ANNUAL REPORTSOUTH TEXAS ENERGY & ECONOMIC ROUNDTABLE

2014

About UsThe South Texas Energy & Economic Roundtable (STEER) serves as the bridge connecting the oil and natural gas industry to South Texas communities. Founded in 2012, STEER facilitates and coordinates communication, education and public advocacy surrounding the production of energy resources in South Texas. As an organization, STEER aims to ensure development of the Eagle Ford’s energy resources is accomplished in a manner that is mutually beneficial to the industry and communities throughout South Texas.

STEER works to ensure that all stakeholders throughout the Eagle Ford Shale region are able to effectively maximize opportunities in a responsible and collaborative way. This includes collecting and sharing positive industry news and stories with the public and engaging with communities directly and indirectly involved in the development of the Eagle Ford Shale.

TeamOmar Garcia President and CEO

Chris Ashcraft Vice President

Haley Curry Director of External Affairs

The South Texas Energy & Economic Roundtable serves as the bridge connecting the oil and natural gas industry to South Texas communities.

Founding Members: • Anadarko• BHP Billiton• Chesapeake Energy

Corporation• ConocoPhillips

• Devon Energy• Encana• EOG Resources, Inc.• EP Energy

• Lewis Energy Group• Marathon Oil• Murphy Oil• Pioneer Natural Resources

• Shell• Statoil• Talisman Energy

Supporting Members: • Baker Hughes• Halliburton

• Schlumberger• Weatherford

Resource Members:• AEP Texas• Aggreko• Brooks City Base• Cheniere Energy, Inc.

• DMC Carter Chambers, Inc.

• Fishbone Safety Solutions

• HOLT CAT

• Leidos• Port Corpus Christi• Port of Victoria• S&B Infrastructure

• SHALE Oil & Gas Business Magazine

• Union Pacific• Wells Fargo

Associate Members:• Free Trade Alliance

San Antonio• San Antonio

Hispanic Chamber of Commerce

• Victoria Economic Development Corporation

Members

MembershipOver the last two years, STEER has grown from 11 members to more than 30 members. STEER members receive a variety of benefits including:

“AEP Texas is involved with many organizations, and STEER has proven to be a high-valued membership for us and we appreciate them for their advocacy efforts in the region.”

– John Longoria, AEP Texas

For more information on membership, contact Omar Garcia, President and CEO of STEER at omar.garcia@steer.com.

2014 – Unaudited Financials

The South Texas Energy & Economic Roundtable serves as the bridge connecting the oil and natural gas industry to South Texas communities.

• Board representation• Invitations to STEER events

• Networking opportunities• Reserved table at the Eagle Ford Excellence Awards

• Presence on STEER.com

Revenue (Membership Dues)

Total Expenditures• Payroll, taxes and related benefits

• Operating expenses

• Conference and travel

Annual Surplus$49,537

$847,667

$798,130

Community EngagementSTEER participated in and facilitated more than 265 meetings with various stakeholders in South Texas. These stakeholders include: county judges, mayors, county commissioners, city managers, city council, chambers of commerce, school districts, economic developers, water boards, state agencies, rotary clubs, town hall meetings and various industry-related conferences.

STEER met with elected officials throughout the Eagle Ford Shale region, discussion topics included: economic development, stakeholder engagement, industry updates, education and issues i.e. air emissions, flaring, education needs, litter, first responders and road safety.

• 85 speaking engagements

• 55,000 miles driven in the Eagle Ford Shale region

Media• Engaged with media for numerous stories including water, emissions, economic development, emphasizing industry’s work in

innovation and stewardship

• Managed 100 requests from local, regional and national media

• Developed relationships with media throughout the country

• Worked with San Antonio Express-News for more than one year on a flaring investigative series

• Provided education, introduction to industry experts, access to production sites and interviews

Social MediaMaintained and managed social media presence, increasing followers and likes on Facebook and Twitter.

• Facebook likes increased from 375 to 1700 • Increased Twitter followers from 391 to 590• Developed Instagram page to be used in 2015

In 2013 the Eagle Ford Shale generated $87 billion in spending across the region and more than 154,000 full-time jobs.

Committees in ActionCommunications CommitteeFact Sheet Developed fact sheet template for use by STEER members in the community. The fact sheets will address key questions and issues that are continuous topics of conversation throughout the Eagle Ford Shale region as well as the media. The Communications Committee completed the flaring fact sheet in 2014.

Talking pointsContinuously developed and updated speaking points related to topics in the media and conversations in the community. Utilized talking points both internally and externally.

Stakeholder Relations CommitteeThe Stakeholder Relations Committee is made up of three subcommittees: Education, Transportation Safety and Environmental Enhancement.

Education Guide The Education subcommittee developed the STEER Oil and Gas Education guide. These booklets will be used in presentations to middle school and high school students throughout the Eagle Ford Shale region. The goal of this education guide is to help provide students with information about the industry as well as career options upon graduation.

In 2013 the Eagle Ford Shale generated $87 billion in spending across the region and more than 154,000 full-time jobs.

Committees in Action (continued) Stakeholder Relations Committee (continued)

Energy DayDeveloped Energy Day concept in partnership with the San Antonio Spurs and the AT&T Center. Energy Day will provide San Antonio area middle school and high school students with an opportunity to learn about the processes of drilling for oil and gain insight into the industry.

South Texas Native SeedThe Environmental Enhancement subcommittee established regional beautification programs in the Eagle Ford Shale region and engaged with many conservation groups, discussing native seed planting in reclamation processes and what companies are doing to protect top soil, among other topics.

Transportation Safety CommitteeThe Transportation Safety subcommittee a number of times throughout the year with representatives from the Texas Department of Transportation and the Department of Public Safety to discuss road safety issues in South Texas and driver education programs.

Water Sustainability CommitteeThe Committee formed in 2014 out of the existing Eagle Ford Water Consortium. It consists of 16 operator members and two subcommittees: Water Data Issues and Technologies.

The Water Sustainability Committee: • Looks for opportunities for knowledge sharing• Shares water conservation ideas and screens potential technologies to improve water use• Works collaboratively to plan projects that can provide positive impact to communities and their water

The Committee began coordinating a possible project with Evergreen Ground Water Conservation District to study the regions groundwater system.

Health, Safety and Environment CommitteeThe structure and goals for the HSE were created and adjusted during 2014. The committee grew from 14 to 58 representatives.

The HSE Committee consists of five subcommittees: air, environmental, regulatory, contractor management/safety, emergency response.

Subcommittee successes include:Air – Developed a strong partnership between STEER members and AACOG to share data on the Eagle Ford Emissions Inventory. The committee assisted with the development of the flaring and emissions fact sheets.

Environmental – Shared best practices on tracer programs, H2S, waste disposal, FRPs, among others.

Regulatory – Shared knowledge on various regulatory issues and formed partnerships for specific issues outside of STEER.

Safety – Sharing safety best practices, lessons learned to avoid safety incidents that some companies may have already experienced so others do not repeat, and innovative safety programs that others can use.

Emergency Response – Began creating an emergency contact database to promote proactive communication. STEER also has the ability to instantly communicate with all HSE members in case of an emergency. The Committee is also working on sharing helicopter landing pads for emergencies between operators and public emergency first responders.

“With the continuation of the Eagle Ford Excellence Awards, we look to honor the efforts of companies and organizations making a difference throughout South Texas.” – Omar Garcia

“With the continuation of the Eagle Ford Excellence Awards, we look to honor the efforts of companies and organizations making a difference throughout South Texas.” – Omar Garcia

Economic Impact of the Eagle Ford Shale

STEER, along with America’s Natural Gas Alliance (ANGA) commissioned a study on the economic impact of the Eagle Ford Shale. SHALE Oil & Gas Business Magazine assisted by sponsoring presentations of the study’s findings throughout South Texas. The study was executed by the University of Texas at San Antonio (UTSA) Institute for Economic Development with Thomas Tunstall, Ph.D. as the principal investigator.

The 2014 study is the fourth installment in the series and assessed the economic impact of the Eagle Ford Shale in 2013, including direct, indirect and induced impacts of 21 South Texas counties. In 2013, the economic impact of the activity in the Eagle Ford Shale was $87 billion and the activity in the area resulted in more than 154,000 full-time jobs.

Eagle Ford Excellence Awards

STEER hosted the second annual Eagle Ford Excellence Awards on November 6, 2014. The Eagle Ford Excellence Awards provides both oil and gas companies and their contractors an opportunity to be acknowledged for their efforts in preserving the environment, contributing to the communities in which they work and promoting safety in and around the workplace. Winners of the Eagle Ford Excellence Awards exemplify innovation, take initiative and benefit the greater South Texas region. With more than 280 in attendance and 40 nominations, the award program grew in both attendees and award submissions.

2014 Eagle Ford Excellence Award Recipients

Community and Social Investment• For companies or organizations with less than 250 employees: Energy Waste• For companies or organization with more than 250 employees: NuStar Energy L.P.

Safety Performance• For companies or organizations with less than 250 employees: S&B Infrastructure Private, LTD• For companies or organizations with more than 250 employees: NuStar Energy L.P.

Environmental Stewardship• For companies or organizations with less than 250 employees: Green Energy Oilfield Services• For companies or organizations with more than 250 employees: Aggreko

Impact Award Karnes City ISD Foundation

United Independent School District

Credit: Shale Magazine

For more information: www.steer.cominfo@steer.com

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