PETROLEUM TECHNOLOGY * TRANSFER COUNCIL

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P PETROLEUM TECHNOLOGY * TRANSFER COUNCIL SUMMARY 2 $S+/ PDF The Petroleum Technology Transfer Council (PTTC) is a new national "umbrella" organization formed by the Independent Petroleum Association of America (IPAA), in cooperation with the state and regional oil and gas producer associations, the Gas Research Institute (GRI), the Interstate Oil and Gas Compact Commission (IOGCC), and other groups. The mission of the PTTC is to foster the effective transfer of exploration and production technology to domestic petroleum producers in all regions of the country. The technical information will be transferred from the research and development (R&D) community and intermediary providers of technology, including: government, universities, professional societies, national labs, major companies, the service industry, etc. The PTTC is intended to be a national clearinghouse for all upstream technology needs of U.S. oil and gas producing companies and identify the best mechanisms for improving near-term and long-term technology transfer to domestic operators. Providers of technology and R&D should be able to use the PTTC as a marketing conduit with access to thousands of producers and operators. One of the most important functions of the program will be to provide a feedback loop so that the needs and concerns of producers can be communicated effectively to the entire research community and to the Department of Energy (DOE). The PTTC will serve as the primary dissemination mechanism to independents for any technology that results from DOE'S oil and natural gas programs, including the newlyannounced Advanced Computational Technology Initiative (ACTI) with the national labs.. The PTTC was incorporated on November 4, 1993 in the District of Columbia as a non-profit organization. It is awaiting clearance for Section 501(c)(3) tax-exempt status under the Internal Revenue Code. Funding for the PTTC is being sought from the Department of Energy, state governments, the Gas Research Institute, service companies, industry cost-sharing, and other sources. In early February, 1994, the PTTC began Phase I of its program, which is a period of intensive planning and analysis that is expected to last no more than six months. During this Phase I period, the PTTC staff is being hired and appropriate accounting systems established. Contracts will be negotiated with lead organizations in the ten PTTC regions. In addition, the funding requirements and cost-sharing commitments will be resolved. A Master Plan for the tive-year program will be submitted to DOE in late July, 1994. When the PTTC program moves into Phase 11, which is estimated to be by August 1, 1994, implementation will actually begin on the regional workshops, seminars and resource centers as each of the regions is ready to proceed. There are several existing technology transfer programs at the state and regional level. The PTTC will coordinate with hese programs, and utilize their experiences as pilot examples for other areas. PTTC PROGRAM The PTTC program has three main components: Problem Identification Workshops will be held in all producing areas to identify and prioritize the operators' most common problems in specitic regions, types of reservoirs, and environments. 8 Focused Technology Workshops around the country will provide information and solutions to address specific problems identified in the earlier workshops. Regional and topical experts will meet with producers to discuss focused solutions to real-world technical problems.

Regional Resource Centers will be established in existing facilities around the producing areas to provide operators with access to a library, technical and referral assistance, and computer workstations with data covering project histories, field and reservoir data, and analytical software to help operators evaluate their reservoirs and technical problems, as well as potential solutions. The PTTC organization has a: national structure to provide direction, analysis, evaluation, and oversight of all regional activities, and a regional structure having the responsibility of planning and implementing the programs for each of the ten regions. PTTC NATIONAL STRUCTURE The national PTTC structure is comprised of: the Board of Directors, three main Committees, and the staft': A. PTTC BOARD OF DIRECTORS The PTTC is led by a Board of Directors comprised mainly of oil and gas producers to ensure that the program reflects the true needs and priorities of the industry. The Board is made up of: OFFICERS : Chairman of Board James E. Russell Russell Petroleum Co. Abilene, TX Vice Chr. of Board Gene Ames, Jr. Venus Oil Company San Antonio, TX *Executive Director Deborah Rowell Pet. Technology Transfer Council Washington, DC REPRESENTATIVES FROM PTTC REGIONS: Appalachia Central Gulf Eastern Gulf Midwest N. Midcontinent Rockies S. Midcontinent West Coast Leo Schrider Robert Chebul Harry Spooner Lester Moore Mark Murphy James Devlin Robert Nance Lew Ward Tom Coffman Chrjs Hall Belden & Blake, Inc. Louisiana Land & Exploration Co. Spooner Energy MEPCO, Inc. Strata Production, Inc. Viking Resources, Inc. Nance Petroleum Corp. Ward Petroleum Corp. Coffman Exploration, Inc. Drilling & Production Co. Canton, Ohio New Orleans, LA Jackson, MS Evansville, IN Roswell, NM Wichita, KS Billings, MT Enid, OK Austin, TX Torrance. CA OTHER BOARD MEMBERS: IPAA Chairman George Alcorn Alcorn Exploration, Inc. Houston, TX GRI Representative Myron Gottlieb Gas Research Institute Chicago, IL IOGCC Representative Christine Hansen Interstate Oil & Gas Compact Comm. Oklahoma City, OK Service Co. Rep. Robert Tiner (formerly) Halliburton Energy Services Houston, TX Major Co. Rep. Julian B. Coon Conoco, Inc. Houston. TX *IPAA President Denise Bode Independent Pet. Assoc. of America Washington, DC * Ex-oflcio non-voting Board member

L B. PTTC COMMITTEES The work of the PTTC will be conducted through three main committees: 1. Needs Assessment Committee The Needs Assessment Committee (to be established by Phase 11) will articulate the technological needs of operators. It will have members from all of the regions, including representatives from: a. PTTC Producer Advisory Groups b. State oil and gas commissions and regulatory agencies, and IOGCC c. State and regional producer associations d. Others qualified to represent the technology needs of oil and gas producers 2. Technology Committee The Technology Committee (to be established by Phase 11) will be made up of the researchers and providers of technology. It will devise means of meeting the demands as articulated by the Needs Assessment Committee. The Committee will be comprised of representatives from: a. PTTC Regional Lead Organizations b. Universities c. State geological surveys and technology transfer programs d. Professional societies (representing oil/gas geology, engineering, geophysics. etc.) e. Major oil and gas companies f. Service companies g. Industry R&D organizations h. Gas Research Institute i. Others qualified to match technology with the needs of producers 3. Management and Budget Committee The Management and Budget Committee is a subcommittee of the PTTC Board of Directors. This group's mission is to decide major tinancing and funding issues for the program as a whole, and make recommendations to the Board. It has met on several occasions. The members are: Chairman: Gene Ames, Jr. Venus Oil Co. San Antonio, TX Vice Chairman: Leo Schrider Belden & Blake North Canton. OH Members: James Devlin Viking Resources Wichita, KS - Chris Hall Drilling & Production Torrance, CA Robert Nance Nance Petroleum Billings, MT Ex-Officio: Myron Gottlieb Gas Research Institute Chicago, IL James Russell Russell Petroleum Abilene, TX C. PTTCSTAFF The PTTC Executive Director serves as the Chief Staff Ofticer of the organization, and is responsible for monitoring and coordinating the national program. The Executive Director will be supported by a small staff including a Project Manager, a Technical Manager, Financial/Contracts Administrator, and an Administrative Assistant. Technical contractors will be hired as needed to assist the PTTC staff. 3

PTTC REGIONAL STRUCTURE There are ten regions of the country for administering the PTTC program: Appalachia Central Gulf Eastern Gulf North Midcontinent South Midcon tinen t Midwest Rockies West Coast Kentucky (Eastern), New York, Ohio, Pennsylvania, Tennessee, Virginia, West VA Louisiana Alabama, Florida, Mississippi Kansas, Missouri Arkansas, Oklahoma Kentucky (Western), Illinois, Indiana, Michigan Arizona, Colorado, Montana, Nebraska, Nevada, North Dakota, South Dakota, Utah, Wyoming Alaska, California, Oregon, Washington Each area has two organizational entities that are responsible for the PTTC program in its region: A. PRODUCER ADVISORY GROUP A Producer Advisory Group (PAG) has been formed in each of the ten regions, comprised mainly of oil and gas producers from the area. The purpose of the group is to stimulate and help set the direction for the regional technology transfer activities, develop budgets and plans, and coordinate industry cost-sharing. A Chairman has been selected for each PAG, who serves as that region s representative on the PTTC Board. B. REGIONAL LEAD ORGANIZATION Each area will have a Regional Lead Organization (RLO) that is a 501(c) non-protit corporation suitable for managing the regional PTTC program. The RLO will develop and carry out comprehensive technology transfer activities that meet the articulated needs of the region s operators, as directed by the PAG. Seven of the ten regions have RLOs that have been ratitied by the Board of Directors (listed below). The other three have identitied potential candidates, but the selections have not yet been ratified by the Board. Until this has been finalized, the PTTC Headquarters will temporarily serve as the RLO for those three regions (Rockies, West Coast, and Central Gult) so that all regional activities can stay on schedule. Appalachia Eastern Gulf North Midcontinent - Appalachian Oil and Natural Gas Research Consortium/West VA University University of Alabama/Geological Survey of Alabama University of Kansas Center for Energy Research South Midcontinent Oklahoma Geological Survey Midwest Illinois State Geological Survey NM Petroleum Recovery Research Center/NM Institute of Mining & Techn. TIPRO Foundation, Inc. For further information. contact: Deborah Rowell, PTTC Executive Director 1101-16th Street, W, Suite I-C Washington, DC 20036 (Ph: 202-785-2225 Fa: 202-785-2240) 61 10194 4

- 1 - Needs PTTC Organizational Structure Board of Directors Management & Budget Committee Assessment - - - - - - - - - - i-1 t-rl Staff Producer Advisory Group Regional Lead Organization Problem ID Focused Technology Regional Resource Workshops Workshops Centers L Other Activities (As Needed)

PTTC Regions West Tentative Location of Main Resource Centers Satellite Locations to be Determined REGIONS *..