American Oil and Gas Reporter - January 2016 - 109

ConventionSection: Independent Oil and Gas Association of West Virginia

West Virginia Fights Against
Pipelines' Index Prices
CHARLESTON, W.V.-Leaders of the
Independent Oil and Gas Association of
West Virginia claim the atmosphere is
shifting for the industry in their state.
Even though there is moderate support
for the industry among state legislators,
fees and transportation costs that exceed
index natural gas prices are driving gas
prices lower than many West Virginian
producers can afford.
IOGAWV Chairman Jon Hildreth,
president of Roy G. Hildreth & Son Inc.
in Spencer, W.V., says Dominion Transmission (DTI), which is close and convenient for many IOGAWV members,
had an index price range of $1.16-$1.24
from September to November 2015. Additionally, several producers are receiving
statements for fees that exceed transportation costs.
"IOGAWV is pursuing remedies vigorously and has presented options that
would enable producers to survive the
next two or three years," Hildreth comments. "We have made (Dominion) two
offers thus far, which it has rejected, and
we are working on a third. DTI did accept
a much lower increase on the most recent
gathering rate agreement negotiated by
IOGAWV, and we recognize and appreciate its consideration of the economics
involved.
"DTI is building several billion dollars
in take-away infrastructure projects to
move gas to additional markets with inservice dates ranging from 2017 to 2019,"
he continues. "The problem is, many operators will be in dire straits in 2016."
Hildreth gives his own company as an
example. He says this is the first time in
his 63 years with Roy G. Hildreth & Son
Inc. that it has had to lay off employees.
"We always have been able to weather
the storm before, so this was quite a feat,
unfortunately," he remarks. "We always
have tried to make employees' lives stable.
In the past, management would take pay
cuts so (employees) wouldn't have to.
But this time, between layoffs, a hiring
freeze and retirements, we went from 98
employees to 44 in about 18 months. It

feels like a defeat."
Hildreth goes on to say that, regardless
of whether there is any drilling or pro-

duction activity, "the office part (of the
company) goes on" because of all the
government paperwork and applications

Dearing Compressor and Pump Co.
Family Owned Since 1945

Growing to new heights,
Engineered Packages for the Energy Market

By Corinne Westeman

with roots in the Appalachian Basin
Corporate Office and Main Packaging Facility

330-599-5720

3974 Simon Rd, PO Box 6044 Youngstown, OH 44501 www.dearingcomp.com
JANUARY 2016 109



American Oil and Gas Reporter - January 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2016

Contents
American Oil and Gas Reporter - January 2016 - Cover1
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American Oil and Gas Reporter - January 2016 - Contents
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