Fund 15th Annual Bowling Tournament and Luncheon, AMF Willow Bowl Center, Houston, TX
22-24 Europe GPA Conference, Operations and Maintenance, Teeside, United Kingdom
29 GPAC Q2 Meeting (1/2 Day) Metropolitan Center, Calgary

June
13 Rocky Mountain GPA Chapter Meeting
14 Rocky Mountain GPA Golf Tournament, Racoon Creek Golf Course
20-23 GPA/GPSA Board of Directors, LARAC, EHSC, Annual Program Committee meetings, Hyatt Regency Scottsdale Resort at Gainey Ranch, Scottsdale, AZ

July
23-27 GPA 34th School of Gas Chromatography, Tulsa, OK


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