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Basin Resources May 2012

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May 2012 edition of Basin Resources. Basin Resources is about the local people, resources and technology in the energy community of San Juan County.
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Page 1: Basin Resources May 2012
Page 2: Basin Resources May 2012

www.msifarmington.com1910 RUSTIC PLACE, FARMINGTON, NM 87401

505-327-1132

• Field Overhauls• Laser Alignment• Valve Repair• Machining Services• Starter Repair

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Page 3: Basin Resources May 2012

“Energy production creates jobs.”

Each wants the best for our country. So how can we satisfy both — right now? At ConocoPhillips, we’re helping to power America’s economy with cleaner, affordable natural gas. And the jobs, revenue and safer energy it provides. Which helps answer both their concerns. In real time.

To �nd out why natural gas is the right answer, visit PowerInCooperation.com

“We need to protect the environment.”

Page 4: Basin Resources May 2012

BASIN RESOURCES4

www.basinresourcesusa.com •May 2012

Bayless

and Merrion 10Two names that changed

the face of the Basin

The Aztec

Well family 16Growing 25 to 650 employees

through hard work, determination

PESCO 24Rhones’ family business

founded on Christian

principles

Harv Henry saw

an opportunity here 30He went from an 83 cent an hour

roustabout to successful

business owner

Sharing

information sources 38Norvell’s determination got oil

and gas conference up and

running

Historian, pioneer 46Oil and gas industry keeps

Tom Dugan 85 years young

A birthday

celebration 54A.B. turns 90,

DJ Simmons Inc. is 60

Al Kendrick: 62He’s seen a lot of industry

changes since 1955

From drilling,

production

to exploration 65The Colemans a big

part of our

oil and gas history

10

30 38 46

16 24

54 62

Page 5: Basin Resources May 2012

Antelope Sales & Service, Inc.24 Hour Service

Phone: 505.327.0918Fax: 1.866.905.5701

5637 US HWY 64 Farmington, NM 87401

Serving the San Juan Basin Since 19933 Wellhead Equipment Sales and Service3 Pit & Miscellaneous Containment Barrier Systems3 Coal Well Cavitation Diverter Systems3 Drilling Equipment Rental3 Fire Trailer Rental 3 Sound Abatement3 Frac Equipment3 Machining

Page 6: Basin Resources May 2012

www.basinresourcesusa.com •May 2012

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publisher Don Vaughan

editor Cindy Cowan

designers Suzanne Thurman,Jennifer Hargrove

sales staff DeYan Valdez, Jeanene Valdes, Teia Camacho, Shelly Acosta,

Aimee Velasquez

For advertising information

Call 505.516.1230

Vol. 1, No. 3 ©2011 by Majestic Media. Basin Resources is a twice yearly publication.Our next issue will publish in July. Material herein may not be reprintedwithout expressed written consent of the publisher.

Editor’s noteAs kids, all of us, at one time

or another, questioned why it isimportant to study history ingrade school and high school. Atthe time, it just seemed so point-less. Who cares what happenyears ago?

We’re told countless times inschool – and few of us realize itsimportance until we get older –that to understand our future wereally do need to understand atour past.

This year is a great exampleof why we need to talk to andrecord the stories of the peoplein the area who helped make ourway of life possible here in theSan Juan Basin.

In 2012, we mark 90 years ofoil and gas production in the SanJuan Basin, and New Mexicocelebrates its centennial.

While traces of oil and naturalgas in New Mexico date back tothe late 1800’s, the first success-ful gas well wasn’t completeduntil 1921, nine years after NewMexico gained its statehood. Ayear later, New Mexico’s firstregular quantities of crude oilwere produced in a well west ofFarmington.

For decades, New Mexico’soil and gas producers haveplayed a huge role in the state’seconomy. The industry providesNew Mexico schools, roads andpublic facilities with more than

$2.5 billion in funding each year.It is the state’s largest civilianemployer. Each night 23,000New Mexicans come home totheir families from jobs relatedto the oil and gas industry.

The photos on page 8 arefrom the Farmington Museum’scollection of historic photos.Bart Wilsey, director of theFarmington Museum, has put to-gether an amazing exhibit at thelibrary that chronicles the gritand determination it took tomake Farmington the thrivingcity we have today.

The museum is planning anexpansion on the exhibit andwe’ll follow their progress in fu-ture issues

In every story in this issue thepeople who helped shape ourcommunity talk about how im-portant family was to creatingthe oil and gas businesses theyhave today.

Their children are now run-ning a number of these compa-nies, just as they took over thebusiness from their parents orgrandparents.

Our future is embedded inthese stories and we owe thesepeople – and the countless otherswith whom they worked side byside – thanks for helping toshape our future.

Page 7: Basin Resources May 2012
Page 8: Basin Resources May 2012

BASIN RESOURCES8

www.basinresourcesusa.com •May 2012

(Left) Threemen in Fruit-land in 1952pouring oilfrom a 55-gal-lon drum into apail. They areidentified as ElPaso Gas Com-pany workers.

(Left) Menworking ona pipelinefor El PasoGas Com-pany in1952.

A Black Diamond Coal Mine truck loaded with large chunks of coal in 1926. Thetwo men standing on the truck were identified as Jimmy Williams, left, and PeteKoenhafer. The man on the running board is Dan Christensen, Jr. Dan Christensen,Sr. is standing in front of the truck.

Photos courtesy of the Farmington museum.

A man pouring gas into a piece of machinery withanother man watching. They are identified as ElPaso Natural Gas Company workers.

CoverA crane loads pipe onto a flatcar in 1952 at the Aztecrailroad depot. The crane and trucks are identified asbelonging to the El Paso Natural Gas Co.

(Above) A view of the front ofa gas station in 1935 with a carparked by the gas pump. Thesign on the building says CampCarson and it was located at thecorner of Vine and Main streetsin Farmington, New Mexico. Itwas also known as Camp CarsonTourist Court.

(Left) A group of men in 1926with mules, pulling equipmentto dig a ditch for a pipeline forContinental Oil Company.

Page 9: Basin Resources May 2012

Developing technology to protect our employees Intensive company-wide employee training programs Focus on creating a mature, continuously improving safety culture

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Performance is Key

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Page 10: Basin Resources May 2012

BASIN RESOURCES10

www.basinresourcesusa.com •May 2012

Page 11: Basin Resources May 2012

Margaret Cheasebro

Photos by Donna Cadena

When Robert L. Bayless and his family arrived

in the San Juan Basin in 1958, Bayless came

armed with a college background that included

business management and accounting. He had

grown familiar with the San Juan Basin as a drill

bit salesman while running a

bit manufacturing busi-

ness in Oklahoma.

With a strong desire

to succeed, he

gained experi-

ence in the oil

and gas field.

BASIN RESOURCES 11

May 2012 • www.basinresourcesusa.com

Two names that changed the face of the Basin

Page 12: Basin Resources May 2012

BASIN RESOURCES12

www.basinresourcesusa.com •May 2012

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“He didn’t have much

more than the nickel it took

to get him here from Ponca

City, Oklahoma,” said

Tucker Bayless, second

child of Bayless and his

wife, Bernie. In spite of

that, he built an enduring

company.

Tucker is engineering

manager of Robert L. Bay-

less, Producer LLC’s Farm-

ington office. Located on

the La Plata Highway, it is

production headquarters.

Company headquarters,

including its management

and exploration depart-

ments, is in Denver.

Tucker’s younger brother,

Rob, manages the company,

which is owned by Bayless’

four children.

Two brothers-in-law also

have company connections.

Tommy Roberts is an oil

and gas attorney who does

work for the company, and

Kevin McCord is a petro-

leum engineer and opera-

tional manager for the

Farmington headquarters.

When Bayless arrived in

Farmington, the industry

had just entered a recession,Edna No. 1 was Greg Merrion’s first well.

Page 13: Basin Resources May 2012

which lasted from the late

1950s into the 1970s due to

foreign oil imports. In spite

of that, Bayless forged

ahead, drilling wells and

finding some success.

In the mid 1960s, he

formed a co-operator part-

nership with J. Greg Mer-

rion.

Merrion and his wife,

Rita, had moved their fam-

ily to Farmington in the

1950s. With the help of in-

vestments from his four

brothers, Merrion drilled a

well in the Counselors area

on a cattle ranch which his

father had purchased in

1947. It came in at 300 bar-

rels of oil a day, insuring

the family a place in the in-

dustry.

In those days, Merrion

had modest headquarters in

a low-rent office building

that attracted struggling

young independent produc-

ers. Merrion and Bayless,

who were friends, formed

the partnership in an at-

tempt to help each other.

“They were both inde-

pendent producers trying to

make ends meet,” said

Tucker. “They needed of-

fice staff and field staff.

Neither one had enough op-

erations to justify that. To-

gether they did.”

The partnership, which

lasted for 16 years, was

successful in developing

economic production,

Tucker said. Though

they’re now separate com-

panies, Merrion and Bay-

less still do business

together.

Today, the Bayless com-

pany’s focus is “to continue

to find and replace existing

production as we deplete

hydrocarbon reserves,”

Tucker said.

Because natural gas is

priced too low to justify

drilling for it, the company

commits more revenue to

acreage in Colorado. “It is

much more oil provenance

than we have here,” said

Tucker. “We’re producing

natural gas right now, but

we’re not drilling for it.

We’re drilling for oil.”

He has seen many

changes in the industry. A

major one is the ability to

stimulate the release of hy-

drocarbons with better well

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BASIN RESOURCES14

www.basinresourcesusa.com •May 2012

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completion techniques.

“We don’t drill too many dry wells anymore,”

he said of the industry at large.

Through the ups and downs of oil and gas, one

thing remains constant at Bayless.

“We’ve never laid anybody off from my dad’s

day on,” Tucker said. “We run a nice, tight ship.

We’re pretty conservative.” The company has

about 25 employees.

Merrion Oil and Gas Corporation also has found

success. After the partnership ended, Merrion

drilled as many as 30 wells a year and achieved

production of 1,300 barrels of oil per day.

In 1986, the company completed construction of

a new headquarters building near Farmington’s

municipal complex. By then, the price of oil had

dropped from $27 to $10 per barrel, making

drilling unattractive in the San Juan Basin. So

Merrion focused on acquisitions and development.

As a result, by the year 2000, its gas production

leaped from 9 to 19 MMCF (million cubic feet) per

day.T. Greg Merrion

Page 15: Basin Resources May 2012

May 2012 • www.basinresourcesusa.com

Its goal is to pursue targeted investments, maximize the

value of its assets and resources, and work in a responsi-

ble, caring, productive manner.

“Merrion prefers to buy cash-flowing properties with

development potential,” according to the company’s web-

site. “We buy both operated and non-operated working in-

terests, and are especially fond of overrides and royalties.

We buy non-producing minerals in developing shale

plays.”

J. Greg Merrion died in 2002. His son, T. Greg, took

over the reins in 1992 and is president and chairman of

the board, which operates the privately held, family-

owned business with about 25 employees. Among its

seven board members are T. Greg’s four siblings and his

mother, Rita.

In 2008, the company saw its headquarters transform

under an extensive two-and-a-half year remodeling proj-

ect.

As T. Greg talked about the remodel, he said, “We plan

to be around a long, long time. We want to enjoy the place

where we work, and we want our kids to want to come

back here and work.”

Page 16: Basin Resources May 2012

BASIN RESOURCES16

www.basinresourcesusa.com •May 2012

Page 17: Basin Resources May 2012

BASIN RESOURCES 17

May 2012 • www.basinresourcesusa.com

A z t e c W e l l

Page 18: Basin Resources May 2012

BASIN RESOURCES18

www.basinresourcesusa.com •May 2012

Margaret Cheasebro

Photos by Donna Cadena

When oil and gas service company

operator J.P. Gibbons transferred

Wayne and Sally Sandel and their fam-

ily from Midland, Texas, to Farming-

ton in 1957, the Sandels didn’t know

they would buy the company from Gib-

bons six years later and rename it

Aztec Well Servicing Company.

Growing 25 to 650 employees throughhard work, determination

Page 19: Basin Resources May 2012

May 2012 • www.basinresourcesusa.com

Page 20: Basin Resources May 2012

BASIN RESOURCES20

www.basinresourcesusa.com •May 2012

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Though Wayne and Sally have died,

their son, Jerry, is president of the

company. Their grandson, Jason, is

executive vice president.

Jerry was in high school when the

family moved to Farmington. He

graduated from Farmington High

School in 1960 and went Texas Tech

to earn a management degree, which

came in handy after his parents

bought the company.

That first year, they owned five

pole-type well servicing rigs and em-

ployed 25 people. Today, there are

about 650 employees.

“We had just one office, and we

didn’t have people to answer the

phone, so we manned it ourselves day

and night,” said Jerry. “Me and my

dad would alternate. One of us would

work in the daytime manning the

Howard Jones photo.

Page 21: Basin Resources May 2012

BASIN RESOURCES 21

May 2012 • www.basinresourcesusa.com

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phone. The other would stay in the of-

fice at night manning the phone and

sleeping on the couch.”

While in college, Jerry took a class

on integration management. What he

learned had an effect on the company’s

growth.

“I learned if you were fixing to ex-

pand, you could expand horizontally or

vertically,” Jerry said. “I always felt

vertical integration was the best way.”

In that strategy, if companies were

buying something they needed, they

would start a new company to supply

themselves. In the process, they also

would supply other businesses with the

product.

Jerry put that principle to work at

Aztec Well Servicing Company. He

added Triple S Trucking, Totah Rental

and Equipment, Double M Mud and

Sales, Aztec Drilling, and, finally,

Roadrunner, a fuel company. Now the

company is called The Aztec Well

Family.

One of the biggest changes Jerry has

seen is in communications.

Early on, “we didn’t have the com-

munication system we have today,” he

said. “If your pickup broke down out in

the field or you had trouble out there,

there was no way for anybody to know

about it. We had a lot of rainstorms,

and all the washes would flood. If you

got on the wrong side of the wash, you

might stay there for two or three days

because there wasn’t anybody that

could get to you if you broke down or

had trouble.”

They took big lunches, food boxes

and plenty of bottled water to tide them

over just in case.

They also learned survival strategies

to get through the industry’s low cy-

cles.

“When the rigs would come down or

things would shut down on the down

cycles, we couldn’t provide a job for

everybody, so we had to lay people off,

but we kept our key people,” Jerry

said. “That way we had something to

build from when we started up again. I

remember one year we didn’t do any-

thing except build cattle guards to try

to get something to sell and keep our

key people in place.”

Another year, they had only one rig

working. All 20 managers worked on

the rig, rough necking and doing what-

ever else was needed.

“When things picked back up, that

gave us 20 managers to put out on dif-

ferent rigs to get them started back up

Page 22: Basin Resources May 2012

BASIN RESOURCES22

www.basinresourcesusa.com •May 2012

again,” Jerry said.

The industry’s ups and

downs have made labor a

major challenge.

“When a rig’s off or energy

shuts down or slows down

and we have to lay people

off, they leave the industry,

and I don’t blame them,”

Jerry said. “When the energy

starts back up, we have

to try to retool and re-

train.”

He’s proud of the

company and of the em-

ployees who built it.

“I have people who

have worked here for

25, 30, 35 years,” he

said. “There’s a lot of

loyalty, and we have

three or four people

from the same family

working for us – father,

son, grandson, right

down the line.”

Jerry used to work

about 10 hours a day,

seven days a week. But

he’s slowing down now.

He doesn’t work on

weekends anymore, and

he spends the coldest

part of the winters in

Arizona, leaving more

and more of the com-

pany’s management to

Jason.

Howard Jones photo.

Page 23: Basin Resources May 2012

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Page 24: Basin Resources May 2012

BASIN RESOURCES24

www.basinresourcesusa.com •May 2012

Rhondes’ family business

founded on Christian principles

Margaret Cheasebro

Photo by Donna Cadena

Ed and Mary Lou Rhodes

founded Process Equipment

and Service Company in 1970.

It has grown into one of the more

successful production equipment manufac-

turers in the Rocky Mountains, with both

national and international sales.

Page 25: Basin Resources May 2012

BASIN RESOURCES 25

May 2012 • www.basinresourcesusa.com

Page 26: Basin Resources May 2012

BASIN RESOURCES26

www.basinresourcesusa.com •May 2012

���������� ��������������������������������������������������

�� ������� ��������������������������������

Located on U.S. 64 between Farm-

ington and Bloomfield, PESCO has

expanded there as far as available land

will allow, so the company opened an-

other office in an industrial park off

La Plata Highway.

Ed died in 2000, and Mary Lou has

retired from the business. It’s now op-

erated by their sons, Kyle and Jim,

and their sons-in-law, Charley Tyler

and Blake Wallace. Before she retired,

Mary Lou kept the books until the

computer age, answered the phone,

and typed delivery tickets, invoices

and letters.

The family is close knit. Ed and

Mary Lou both grew up in Spencer,

Oklahoma, and their parents were

friends.

“Ed saw me when I was a squalling

baby,” Mary Lou said. “His mother

came to see my mother, and I was in

the cradle. He was six years old.”

Ed served in the Army Corps of En-

gineers during World War II. In Eu-

rope, he built platoon bridges,

sometimes under fire. After the war he

served a year in the Philippines.

When he left the Army, he earned

his engineering degree and took a job

with Black, Sivalls, and Bryson, Inc.

in Oklahoma City.

“He discovered that I’d grown up

while he was gone,” Mary Lou said.

They were married in the Methodist

Church in Spencer in 1947. BS&B Howard Jones photo.

Page 27: Basin Resources May 2012

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Page 28: Basin Resources May 2012

BASIN RESOURCES28

www.basinresourcesusa.com •May 2012

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frequently transferred them. In 1951,

when Mary Lou was pregnant with

their first child, they were transferred

to Powell, Wyoming. Two months after

they arrived, Jana was born.

“I didn’t know much about chil-

dren,” she said. “I told Jana, ‘Honey, I

just sort of learned on you. I hope I

didn’t ruin your life.’”

By the time Ed was transferred to

Farmington in 1958 as branch manager

for BS&B, he and Mary Lou had five

children.

In 1969, BS&B was floundering.

The company offered to transfer the

Rhodes family to Casper, Odessa or

Oklahoma City. By then, Jana was in

college and the other children were in

elementary and high school.

It would have cost thousands of dol-

lars to move, so when BS&B offered to

let them go out on their own as repre-

sentatives, selling new equipment,

parts and service, they agreed.

“I never did want to go in business,”

Mary Lou said. “My folks had a dirt

construction business in Oklahoma,

and to me it was nothing but a bunch of

headaches. Eddie knew nothing about

business, but we had to go into busi-

ness. We couldn’t afford to move. We

figured if we go under, we’re known

here.”

BS&B gave them a good price on

parts, and for a year they made a living

selling them. Then Ed designed two

Picture Cliff units for use on shallow

wells in the area. A demand grew for

the units and opened the door for ex-

pansion. Now their son Jim designs the

units, which are made to fit specific

circumstances of individual wells.

They do such things as separate water

from oil or gas and provide heating to

keep fluids from freezing.

Ed and Mary Lou started their busi-

ness in a small office on Maple Street

Page 29: Basin Resources May 2012

May 2012 • www.basinresourcesusa.com

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Commerc i a l Dri e e r s L i cenv

eee e e n d c l a skkwe e e p o o u r s ki l l s c u r r y y

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two blocks east of Behrend Avenue. They hired three

welders, who worked Monday through Thursday at El

Paso Natural Gas Company and Friday and Saturday for

PESCO.

In 1973, they hired their first full-time employee. They

incorporated in 1975. After buying two-and-a-half acres on

the Bloomfield Highway in 1977, they constructed their

first building. They’ve been expanding ever since.

Their philosophy is that they can’t do business without

employees or customers, so they treat them as they would

want to be treated. They’re a strong Christian family and

run their business on Christian principles.

“We always prayed about the major decisions,” Mary

Lou said. “We needed the Lord’s help.”

During boom cycles, they’ve had as many as 325 em-

ployees. When times were lean, they downsized to as low

as 125. Now they’re back up to about 200. Through feast

and famine, they made it a policy never to borrow money.

Mary Lou is proud of the way her family’s younger gen-

eration runs the business.

“They’ve done real well,” she said. “The business has

gotten much better since they took over.

Page 30: Basin Resources May 2012

BASIN RESOURCES30

www.basinresourcesusa.com •May 2012

Margaret Chesebro

Photo by Donna Cadena

A defining moment occurred in

Harvey Henry’s life in 1962. After

working for Continental Oil Com-

pany for 16 years, he started his own

business, Henry Production Com-

pany, Inc.

He made the decision when

Conoco planned to transfer him to

North Dakota. At that time, he and

his late wife, Virginia, lived in

Craig, Colorado, and had four chil-

dren, ages 11 to 5.

Instead of going to North Dakota,

Harvey moved his family back to

saw an opportunity here

He went from an83-cent-an-hourroustabout to successful business owner

Page 31: Basin Resources May 2012

BASIN RESOURCES 31

May 2012 • www.basinresourcesusa.com

Page 32: Basin Resources May 2012

Farmington, where Conoco had trans-

ferred him in 1959 for two years and

where they owned a house.

“I could see there was opportunity

here,” he said. “There were a bunch of

contract pumpers at the time, and I

thought I could do better than they did.”

He purchased a small production

business from Jim Gould.

“I only bought blue sky,” Harvey

said. “I gave him $2,300 to get him

out of the way. Then I found out he

was about to lose everything. It was

tough to hold onto it. In 1962 the

boom was over and the money was

spent. Natural gas was eight cents per

mcf (thousand cubic feet) for low

pressure gas and 13 cents for high

pressure gas.”

But the family persevered. Virginia

typed invoices on the kitchen table.

BASIN RESOURCES32

www.basinresourcesusa.com •May 2012

Page 33: Basin Resources May 2012

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Page 36: Basin Resources May 2012

BASIN RESOURCES36

www.basinresourcesusa.com •May 2012

Three months later, after picking up

several leases to operate, Harvey hired

his first employee.

For the first seven years, he worked

every day of the week. “I’d get out of a

morning before the kids got up and

come in after they went to bed,” he

said.

Harvey wasn’t new to tough times.

Born in southern Iowa in 1924, he saw

his family struggle through the depres-

sion in Iowa, Illinois and Wyoming.

After graduating from high school,

he served three-and-a-half years with

the Marines in the South Pacific and

saw action on the islands of Guadal-

canal, Okinawa, and Guam.

He and Virginia met at a Farm Bu-

reau dance in Deaver, Wyoming, when

they were both 13. Romance blos-

somed after the war, and the couple

settled in Frannie, Wyoming.

“In Frannie, there was a railroad

track about two blocks from our

house,” he recalled with a laugh.

“Every morning at 4 a.m. the freight

train would come rumbling through. It

would wake us up. Four o’clock was

Page 37: Basin Resources May 2012

BASIN RESOURCES 37

May 2012 • www.basinresourcesusa.com

too early to go to work and too late to go

back to sleep, so we had four kids in

five years.”

Harvey went to work for Conoco in

1946, starting at 83 cents an hour. He

went from roustabout third class to sen-

ior production foreman of the Rocky

Mountains in 11 years. But when

Conoco decided to transfer him to North

Dakota, he’d had enough.

Jane, who was 11 at the time, re-

called, “I understood that we got to

come back to Farmington and that Dad

was going to have his own business.

That didn’t mean much to us kids. What

meant a lot was that we got to go back

to the same neighborhood, back to all

our friends.”

In those early years, Harvey and his

wife decided to survive on the bare min-

imum for wages. Everything else they

plowed back into the business.

“Mama would say, ‘I need so much

for groceries this week. One of the kids

needs a new pair of shoes, and that will

be this much.’” Jane recalled. “She

knew exactly what she’d need for the

family that week.”

Eventually, a company in Navajo,

Arizona, with a helium plant contacted

Harvey, and he helped them for two

years. Though the company didn’t pro-

duce enough gas to support the plant,

the experience launched him into the

compressor business.

“I had to rent a gas compressor there,”

he said. “It was junky, and it vibrated.

So I built a compressor for $11,000.”

He built two more compressors, and

Henry Production began renting them

out. Over time, they developed a large

fleet of compressor rentals in the San

Juan Basin.

They also sell, repair, and fabricate

pumps. Last year they were the largest

distributor of Capstone Microturbine

generators in the Americas. They opened

an Albuquerque branch and have em-

ployees in Houston, Denver, San Anto-

nio, and Canada.

Located at 603 S. Carlton Street, the

company now has 95 employees.

Harvey retired in 1986 when the oil

and gas industry was experiencing an-

other slump, and turned the business

over to his two sons. Sam is president

and Tony is vice president. Harvey

stayed on, working as a consultant with-

out a paycheck so the company could

keep some young people with families

on the payroll.

“Mom and Dad always tried to take

care of their employees,” Jane said.

Harvey is proud of the way his sons

handle the business.

“They made the company,” he said.

Page 38: Basin Resources May 2012

BASIN RESOURCES38

www.basinresourcesusa.com •May 2012

Page 39: Basin Resources May 2012

BASIN RESOURCES 39

May 2012 • www.basinresourcesusa.com

Norvelle’s determinationgot oil and gas

conference up and running

Page 40: Basin Resources May 2012

BASIN RESOURCES40

www.basinresourcesusa.com •May 2012

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Dorothy Nobis

Photo by Donna Cadena

Norman Norvelle’s heart and soul be-

longs to the oil field.

A longtime member of the National

Association of Engineers, Norvelle at-

tended a conference of the organization

in Albuquerque in 1991. The conference

was sponsored by the Sandia Section of

NACE, which had moved from Albu-

querque to Farmington, which meant

Farmington members did most of the

work.

“I was secretary for the local section,

so I was asked to be the secretary for

the regional conference,” Norvelle re-

membered. “They kept almost all of the

money, but gave us around $1,000 for

our efforts. After about two years of re-

covery, I thought, ‘Why don’t we have a

conference in Farmington?’”

In 1993, the local oil and gas industry

was overloaded with various regulatory

compliance issues it had to deal with.

“I worked in the compliance engi-

neering group with El Paso Natural Gas

Company,” Norvelle said. “We had nu-

merous phone calls and discussions, an-

swering questions about how we

handled the various issues. Most of the

smaller oil and gas producers and serv-

ice companies faced the same regula-

tions we (El Paso) did, but did not have

our resources. Again, I felt a local oil

and gas conference on regulatory com-

pliance would help.”

It wasn’t just his determination to

help other companies deal with the in-

creasing compliance demands that

spurred Norvelle on to start a local con-

ference, however.

“I wanted to raise enough money so

that we (the Sandia Section of NACE)

could have an annual Christmas dinner

for the local members and their

spouses,” Norvelle said.

Norvelle took his idea to the local

section and requested its help in form-

ing an oil and gas conference in San

Juan County. With their approval,

Norvelle created a proposal and visited

the local chapters of the American Pe-

troleum Institute, the American Society

of Safety Engineers and the Society of

Petroleum Engineers, asking for their

help.

“I passed out copies of the proposal

to each group,” Norvelle said. “John

Roe (a colleague) went with me for

moral support. They all agreed to enter

into the conference as equal partners.

At the first meeting, T. Greg Merrion

(Merrion Oil and Gas) suggested we

also bring the Farmington Chamber of

Commerce Energy Committee in as a

Page 41: Basin Resources May 2012

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Page 42: Basin Resources May 2012

BASIN RESOURCES42

www.basinresourcesusa.com •May 2012

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partner, and they accepted.”

Norvelle proposed a two-day confer-

ence (the Four Corners Oil and Gas

Conference) which would provide

awareness and assistance to the local

oil and gas industry on environmental,

health and safety compliance issues. He

suggested the conference be held

March 24-25, 1994, at the Farmington

Civic Center. Each sponsoring organi-

zation would be required to rent an ex-

hibitors booth, which was $100, and

each sponsoring organization would ap-

point three people to serve on the com-

mittees and another person to serve on

the audit committee following the con-

ference. Any profit or loss generated

from the conference would be split

equally between the sponsors.

John Roe was working for a major

oil company that had strong support

groups for regulatory compliance, plus

health, safety and environmental issues.

He was accustomed to having access to

a fully equipped research lab and a cor-

porate legal staff to help keep him in

compliance with day-to-day operations.

When Roe joined Dugan Production,

he became the regulatory, health, safety

and environmental compliance depart-

ment and knew the frustrations and

need for help to remain in compliance

with regulations.

That led Roe to Norvelle.

“Norman was dealing with these is-

sues for El Paso Natural Gas Company

and he provided an invaluable source of

information. In addition, Norman was

very involved in the local section of

corrosion engineers (NACE) and was

always willing to share his thoughts

and ideas with others, which led to the

idea of having a local conference on

regulatory compliance,” Roe said.

“It was with Norman’s leadership

that the first Four Corners Oil and Gas

Conference was held in 1994 and has

since grown to be a biennial event, with

2012 our eleventh conference.”

In 1996, the conference celebrated

the 75th anniversary of the Four Cor-

ners oil and gas industry. By that time,

the conference had outgrown the Farm-

ington Civic Center and was moved to

San Juan College. The success of the

conference was appreciated, but be-

cause of the time and effort involved in

putting the conference together, the

conference committee decided to hold

the event every other year and to move

it to McGee Park, which had more

room.

Norvelle stepped down as chairman

of the conference in 1998, but remained

active on the committee until 2010.

“A lot of people with a lot of energy

Page 43: Basin Resources May 2012
Page 44: Basin Resources May 2012

www.basinresourcesusa.com • May 2012

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helped the conference grow and get better,” Norvelle said.

“I was a team leader, but the team was able to go out on

its own.”

Karen Ortega has served as the chairman of the Four

Corners Oil and Gas Conference for the last two confer-

ences. Ortega has worked on the conference since 2002.

Ortega worked with Norvelle on the conference com-

mittee and said she has always appreciated his dedication

and commitment, not just to the conference, but to the oil

and gas industry.

“I always remember Norman’s diligence in attending

meetings and making sure the committee stayed true to

the conference,” Ortega said. “He never let us stray far!”

“I am very thankful for Norman’s masterminding of the

oil and gas conference and contacting me to see if Desk

and Derrick Club of Farmington would like to be one of

the six organizations to sponsor the event and help with

registration,” said Linda Dean, who remains a member of

the conference committee. “I have been involved since its

inception and have seen it outgrow itself from the Civic

Center to San Juan College, and now McGee Park.”

“Norman is easy going, but has remained firm on the

Page 45: Basin Resources May 2012

BASIN RESOURCES 45

May 2012 • www.basinresourcesusa.com

purpose of the conference, being to

exchange technical expertise between

disciplines,” Dean continued. “The

conference has definitely accom-

plished that with the exhibition part

being a fringe benefit to the sponsor-

ing organizations.”

“Norman is respected in his field

and I applaud him for the success the

Four Corners Oil and Gas Conference

has accomplished and wish him the

best in pursuing new adventures in re-

tirement,” Dean added.

Norvelle retired from The New

Mexico Environmental Health Bureau

on March 30, and is looking forward

to a life with less pressure and more

time. His retirement, however, will in-

clude support and participation in the

oil and gas industry.

Norvelle’s professional life has fo-

cused on the oil and gas industry and

his love of the business has never fal-

tered and has never wavered.

“My family moved here from Okla-

homa and I remember the boom and

bust,” Norvelle said. “My dad was a

small contractor in Oklahoma and my

entire family worked in the oilfield.

I’ve been in it all my life.”

Norvelle’s focus will remain on the

oil and gas industry, but in a new area.

“I’m going to write patents for water

treatment areas that I’ve been working

on for 30 years,” he said. “I’m excited

about that. I’ll keep active in energy

work because I’ve gained a lot of

knowledge in 30 to 40 years.”

Norvelle’s work won’t be confined

to patents, however.

“I’m going to visit my daughter in

Portland, (Ore.) and do some work on

her condo,” he said with a laugh.

Norvelle’s contributions to the Four

Corners Oil and Gas Conference will

be recognized during opening cere-

monies of the conference on May 9.

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BASIN RESOURCES46

www.basinresourcesusa.com • May 2012

Page 47: Basin Resources May 2012

BASIN RESOURCES 47

May 2012 • www.basinresourcesusa.com

Dorothy Nobis

No discussion about the history of oil

and gas in San Juan County would be

complete without the addition of Tom

Dugan. And no history of the oil and gas

industry in the San Juan Basin would be

complete without the leadership and vi-

sion of Dugan.

There is no one more interested in the

history of oil and gas in San Juan County

than Dugan. His passion for the history of

his chosen vocation is legendary in San

Juan County. Dugan has not been just a

pioneer in the oil fields of the Basin, he

has been a cheerleader for all that the in-

dustry has given to the area.

Ask friends and business associates of

Tom Dugan what they think of the man,

they’ll offer up words of praise and admi-

ration.

Ask those same people to name some-

thing the public might not know about

Dugan and they’ll offer up memories and

humorous incidents.

T. Greg Merrion of Merrion Oil and

Gas Corp. remembers Dugan as a friend

and “friendly competitor” of his father, J.

Greg Merrion, and George Coleman, Al

Greer, L.O. Spears and Virgil Stokes.

“They were all of similar age and they

were really tough businessmen,” Merrion

said. “But on the other side, they were

friends. I still use (the term) ‘friendly

competitors’ because that’s what they re-

ally needed to be. There were an awful lot

of laws and regulations and they needed

to work together to support and defend

each other.”

As a second-generation oil producer,

Merrion said Dugan serves the industry

as its historian and its cheerleader. “I

have a lot of respect for Tom,” Merrion

said. “He’s a world of information (on

the industry) and he wrote the book on

it. He’s not just a historian – he’s the

driving force behind the celebration of

our oil and gas industry.”

It was Dugan, Merrion said, who

gathered the leaders in the industry to

celebrate the 75th anniversary of the

discovery of natural gas in the San

Juan Basin. That celebration, held in

1996, prompted Dugan to organize two

more – in 2001 for the 80th anniver-

sary and again in 2006 for the 85th an-

niversary of that discovery.

“He is absolutely the local oil and

gas historian,” Merrion said. “He wrote

a book about the San Juan Basin,

called Gas, and he included all the key

players who made their mark in devel-

oping the basin.”

“Tom more than just makes a living

from oil and gas,” Merrion added, “he

lives it and he loves it.”

Natalie Koehn is the director of the

Sycamore Park Community Center,

where Dugan goes three times a week

to attend a senior fitness program.

“Tom is such a joy to have in senior

Oil and gas industry keepsTom Dugan 85years young

Page 48: Basin Resources May 2012

BASIN RESOURCES48

www.basinresourcesusa.com •May 2012

fitness,” Koehn said. “We cover a wide

array of topics in class conversations

and any time we discuss relationships

or connections with people, Tom is al-

ways the first to give a bit of advice on

how to treat a lady with respect and

kindness.”

“Another favorite topic of Tom’s to

cover almost daily in class is food,”

Koehn added with a laugh. “He knows

the best restaurants all across the coun-

try and rarely misses a meal at church

because he says they have the best

desserts!”

Dugan is a historian, a “foodie” and

a great employer. Dorothy Winer was

the sixth employee at Dugan Produc-

tions and worked for Dugan for 24

years.

“I was the office manager and VP

(vice president),” Winer said. “It was

an easy job because we never had any

turnover (of employees). It was easy to

hire people because they knew it

(Dugan Productions) was a good place

to work.”

“I loved working for him,” Winer

added. “He treats his people well. I en-

joyed going to work every day because

from the minute you hit the door,

something exciting was happening.”

The smart business practices of

Dugan have sustained Dugan Produc-

tion through the sometimes roller

coaster ride of the oil and gas economy.

There was little doubt Dugan would

be involved in the oil and gas industry.

Born in a leased house between Eldo-

rado and Oil Hill, Kansas, Dugan’s fa-

ther was a pumper in the oil field,

where he worked most of his life.

In 1936, the Dugans moved to

Potwin, Kansas, where they lived next

to the family of Carl Matthews. “I

grew up with Carl and Jim Jacobs and

our families got together for Christmas

and Thanksgiving,” Dugan said,

adding the three families continue to

share those holidays and have since

1938.

Life was simple as a young boy,

Dugan said. “We didn’t have any

money, but we didn’t know we were

poor. Everybody was poor.”

Dugan graduated – along with eight

others – from Potwin High School in

1943. “The thing to do (after gradua-

tion) was to join the Army,” Dugan

said. A 17-year-old could join the

Army with their parents’ permission,

but that permission was not something

Dugan’s parents would give.

“I went to college,” Dugan said with

a smile, “My mother wouldn’t let me

do anything else.”

After one semester at the University

of Kansas, Dugan celebrated his 18th

birthday by joining the Army Reserves.

He was moved into the Regular Army,

however, and went to Fort Knox, Ken-

tucky, for basic training.

Dugan served three years in the

Army, where he was part of a special

unit that mounted flame throwers in

tanks. In March of 1945 Dugan was

sent to the Philippines and to Japan.

He was discharged in March 1946.

The letters home and newspaper ar-

ticles about his military service fill a

large scrapbook, which Dugan is proud

to share with visitors. The letters are

touching and full of pride of being a

soldier. He earned a Bronze Star and a

Purple Heart for his service.

After his discharge, Dugan returned

to school and graduated from the Uni-

versity of Oklahoma in 1950. He went

to work for an oil company in Okla-

homa, which was bought out by

Phillips Petroleum, which sent him to

Rangely, Colorado, for a year. The

company then moved him to the Gob-

ernador Camp in November 1952. In

1955, Phillips wanted to obtain a per-

mit and build a pipeline from the San

Juan Basin to Washington state, which

would then connect to the Canadian

border.

Dugan eventually quit the company

to go into business with Val Reece in

Albuquerque, where he stayed until he

started his own business on February 1,

1959. Dugan began by doing consult-

ing work, working out of a bedroom of

the home he shared with his wife,

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Mary, on North Dustin Avenue.

Dugan met Mary during a vacation

he went on with Carl Matthews and

other friends to Branson, Missouri,

which was just a “little wide spot in the

road then,” Dugan said.

There were three pretty girls in a

cabin near where the guys were stay-

ing, and when they looked out the win-

dow and saw the girls, “I said ‘I’ll take

that one in the middle,’” Dugan said

with a laugh. The “one in the middle”

was Mary.

The couple spent several days enjoy-

ing each other’s company before Mary

left for home in St. Louis. She left a

sweater behind, and Dugan mailed it to

her. That began a correspondence. Still

in college, Dugan called Mary fre-

quently and saw her once or twice. A

year later, the couple married.

“We hardly knew each other,” Dugan

said. “We had spent a total of 14 days

together over a year.” Pausing briefly,

Dugan added, “She could have gotten a

better one (husband).”

The marriage was a strong one.

“Mary was a very nice person,” Dugan

said. “She was a hard worker and a

great cook and she volunteered for

everything. She worked hard at church

and she worked hard at the hospital.

She was very nice to live with.”

Mary passed away on October 30,

1998, after 48 years of marriage. Since

then, Dugan has filled his days with

work, which he said, “helped me get

through” losing his beloved Mary.

If Dugan takes his friendships, his

marriage, and his business seriously, he

is equally serious about football –

specifically, Denver Bronco football. A

large Denver Bronco emblem greets

visitors to Dugan’s office and his office

chair is emblazoned with a Bronco

logo. Dugan has had season tickets to

Bronco games for more than 40 years

and while he only attends one or two

each year now, his friends and family

are the recipients of those coveted tick-

ets when he doesn’t go.

“John Elway (retired Denver Bronco

quarterback) is one of the greats (of the

game),” Dugan said. “I have a shrine to

him at the house. I’m a big fan.”

A recent trip took Dugan to another

state with football fever – Texas. “I

went to a Cowboys game and they have

a wonderful stadium,” he said. “The

people I was with are involved with a

group, Wish for a Hero. A soldier’s

wish was to meet Tony Romo. He had

a Tony Romo card and when he

dropped it and bent down to pick it up,

someone shot at him, but missed. He

said Romo saved his life.”

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Tony Romo met with the soldier and impressed Dugan.

“Tony Romo is an outstanding young man.”

At the age of 85 Dugan stays busy and active. He took a

trip to Las Vegas, Nevada, where he looked at apartments.

Lest anyone think he is considering retirement and moving,

Dugan said, “I think about moving there when I pay my state

income taxes,” he said with a laugh. “Las Vegas isn’t a fun

city at 85.”

Dugan enjoys traveling and would like to go to Egypt

someday. “I’m kind of a history buff and I have a friend

there,” he said. “I go to New York and go to shows, but I

don’t do that very often. I like Washington, D.C., because of

the history there.”

Life is good, Dugan said. Sitting back in his Denver

Bronco chair, Dugan looked around his office, which is lined

with family photos on the walls, scrapbooks full of memories

on shelves and stacks of professional magazines, which are

mingled with copies of Sports Illustrated and Smithsonian

magazines. “I have a hard time finding things in here,” he

admitted.

While he enjoys “making a living,” Dugan is also a chari-

table man. He is a financial contributor to San Juan Regional

Page 52: Basin Resources May 2012

BASIN RESOURCES52

www.basinresourcesusa.com • May 2012

Medical Center and Bethany Christian

Church, among other academic and non-

profit organizations.

The contributions to San Juan Regional

and Bethany are special to Dugan, how-

ever. “Mary told me to,” he said softly of

his financial support.

With a son, Sherman, and two grand-

children, Dugan hopes his legacy in the oil

field will continue. “A lot of people come

in and want to buy (the business),” Dugan

said.

“I tell them ‘Hell, I don’t want to sell

when prices are so low,’” Dugan said with

a laugh.

With that, Dugan sifted through a stack

of file folders and papers. His work day

not yet ended, the 85-year-old no longer

works as much as he used to.

“Now I just put in eight hours a day five

days a week, and not all day on Saturday,”

he said, almost with regret.

With retirement not in Dugan’s future,

his friends and employees know that he’ll

still be at the office for years to come,

eight hours a day and a half day on Satur-

day.

Tom Dugan is a member of the Farmington History Makers Hall of Fame, Rocky Mountain Oil and Gas Hall of Fameand San Juan College Hall of Fame. In March Dugan was “roasted” at Navajo Ministries annual fundraiser to raisefunds for The Four Corners Home for Children.

Page 53: Basin Resources May 2012

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Page 54: Basin Resources May 2012

BASIN RESOURCES54

www.basinresourcesusa.com •May 2012

Page 55: Basin Resources May 2012

birthday

A

celebration

A.B. turns 90, D.J. Simmons Inc. is 60

BASIN RESOURCES 55

May 2012 • www.basinresourcesusa.com

(Left) Ashton “A.B.” Geren stands by a portrait of his Uncle D.J. Simmons, who founded the

oil and gas company D.J. Simmons some 60 years ago in Farmington.

(Above) Old pic – A.B. Geren when he served in World War II as a navigator on B-17 Bomber.

Page 56: Basin Resources May 2012

BASIN RESOURCES56

www.basinresourcesusa.com •May 2012

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Debra Mayeux

It was 1949 when Ashton

“A.B.” Geren graduated with a

bachelor of science degree in geol-

ogy from Texas A & M. The Army

Air Force veteran of World War II

had put his education on hold to

navigate B-17 bombers in the

457th bomb group of the 8th Air

Force.

This year, he celebrated his 90th

birthday and nearly 60 years of

working in the oil and gas busi-

ness.

Geren graduated from high

school in 1939. He attended one

year of junior college and trans-

ferred to Texas A & M, with plans

to graduate and work in the oil

patch. Then, Pearl Harbor was

bombed.

“I left immediately to join the

service,” he said. “I flew 30 mis-

sions out of England.”

On his fifth mission, Geren did-

n’t know if he would make it back

alive. Flying well into Germany,

on a mission to bomb a large oil

refining complex, the plane hit bad

weather. “It was getting so bad

that we couldn’t feel safe,” he re-

called. Well into enemy territory,

the plane was being shot at, when

its nose came up and hit another

plane. “Up we went and started in

a spin at 20,000 feet.”

The plane was spinning and

falling at 350 miles per hour.

Geren was ready to bail out, when

the pilot turned on auto pilot stabi-

lizing the airplane and flying it

over the English Channel for a

landing on allied soil. He went onThese are the readings from the first well drilled by A.B. Geren in 1952.

Page 57: Basin Resources May 2012

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to fly 25 more missions before return-

ing stateside and going back to col-

lege.

After his return, Geren also met his

future wife, Judy, who was teaching in

Marshall, Texas. “I saw her. The next

week I proposed and she said, ‘Yes,’”

said Geren, who has been married to

his lovely wife ever since. The two

stuck it out working and growing in

the oil patch, while many couples did-

n’t. It was because of their commit-

ment to each other and a strong sense

of family.

The first stop for the Gerens – in a

long list of oil field communities –

was Fort Worth, Texas. “Judy had

$600, and I had none,” A.B. said. They

went to see Sid Richardson, who was

one of the Big Four back in the early

days of the industry. “They were turn-

ing geologists loose. There were no

jobs.”

Their next stop was Stanolind Oil

and Gas, which became Amoco, in Lit-

tlefield, Texas. “Here I am with a

brand new wife, and a brand new job. I

would leave early in the morning and

be in the field all day long,” A.B. said.

Judy got a teaching certificate, and

worked outside of cotton season, be-

cause when it was time to pick cotton,

school let out. They had a small home,

decorated with furniture A.B. made

from dynamite powder boxes used in

the fields.

A.B. was not happy moving around

a lot, so he quit working for Stanolind.

Ready to address his field of study in

geology and engineering, he began

working for independent oil and gas

companies in Beaumont, Texas. There

he learned the ins and outs of the busi-

ness. “They wanted you to do every-

thing,” he said. He negotiated and put

together the deals, he bought equip-

ment and would see contracts through

to fruition.

“I was working on these rigs and

wells, learning the oil business. I was

working with promoters and it was re-

ally a dashing thing,” A.B. said. “I

drilled all of these wells up and down

on the salt dome, which was the begin-

ning of several companies including

Texaco and Amoco.”

During this exciting time in the in-

dustry, the Gerens' first child, Dana,

was born. Not long after that, they

moved to Oklahoma, where A.B. was

making $500 a month.

The family finally arrived in Farm-

ington in 1952 to go to work for A.B.’s

uncle, David Jackson Simmons.

Everybody called him Jack, and he

owned D.J. Simmons, an oil and gas

Page 59: Basin Resources May 2012

BASIN RESOURCES 59

May 2012 • www.basinresourcesusa.com

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company that is still going strong 60

years later. “We had a little office on

Walnut Street in downtown Farming-

ton. Jack rented it,” A.B. said. He went

to work in that office with Colonel

Wilson. He drilled his first well that

year.

He and Colonel got some property

from El Paso, which had over-leased

the land. “We had all of these wells

drilled,” A.B. said, but then the market

dropped out. “It got to where these

wells we were drilling were costing

$100,000, so it shut down for a while.”

It was time again for the Gerens to

move and they ended up in Oklahoma.

“Moving was nothing for us back in

those days. We didn’t have a house,”

he explained.

“You’ve got to go where the work

is,” said John Byrom, president of D.J.

Simmons.

“If you’ve got a good reputation,

people want you,” A.B. added, saying

he was hired to drill hundreds of wells

in Louisiana. “I was a versatile charac-

ter. … I sat on the wells, ran samples –

I really loved that.”

In the late 1960s the Gerens were

once again in Farmington. In 1969,

A.B.’s Uncle Jack Simmons died of a

heart attack. The business went to his

wife, Thelma Ford Simmons, but A.B.

ran the company for her.

“I’ve got promotion in my blood,”

A.B. said. He did his best to keep the

company running and making a profit.

He drilled all of the Fruitland Coal

Wells in the 1990s, and in 1991 he

started Twin Stars, a well-head com-

pression and equipment maintenance

company.

By 1994, he convinced another

Texas A & M graduate, John Byrom, to

join the business. “My first day was

July 1, 1994,” Byrom said.

A.B. described the move as a “A big

Oil men have a sense of humor as is obvious in the oldpicture and saying on the wall of A.B.’s office.

Page 60: Basin Resources May 2012

www.basinresourcesusa.com •May 2012

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if,” but Byrom said he wanted to be here. “When A.B. hired

me we started building and growing the company,” Byrom

said. Today they have close to 60 employees.

In 1999 they hired Jeff Parkes and the business has been

on the rise since then. “We decided we were going to make

a good sound company with John and Jeff,” A.B. said.

“We’re expanding into Southeast New Mexico, following

the money,” Byrom explained. “Here is slow, so we’ve got

to go other places.”

D.J. Simmons has a vision – to be the best. “Dealing with

the cycles in the industry – our vision is to be the premier

oil and gas company in the Rocky Mountains,” Byrom said.

“It’s a lofty vision – not to grow for growth’s sake, but to

grow smart and be a company that really cares for is em-

ployees and has an edge in the Four Corners and the Rock-

ies. We think that’s where our focus is and where it will be.”

And the company still has A.B. to keep things in check.

“A.B. comes in every single day,” Byrom said.

“I like what I do and they do. It's very gratifying to have

people this good and everybody relates and they all care

about each other,” A.B. said. “It's just outstanding – we're

kind of like a big family.”

Page 61: Basin Resources May 2012

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Page 62: Basin Resources May 2012

BASIN RESOURCES62

www.basinresourcesusa.com •May 2012

Margaret Cheasebro

When Al Kendrick went to work as

a district engineer at the Oil Conserva-

tion Commission’s Aztec office in

1955, there were almost 2,000 gas

wells and a smattering of oil wells in

the San Juan Basin. He was promoted

to district superintendent in 1975, and

when he retired in 1980, there were

close to 20,000 gas wells.

Many other changes occurred during

his tenure. Among them was the office

name. When Jerry Apodaca was gover-

nor, he established a cabinet type of

government and renamed the OCC the

Al Kendrick:He’s seen a lot of industry changes since 1955

Al Kendrick started working for the Oil Conservation Commission in Aztec in 1955. Today the OCC is located at 1000 RioBrazos Road. He’s seen the number of gas wells go from 2,000 in 1955 to more than 20,000 when he retired in 1980.

Page 63: Basin Resources May 2012

BASIN RESOURCES 63

May 2012 • www.basinresourcesusa.com

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Oil Conservation Division, which be-

came part of the state Energy, Minerals

and Natural Resources Department

After Kendrick retired, he remained

in the oil and gas business by working

for 24 ½ years as a consultant to inde-

pendent oil and gas companies. He fi-

nally retired at the end of 2004.

Now 87, Kendrick remembers his

experiences in clear detail.

After graduating from Lubbock

High School and serving stateside in

the Air Force during World War II, he

earned a degree in petroleum engineer-

ing at Texas Tech. He worked as an

onsite geologist for a mud logging

company in Texas before moving to

Aztec in 1955.

“When I went to work at the Oil

Conservation Commission, a kind of

boom had just started,” he said.

The OCC staff met with company

representatives and well operators to

design a proposed set of rules for indi-

vidual fields, which contained a group

of wells.

“In the office, we were kind of like

a police department, processing the pa-

perwork to make sure that everybody

abided by the rules we all had set up,”

he said.

Sometime after he became district

supervisor, a federal natural gas act re-

quired that every gas well be classified

“based on a set of specific circum-

stances for offshore or onshore and

type formations and different condi-

tions,” Kendrick said. “To get every-

thing on record, all of the existing

wells had to be classified into this new

system. This pleased the operators no

end.”

To help transition into that new clas-

sification system, Kendrick alternated

spending one week in Santa Fe and

one in Aztec.

“The first winter I would go down

in six or eight inches of snow and 20

below zero temperature and come back

in six or eight inches of new snow and

20 below,” he said.

He remembers the few oil wells that

were active when he arrived in 1955.

“There were four or five oil wells in

a field over west of Farmington,” he

said. “There were four or five oil wells

in a field out in Largo Canyon area

and a few oil wells down in an area at

Hospah.”

The oil wells west of Farmington

were southwest of the town of

Shiprock. They had long been magnets

for people who liked to use the oil as

gasoline.

“They’d drive out to the field and

* Kendrick 65

Page 64: Basin Resources May 2012

www.basinresourcesusa.com •May 2012

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Howard Jones opened his photography business in Farmington in 1957 at1016 N. Butler Ave. in the Mesa Shopping Center. He opened a second storein July of 1972 at 110 W Main St. Over the years his photographs have toldthe visual history of the growth of the San Juan Basin. He worked with theChamber of Commerce in 1980 to organize the first airshow in town and wasinvolved in many committees and organizations over the years. A number ofphotos in this issue of Basin Resources are Howard’s pictures. We want tothank his family for helping us look back on progress the oil and gas industryhas made over the years.

Visual history

Page 65: Basin Resources May 2012

BASIN RESOURCES 65

May 2012 • www.basinresourcesusa.com

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get a bucket of oil and put it in their

gas tanks and drive back to town,”

Kendrick recalled. “The company was

selling oil at the well at 10 cents a gal-

lon. The company sold gasoline (at a

service station in Farmington) at 10

cents a gallon. If there wasn’t anybody

out at the well, you got it for free.”

It was called oil, Kendrick said, be-

cause it was primarily produced for

oil, not gas.

He remembers reading an anecdote

in a publication about the oil wells

southwest of Shiprock. A man from

Farmington wore a suit to a well to get

oil for his car.

“Something happened with the

spray, and he got soaked with gaso-

line,” Kendrick said. “Somebody told

him it ruined his suit. The man

replied, ‘No, I got a cleaning job

free.’”

Among other changes Kendrick en-

countered was the development of

horizontal drilling. A professor at New

Mexico Tech called him one day at the

OCD, asking if there was a place he

could drill a horizontal well.

“On your desk is the only place I

know of that you can drill a horizontal

well,” Kendrick quipped.

The professor had invented a new

tool that drilled horizontally. The tech-

nique is now commonplace.

Kendrick and his wife, Ruth, raised

two sons, Randal and Neil. Randal

died two years ago, and Neil recently

retired from a long career in the oil

and gas business with ConocoPhillips.

George Coleman moved to

Farmington in 1957 while work-

ing for Homco Fish & Rental Tool

Co. In 1963, George started his

own rental tool business named

Texas Equipment Company.

In 1970, George sold the com-

pany, took about six months off

and then bought his first drilling

rig. That was the beginning of

Coleman Drilling. In 1976, he

bought Big A Well Service,

merged Coleman Drilling into Big

A and also started Sunco Truck-

ing.

After 20 very successful years

in the drilling, workover rig and

water hauling business, George

sold the companies to Key Energy.

In 1980, George had also

formed Coleman Oil & Gas that

served as the parent company for

the service businesses and “dab-

bled” in oil and gas production. In

1996, once the rigs and trucks

were sold, George turned his at-

tention to the oil and gas explo-

ration and production business.

Today, G. Chris Coleman is in

charge of Coleman Oil & Gas.

Kendrick

From drilling, production to exploration

Coleman family a big part of oil and gas history

Howard Jones photo.

Page 66: Basin Resources May 2012

BasiN resoUrces66

www.basinresourcesusa.com • May 2012

advertisers directoryAdvertising Specialties ..........................................6

1013 Schofield

Farmington, NM

505-326-1710

Animas Valley Insurance........................................7

2890 Pinon Frontage Rd.

Farmington, NM

505-327-4441

www.aviagency.com

Antelope Sales & Service Inc. ................................5

5637 US Hwy 64

Farmington, NM

505-327-0918

www.NMASSI.com

Armstrong Coury Insurance .................................37

424 E. Main

Farmington, NM

505-327-5077

www.armstrongcouryinsurance.com

Atlas Engraving...................................................56

211 W. Main St.

Farmington, NM

505-325-2925

Aztec Machine.....................................................68

1715 N. 1st St.

Bloomfield, NM

505-632-3113 • 800-699-3392

www.aztecmachinenm.com

Bank of the Southwest ........................................52

320 W. Main

Farmington, NM

505-325-1917

6570 E. Main

Farmington, NM

505-326-6204

2 CR 6500

Kirtland, NM

505-598-5823

920 N. First

Bloomfield, NM

505-632-0450

Basin Well Logging..............................................44

2345 E. Main

Farmington, NM

505-327-5244

Big Red Tool, Inc. ................................................64

2010 San Juan Blvd.

Farmington, NM

505-325-5045

Browns Shoe.......................................................15

124 W. Main St.

Farmington, NM

Calder Services ...................................................20

#7 RD 5859

Farmington, NM

505-325-8771

Cascade Bottled Water & Coffee Service ...............51

214 S. Fairview

Farmington, NM

505-325-1859 • 800-416-1859

City of Farmington ..............................................27

www.flygreatlakes.com

1-800-554-5111

ConocoPhillips ......................................................3

PowerinCooperation.com

Corrpro...............................................................13

3900 Monrow Rd.

Farmington, NM

505-325-1946

www.corrpro.com

D&M’s Big & Tall..................................................60

30th & Main St.

Farmington, NM

505-326-4772

Defined Fitness...................................................67

1700 E. 20th St.

Farmington, NM

505-325-3565

Dirt Bandits ........................................................53

101 E. Pion

Farmington, NM

505-326-0111

www.dirt-bandit.com

Ecosphere Environmental Services.......................15

www.ecosphere-services.com

Energy Pump & Supply........................................28

2010 Troy King Rd.

Farmington, NM

505-564-2874

Envirovault .........................................................49

Farmington CVB ..................................................29

505-326-7602

www.farmingtonnm.org

Faver’s Homes ....................................................20

1028 W. Main

Farmington, NM

505-327-9631

1-800-304-9850

www.favers-homes.com

First Financial Credit Union..................................50

3024 E. Main St.

Farmington, NM

505-327-4478

www.ffnm.org

Four Corners Community Bank .............................22

505-327-3222 New Mexico

970-565-2779 Colorado

www.TheBankForMe.com

Foutz-Hanon.......................................................58

2401 San Juan Blvd.

Farmington NM

505-326-6644

Hands on Safety Service......................................12

1901 E. 20th St.

Farmington, NM

505-325-4218

Halliburton .........................................................51

Henry Production, Inc..........................................60

601 S. Carlton Avenue

Farmington, NM

505-327-0422

Ice Cube Enterprises ...........................................59

505-320-1671

IEI Industrial Ecosystems, Inc...............................40

49 CR 3150

Aztec, NM

505-632-1782

www.industrialecosystems.com

Key Energy Services..............................................9

713-651-4300

performanceiskey.com

LT Environmental, Inc. .........................................45

www.lterv.com

M&R Trucking .............................................34 & 35

www.mrtruckinc.com

•281 County Road 350

P.O. Box 600

Farmington NM 87499

(505) 334-5541 • (505) 334-3128 (fax)

•Water Department

708 S. Tucker

Farmington, NM 87401

(505) 326-5541 • (505) 326-6002 (fax) 5834

•Seven Rivers Hwy.

Artesia, NM 88210

(575) 457-2070

(575) 457-2074 (fax)

• 1 Elm Street

Cokedale, CO 81082

(719) 845-0851 • (719) 845-0710 (fax)

Mechanical Solutions, Inc. .....................................2

1910 Rustic Place

Farmington, NM

505-327-1132

Millennium Insurance Agency...............................18

2700 Farmington Ave., Building A

Farmington, NM

505-325-1849 • 800-452-9703

www.millnm.com

Miller & Sons Trucking.........................................41

1110 W. Sategna Ln.

Bloomfield NM 87413

505-632-8041

www.powerinnovations.com

MTC Transport.....................................................64

505-215-1932

505-947-5351

Next Level Home & Audio ....................................57

505-327-NEXT

www.327NEXT.com

Nightlight Electric................................................61

2405 Southside River Rd. Suite A

Farmington NM 87401

505-327-6565

www.nightlightelectric.com

Oil and Gas Equipment Corp.................................19

8 Road 350

Flora Vista, NM

505-333-2300

www.ogequip.com

OKC Products, Inc. ...............................................44

800-783-3234 • 970-532-1773

www.okcproducts.com

O’Neal ...............................................................36

1000 Malta Ave.

Farmington, NM

505-327-0462

www.onealsteel.com

Outlaw Compressor Service..................................50

900 Sandstone Ave.

Farmington, NM

505-325-0398

Parkers Office Products.......................................62

Farmington NM

505-325-8852

www.ParkersInc.com

Quick Lane..........................................................42

5700 E. Main St.

Farmington, NM

505-566-4729

Riley Industrial ....................................................33

505-327-4947

San Juan College School of Energy ......................29

800 S. Hutton

Farmington, NM

505-327-5705

www.sanjuancollege.edu

San Juan Signs ....................................................26

736 E. Main St.

Farmington, NM

505-326-5511

www.sanjuansigns.com

San Juan United Way............................................21

505-326-1195

www.sjunitedway.org

Serious Texas BBQ...............................................48

3475 E. Main St.

Farmington, NM

505-327-9889

The Shoe Shoppe................................................43

Corner of Main & Butler

Farmington, NM

505-325-5050

Souder, Miller & Associates..................................32

505-325-7535 • 505-325-5667

www.soudermiller.com

South West Concrete Supply ................................63

2420 E. Main

Farmington, NM

505-325-2333

www.southwestconcretesupply.com

Sportsman for Fish and Wildlife ...........................13

www.sfwnm.com

SureFire Burner Management ..............................21

www.surefire-controls.com

Towne Place Suites..............................................23

4200 Sierra Vista Dr.

Farmington, NM

505-327-2442

www.marriott.com/fmnts

Twin Stars, LTD....................................................14

100 Iowa Ave.

Bloomfield, NM

505-632-9202

7169 Roswell Hwy.

Artesia, NM

575-746-6690

www.twinstars.com

Wellcheck of Farmington .....................................64

Farmington, NM

505-327-9266

Ziems Ford Corners.............................................65

5700 East Main

Farmington, NM

505-325-8826

Page 67: Basin Resources May 2012
Page 68: Basin Resources May 2012

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