Artificial Lift Research and Development Council
1st ALRDC Board of Directors Meeting
January 14, 2004
Minutes of Meeting
Venue
The first meeting of the newly constituted Artificial Lift R&D Council (ALRDC) was held in the Petroleum
Engineering Department, Texas Tech University, Lubbock, Texas. It began at 10:00 am on Tuesday,
January 14, 2003, and ended at approximately 3:00 pm.
Attendees
Operating Companies
Art Peña, Yates Petroleum
Service/Supply Companies
Bill Howard, Weatherford Artificial Lift Systems
Lynn Rowlan, Echometer
Unable to Attend
Jim Hall, Shell International EP
Henry Nickens, BP
Roger Stinson, Schlumberger
Universities
Dr. Jim Lea, Texas Tech University
Dr. Harold Winkler, Texas Tech University
Dr. Chris Cox, Texas Tech University
Dr. Tony Podio, University of Texas (by phone)
Consultants
Cleon Dunham, Oilfield Automation Consulting
Hal Rabbino, Strategic Clarity
Purpose
Hold the inaugural meeting of the Board of Directors of the Artificial Lift R&D Council.
Discussion
The following items were presented and discussed.
1. Petroleum Engineering Department, Texas Tech University. Dr. Jim Lea presented a brief
overview of the Petroleum Engineering Department at Texas Tech, its current mix of students,
and its current academic and R&D programs.
2. Artificial Lift R&D Council. Cleon Dunham presented a brief introduction of the ALRDC, for the
benefit of those who had not attended a meeting previously.
Artificial Lift R&D Council
Meeting Minutes --- January 14, 2003
Page 2
3. Purpose of ALRDC. Cleon Dunham reviewed the purpose of the ALRDC. This is summarized
in the associated document entitled, "Plan for Launching ALRDC," December 5, 2002. This
document also summarizes the thought process that went into the preparation for this inaugural
meeting.
4. Board of Directors. The proposed members of the ALRDC Board of Directors, as shown on the
associated document entitled, "Artificial Lift R&D Council, Members of Board of Directors,"
were unanimously elected. Other potential members were discussed and will be contacted by
Jim Lea or Cleon Dunham to ascertain their interest and willingness to serve.
5. Officers of the Board. The following officers of the board were elected:
Chairman: Dr. Jim Lea, Texas Tech University
Treasurer: Anita Parks, Texas Tech University
Secretary: Cleon Dunham, Oilfield Automation Consulting
6. Director. The position of Director of ALRDC was discussed. One possibility is to have this be a
part-time position shared by a "to be employed" member of the Texas Tech University faculty.
TTU is planning to employ a new faculty member to direct the TTU test well / facility. (See #17.)
This person might be a candidate to also direct ALRDC. This will be considered at a future time.
In the meantime, TTU will hire consultants, on an as-needed basis, to conduct the initial ALRDC
start-up tasks.
7. Office Location. For the short-term, office space and facilities for ALRDC will be provided by
Texas Tech University. When ALRDC becomes self-sufficient, it may choose to re-locate to an
independent location.
8. Name of the Organization. After discussion, it was agreed to continue to use the name Artificial
Lift R&D Council (ALRDC).
9. Logo for the Organization. After discussion, it was agreed to maintain the basic concept of the
current logo (see the top of this document) but to attempt to more closely relate it to artificial lift in
some appropriate ways.
10. Business Cards. It was agreed that business cards should be produced for Dr. Jim Lea and
Cleon Dunham, as they are the ones most likely to be representing ALRDC in functions in the
near term. They are to distribute ALRDC business cards at the upcoming Gas-Lift and Gas Well
De-Watering Workshops.
11. Web Site. Cleon Dunham presented a rough draft of a proposed new ALRDC web site. The
concept is based on the design of the www.wellanalysis.com web site that is being used to
support the Gas-Lift and Gas Well De-Watering Workshops. Dr. Jim Lea demonstrated the
current wellanalysis site. It was agreed to build the ALRDC web site following this concept, and
the proposed web site development budget of $3,850 was approved. Annual support and
maintenance costs of this site are expected to be modest. Cleon Dunham is to explore these
costs and report back at a future meeting.
12. Budget. A potential working budget for ALRDC was discussed. The Board concluded that it is
too early to have an accurate idea of what the budget amounts should be. The Petroleum
Engineering Department of Texas Tech University has agreed to underwrite the "start-up" costs
of the organization, but these must be closely controlled. The organization must become fully
self-sufficient within two years, or a "no go" decision will be taken.
Artificial Lift R&D Council
Meeting Minutes --- January 14, 2003
Page 3
13. General Membership Fees. The Board is not ready to decide on specific membership fees.
Before this can be done, the deliverables and benefits that can be provided to members must be
fully defined. There was extensive discussion of possible deliverables that the Council can
pursue. (See #18 and the action items below.)
14. Start-Up Membership Fees. After discussion, it was agreed to start this first year with a very
modest "start-up" membership fee. The goal of this should be to encourage very broad
involvement by a large number of organizations. In the future, as the deliverables and benefits to
members are increased, membership fees can be ramped up accordingly. The consensus was
that an initial "start-up" member fee of $1,000 for companies and $200 for individuals was
appropriate.
15. Solicit Members. After discussion, it was agreed that it is too early to solicit members. First, the
benefits and deliverable to members must be fully defined. The timing to begin member
solicitation will be decided at the next Board meeting.
16. Legal Issues. It is intended that ALRDC will be a not-for-profit organization. Legal documents
for this purpose were previously drafted. These can form the basis for the documents that will be
required to obtain the necessary IRS 501 (c) 6 status.
17. Texas Tech University Test Well / Facility. Dr. Chris Cox presented the plans and current
status of the Red Raider #1 test well / facility. The well is drilled and completed. Most capital
equipment has been delivered. Dr. Cox estimates that the well / facility can be ready for
conducting artificial lift tests by summer, 2003.
18. Possible Benefits and Deliverables to Customers. After discussion, the following partial list of
possible benefits and deliverables to customers was developed. Dr. Jim Lea is to expand this list
(see action items).










Workshops. Help organize workshops (and/or short courses) like the Gas Well DeWatering Workshop being organized for March 2003, in Denver, Colorado.
Seminars. Organize seminars on specific artificial lift topics of interest - may be for
small, focused audiences.
Courses. Help organize focused courses on special artificial lift topics of interest.
Best Practices. Organize artificial lift best practices and make them widely available to
members.
Database. Organize a database of artificial lift applications, problems, and solutions.
Web Site. Produce an easy-to-use ALRDC web site for broad dissemination of artificial
lift information to members.
Yellow Pages. Develop an "Artificial Lift Yellow Pages" where organizations and
consultants can advertise artificial lift goods and services.
Forums. Create an on-line, interactive forum where members can discuss and debate
artificial lift issues.
Equipment and Procedure Tests. Help sponsor or coordinate tests of artificial lift
equipment and/or techniques using various available test facilities.
Artificial Lift R&D. Help define research and development needs in the area of artificial
lift and help coordinate the sharing of funding and resources to achieve these needs.
19. Next Board Meeting. The time and place of the next Board meeting was not decided. It will be
proposed after the list of benefits and deliverables to members has been reviewed and agreed by
the Board members.
Artificial Lift R&D Council
Meeting Minutes --- January 14, 2003
Page 4
Action Items
1. Dr. Jim Lea
 Prepare a list of potential benefits and deliverables that ALRDC may choose to offer to
initial members in 2003.
 Send this to Cleon Dunham for review, refinement, and distribution to the other board
members.
 Contact other potential members for the Board of Directors.
2. Cleon Dunham
 Prepare and issue minutes of this meeting.
 Handle the proposed benefits and deliverables document produced by Dr. Jim Lea.
 Contact other potential members for the Board of Directors.
 Work with the web design consultant to begin design and construction of the new ALRDC
web site.
 Develop proposed enhancement(s) to the existing ALRDC logo.
 Design an ALRDC business card. (Dr. Jim Lea will have these produced by Texas Tech
University.)
 Update the existing ALRDC draft legal documents and submit them to Bill Howard of
Weatherford for further legal action.
 Propose the location and timing of the next meeting of the ALRDC Board of Directors.
3. Bill Howard
 Request support from the Weatherford legal department to help obtain the necessary notfor-profit for ALRDC.