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Initial Designation Proposal Petroleum Center for Workforce Excellence

Prepared by: Jessica L. Thornton

Director of Philanthropy and Stewardship (985) 448-7920 ● jessica.thornton@fletcher.edu

Chancellor F. Travis Lavigne, Jr. 1407 Highway 311

Schriever, LA 70395 (985)804-0387● travis.lavigne@fletcher.edu

www.FLETCHER.edu

Submitted: November 6, 2013

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A. DESCRIPTION

1. Provide a description of the proposed Center and how its area of focus has been a hallmark of the institution, for which the institution is or has the potential to be uniquely strong.

Education is the key to a strong and vital workforce in any industry. For over eleven years, the Louisiana Community and Technical College System (LCTCS) has lead the way in educating and training the technical workforce in the State of Louisiana. As industry demand has increased, LCTCS has directed its colleges to appropriately align programming and enhance technology to meet industry needs/standards to produce more skilled and well-educated workers.

To achieve this goal, Fletcher Technical Community College (Fletcher) proposes to create a Petroleum Center for Workforce Excellence for deepwater oil & gas production. The proposed Center will be developed and operated in accordance with the requirement of Act 555 of the 2010 Regular Session of the Louisiana Legislature, LCTCS, and Board of Regents policy, adopted in June 2013.

Fletcher is uniquely strong in the petroleum sector, specifically in deepwater oil & gas production. BP America, Inc., one of Fletcher’s industry partners, has generously donated $5,247,800 to date allocated towards the Integrated Production Technologies (IPT) program. $4 million was contributed to construct a building (includes $1 million allocated to lab equipment) to house the training for the IPT program. In 2012, Governor Bobby Jindal committed $4 million as a match in capital outlay funds to assist with the construction of the building. Building construction began in December 2012 and is scheduled to be completed in February 2014. These commitments from BP America, Inc. and Governor Jindal highlight the state and industry support of Fletcher’s proposed Petroleum Center for Workforce Excellence.

2. List and describe existing program(s) that will be part of the Center’s activities: credential, date implemented, 3 to 5 years of enrollment (majors) and completer data. Include related programs and data, as relevant.

The targeted program of training includes deepwater oil & gas production, specifically Integrated Production Technologies (IPT). In addition to the IPT program, a new Production Maintenance program will be developed to meet industry needs for both onshore and offshore skills and careers within the oil & gas industry.

The Petroleum Center for Workforce Excellence will incorporate private and public sector support to emphasize education and training programs in partnership with business and industry to meet defined workforce training needs. One of the Center’s strengths is its ability to develop and fine tune the program and curriculum in response to workforce needs. Its offerings will include programs and curriculum that are clearly related to the workforce and to which industries are willing to support and populate for employee training.

In 2010 Fletcher’s “Marine & Petroleum Division” was split into two parts – the Marine Division and the Petroleum Department. Currently, the Petroleum Department consists of one Associate

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of Applied Science (AAS) degreed program – the IPT program. IPT training courses began in 2007; however, the AAS-degreed IPT program was officially launched in 2009 and has since achieved an enrollment increase of over 200% – from 55 students for the Fall 2010 Semester to 169 students for the Fall 2013 Semester. Due to industry demand for a skilled, deepwater workforce in oil & gas production, the response to the IPT program by both students and industry has been immensely positive.

In addition to the IPT program, a Production Maintenance program will also be established. The curriculum for the Production Maintenance program will be written during 2014 and 2015 academic year such that Production Maintenance courses will be offered by the Fall Semester 2015. Additionally, several courses in the IPT program are also part of the Production Maintenance program; several courses currently taught at other Fletcher Divisions are also part of the Production Maintenance program.

The following tables include current and projected enrollment and completer data for both the IPT program & the anticipated Production Maintenance program.

IPT Program Student Enrollment & Completion Data

ENROLLMENT & GRADUATION PROJECTIONS – IPT PROGRAM

Students FA12 SP13 SU 13 FA13 SP14 SU14 FA14 SP15 SU15 FA15

Continuing 101 116 25 169 171 32 173 176 39 199

Graduating 5 20 5 9 24 5 43 37 5 43

Anticipated Production Maintenance Program Student Enrollment & Graduates

ENROLLMENT & GRADUATION PROJECTIONS - PRODUCTION MAINTENANCE

B. FACULTY AND ADMINISTRATION

1. List the core and affiliated faculty members who will contribute to the Center, with examples of recent achievements related to the Center’s purpose.

The following outline is a brief professional history of each Full-Time and Adjunct Faculty member within the Petroleum Department, including the Department Head, who also teaches 3 courses per semester. The IPT program’s entire current faculty members (except for one Adjunct Faculty and the Department Head) are veterans from the oil & gas industry.

Students SP16 SU 16 FA16 SP17 SU17 FA17 SP18

Continuing 202 45 227 228 51 248 250

Graduating 37 5 45 39 10 44 39

Students FA15 SP16 SU 16 FA16 SP17 SU17 FA17 SP18

Continuing 78 82 34 121 119 48 162 161

Graduating 16 18 12 26 18 5 29 23

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Alvin J. Justelien III, Ph.D. – Beginning in 1984, Dr. Justelien worked for over 20 years as an

industrial maintenance technician in a pulp mill, during which he completed his Bachelor of

Science and Master of Science Degrees in Workforce Training & Development. After which he

began his doctoral studies in Human Resource Education and Workforce Development, earning

his PhD in 2009. Since then Dr. Justelien has worked in various positions, from Program Director

and School Principal, to Convention Manager, to Director of Workforce Development, Field

Employee Development Coordinator, and Business Coach, including employers such as

Associated Builders and Contractors, Inc. and Halliburton Energy Services. Dr. Justelien was

hired in 2011 by Fletcher Technical Community College as Department Head for the IPT

program. In his role as Department Head, Dr. Justelien also serves as a part-time faculty

member, teaching 3 classes per semester.

Joseph M. Zorn – After 4 years in the U.S. military (1968 – 1972), serving in Military

Intelligence, both in Okinawa and Vietnam, Mr. Zorn enrolled in the Elementary Education

program at Nicholls State University, where he earned a Bachelor of Arts Degree in Education in

1976. After 3 years as an elementary education teacher, Mr. Zorn began an 18-year career with

Mobil Oil, as a production platform operator, field loop operator, lead operator, and platform

field foreman. During his last 3 years with the company, Mr. Zorn operated well production

tracking software. Following his retirement from Mobil Oil, Mr. Zorn was the owner and

operator of multiple businesses. For the last 6 years, Mr. Zorn has worked as a safety instructor

for Falck Alford. In 2013, Mr. Zorn became a full-time faculty instructor in Fletcher's IPT

program, where he teaches 15 credit hours per semester.

Earl Michel – Mr. Earl Michel served in the U.S. Military (1968-1972), served the Navy in

Vietnam and the Philippine Islands. He then worked for Delta Mud as a mud engineer. In 1976,

Mr. Michel began a career with Pennzoil Production Company, which later became Devon

Energy. During his career at Devon Energy, Mr. Michel attended Nicholls State University, on

the 7 and 7 program, and received a Degree of Associate of Science in May 1977. After his

retirement from Devon Energy in 2001, Mr. Michel then worked for International Marine

Systems as a marine electrician. He then worked as a production operator in the Gulf of Mexico.

In the summer of 2013, Mr. Michel became a full-time faculty instructor in Fletcher’s IPT

program, where he teaches 15 credit hours per semester.

William R. Hamner – At Nicholls State University, Mr. Hamner earned a Bachelor of Science

Degree in Agricultural Business in 1969, a Teaching Certificate in 1972, a Master’s Degree in

Education Supervision & Administration in 1975, and a “Masters Plus” Degree in Supervision &

Administration in 1977. In 1979, after serving for 7 years on the Terrebonne Parish School

Board, Mr. Hamner began a 30-year career in the oil & gas industry, starting with CNG Producing

Company (21 years), Dominion Exploration & Production (7 years), and Eni Petroleum (2 years),

He held positions ranging from Safety & Training Coordinator to Facilities Supervisor. His

certifications and training coursework include Production Safety Systems, Helicopter

Underwater Egress, Crane Operation, First Responder, OTIS Workover Program, NORM Surveyor

& Control Course, Basic Fire Fighting, Basic Glycol Dehydration, API Training and the Associate

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Safety Professional Exam. Mr. Hamner began teaching in the IPT program in 2010 as an adjunct

faculty member.

Davis Kieff – After completing a Bachelor of Science Degree from Nicholls State University in

1971, Mr. Kieff embarked on a career in math & science education, first as a junior high school

math instructor, then as a high school math instructor; from 1972 until 1998. During this time

Mr. Kieff earned a Master of Arts Degree in Psychology and Non-School Counseling from

Nicholls State University (1975), a “Masters Plus” Degree from Louisiana State University (1992),

and an Educational Science Certificate in Mathematics Education from Louisiana State University

(1997). Mr. Kieff has worked as an adjunct instructor of Mathematics and Mathematics

Supervisor for Students at Nicholls State University. He also has extensive experience as a

consultant, researcher, curriculum writer, and as a professional workshop facilitator. Mr. Kieff

joined Fletcher in 2007, and began teaching courses in the Petroleum Department in 2010.

Ben Thomas – Mr. Ben Thomas is an adjunct instructor teaching the Industrial Instrumentation

II course in the IPT program. He started his industrial instrumentation career after completing

instrumentation training at Lamar Technical Institute in Beaumont, Texas. After several years in

the chemical industry in east Texas, Mr. Thomas’ career led him to the offshore petroleum

production industry. He has been contracted BP Gulf of Mexico as an Instrumentation Technical

Assessor/Coach for PetroFac/Clover. Mr. Thomas assesses Instrumentation Technicians for

competencies through BP’s Competency Management and Assurance System (CMAS).

Milton Saidu, Ph.D. – Dr. Saidu earned a Bachelor of Science Degree in Physics in 2001 from

the University of Sierra Leone. He then earned a Masters in Industrial Engineering, a Masters in

Engineering Science with a focus in process control, and a Ph.D., in Engineering Science from

Louisiana State University. Dr. Saidu has over 5 years of industry experience in water

remediation with petroleum contaminants, design of closed fluidized bed systems for solids

capture, separation processes, and statistical process control systems. Dr. Saidu has also served

as an adjunct professor at Southern University and Louisiana State University over the past 4

years. He has supervised several undergraduate and graduate students in projects and

research. He has also presented at professional conferences and served as judge at student

professional presentations. Dr. Saidu is currently an adjunct faculty member at Fletcher

Technical Community College and full time faculty Assistant Professor at Nicholls State

University.

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The following table demonstrates current faculty and staff, as well as projections through

Spring 2018 semester.

FACULTY & STAFF PROJECTIONS – IPT PROGRAM

Personnel FA13 SP14 FA14 SP15 FA15 SP16 FA16 SP17 FA17 SP18

Full-Time 3 3 3 3 3 4 4 4 5 5

Adjunct 3 3 6 7 7 6 6 6 6 6

Loaned 1 3 5 5 4 4 4 4 4 4

Lab Assist 1 1 1 1 1 1 1 1 1 1

Dept Head 1 1 1 1 1 1 1 1 1 1

Total 9 11 16 17 16 16 16 16 17 17

2. Provide an administrative structure for the Center, including reporting lines.

The chart below shows the planned organization structure for the Petroleum Department, soon to be the Petroleum Division.

Petroleum Division Organization Chart

Fletcher Petroleum Division Dean

Prod Maintenance Dept. Head

FacultyFull-Time

FacultyAdjunct

FacultyAdjunct

FacultyFull-Time

Faculty Adjunct

FacultyFull-Time

IPT Program Dept. Head

FacultyFull-Time

FacultyAdjunct

FacultyAdjunct

Faculty Full-Time

FacultyFull-Time

FacultyAdjunct

Non-Credit Workforce

Training

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3. Address whether and/or how the Center would affect the present structure of the Campus.

Below is the current Fletcher Organization Chart. The IPT Department Head currently reports to the Vice Chancellor of Instruction. Once the Center is established, all academic aspects will continue reporting to the Vice Chancellor of Instruction. The philanthropic efforts of the Center will be overseen and managed by the Director of Philanthropy and Stewardship.

Additionally, a Dean of the Petroleum Division position will be created and filled after the official Petroleum Center for Workforce Excellence designation is received.

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C. FACILITIES AND EQUIPMENT: Briefly describe the existing and anticipated facilities (building, classrooms, laboratories, offices, etc.) for the Center, including donations from external sources. Include a projected timeline for any new facilities to be brought on line and address how they will be used by the Center.

Construction of BP IPT Building

The current location of the IPT program (including classrooms, computer labs, equipment lab, and administration offices) presently shares space with other Fletcher programs at the College’s new main administration building, located at 1407 Hwy. 311 in Schriever, LA. An IPT Building is currently being constructed on the same campus. This building will accommodate the projected enrollment growth, the need for additional space to house newer IPT lab equipment, and the need to situate the IPT classrooms, labs, and Production Skid at one location. With a $4 million investment, made by BP America, Inc., and a Louisiana State Legislature match of $4 million, Fletcher has achieved the $8 million needed to fund the construction of the BP IPT Building. This also includes the estimated $1 million needed for lab equipment. Construction of the 30,000 sq. ft. facility began in December 2012, and has a scheduled completion date of February 2014. The new building will house lecture rooms, computer labs, simulators, and an equipment lab. Instruction in the new BP IPT Building is scheduled to begin in Summer 2014.

The chart below depicts the occupancy and capacity of the existing IPT program, currently housed in Fletcher’s main campus building, versus the upcoming BP IPT Building.

At Fletch Main Ad

Bldg.

At Fletch Main Ad

Bldg.

At New IPT Bldg.

At New IPT Bldg.

Increases with

Investment

Increases with

Investment

Description Quantity Occupancy Quantity Occupancy Quantity Occupancy

Classroom (small) 0 16 1 16 1 16

Classroom (large) 3 24 each 7 24 each 4 24 each

Classroom/Lecture Hall

0 36 2 36 each 2 36 each

Offices 3 1 10 1 7 1

Office Large 0 4 1 4 1 4

Student Lounge .5 6 1 6 1 3

Faculty Lounge .5 6 1 6 1 3

Faculty Meeting Room

0 10 1 10 1 10

Conference Room/Science Lab

1 10 1 10 0 0

Lab at Fletch Main

Ad

Lab at Fletch Main

Ad

At New IPT Bldg

At New IPT Bldg

Increase with

Investment

Increase with

Investment

Technical Lab 1 32 1 32 1 32

Total 9 123 26 334 17 211

W/ expansion 334 Students at any one time

Current Current New Total New Total +Rooms +Students at capacity

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The table below includes lab equipment previously donated to the IPT program, as well as pledges to be received in the future. It is important to note that this does not include equipment to be purchased by the $1 million donation from BP America, Inc.

Date Donor Value Equipment Use

Received Ruelco $2,829

various plugs, relays, probes, switches for PSST T02 Training - Equip to set up

school/Instrumentation 1 & 2

Received KimRay Sales & Svc $500

2" Cut-a-way, 212SGT-BP screwed back pressure regulator to be used as a training

prop for Instrumentation and other IPT courses

Received Ingenious Inc. $45,090

software and licenses to train students in different processes of equip and

instrumentation used in the petroleum industry

Received Chevron USA Inc. 27,200

Pneumatic surplus materials to provide educational, hands-on, training aids for IPT

courses

Received In-Line Flow Products Ltd $1,500 PIG launcher/receiver for IPT classroom

hands-on training

Pledge Tideland Signal Corporation 15,000 Navigational Training System to mount on

the Training Skid Building

Pledge Checkpoint Pumps and

Systems $4,800 Chemical Injection pump Cutaway

Pledge MUM Industries 4,500 1" double diaphragm pumps to use for

classroom hands-on training (Qty. of 10)

Pledge Dragon Products LTD $6,500 Trash pump cutaways to use for hands-on

classroom training

Future Building of a Production Skid

Another critical component of a high-quality technical program is a hands-on equipment and systems platform, or Production Skid. The Skid is an outdoor platform that incorporates most of the major equipment found on a deepwater oil & gas production rig, where students learn how to use/handle pneumatic and controlled devices on the system and how to keep the system operational. The Production Skid simulates the separations of crude into the oil, water, and gas components, and shelf, shale play and conventional hydrocarbon production. The Production Skid can also simulate real-world upsets, teaching students troubleshooting skills, using root cause analysis techniques.

Currently, BP America, Inc. has authorized use of a Production Skid at their Houma Operations Learning Center. However, using BP’s Production Skid for student instruction is not optimal for instruction as it requires that students leave the campus, thus creating scheduling difficulties and inhibiting BP’s use of their Skid. Furthermore, for specialized, non-degreed industry training of non-BP employees, the utilization of a BP Production Skid raises proprietary issues.

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A new Production Skid will be operated from a detached control room located inside of the BP IPT Building. The estimated total cost of building a new Production Skid is $2.5 million. This estimate is based on two vendor bids for turn-key installation, including testing to verify that the newly installed Production Skid is fully operational. Ongoing Production Skid maintenance costs are estimated to be approximately $8,000 per year. The same Production Skid can also be used for the Production Maintenance program and for incumbent worker training.

Fletcher Technical Community College Foundation, Inc. (Fletcher Foundation) is currently in discussions with industry partners to secure funding for the Production Skid.

Future Production Maintenance Building

The new Fletcher Production Maintenance Building is scheduled for construction in 2015. With an estimated cost of $7 million, funding for the project will come from Phase 2 of the investment campaign. The curriculum for the Production Maintenance program will be written during 2014 and 2015 academic year such that Production Maintenance courses will be offered by the Fall Semester 2015. Additionally, several courses in the IPT program are also part of the Production Maintenance program; several courses currently taught at other Fletcher Divisions are also part of the Production Maintenance program. During construction of the new building, Production Maintenance courses will be taught in the Fletcher main administration and classroom building, the IPT Building, and the Technical Lab. With the completion of the new Production Maintenance building and lab, a total of 26 instruction and instructor rooms/offices will accommodate up to 334 students and up to 22 faculty at any one time.

Fletcher Foundation is currently in discussions with industry partners to secure funding for the construction of the Production Maintenance Building.

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D. BUDGET: Provide a projected three-year budget, including sources and amounts of funding/revenue and costs/expenditures for the Center.

The Petroleum Department funding comes from several sources. First, the Petroleum Department has appropriated funds from Fletcher’s general fund, which consists of “self-generated” revenues from students, including tuitions & fees, and fees from Louisiana Workforce Commission Training program grants. It also consists of appropriations by the State of Louisiana, via the LCTCS, based on a funding formula. The proportion of State funding to self-generated funding of LCTCS institutions has dropped significantly in recent years.

The amount of funding received by the Petroleum Department from the Fletcher general fund depends on the Department’s enrollment and the budget proposal. This is currently prepared by the IPT Department Head, in collaboration with the Vice Chancellor of Instruction. The budget proposal is then submitted by the current Department Head to the Vice Chancellor of Finance & Administration and Chancellor for analysis and approval.

Another source of significant funding for the Petroleum Department is via gifts/contributions and grants. Individual and industry donations are directed through Fletcher Foundation, a 501(c)(3) non-profit organization. Individuals and businesses can make donations to Fletcher Foundation which can be “earmarked” for specific Petroleum Department projects. Such a donation was recently made by BP America, Inc. to the Fletcher Foundation, specified for the construction of the IPT Building and related lab equipment. A listing of all donations received for the Petroleum Department is shown on page 17.

In summary, the current funding sources for the Petroleum Department of Fletcher are:

Student tuitions and fees (“self-generated funds”)

State of Louisiana appropriations (from the state’s General Fund)

Gifts/contributions and grants (“external funding”)

The Petroleum Department’s IPT program officially began in 2010. The revenue from student tuition revenues continue to increase. Given current state funding trends, the State General Fund Direct allocations may decrease by 5 to 10% each year.

Fletcher Petroleum Department Historical and Budgeted Income Statement Summary

The chart shown on the following page is a summary of income statement projections for the Fletcher Petroleum Department for the current fiscal year of 2014 (FY 14) through Fiscal Year 2018 (FY 18). It is important to note that all revenue generated from the Petroleum Division will be reinvested into the IPT and anticipated Production Maintenance programs, with a goal of becoming a self-sustaining division of the College.

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REVENUE FY 14 FY 15 FY 16 FY 17 FY 18

State General

Fund Direct 55,800 53,000 50,000 46,000 43,000

Tuition Self-

Generated1 473,700 792,200 1,112,800 1,362,240 1,581,200

External Funding 100,000 120,000 150,000 150,000 158,840

Contributed from

Endowment 53,200 60,000 103,200 120,000 133,200

PD Expenses

Paid by Fletcher2 109,380 133,600 91,400 64,040 0

Total 792,080 1,158,800 1,507,400 1,742,280 1,916,240

EXPENDITURES

Salaries with

Fringe 391,430 389,700 511,200 609,160 657,440

Endowment

Supplement 53,200 60,000 103,200 120,000 133,200

Adjuncts

(contractors) 46,600 246,000 266,600 260,000 260,000

Intra-agency

Transfer3 236,850 396,100 556,400 681,120 790,600

All other Expenses 64,000 67,000 70,000 72,000 75,000

Total 792,080 1,158,800 1,507,400 1,742,280 1,916,240

1 This includes tuition and fees as well as fees from the non-credit workforce training program.

2 This is the “subsidy” by Fletcher Technical Community College (Fletcher) for the expansion of the

Petroleum Center for Workforce Excellence, which disappears by 2018. 3 The amount of tuition and fees paid by a Division to Fletcher is 50%, i.e., each Division within Fletcher is

required to pay 50% of its tuition and fees for the College’s general administration.

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E. MEASURES FOR CENTER OF EXCELLENCE

1. How will the Center enhance the Institution’s mission? What value does a Center bring that is not accomplished through the current organizational structure? What goals/objectives would be accomplished due to the existence of the Center? What indication is there that the Center is an institutional priority?

The College was originally established in 1948 as a South Louisiana Trade School and has since evolved to become Fletcher Technical Community College (Fletcher), for the purpose of providing community college and technical training to those primarily residing in one of the five surrounding parishes: Terrebonne, Lafourche, Assumption, St. Mary, and St. Charles. From its inception, school administrators have responded to industry’s needs by evaluating employment data to enhance the skills of those working in established occupations and to determine those skills necessary to accommodate emerging occupations.

Fletcher’s mission is to be an open-admission, two-year public institution of higher education dedicated to offering quality technical and academic programs to the citizens of South Louisiana for the purpose of preparing individuals for employment, career advancement, and lifelong learning. The College’s vision is to assure that its programs are responsive to the needs of the citizens, business and industry, and other educational institutions of Louisiana. Additionally, Fletcher is institutionally accredited by the Southern Association of Colleges and Schools (SACS) - Commission on Colleges

The following Mission and Vision statements convey the purpose and values of the Petroleum Center for Workforce Excellence in deepwater oil & gas production:

Mission: The mission of Fletcher Technical Community College’s Petroleum Center for Workforce Excellence is to design and execute relevant technical training courses and programs, in close collaboration with energy industry experts, such that oil & gas industry stakeholders regard the Petroleum Department’s graduates as the most competent at delivering efficient and safe oil & gas services.

Benefit: Fletcher Technical Community College’s Petroleum Center for Workforce Excellence in deepwater oil & gas production will create a highly skilled and readily available workforce vital to sustaining a competitive advantage in the deepwater oil & gas production industry.

Vision: The vision of Fletcher Technical Community College’s Petroleum Center for Workforce Excellence is to be regarded by students, potential students, other technical training institutions, government energy regulators, and oil & gas company employees as the premier deepwater oil & gas production training program.

Benefit: Fletcher Technical Community College shall become a national model for excellence in deepwater oil & gas production training by effectively partnering with local, state, federal, and private interests to meet the expanding demands of this industry that are critical to the state’s economic vitality.

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The official Petroleum Center for Workforce Excellence designation will bring value to the current organization of the College by allowing Fletcher to expand the current IPT Department to a Petroleum Division, which will include a Dean of the Division. The Dean’s main role will be to ensure that the Division aligns itself with the College’s strategic goals and help it to become a self-sustaining Division.

Demand by oil & gas companies for Associate of Applied Science-degreed job candidates and for responsive, workforce training programs is rapidly growing. This is being driven by worldwide growth in oil & gas production, the retirement of the industry’s highly-experienced baby boomers, rapid technological progress in exploration and production, and comprehensive regulatory compliance requirements. Approving Fletcher Technical Community College as an official Petroleum Center for Workforce Excellence will assist oil & gas companies to effectively meet this workforce demand.

Fletcher is vigorously addressing these demands. The College’s Petroleum Department, with its deepwater oil & gas production focused program in Integrated Petroleum Technologies (IPT), has initiated a plan to quickly close the gap between the oil & gas industry’s critical demand for a technologically-advanced workforce and the impending retirement of nearly half of the industry’s most experienced employees.

Based on input from the program’s Industry Advisory Board (table shown on page 22), which consists of 9 separate oil and gas production and service companies, Fletcher’s Petroleum Department has positioned itself as the partner-of-choice for oil & gas students, workforce trainees, and industry training managers.

Below is a listing of accomplishments and goals:

The Integrated Petroleum Technologies (IPT) program provides a deepwater oil & gas

production focus, relevant to the offshore production operations in the Gulf of Mexico Region

and beyond. Hands-on experience with the proposed deepwater production equipment will

provide students with a clear understanding of work on a production platform.

The Associate of Applied Science (AAS) degreed IPT program is accredited by ATMAE (the

Association of Technology, Management and Applied Engineering), and Fletcher Technical

Community College is institutionally accredited by the Southern Association of Colleges and

Schools (SACS) - Commission on Colleges. This not only gives students the ability to transfer

academic credits to 4-year universities (e.g., Nicholls State University), but assures potential

employers of high-quality workforce education and training.

AAS degreed programs assure oil & gas employers that new hires’ technical knowledge is augmented by

contextual understanding, decision-making, and problem-solving skills. Because of this, 98% of

Fletcher’s IPT program graduates have secured employment with oil & gas companies.

Fletcher is developing “flex time” scheduling including evening, weekend, 7/7 and 14/14 options to

accommodate the non-traditional work schedules of offshore employees. Some AAS courses will include

a 50% lecture/lab and 50% on-line format, using “3D imaging” on-line computer technology.

By leveraging the credentials and expertise from within the AAS-degreed programs, Petroleum

Department faculty and curriculum specialists can develop customized, non-credit programs to

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meet an organization’s specific training requirements. For example, a 3-credit, 48-hour, 13-

week, AAS-degreed course can be condensed into a 40-hour, 5-day, non-credit training program.

A new, AAS-degreed Production Maintenance program will be developed to meet industry

needs for both onshore and offshore skills and careers within the oil & gas industry.

Fletcher’s Petroleum Department possesses the vision, creativity, flexibility, expertise, and technical skills required to effectively respond to the oil & gas industry’s critical need for a highly-skilled workforce. The Petroleum Department also possesses detailed plans to execute this vision. These plans are described in depth in the Department’s Business Plan (available upon request).

2. How has the institution demonstrated performance excellence in this area of education, training, and/or research? Include measureable outcomes of the enterprise. How will excellence be even more apparent with or through the Center? Is this focal area mentioned in the Master Plan?

The College has already demonstrated excellence in the area of deepwater oil & gas production. This has been shown through a contribution by BP America, Inc., one of Fletcher’s industry partners, donating $4 million dollars to construct a building to house the training for the IPT program. In 2012, Governor Jindal committed $4 million dollars as a match in capital outlay funds to assist with the construction of the building. Construction began in December 2012 and is scheduled to be completed in February 2014. These commitments from BP America, Inc. and Governor Jindal highlight the state and industry support of Fletcher’s proposed Petroleum Center for Workforce Excellence.

In the strategic plan, a level of excellence will be measured and become even more apparent

due to the following:

Constructing the IPT Building – This part of the strategic plan is already underway and the

funds have been committed by BP America, Inc., with matching funds from the State of

Louisiana.

Building a Production Skid - Currently, the IPT program uses a Production Skid owned and

operated by BP America, on a property adjacent to Fletcher’s main campus building (including

the IPT program). On one hand, this is currently a great benefit to the IPT program, as students

are able to train on a Production Skid until the IPT’s Production Skid is built. However, using BP’s

Production Skid for student instruction is not optimal for instruction as it requires that students

leave the campus, thus creating scheduling difficulties and inhibiting BP’s use of their skid.

Furthermore, for specialized, non-credit workforce training of non-BP employees, the utilization

of a BP Production Skid raises proprietary issues.

Achieving ATMAE Accreditation - The AAS-degreed IPT program officially achieved its

ATMAE (Association of Technology, Management and Applied Engineering) accreditation in

November 2012.

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Enhancing the IPT Program & Delivery Flexibility – In addition to modifying existing

courses based on industry and Industry Advisory Board input, a “flex time” delivery schedule will

be created, as well as on-line and condensed courses.

Growing the Program for Specialized, Non-credit Workforce Training – By working with

oil & gas company training managers, and by utilizing the skills of curriculum specialists, a

significant opportunity exists for the Petroleum Department to provide more non-credit

workforce training courses.

Creating a Production Maintenance Program – The curriculum for the Production

Maintenance program needs to be created, not only for a standard, 13-week schedule, but for a

“flex time” schedule, a condensed schedule, and for on-line delivery.

Funding the Faculty Endowment – Having more money available for Full-Time Faculty will

allow the College to offer competitive salaries to recruit individuals in the oil & gas production

industry.

Funding Student Scholarships / Endowments – Although student enrollment growth in the

IPT program is projected to continue, student endowments and scholarships will accelerate this

growth and mitigate the effects of low unemployment in the oil & gas industry.

o Fletcher Foundation has secured IPT student scholarships from the following companies:

BP, AT&T, and the Fourchon Oilman’s Association.

o Fletcher Foundation has also secured a $50,000 endowed scholarship for the IPT

Department, funded by BP.

3. What local, national or international grants and/or pledges has the Center received? Specifically address whether there is an ongoing, successful effort to secure major grants and partnerships to support the mission and activities of the Center, as appropriate. What is the plan for the next five years of operation to maintain and enhance the performance of the Center? What infrastructure is in place to ensure future viability?

As an ongoing effort to support the mission and activities of the Petroleum Center for Workforce Excellence, in November 2012, Fletcher hired a Director of Philanthropy and Stewardship, Ms. Jessica Thornton. Ms. Thornton is also the Executive Director of the Fletcher Foundation. Her main responsibility is managing current donors and donations, as well as cultivating relationships with new industry partners and securing funding from those companies. All academic aspects of the Center will report directly to the Vice Chancellor of Instruction; however, the Director of Philanthropy and Stewardship will oversee the philanthropic/funding efforts.

Fletcher has also recently hired Mr. Justin Robertson, whose area of expertise is technical/grant writing. He will be working closely with the Vice Chancellor Instruction, the head of the Petroleum Department, as well as the Director of Philanthropy and Stewardship, to secure local, national, and/or international grants. On the following page is a summary of received contributions/grants allocated towards the existing Petroleum Department, specifically the Integrated Production Technologies (IPT) Program:

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IPT Program - Contributions Received

Date Entity Memo Amount

9/15/2013 AT&T IPT Scholarships $20,000.00

2/13/2012 BP America, Inc. IPT Building Construction $3,000,000.00

2/13/2012 BP America, Inc. Lab Equipment ** $1,000,000.00

4/16/2013 BP America, Inc. IPT Operating $300.00

1/5/2011 BP Corporation of North America IPT Equipment/Salary/Scholarship $250,000.00

10/15/2012 BP Corporation of North America IPT Scholarship/Endowed Scholarship (50/50) $100,000.00

3/31/2009 BP Corporation of North America IPT Marketing: "60k 2yrs away" cmpgn. $10,000.00

6/1/2013 BP Corporation of North America IPT Marketing: Re-launch of "60k 2yrs away" cmpgn. $50,000.00

2/19/2010 BP Foundation, Inc. IPT Grant: Programmatic Funds & Scholarships $275,000.00

12/15/2010 BP Foundation, Inc. IPT Grant: Programmatic Funds & Scholarships $275,000.00

1/19/2012 BP Foundation, Inc. IPT Grant: Programmatic Funds & Scholarships $275,000.00

4/13/2010 ConocoPhillips Lower 48 IPT Programmatic Grant $5,100.00

7/31/2009 Entergy IPT Programmatic Funds $3,795.00

12/10/2011 Fourchon Oilman's Association IPT Scholarships $5,000.00

12/10/2012 Fourchon Oilman's Association IPT Scholarships $5,000.00

Total Contributed: $5,274,195.00

** Please note that $250,000 of the $1 million has since been re-gifted and allocated towards IPT curriculum development.

The table below outlines the plan for the next five years of operation to maintain and enhance the performance of the Petroleum Center for Workforce Excellence. The highlighted sections list the infrastructure already in place to ensure future viability.

PETROLEUM DEPARTMENT – INVESTMENT REQUEST ITEMS Items Investment Request

Phase 1

BP IPT Building $7.0 million

BP IPT Lab Equipment $1.0 million

Production Skid $2.5 million

Faculty Endowments $3.0 million

Student Endowments Scholarship $2.0 million

Curriculum Specialists $0.2 million

TOTAL Phase 1 $15.7 million

Phase 2

Production Maintenance Building $7.0 million

Production Maintenance Equipment $0.8 million

Faculty Endowments $2.5 million

Student Endowments Scholarship $2.0 million

TOTAL Phase 2 $12.3 million

TOTAL Phase 1 & 2 Request $28 million

18

4. List and describe programs under development to be offered through the Center: credential purpose, status, anticipated implementation, expected productivity and rationale for expectations. How will each contribute to the Center’s focus? Outline the plan for achieving/maintaining cutting edge instruction in all areas.

The curriculum for the Production Maintenance program will be written during the 2014 and 2015 academic year, such that Production Maintenance courses will be offered by the Fall Semester 2015. Additionally, several courses in the IPT program are also part of the Production Maintenance program and several courses currently taught at other Fletcher Divisions are also part of the Production Maintenance program. Once Production Maintenance becomes an AAS-degreed program, it must be accredited by ATMAE (Association of Technology, Management, and Applied Engineering).

The AAS-degreed IPT program has already achieved accreditation by ATMAE. Its established curriculum is listed below.

IPT Program Curriculum

Course Number Course Title Lecture Lab Total Credit Hours

Semester I IPTN 1030 Process Diagrams 2 1 3

IPTN 1050 Petroleum Computational Methods 3 0 3

ENGL 1010 English Composition I (GER)* 3 0 3

CPTR 1100 Intro to Computer Applications 3 0 3

Approved Natural Science (GER) 3

15

Semester II IPTN 1100 Applied Electricity & Electronics 2 1 3

IPTN 1310 IPT Equipment I 2 1 3

IPTN 1600 Oil & Gas Production I 2 1 3

MATH 1100 College Algebra (GER) 3 0 3

SPCH 1200 Intro to Public Speaking 3 0 3

Approved Social Science (GER) 3

18

Semester III IPTN 1210 Industrial Instrumentation I 2 1 3

IPTN 1320 IPT Equipment II 2 1 3

IPTN 1400 Fluid Mechanics 1 2 3

IPTN 1610 Oil & Gas Production II 2 1 3

IPTN 2500 Careers in the Petroleum Industry 2 0 2

Approved Humanities (GER) 3

17

Semester IV IPTN 1220 Industrial Instrumentation II 2 1 3

IPTN 1500 Offshore Safety and Compliance 2 1 3

IPTN 2000 Planning and Management 3 1 4

IPTN 2100 Deepwater Systems and Technology 2 1 3

IPTN 2200 Production Safety Systems 2 1 3

*GER: General Education Requirement

16

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In order to achieve and/or maintain cutting edge instruction and since curriculum should be continuously evolving, BP America, Inc. has re-gifted $250,000 of the $1 million lab equipment donation towards curriculum development. Fletcher Foundation has since hired a curriculum consultant, Vanderberg & Son Consulting, LLC specifically for this 2 year formal curriculum development project.

The first course in the curriculum development project, Fluid Mechanics, has been completed and implemented in the Fall 2013 semester. The second course, Process Diagrams, is currently underway and will be completed and implemented for the Spring 2014 semester.

Fluid mechanics examines the physics of fluids (liquids and gases). Therefore the course includes many challenging physics and mathematical concepts that cover the various properties and behaviors of fluid, such as velocity, pressure, density and temperature. The fluid simulation software is driven by a powerful physics engine that addresses these very same properties of fluids. To maximize the fluid simulation’s potential as the Fluid Mechanics course application, a Ph.D. engineer (course instructor) specializing in fluid control is partnering the effort with the M.S. prepared Fletcher simulation programmer. The fluid simulations are embedded into the Fluid Mechanics power-point presentations. Both students and instructor have reported greatly improved understandings and clarity of physics topics in those areas where the simulations are present.

5. How will the Center provide and promote service to the greater community? How will its existence provide opportunities to improve the quality of life of Louisiana residents?

Terrebonne and Lafourche Parishes have been deemed the oil & gas hub of the state. Additionally, over 90% of students graduating from Fletcher seek employment within the community. Fletcher continues to meet workforce demands; in turn meeting this demand will maintain the unemployment rates within the community as one of the lowest in the state.

Due to industry and student needs, plans are being written and executed to grow and enhance the Petroleum Department well beyond the existing IPT program, and to extend its reach (e.g., student enrollment, industry partnerships, and instructional programs) beyond Terrebonne, Lafourche, Assumption, St. Mary, and St. Charles Parishes and the State of Louisiana.

The demand by oil & gas companies for qualified job applicants and for supplemental employee training is fueled by the growth in U.S. oil & gas production (including deepwater production), by the impending mass retirements of the industry’s most experienced “baby boomer” employees, by technological advances in oil & gas exploration, production and safety, and by the recent and aggressive implementation of offshore regulations. With advances in technology and rapid regulatory changes, especially in deepwater exploration and production, on-the-job training is no longer sufficient, responsive or cost-effective. Thus, oil & gas companies are looking to technical and academic institutions for AAS-degreed graduates (for both their new

20

hires and experienced employees) and for customized, non-credit employee training programs, delivered via the most effective media and responsive to the industry’s nuanced workforce schedules. According to statements by oil & gas human resource executives and publication feature writers, the demand by oil & gas companies for AAS-degreed graduates will soon reach “crisis” proportions. As a result, 98% of the IPT program graduates have already secured employment with oil & gas companies. On average, their starting salary has been $60,000.

* The demand by oil & gas companies for qualified job applicants and for supplemental employee training is cited in Appendix C (www.Rigzone.com and www.ngoilgas.com)

Companies hiring Integrated Production Technologies graduates from Fletcher Technical Community College (as of December 2012):

6. How do the Center’s education, training, and/or research efforts further the economic development and workforce needs of the state? How will its programs focus on addressing current and projected workforce and economic development needs?

Demand by oil & gas companies for Associate of Applied Science-degreed job candidates and for responsive, workforce training programs is quickening. This demand is driven by worldwide growth in oil & gas production, the retirement of the industry’s highly-experienced baby boomers, rapid technological progress in exploration and production, and comprehensive regulatory compliance requirements. Approving Fletcher Technical Community College as an official Petroleum Center for Workforce Excellence will assist oil & gas companies to effectively meet this workforce demand.

At a time when baby boomer retirements are accelerating (a workforce transition known within the industry as “The Big Crew Change”), oil & gas technologies are advancing and regulatory oversight is growing, workforce replacement via on-the-job training of high school graduates is no longer a viable option. A highly experienced generation of workers is now on the verge of retirement. Additionally, current realities of sophisticated instrumentation, digital interfaces,

21

well-head control panels and multi-functional pressure transducers now require 7 to 10 years of on-the-job training for high school graduates to become technically competent production workers.

Oil & gas companies are in need of pre-qualified, pre-skilled replacement workers for “The Big Crew Change”. They are seeking educational institutions to provide deepwater current and potential employees with a training program that accommodates their unique schedules, regulatory requirements and work environments. The companies are seeking educational institutions where students and workforce trainees can go for career-relevant, regulatory-sensitive, technology-competent, and industry-responsive oil & gas instruction.

Fletcher Technical Community College is vigorously addressing these needs. The College’s Petroleum Department, with its deepwater oil & gas production focused program in Integrated Production Technologies (IPT), has initiated a plan to quickly close the gap between the oil & gas industry’s critical demand for a technologically-advanced workforce and the impending retirement of nearly half of the industry’s most experienced employees.

7. Provide evidence of collaboration with other entities: postsecondary institutions and/or

industry/private sector. Information about existing collaborations should be specific and include

examples of ongoing work, particularly as it relates to the Center’s focus. Include copies of MOU’s or

other agreements.

Industry/Private Sector: Fletcher Technical Community College has an operating agreement with Falck Alford to offer Fletcher graduating students the ability to attend Bosiet water survival and RigPass courses. Also, Shell has hired many Fletcher students as interns in the last couple of years.

As requested by Act 555, a national industry advisory board (listed on page 24) has been created to guide the strategic efforts of the Petroleum Center for Workforce Excellence. Additionally, an existing collaboration already exists with industry/private sector, through a separate programmatic advisory committee. The IPT Advisory Committee (shown on the next page) was created in the 2008-2009 academic year.

22

The table below list members of the programmatic committee.

IPT Program Advisory Committee:

Company First Name Last Name Title

Black Hawk OFS Chuck Hackett General Manager

BP Lynwood Patin Manager Houma Operations Learning Center

C & D Productions Wade Danos General Manager

Chevron Darryl Sapp Operations O&M Recruiting Team Lead

ConocoPhillips Ryan Vaccarella HSE Specialist

Danos Ricky Britt Operations Director

Danos Nicole Williams Marketing & Communications at Danos

Halliburton Glen Breerwood Sr. Service Manager

Halliburton Sustin Irvin Sr. Operational Manager

Halliburton Thomas Lowe Service Manager’s

Halliburton Suzanne Shirley HR Training Coordinator at Halliburton

Shamrock Billy Bates Vice President of Administration at Shamrock Energy Solutions,

LLC

Shamrock Paul Branch Compliance office/lead operator

Shamrock Becky McManus Training Manager

Shell Wade Danos Recruiting Lead GOM Operations

Shell David Esquidel Corporate Workforce Development

Shell Lorrainne Wells Coordinator at Shell

Examples of collaborations with postsecondary institutions include:

In addition to the cooperation with Nicholls State University and South Central Louisiana Technical College (detailed below), Fletcher has significant support from the oil and gas industry as represented by the letters of support in Appendix B.

South Central Technical Community College Fletcher Technical Community College also has a cross-enrollment agreement with South Central Louisiana Technical College. This agreement is in fulfillment of LCTCS Policy #1.036 Cross Enrollment Agreement between System Institutions.

Nicholls State University Fletcher Technical Community College (Fletcher) continues to build upon its already strong relationship with our four-year university partner, Nicholls State University (Nicholls). The relationship between Fletcher and Nicholls has been frequently cited as the “model relationship” between Louisiana Community and Technical College System (LCTCS) institutions and their four-year counterparts throughout the State of Louisiana.

Agreements have been signed between Fletcher and Nicholls that fulfill the following LCTCS policies: #1.003, Elements of Two-Year Institutional Missions; #1.016, LCTCS Cross-Enrollment Policy; #1.017, Institutional Agreements; #1.025, Articulation; #1.029, Disclosure of Degree Program Transferability; #1.032, Cross Enrollment Guidelines; and, #1.033, Enrollment Management. Examples include the completion of an official agreement between the two

23

schools initiated in November 2007, signed by the Chancellor of Fletcher Technical Community College and the President of Nicholls State University. It was then updated in July 2013. This agreement provides two major opportunities for students: 1) The Fletcher Flight Guide gives admission incentives for students who were originally denied admission to Nicholls, but wish to begin at Fletcher and then move to Nicholls after a period of time and satisfactory academic performance for transfer; 2) the Cross-Enrollment completion program offers Fletcher students the ability to declare a major at Nicholls (and become locked into a catalog).

Additionally for FY 2010-2011, Fletcher began the teaching of all developmental courses in math and English from Nicholls and actually teaches the courses on the Nicholls campus in Thibodaux. This step was in fulfillment of LCTCS Policies #1.003, Elements of Two-Year Institutional Missions, #1.016, LCTCS Cross-Enrollment Policy, #1.017, Institutional Agreements, #1.025, Articulation, and, #1.032, Cross Enrollment Guidelines.

Fletcher also has an articulation agreement with Nicholls specifically for courses from the IPT program curriculum.

Nicholls’ Petroleum and Safety Department and Fletcher’s Integrated Production Technologies program share instructors to teach courses that are available at either campus. Nicholls and Fletcher already have an articulation agreement where several of the courses taught at Fletcher transfer directly to Nicholls and others students may test out of the course.

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Petroleum Center for Workforce Excellence Suggested Advisory Board

NAME & ADDRESS COMPANY & TITLE

Mr. Richard Morrison 200 Westlake Park Blvd. P. O. Box 3092 (ZIP 77253) Houston, Texas 77079

BP Exploration & Production, Inc.

- Regional President, Gulf of Mexico

Mr. Chris John 730 North Blvd. Baton Rouge, LA 70802

Louisiana Mid-Continent Oil & Gas Association (LMOGA)

- President

Mr. James “Jim” Hutchison, Sr. P.O. Box 51439 Lafayette, LA 70505

Copestone, Inc.

- President Plains Exploration & Production Co.

- Part owner LMOGA

- Chairman of the Board

The Honorable Scott Angelle P.O. Box 1385 Breaux Bridge, LA 70517

Louisiana Public Service Commission

- District 2 member Southern States Energy Board

- State of Louisiana representative

Ms. Christina Sistrunk 910 Louisiana St. Houston, TX 77002

Shell Exploration & Pipeline Co.

- Vice President of Production, Gulf of Mexico Region

Mr. Stephen Bohnet 600 N. Dairy Ashford Houston, TX 77079

ConocoPhillips Co.

- Manager of Development

Mr. Hank Danos P.O. Box 1460 Larose, LA 70373

Danos CEO and President

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LIST OF ATTACHMENTS / APPENDICES:

1. Appendix A a. Letter of Support by Industry

2. Appendix B

a. Postsecondary Institutions MOU’s and agreements.

3. Appendix C a. www.rigzone.com article b. www.ngoilgas.com article

** IPT Program Business Plan is available upon request.

Petroleum Center of Excellence

Office: 985.851.1084 Fax: 985.851.1854

Issued By SAP

Date 05/16/2013

P.O. Box 20218 Houma, LA 70360

May 16, 2013 Chancellor F. Travis Lavigne, Jr. Fletcher Technical Community College 1407 Highway 311 Schriever, LA 70395 Chancellor Lavigne: This letter is written in support of the Petroleum Center of Excellence application by Fletcher Technical Community College to the Louisiana Community and Technical College System. Black Hawk Oilfield Services, LLS has been an active partner with Fletcher since 2012, and we continue to be pleased with the quality of graduates from your college entering the oil and gas workforce. Given the critical needs of the oil and gas industry for trained employees, your application for the Petroleum Center of Excellence designation is very important to fulfilling the workforce needs of our industry, as well as, the goals and objectives for economic development in the State of Louisiana. We look forward to our continued work with Fletcher upon official designation as the Petroleum Center of Excellence and expansion of the critical workforce programs to meet the needs of the oil and gas industry. Sincerely,

Chuck Hackett General Manager Main: 985.851.1084 Cell: 337.522.1975 www.blackhawk-ofs.com

BP 1597 Highway 311 Schriever, La. 70395

05/16/2013 Chancellor F. Travis Lavigne, Jr. Fletcher Technical Community College 1407 Highway 311 Schriever, La. 70395

Chancellor Lavigne:

This letter is written in support of the Petroleum Center of Excellence application by Fletcher Technical Community College to the Louisiana Community and Technical College System. BP has been an active partner with Fletcher since 2008, and we continue to be pleased with the quality of graduates from your college entering the oil and gas workforce. Given the critical needs of the oil and gas industry for trained employees, your application for the Petroleum Center of Excellence designation is very important to fulfilling the workforce needs of our industry, as well as, the goals and objectives for economic development in the State of Louisiana. We look forward to our continued work with Fletcher upon official designation as the Petroleum Center of Excellence and expansion of the critical workforce programs to meet the needs of the oil and gas industry. Sincerely, Lynwood J. Patin Manager Houma Operations Learning Center BP

2/2/2013 http://www.ngoilgas.com/article/No-Time-to-Waste-Getting-Ready-for-the-Baby-Boomers-Exit/

Appendix C

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College graduates are a hot commodity in the oil and gas industry. As demand for oil and gas continues to rise, the industry looks to the next generation of geoscientists and engineers to solve the energy issues of tomorrow. Through advanced internship programs, concentrated college recruitment campaigns, extensive training curricula and open-communication mentoring, oil and gas companies are ensuring the future of the industry.

There are a number of reasons why the need is so great for new talent in the oil and gas industry. First of all, the demand for oil and gas is only increasing. In fact, the Energy Information Administration (EIA) reported in its International Energy Outlook for 2008 that worldwide energy consumption would increase by 50% from 2005 to 2030. Even with higher oil prices, the 25-year projection sees fossil fuels remaining the No. 1 source of energy for the world through that time period.

Additionally, the oil and gas industry, like many others, is experiencing a natural attrition of senior-level employees, as the Baby Boomers retire. This massive retirement of top-level employees is forcing the industry to develop extensive mentoring and training programs designed to promptly promote employees through the system.

oilgrads sponsor

Finally, oil and gas isn't as readily accessible as it was in generations past. Production requires substantially more technologies in order to tap hydrocarbons. Companies are drilling deeper, in deeper waters and less hospitable environments, in order to reach oil and gas today. Production methods are continually being improved upon to increase recoverable reserves, and refineries worldwide are updating and expanding in order to increase processing capabilities.

"Recent college graduates are entering the energy industry at the best possible time," said Valencia Amenson, staffing manager for El Paso Corp. "With a large number of experienced workers about to retire and a national debate on energy supply/demand, there is a strong need for new talent to help find new sources of energy."

Not only are recent-grads entering the oil and gas industry at the perfect time, they're guaranteed a lifelong career. The world's insatiable need for energy ensures that engineers and geoscientists have their work cut out for them. According to the US Bureau of Labor Statistics, both geoscience and engineering are burgeoning industries, offering long-term careers.

The Occupational Outlook Handbook for 2008-09 reports that employment growth for geoscientists is expected to increase by 22%, saying "employment is also expected to increase in the oil and gas extraction industry." Engineers are also expected to see career growth with an increase of 11%.

Internships

Both a pipeline for companies to recruit college graduates and a way to educate students about the industry in general, internships are an integral part of recruiting the next generation of oil and gas employees. Here, upper-level college students are exposed to a number of learning situations, and the company is able to observe the productivity and promise of potential employees.

2/2/2013 http://www.ngoilgas.com/article/No-Time-to-Waste-Getting-Ready-for-the-Baby-Boomers-Exit/

Similar to scouting in baseball, internships allow companies to determine which students will fit best within their team. Many companies have developed intricate internship programs, hiring directly out of these pools of students after they graduate.

Nearly 80 students completed a summer internship at El Paso in 2008 - many of them getting offers for full-time employment after graduation. Next summer, the company plans to increase the number of students.

"Our goal for 2009 is to have 100 summer interns participate in our EP Elite Summer Intern Program, primarily focused on Engineering (Civil, Electrial, Mechanical and Petroleum), Land, Geoscience and other important disciplines, such as Environmental/Health & Safety, Supply Chain Management, Accounting, Finance, Information Technology, and Human Resources," explained Amenson.

College Recruiting

College recruiting incorporates a number of different strategies for different companies, but most college recruitment campaigns include on-campus interviews as well as career fair attendance, meeting sponsorships, job board listings and advertising.

Most companies will focus on a few colleges where they are going to funnel most of their recruiting efforts. Reasons for targeting different universities can vary - and many times takes into account a number of different reasons. Top engineering and geoscience schools are obviously big attractions, but geographical proximity can also be a reason for recruiting out of a school.

Students are given multiple occasions for meeting with and getting to know companies better. Recruiters set up a number of ways to meet with top students - from informational sessions to sponsorship opportunities; and interviews and networking opportunities are many times conducted on campus to make it easier on the students.

"We continue building strong relationships on campus directly with students, through student organizations, and with faculty members that allow us to collaborate with and engage students pursuing engineering studies," said Amenson of El Paso's college recruiting efforts.

Amenson describes El Paso's college recruiting campaign as "aggressive," adding that successful recruiting of petroleum, mechanical, metallurgical, environmental, project management, chemical, electrical and civil engineers is "pivotal to the success of our pipeline and exploration and production businesses for at least the next five to 10 years."

Training

Recruiting new hires is just a slice of the equation when it comes to attracting the next generation of oil and gas employees. Keeping them is just as important to the future of the industry. Retention is key to success, and proper training helps to ensure that newly hired employees remain with the company to become senior-level management.

Training differs throughout the industry, but most companies recognize that retention is higher when an employee understands the total workings of the company, understands his/her place in the grand scheme of things. To do this, many companies have developed training programs that rotate the new hire through the system in order for him/her to see every aspect of what the company does. At the end of the training program, both the employee and the company have a better idea of where he/she will fit best.

El Paso, for instance, offers newly hired employees department-specific training programs. The company's pipeline engineering department provides an 18-month rotation program named "REDI" for Rotation, Exposure, Development and Interaction. Here, employees rotate through host departments in an effort to provide a broad education and a variety of exposures within the company. In the same vein, El Paso's Geoscience Development Program combines both classroom and hands-on training with a geoscience engineering team.

Similar training programs exist for general engineers and landmen. Each program spans at least a year and encourages exposure to a number of disciplines, training both in the classroom and in a hands-on environment.

Mentoring

Beyond the classroom, one of the ways that companies are ensuring that recent graduates are learning exactly what they need is through mentoring. This way, soon-to-retire members of the team can impart their years of experience on incoming employees.

"Our Leadership Unplugged sessions expose students to executive management to discuss and explore leadership issues and career advice and suggestions," said Amenson. "Those sessions provide an opportunity for the students to network, build relationships, throughout team El Paso, and learn life lessons from our executive leaders."

Not all companies make their executives available for mentoring, but many do make sure that their incoming employees are tapped into and learning from the more experienced staff. If newly hired employees can grasp a concept more quickly or learn to perform a task more efficiently by working alongside their more-experienced peers, the company - and the industry as a whole - is more successful

2/2/2013 http://www.ngoilgas.com/article/No-Time-to-Waste-Getting-Ready-for-the-Baby-Boomers-Exit/

Appendix C

By AIKhakoo

RWD I www.rwd.com

E ven as the energy industry comes to grips with the challenges of wresting oil and gas from ever more difficult

environments, another huge challenge is under way that many organizations may seriously underestimate.

It's no secret that a seismic shift is about to occur in the energy industry's other most important resource-its technical and

managerial workforce. An entire generation of highly experienced operators, engineers and managers is starting to hang up

their hard hats and head off into retirement. In another decade most of the baby boomers will be gone, up to 85 percent of

them. Many upstream organizations think they're prepared to handle this gigantic outflow of experienced people. They're

betting that what worked before will work again. They believe that more training for existing workers and more new hires will

provide them with enough talent to meet the demands of energy exploration and production in the years ahead.In fact, it's

going to take a lot more than the same old solutions.

Issues that seem almost impossible

Some of the issues presented by this generational transfer are substantial and-on the face of it-seem almost impossible.

Here are a few of them.

• It takes seven to ten years to take a new hire and train him or her to become, for example, a fully qualified operator.

Considering that many older workers are starting to retire now, these numbers paint a grim picture: There's simply not

enough time over the next decade or so to get enough qualified, seasoned people into the jobs vacated by departing

workers, if enterprises rely on current methods to bring people up to speed.

• The advent of computerized sensor and control systems throughout the industry has created certain efficiencies. But the

people who sit at those monitors need a level of sophistication and responsiveness never before seen. Traditionally, this

only comes with years of seasoning and experience.

• In general, the industry doesn't have methods in place to accurately measure how qualified an individual may be in a job

that requires some sort of mastery. Subjective assessments are the norm. But without actual metrics, it's difficult to know

where your operators, engineers and managers stand, much less where they need to go.

• In coming years, organizations will face critical challenges in managing their training programs. The margins for error will

be much smaller than they're accustomed to. Training will have to be managed as rigorously as any other critical

process.

• While people with solid resumes are available to fill the vacated positions in many regions of the world, they have neither

grown up with-nor been trained in-the independent reasoning and decision-making that these demanding jobs often

require.

Methodologies for success

From our perspective as training and process improvement consultants, we believe there are four key action areas that

organizations ought to consider, in order to succeed in dealing with the loss of their most experienced workers. Of course,

one size doesn't fit all. And some of these efforts require a willingness to adopt transformational change. These areas cover

a broad array of methodologies that can reduce the pressure on remaining staff and enhance the enterprise's ability to

No Time to Waste: Getting Ready for the Baby Boomers' Exit - IT & Communications - NG Oil & ... Page 2 of 3 Process; People; and Technology.

Organizational Change may represent the most significant undertaking that upstream enterprises can consider as they

adapt to the new reality. To many, it may sound like overkill. But in order to initiate and achieve the HR and training

transformations that are necessary, the organization has to be supportive and committed. Nominal, superficial gestures

won't do the job.

For instance, there may need to be consideration of the governance structure. Does the organization have enough senior

managers and supervisors? Or too many? Do geographic regions operate as part of a centrally-controlled, autocratic

organization? Or do they function as autonomous units, responsible primarily for hitting their numbers? Are divisions and

units aligned so that they're not working at cross-purposes? So that, in fact, they're helping each other (where appropriate)

and supporting the enterprise through the coming difficult years? To illustrate this last point, consider one common example:

The relationship between Operations and Maintenance. Historically, they tend to have priorities that can be at odds.

Process is typically an arena that presents many opportunities for improvement. There can be multiple layers of processes

that have accreted over the years or decades which no longer produce the value they once did or may, in fact, subtract

value. For example, companies make acquisitions; and those acquisitions come with their own procedures. If these legacies

are found wanting, and left in place too long, they may create inefficiencies that put a burden on staff that is already

overburdened by loss of experienced personnel. There are almost certainly better ways to do things now.

For the improvement of existing processes, we're living in something of a golden age. Application of the Toyota Production

System and other parts of the Lean Improvement toolkit are just as capable of helping the upstream segment of the energy

industry as they have been for manufacturing, healthcare and other industries. Almost any process can benefit from Lean

assessment and improvement-improving productivity and safety, and ultimately enhancing ROI, and reducing staffing

pressures.

People make the enterprise go round. And though it may be stating the glaringly obvious, how the enterprise utilizes them in

coming years is central to success. All sorts of questions must be answered. How accurately are new hires and existing staff

being assessed? Do you have real metrics on your people? Are the right people in the right positions on the right career

paths? Does the training that they receive produce the accelerated outcomes that the enterprise will require? Traditional

training will no longer do the job.

Technology may be essential in the coming generational changeover, but it's not a panacea. The new leading-edge

hardware and software all come with their own competency and performance challenges. And unless those challenges are

properly addressed, the technology will not produce the results that enterprises have to achieve. Existing technologies have

to be analyzed in order to extract the most value. Likewise, new technology ought to be carefully studied before its

acquisition, and have the best possible training purchased or created to support it. It's important, as well, to consider how

people receive and handle information; how people make decisions. Do they have the right platforms, information and

systems to do their jobs under ever more challenging conditions?

Forward-looking approaches required

Millions of man-years of hard-earned experience are going away. And making up for this loss in anything approaching a

reasonable time frame is only possible through new business models...new training processes...new technologies...and an

attitude readjustment. It will require real risk-taking, real adventures outside of the comfort zone. Those who fail to adopt

forward-looking approaches will be left with a deficit in the talent that it takes to manage, operate and maintain today's

sophisticated energy-exploration and energy-production facilities.

Fortunately, it's not too late to take action. Help is available through consultants such as RWD. Training and process

improvement experts from RWD can assess upstream operations and staffing, create plans for transformation and help put

No Time to Waste: Getting Ready for the Baby Boomers' Exit- IT & Communications- NG Oil & ... Page 3 of3

be prepared to thrive in the post-baby boomer era of energy production.