September-October 2011 - Kansas Independent Oil and Gas

Transcription

September/October
2011
The Challenge of Energy Policy
O
Explored at 2011 KIOGA Annual Convention
ver 800 participants from oil and gas exploration and
production companies, service and supply companies, financial institutions, and government agencies
converged on Wichita for the KIOGA 74th Annual Meeting and
Convention held August 21-23, 2011 at the Hilton Wichita
Airport. Also, over 45 exhibitors filled the convention hall for
a well attended event. Many legislators, government officials,
dignitaries and business leaders from around the nation
joined in the convention including U.S. Senator Jerry Moran,
U.S. Congressman Tim Huelskamp, U.S. Congresswoman
Lynn Jenkins, Kansas Governor Sam Brownback, Kansas
Attorney General Derek Schmidt, Kansas Secretary of
Commerce Pat George, Kansas State Treasurer Ron
Estes, Kansas Securities Commissioner Aaron Jack, KCC
Chairman Mark Sievers, KCC Commissioner Tom Wright,
KCC Commissioner Ward Loyd, Kansas House Majority
Leader Arlen Siegfreid, 19 state representatives, and 7
state senators, 17 state agency officials, and other special
guests. Several media outlets covered the convention including the Wichita Business Journal, Wichita Eagle, American
Oil & Gas Reporter, The
Territorial Magazine,
Splurge Magazine, KSN TV
Wichita and Eagle Radio.
The
Chairman’s
welcome
reception
kicked
Chairman................. 2
off the convention where
the group was entertained
Congress...................6
by the music of Cool Blue.
KIOGA O&G Tour.....12
The KIOGA Convention
Committee, led by George
Legislative Session..14
Strecker, once again
developed an outstanding
Message from
program
offering
President.................18
excellent speakers, a
wide variety of exhibitors,
Hydraulic Frac.........22
and
entertainment.
Convention
Coordinator,
Energy Tax Policy....28
Kelly Rains, did an
Communication
outstanding job organizing
the logistics.
A great
Priorities..................32
deal of teamwork made
this year’s convention an
overwhelming
success.
Convention participants were able to share ideas, network
with peers, participate in thought-provoking sessions, and
hear updates on KIOGA’s associational activities.
Keynote Speakers
Keynote Speakers at the KIOGA 74th Annual
Meeting and Convention were Bill Snyder and J.C.
Watts, Jr. Snyder is the Head Football Coach at Kansas
State University. The architect of the “greatest turnaround
in the history of college football” Bill Snyder returned
to lead the Kansas State University football program
in 2009 after 17 ultra-successful seasons as the head
coach from 1989-2005. Watts is a former University of
Oklahoma quarterback, former Oklahoma Corporation
Commissioner and former Oklahoma Congressman. After
leaving Congress in 2003, Watts established a lobbying
consulting firm, served on corporate boards, and worked
as a political commentator. He is currently Chairman of
JC Watts Companies, a corporation devoted to executing
market development, communications, and public affairs
strategies with its partners, customers, and clients.
Snyder shared his views on what it takes to be a
leader and presented strategies for leading during times
of great change. Snyder said that one
of the most important things for success
was to “involve yourself with people
who genuinely care about you, people
who truly want to make your life better.”
Snyder said he advised students to
focus on their faith, their family, and
being the best person they can be;
set goals based on these priorities; develop a plan for
achieving these goals; and persevere when they encounter
roadblocks. Snyder said that success was about gradual
improvement.
Watts said Washington is a place where one
administration can create problems
for the next 15-20 years. He said it
was important to fight for good social
and cultural policies that have the
right values and principals. Watts
said we need policies that create
...continued on page 8
MESSAGE from the CHAIRMAN
Dear KIOGA Member,
I
am honored and humbled by the opportunity to serve KIOGA and our great industry
in this unique way. Since its founding in 1937, KIOGA has steadfastly protected and
advanced the interests of the Kansas independent oil and gas industry. The diligent
protection and advancement of our industry will continue to be KIOGA’s primary mission
and charge in today’s challenging environment – an era marked by great economic and
political uncertainty and by a growing blanket of aggressive federal regulatory activity.
Of particular concern to our industry are a host of economic, regulatory and
tax-related issues that potentially affect every facet of our exploration and production
activities. These concerns most prominently include:
•
Dwight D.
Keen
Chairman, KIOGA
•
The impact of turbulent international and domestic political and macroeconomic events upon our country’s economic well-being and upon the
key supply and demand determinants for crude oil and natural gas;
The Obama administration’s punitive tax proposals which, if enacted, would
eliminate or repeal virtually all federal oil and gas tax deductions and incentives and would have a significant effect upon domestic investment activity
and industry job creation. In essence, these politically targeted deductions
represent the equivalent of normal business deductions granted to virtually
all other U.S. industries – albeit occasionally under different titles, names or
captions. The tax deductions for intangible drilling costs and percentage
depletion are neither loopholes nor subsidies. Rather, these deductions are
forms of capital recovery or methods of accounting for capital expenditures
and are closely analogous to the depreciation deductions allowed for commercial real estate.
I contend that for a nation to try to tax itself into prosperity is like a man
standing in a bucket and trying to lift himself up by the handle. – Winston Churchill
2
•
The ongoing, unsubstantiated and unjustified criticism of hydraulic fracturing where proposed federal legislation would, if enacted, have EPA
regulation of hydraulic fracturing pre-empt or replace state oversight and
enforcement -- all of this, if you will, for a proven environmentally safe
technology that has been utilized by the industry since the late 1940’s;
•
OSHA’s far-reaching flame retardant clothing rule – a rule implemented
without the benefit of a public hearing or a public comment period;
•
The proliferation of broad regulatory and rulemaking activities by the Environmental Protection Agency (EPA) including:
1. Proposed new air emissions standards for oil and gas drilling operations
and for emissions and leaks from equipment at gas processing plants;
2. Proposed air toxic standards for oil and gas production facilities –
potentially including emissions from wells and storage tanks;
3. Proposed air toxic standards for natural gas transmission and storage
facilities;
4. Potential EPA greenhouse gas regulations; and
5. EPA consideration of a petition from the Natural Resources Defense
Council requesting that oil and natural gas drilling fluids and produced
waters be regulated by the EPA under the Federal Resource Conservation
and Recovery Act.
For more information on advertising
in the newsletter,
KIOGA thanks the following companies for
their support though advertising in
our newsletter.
Please contact the KIOGA office:
PHONE: 316-263-7297
AdvertiserPage
Basic Energy Service 17
Central Power Systems
29
Coffeyville Resources
28
Duke Drilling Co.
17
Evenson Auctioneers
27
Hartman Oil
10
IHS
35
Jayhawk Oilfield Supply
34
JB Ranch
12
Kimray
13
KOGRF
19
Lockhart Geophysical
27
Melland Engineering
24
Murfin Drilling Co., Inc.
12
Paragon Geophysical Services, Inc.
Polymer Services, LLC
5
FAX 316-263-3021
E-Mail - [email protected]
Be part of the KIOGA Express
Have up to the minute news and and
information on our
email express.
If you are not getting the email alerts
and would like to be added to the
list, please send your email address
to:
[email protected]
25
Rainmaker Sales, Inc.
9
SCO-JO
4
Tidelands Geophysical
24
Tim Miller Oilfield Sales
34
The Independent Oil & Gas Directory 17
Oil Field
Gas Field
Oil and Gas Field
3
KBA/KIOGA
Oil & Gas Conference
Coming October 21st!
M
ark your calendars for Friday, October 21, 2011 for
this year’s KBA/KIOGA Oil & Gas Conference. The
conference will be held at the Hyatt Regency Hotel
located at 400 West Waterman in Wichita.
In order to keep abreast of legal issues that regulate
the oil and gas industry, the Kansas Bar Association (KBA)
and KIOGA are coming together for the 36th year to offer
continuing legal education (CLE) seminars approved for
CLE credit in Kansas.
Several topics of interest to oil and gas producers
will be presented at this year’s meeting including issues
and concerns associated with horizontal drilling in Kansas
by David E. Bengston (Stinson Morrison Hecker LLP in
Wichita), John G. McCannon, Jr. (Kansas Corporation
Commission in Wichita), and Timothy E. McKee (Triplett
Woolf & Garretson LLC in Wichita), a presentation
reviewing potential refinements and redefinitions in lease
provisions for the realities of resource play operations by
John W. Broomes (Hinkle Law Firm LLC in Wichita),
and Amy D. Flaming (National Cooperative Refinery
Association in McPherson). John G. Pike (Withers
Providing Complete Land Services
Complete Environmental Compliance
• Lease & ROW Acquisition
• Mineral & HBP Ownerships
• Curative • Project Management
• S.P.C.C. Plans • Tier II Reports
• Annual Inspections
• Products & Supplies • Field Eng.
Ofc (405) 340-5499
Fax (405) 720-9449
4
Gough Pike Pfaff & Peterson LLC in Wichita) will
discuss issues related to division orders. A discussion
of accommodation issues and exploration of Kansas law
pertaining to surface rights granted to oil producers under
oil and gas leases and Kansas law pertaining to rights
granted to wind energy developers under wind farm leases
and easements will be presented by David W. Nickel
(Depew Gillen Rathbun & McInteer L.C. in Wichita) and
Steven Gough (Withers Gough Pike Pfaff & Peterson
LLC in Wichita). The conference will open with a
presentation by Professor David E. Pierce (Washburn
University School of Law in Topeka) examining what
the courts have done to oil and gas law recently. The
conference will close with a presentation from Edward
P. Cross (Kansas Independent Oil & Gas Association
in Topeka) examining hydraulic fracturing regulatory and
policy considerations across the nation.
The conference has been approved for 7.0 hours
of continuing legal education (CLE) credit. Make plans to
join us on October 21st to share ideas, network with peers,
and participate in thought-provoking seminars.
Website:
sco-jooilandgas.com
Newsline Update
(316) 269-5464
Line 1Ed Cross, KIOGA President - Ed will discuss the biggest challenges the oil and gas industry is facing at this time.
Line 2 Chris Tucker, Energy in Depth - Chris will talk about regulatory and policy considerations
associated with hydraulic fracturing.
Line 3Tom Ward, Chairman & CEO of SandRidge Energy - Tom will talk about the “game changing” new horizontal oil play in the Mississippian Lime.
Line 4 Dr. Malcolm Harris Sr., Professor of Finance at Friends University in Wichita - Dr. Harris will
talk about the threat to the U.S. dollar from our nation’s chronic balance of payments deficity and
the role of energy in that threat.
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5
Congress Returns to Washington
C
Oil & Gas Tax Provisions Remain a Target
ongress returned to Washington after Labor Day to
begin session with the Obama Administration and a
number of Democratic Congressional members calling
on Congress to target oil and gas tax provisions as a way to
raise revenue. Such proposals would strip essential capital
from U.S. oil and natural gas investment. These punitive
tax proposals would serve to reduce investment in U.S. oil
and natural gas production by 20% to 40%. At the same
time they could drive down U.S. oil production by 20% and
natural gas production by 12% potentially killing thousands
of jobs. These proposals would result in an estimated direct
loss of oil and natural gas investment of over $140 million
annually in Kansas and would have an estimated $4.3 billion
negative impact on the Kansas economy within four years
of enactment. These tax provisions are important to small
independent oil and natural gas producers and royalty owners. Independents produce 92% of the oil and 63% of the
natural gas in Kansas. KIOGA continues to take the concerns of Kansas independent oil and natural gas producers
directly to those in Congress and is working hard to voice
industry’s concerns and educate policymakers, media, and
the public on the reality of these proposals.
Federal Debt Ceiling Agreement
The federal debt ceiling debate last August
highlighted the legislative dysfunction in Washington
and suggests fiscal dynamics going forward will be more
challenging. The oil and gas industry avoided damage
in the federal debt ceiling agreement, but vulnerability
continues as Congress begins work on tax reform. In a last
ditch effort to increase the federal debt limit, congressional
leaders and the White House came to agreement through
bipartisan compromise on a bill that raises the debt ceiling
and reduces the federal deficit by $2.4 trillion. The U.S.
House of Representatives passed the measure 269 to 161
on August 1st and the Senate passed the measure 74 to
26 on August 2nd. The bill was sent to the White House
where President Obama signed it into law. The first phase
of the debt plan requires Congress to cut spending by
approximately $1 trillion over the next decade. In addition,
the debt deal set up a 12-member joint congressional
committee “Super Committee” that is tasked with trimming
the deficit by another $1.5 trillion. Although no new taxes
are on the table under the debt ceiling legislation, several
Democrats are calling on the debt panel to target the oil
and gas industry’s tax provisions as a way to raise revenue. While we dodged a bullet with the debt ceiling deal, we can
expect oil and gas tax provisions to continue to be targeted
as the debt panel looks for ways to raise revenue and cut
$1.5 trillion from the deficit.
What’s Going to Happen to Industry’s Tax Provisions?
6
Republican leaders in both the House and Senate
have stated publicly that they have not appointed members
to the super committee who would favor raising taxes. By
doing so, taxes would theoretically be off the table. However, there is some wiggle room. It is possible that
this super committee could recommend revenue-neutral
tax reform that lowers personal and corporate tax rates
and eliminates deductions to pay for this in a way that
does not raise the total amount of taxes collected by the
government. Also, it is possible that the committee could
end “loop holes” in the tax code to help reduce the deficit but
leave corporate and personal rates where they are so that
they could claim that no one had their tax rates go up. Under either of these scenarios, items like percentage
depletion and intangible drilling costs (IDCs) could be on
the chopping block. Thus, it is imperative that KIOGA
continue to aggressively tell our story about the jobs our
industry supports and that we distinguish ourselves from
the major integrated oil and gas companies. It is possible
that Congress could end deductions for the majors and
leave independents alone entirely. The majors continue to
work to protect their tax provisions and we must continue
to work to protect our tax provisions. KIOGA has a strategy
for protecting critical oil and gas tax provisions and key
to that success is timing and the significant positive
relationships we have developed with key Republican and
Democrat policymakers. Our challenge in this debate is
to make sure they all realize the importance of keeping
the capital that we all use to drill wells, create jobs and
provide the energy America needs from being sacrificed
by the repeal of the percentage depletion allowance or
IDCs. KIOGA is focused on this mission and work with
Democrats, Republicans and Tea Party members alike in
explaining this message. What is KIOGA Doing?
During 2011, KIOGA President Edward Cross has
worked with our Oklahoma and Texas colleagues to visit 22
Senators and 32 Representatives. Many key U.S. Senators
and Representatives are looking more and more to our group
for guidance on sensitive energy issues including oil and
gas taxes. When we meet face-to-face with congressional
members and explain our message, most are supportive. We are becoming increasingly more productive. KIOGA
has been and will continue to emphasize to policymakers
that the Obama Administration’s proposal to raise energy
taxes is predicated on three false suppositions: 1. Taxing oil
companies will bring down the price of gas, 2. Washington
needs more money, and 3. Oil and gas producers are the
recipients of government subsidies. Of course, we know
none of these presumptions are true. We will continue
to explain the detrimental impact that repealing normal
business deductions, mischaracterized as subsidies by
the Obama Administration, would have on American oil
and gas production and ultimately economic recovery
and future growth of the American economy. KIOGA has
developed a number of fact sheets and other educational
materials we provide policymakers and staffers.
Congress...continued from page 6
Meeting with House Speaker John Boehner - A number
of Kansas producers joined some of our colleagues from
Oklahoma, Texas, California, Montana, and Illinois to meet
with U.S. House Speaker Boehner in Wichita on August
29th to discuss the importance of oil and gas tax provisions
(namely percentage depletion and intangible drilling costs)
to small independent producers. Speaker Boehner was
frank and honest in his comments. Speaker Boehner
seemed open to the idea of lowering the corporate and
personal tax rate in exchange for elimination of deductions. Boehner’s comments reflect what we hear as we walk halls
and talk about our issues in Washington where we find
strong sentiment among Republicans and Democrats for
tax reform. He also said President Obama is determined to
rid the oil and gas industry of perceived special tax deals. Speaker Boehner was not optimistic the “super committee”
could produce a tax reform package by November 23rd,
but might come up with suggestions for further reducing
the federal deficit or could possibly suggest directing the
tax writing committees to do something by mid 2012. The
Speaker’s comments suggests that our strategy
to continue to explain to Republicans and Democrats how
a lower corporate and individual tax rate in exchange for
the elimination of percentage depletion and IDCs doesn’t
work for us or for America because of the lost jobs and lost
revenue that would result is on the right course. All the
producers present did an outstanding job of driving that
message home as each producer was able to share with
the Speaker what percentage depletion and IDCs mean to
them and their business.
What is our impact? - KIOGA began in 2009 with a
strategy to build positive relationships with Democratic
Senators from oil producing states and began building
such relationships with 11 Democratic Senators. In
2010 we expanded that to include both Democrat and
Republican policymakers and visited 25 Senators and
41 Representatives. In 2011, we have had discussions
with 22 Senators and 32 Representatives. Many key
U.S. Senators and Representatives are looking more and
more to our group for guidance on issues impacting the
small businesses that make up the independent oil and
gas industry. We have gotten the undivided attention of
a number of key Democratic and Republican members
of the U.S. Senate. Our efforts helped keep oil and gas
tax provisions out of the federal debt ceiling agreement
and helped stave off attempts to impose federal hydraulic
fracturing regulation. In short, we are making a difference! The outcome of our latest efforts in Washington indicates
we are becoming increasingly more productive.
KIOGA Actions Moving Forward
The first phase of deficit reduction included in
the package sent to President Obama on August 2nd did
not include any new tax revenues so our tax provisions
(percentage depletion & IDC’s) were preserved. However,
the bill passed by Congress did set up a second round of
deficit reduction to be undertaken by the super committee
before Thanksgiving. The 12 members of the bipartisan
committee are Representatives Clyburn (D-SC), Van
Hollen (D-MD), Becerra (D-CA) Hensarling (R-TX), Camp
(R-MI), Upton (R-MI) and Senators Kyl (R-AZ), Toomey
(R-PA), Portman (R-OH), Murray (D-WA), Baucus (DMT), and Kerry (D-MA). KIOGA has met with 10 of the 12
members of the super committee. The super committee
will be on a fast track and whatever recommendations it
makes cannot be amended by the House or Senate and will
require only a majority of each house (not 60 votes in the
Senate) to be approved. If the committee is deadlocked or
if Congress does not approve its recommendations by the
end of the year, a total of $1.2 trillion in across-the-board
cuts (50% on domestic discretionary spending and 50% on
national defense, veterans, homeland security and foreign
aid) will take effect starting in January of 2013. The theory
is that these across the board cuts will be so draconian
that this will force the bipartisan committee and Congress
to adopt cuts in entitlement programs and increases in
tax revenues. Thus, it is imperative that KIOGA continue
to aggressively tell our story about the jobs our industry
supports and that we distinguish ourselves from the major
integrated oil and gas companies.
Politically, Democrats can’t afford to lose the large
number of hardcore Democrats who are avidly opposed
to any cuts in entitlement programs like Medicare and
Social Security. They intend to use cuts the Republicans
want to make in entitlements as their major issue in
the 2012 elections. President Obama is trying to scare
Americans into believing that reforming Social Security
and Medicare puts their benefits into jeopardy. The
President has even proclaimed that we won’t be able to
pay our troops. In the past, President’s have used their
office to inspire confidence. President Obama’s ineffective
leadership has created dangerous uncertainty with many
consumers as well as the market. Republicans can’t afford to go into the 2012
elections having raised revenue (taxes). The tax issue is
their issue in the 2012 elections and it appears that under
no circumstances will they give it up.
Members, primarily in the House, who were either
elected by or are in sympathy with the “Tea Party” movement
believe they have a mandate from the electorate to rein in
spending at all costs and so far are refusing to budge on
anything short of major cutting of government spending.
Our challenge in this debate is to make sure they
all realize the importance of keeping the capital that we
all use to drill wells, create jobs and provide the energy
America needs from being sacrificed by the repeal of the
percentage depletion allowance or IDCs. We are focused
on this mission and work with Democrats, Republicans
and Tea Party members alike in explaining this message.
We are producing results. Many Democrats will be
on the side of U.S. Domestic independents keeping the
capital we need to produce the energy, jobs and the economic
7
2011 KIOGA Convention...continued from page 1
opportunities for people to work and you get them by
creating an environment where independent producers
can drill more wells, and an environment where people
will risk their capital to create more jobs and opportunities.
Watts shared his view that increasing costs to businesses
with more taxes, more regulation, and more litigation
results in passing along those costs to the consumer.
Watts said “The Democrats think you can sink the
captain’s quarters without sinking the crew’s quarters.”
Watts encouraged independent producers to get involved
in the political process saying “The Republicans in the
House of Representatives are the only barrier keeping the
oil and gas industry as we know it from being shut down.
Give them the information they need to understand your
industry, the funds they need to fight for the truth, and the
votes they need to stay in office.”
Kansas Governor Sam Brownback addressed
the convention by praising oil and gas producers’
contribution to the state economy and outlined his approach
to job creation. “We are working on ways
to put our tax code in a more pro-growth
position,” said Brownback. “We will be
putting out proposals for ways that we
can generate the revenue this state needs
in a more pro-growth position so we can
create private sector jobs.” Brownback
said the state must continue to cut its costs
saying that “Almost half the state budget is
federal pas through money, and that number is going to
come down. We need to be prepared.”
KIOGA Board of Directors and General Membership
Meeting
8
The KIOGA Board of Directors and General
Membership Meeting featured an update on association
activities including governmental relation activities in
Topeka and Washington, federal and state legislative and
regulatory update, review of primary and general elections,
update of ongoing association public information program
activities, and more. Dick Schremmer, outgoing KIOGA
Chairman, welcomed the board. Mike Cantrell, President
of the Domestic Energy Producers Alliance, informed
the board about the collaborative effort of the Domestic
Energy Producers Alliance (DEPA) and how DEPA helps
KIOGA and other collaborative associations enhance
their impact in Washington. David Nickel updated the
board on ongoing Kansas mineral severance tax audit
issues. Steve Dillard provided an informational update
on the wind development issues emerging in Kansas.
Jon Callen summarized the progress of the Kansas
Oil & Gas Resources Fund (KOGRF) public information
efforts. Edward Cross, KIOGA President, reported to
membership on KIOGA’s federal and state legislative and
regulatory activities, communication challenge, advocacy
strategy, and summarized the progress of KIOGA’s public
information efforts and initiatives.
The board elected a new Chairman, new members
to the Board of Directors, and new Advisory Board
Members. Dwight Keen, President of Keen Oil Company
in Winfield was elected the new Chairman, succeeding
Dick Schremmer of Bear Petroleum, Inc. in Haysville who
completed his two-year term as Chairman. See article in
this newsletter for more information.
Technical Sessions
Nearly 500 participants heard technical presentations
made during the Conference. The morning technical
session saw an overflow crowd of over 300 listen to panelists
discuss how the decisions of the Obama Administration
impact oil and gas producers and the economy. The
panel discussion titled “Energy Policy Challenges Facing
the 112th Congress” explored what policies are currently
in place in the 112th Congress and what may lie ahead
in future policy. Panelists included Kansas 1st District
Congressman Tim Huelskamp and Kansas 2nd District
Congresswoman Lynn Jenkins. During the forum:
• Representative Jenkins said “. . . if we could
reform the mandatory spending items – Social
Security, Medicare, Medicaid – that drive debt
and our deficit; if we could get the boot of the
regulator off oil and gas producers’ neck, we
could get the economy moving again.”
• Representative
Huelskamp
said
“This
Administration and many others are committed
to making certain oil and gas producers cannot
operate, because in their world, it is wrong for
us to use any type of fossil fuel.”
• Representative Jenkins said the Republican
controlled House can stop bad legislation but
cannot move a positive agenda forward without
agreement from the Democrat controlled Senate
and the President.
• Representative Huelskamp said the key to
revitalizing the U.S. economy lay in eliminating
unneeded regulation.
“For every federal
regulator eliminated, you can create 98 private
sector jobs annually. Despite those findings, the
Obama Administration continues to introduce
new regulations.”
In discussing regulatory matters, Huelskamp said
Republicans in the House of Representatives are doing what
they can to stop onerous regulations. “Through the budget
process, we are attempting to handcuff the regulators,” he
reported. “We try to roll back their spending levels or add
restrictions to where funding can go, particularly for the
Environmental Protection Agency.” He added that each
week it is in session until December, the House planned to
hold up-or-down votes on regulations that were particularly
onerous. “This will not do away with the regulation, but it
gives us an opportunity to talk about how we need to get
the economy moving again,” Huelskamp said. That talk
will only turn to action if the Republicans gain numbers in
the Senate, Jenkins predicted. “The government cannot
do anything positive when only one chamber supports the
necessary changes,” she said. “The House can pass all
kinds of bills, but Harry Reid is going to let everything he
continued on page 9
2011 KIOGA Convention...continued from page 8
does not support die in the Senate. He is never going
to pass a budget, and probably never will take up one of
our appropriation bills or the ones that reign in regulation.
The only way to fix this is to use the power of the ballot
box.” Jenkins and Huelskamp both expressed doubt that
the Joint Select Committee on Deficit Reduction would
come up with a politically feasible method to reduce U.S.
spending. Both agreed that to make reductions stick, we
need a balanced budget amendment to force the hand
of future members of Congress and presidents. Both
representatives said tackling the deficit would require
fundamental tax reform. They assured attendees they
would do everything in their power to protect percentage
depletion and intangible drilling costs. “As representatives
of Kansas, it is our responsibility to say, ‘These provisions
are important. They are not loopholes. They are ways of
doing business for your industry,’” Huelskamp expressed.
Jenkins added that eliminating oil and gas tax deductions
would only generate $3 billion a year. “We are going to
need much greater savings than that,” she said. “We need
to start with the most expensive items, such as employeeprovided health benefits ($160 billion), home mortgage
deductions ($90 billion), and the Obamacare tax giveaway
($50 billion).”
In another morning seminar Jim Prescott,
of Prescott Group LLC, an independent contractor to
TransCanada, spoke about TransCanada’s Keystone
XL Pipeline. After expressing confidence that the U.S.
State Department would approve the project, Prescott
said Transcanada was ready to begin construction and
hoped to begin as early as the first quarter 2012. He
said TransCanada would link Cushing to the Gulf Coast
before it began building the pipeline connecting Alberta
to Cushing.
Afternoon technical sessions focused on ways to
improve oil and gas operational efficiencies. Francis L.
Weigel of Champion Technologies Well Diagnostics and
Analysis Group discussed ways to prevent or remediate
well failures by utilizing a Dynamometer Scan Analysis
Process to determine root cause of wells failures and
sequential solutions to reduce lifting costs. Kerry
Kisslinger of ESGroup discussed opportunities for
using wind turbines to generate electricity at the well-site
to reduce operating costs. Cathie Thorpe of Kansas
Strong and Edward Cross, KIOGA President, presented
a “Petro Pros” workshop to prepare interested volunteers
for delivery of standards-based classroom presentations
and energy education curricula to Kansas schools.
exciting artistic element during the convention by creating
live paintings of historical events of western America. The
paintings were auctioned off in a silent auction.
Golf - Sporting Clays – Gin Rummy - Bingo and Ladies
Events
The Annual KIOGA Golf Tournament hosted over
200 golfers and was held on two courses, Willowbend and
Rolling Hills. The KIOGA Sporting Clays Tournament, gin
rummy, and Bingo Bash also saw nearly 100 participants.
The KIOGA ladies events were well attended.
Ladies events included lunch at one of Wichita’s newest
grills – Newport Grill – and a very interesting program from
Stephanie Bergmann who shared some experiences and
stories from her career as an anchor for KSN. The ladies
events also included a cooking demonstration at the Taste
& See Gourmet.
Special thanks goes to our members, sponsors,
contributors, supporters, and exhibitors for making the
KIOGA 74th Annual Meeting and Convention a resounding
success. With this year’s convention behind us, we begin
planning for more value-added features to make next
year’s convention even more successful!
Entertainment
KIOGA’s 74th Annual Convention evening
entertainment event began with a cocktail party followed
by dinner as we celebrated KIOGA’s Annual Convention
Committee Chair, George Strecker’s George’s Tailgate
Party. Attendees showed support for their favorite team
by dressing the part. The “half-time” show followed dinner
with the magic and comedy of Erick Olson who provided
an excellent show loaded with audience participation.
A great time was had by all. Angela Craver added an
9
Congress .continued from page 7
benefit that we produce. Evidence of the success of
our efforts were reflected in Senate Assistant Majority
Leader Dick Durbin (D-IL) comments on CNBC on
September 24th when he acknowledged that ending oil
and gas tax provisions was a hot topic even within
his own Democratic caucus. Republicans are solidly in
our corner; at least until the overall reform of the tax code
is on the table. The idea of lowering the “corporate rate”
in exchange for the elimination of deductions has many
Democrat and Republican supporters. We will have to
continually explain how this proposition just doesn’t work
for us. It is simply a tax increase for the independent oil
and gas producer and royalty owner. They cannot get
rates low enough to offset the loss of our tax provisions. Even if they could; tax provisions lost are lost forever. Tax
rates will always creep back up.
Going forward, KIOGA will continue to work with our
Oklahoma and Texas colleagues to build on the relationship
we have started with Speaker Boehner and educate and
work with House and Senate leadership policy staffers
who will be working on tax reform. These people will have
significant influence on any revenue proposals to the new
super committee may suggest. We will also continue our
diligent efforts to make sure enough moderate Democrats
and Republicans agree that our tax provisions have no
resemblance to tax credits or subsidies. While tax
reform may not come until after the 2012 elections, we
have to remain vigilant and prepared for the unexpected.
We can expect President Obama to continue to press
for the elimination of tax provisions for both majors and
independents. KIOGA developed new fact sheets titled
Energy in the U.S. and Lessening Our Dependence
on Foreign Oil, and Economic
Impact of Eliminating Oil &
Gas Tax Provisions. These
fact sheets have been and will
continue to be distributed to
key policymakers and staffers.
They can also be found on the
KIOGA website at www.kioga.
org. 10
We have to explain over and over again how
a lower tax rate in exchange for the elimination of
percentage depletion and IDC’s doesn’t work for us or
America because of the lost jobs and lost revenue that
would result. With several Democrats appointed to the
debt-reduction committee who are outspoken about
ending fossil fuel “subsidies”, our work with Democrats
over the past 2 1/2 years just got even more important
as no oil and gas industry group has established positive
and credible relationships with a number of Democrats
like our group. Even the most liberal Democrats can
get their arms around hitting “Big Oil” and leaving the
small domestic independent producer alone. In the end,
our success in maintaining our tax provisions rely on us
being able to differentiate ourselves from “Big Oil”. Now,
it is more important than ever to differentiate ourselves
from “Big Oil”. KIOGA will continue our aggressive and
diligent campaign to educate policymakers and make that
distinction.
KIOGA Shines at Kansas State Fair
F
12th Consecutive Year with Educational Exhibit
or the 12 consecutive year, KIOGA participated in
the Kansas State Fair. KIOGA’s long-standing presence at the Kansas State Fair has proven to be very
effective for building goodwill and providing opportunity to
communicate with the public.
Treating fair-goers from across Kansas with
informational material explaining the truth about the oil
and gas industry, volunteer KIOGA members present the
Kansas oil and gas industry in a positive light. More than
300,000 visitors attended this year’s Kansas State Fair
that ran September 9th-18th.
“We get to see a lot of people,” said Kelly Rains,
KIOGA’s fair exhibit coordinator. “Interactive exhibits and
models allow fair-goers the opportunity to gain a better
understanding of how oil and gas is formed, discovered,
and produced in Kansas and why it is so important to our
economy and standard of living. With new oil and gas plays
being developed in south-central Kansas, we encountered
a number of folks this year who were very interested in
learning more about the Kansas oil and gas industry.”
Interactive exhibits and models including a pipe
screw activity, and microscope and rock samples drew the
interest of numerous passer-bys. A special thanks goes
to John Niernberger for preparing and allowing the pipe
screw activity to be used at the fair. In addition, KIOGA
energy education material and data provided facts and
statistics about the Kansas oil and gas industry.
KIOGA relies on an extensive volunteer network
for staffing the fair exhibit. Several KIOGA members
stepped up and volunteered their time to interact with fairgoers. Special thanks go to the following volunteers and
the companies that allowed them time to staff the KIOGA
booth:
th
Vince Anderson & Jerry Mason
Bob Bass
Don & Linda Beauchamp
Brandi Biggs, Casey Blair
Tom and Kathy Blair
Nate Carter & Ricky Miller
Brian Clark
Alan & Dianne DeGood
Kimberly Dimmick-Wells,
Garry Walker, Larry Linville
Marjorie Noel, Kimberly Wooten
Kelley Edgar
Kevin Fischer, Mica Nelson
Brian Gaudreau
Bill & Judy Hess
Kristie Homeier, Mindi Ulrich
Tim & Barb Scheck
David Jervis
Dwight & Lenora Keen
Jeff Kennedy
Bob Krehbiel
Kathryn Langrehr
David Lechner
John Niernberger
Larry Richardson
Debbie & John Rogers
Duke Drilling Co.
National Oilwell Varco
Abercrombie Energy
KIOGA
Tomco Oil, Inc.
Pacer Energy
Clark Marketing Solution
American Energies Corp
Woolsey Operating Co.
Edgar Oil Co.
Apollo Energies, Inc.
Vess Oil Corporation
Cobalt Energy, LLC
Scheck Oil Operations
Range Oil Company, Inc.
Keen OIl Company
Martin, Pringle
Attorney at Law
Langrehr & Company
Sterling Drilling Co.
Ritchie Exploration, Inc.
Pickrell Drilling Co., Inc.
Desk & Derrick Club
Dick & Janice Schremmer
Carol Schuetz
Ernie Morrison, Mark Schreve
Rick Stinson
Bob Swann
Darrel Walters
Bear Petroleum
Territorial Magazine
Mull Drilling Co., Inc.
Lario Oil & Gas Co.
Swann Resources
Berentz Drilling
The KIOGA Educational Foundation sponsored
the educational booth at the Kansas State Fair. If you
would like to make a donation to the foundation or find
more information about our energy education programs,
please contact Kelly Rains at the KIOGA Wichita office at
316-263-7297 or Mark Shreve at 316-264-6366.
11
Gov. Brownback Joins KIOGA Oil & Gas Field Tour
Marks First Annual Event
K
IOGA conducted our first annual oil and gas field tour
on September 27th. The tour highlighted some of the
technologies that are helping pave the way for finding
and developing new oil and natural gas reserves in Kansas
and around the nation. Wayne Woolsey of Woolsey Energy
Corporation was gracious to provide itinerary and sites for
visitation. Woolsey Energy Corporation employees provided
information and narrative for the tour and we especially want
to thank Wayne Woolsey, Dean Pattisson, Scott Frazier,
Carl Durr and Garry Walker for their outstanding efforts.
Twenty-four folks joined the tour including Kansas Governor
Sam Brownback and a number of his staff, Kansas State
Representative Kyle Hoffman, Kansas State Representative
Mitch Holmes, Kansas Corporation Commission (KCC)
Chairman Mark Sievers, KCC Commissioner Tom Wright,
KCC Commissioner Ward Loyd, KCC Oil & Gas Conservation
Division Director Doug Louis, Rex Buchanan of the Kansas
Geological Survey and representatives from the Kansas
Department of Commerce. The tour was also joined by
Dave Murfin, KIOGA Chairman Dwight Keen, and KIOGA
President Edward Cross. Several media folks also joined
the tour including representatives from the Wichita Eagle,
Pratt Tribune, and KAKE-TV. Media coverage of the tour
was positive and appeared in the September 28th Pratt
Tribune and September 29th Wichita Eagle. The 5-hour tour
made 5 stops at Woolsey Energy Corporation sites in Barber
County south of Medicine Lodge. The group was able to
tour a horizontal drilling operation, vertical drilling operation,
a commercial salt-water disposal operation, a slick water
hydraulic fracturing operation, and a horizontal producing
well. The group was also treated to an onsite lunch at the
hydraulic fracturing site. The tour was very beneficial for
illustrating a number of field operations that government
officials often hear about but most have never witnessed.
“Watching a state-of-the-art world class drilling company
that is also environmentally conscious was inspiring,” said
Governor Brownback. “The fact that this level of economic
activity is taking place when times are tough is good to see.
It means jobs and income to Kansas.”
Kansas Governor Sam Brownback and KIOGA
Chairman Dwight Keen at hydraulic fracturing site
Dave Murfin, Carl Durr, Governor Brownback and
Wayne Woolsey at horizontal drilling site
JB RANCH KANSAS, LLC
Julie’s Beef!
As presented KIOGA 2011
Summer sausages, Jerky, Meat Sticks & more!
316-619-9045
www.jbRanchKansasLLC.com
all natural grass finished black angus
12
CONTRACTORS AND PRODUCERS
250 N. Water, Suite 300, Wichita, KS 67202
316-267-3241
85 Years of Service to the Oil and Gas Industry
IOGCC Annual Meeting
October 16-18, 2011
Buffalo, NY
COPAS Fall Meeting
October 17-21, 2011
Wichita, KS
KBA/KIOGA Oil & Gas Conf.
October 21, 2011
Wichita, KS
ASP Ent. The Road Show
October 25, 2011
Wichita, KS
Kansas Pipeline Safety Seminar October 25-27, 2011
Salina, KS
IADC Annual Meeting
November 9-11, 2011
Austin, TX
IPAA Annual Meeting
November 10-12, 2011
LaQuinta, CA
AG & Oil Expo
November 30, 2011
Russell, KS
Annual Service & Suppliers PartyDecember 7, 2011
Wichita, KS
KIOGA Midyear Meeting
April 19-20, 2012
Garden City, KS
KIOGA 75th Annual Conv.
August 19-20-21, 2012
Wichita, KS
13
KIOGA Preparing for Upcoming Legislative Session
T
Several Challenges Emerging
he challenges facing the Kansas oil and gas industry
have grown in both number and complexity. In addition
to the federal challenges coming from Washington, a
number of state issues are beginning to emerge. KIOGA has
been busy preparing for the upcoming 2012 regular Kansas
legislative session which begins on January 9, 2012. Many
KIOGA members have been participating in legislative and
regulatory meetings focusing on issues important to the independent oil and gas industry. Some of the most significant
state challenges include hydraulic fracturing, conservation
fee and severance tax lawsuits, fee fund sweep case, filing
fee increases, severance and ad valorem tax issues, KCC
10-year TA exception and horizontal drilling permit concerns,
and wind development issues.
14
Governor Brownback Names KIOGA Members
to Council of Economic Advisors - On July 27th,
Governor Brownback established the Governor’s Council
of Economic Advisors. The Council is charged with
coordinating strategic planning and economic development
resources, evaluating state policies and agencies
performances, and conducting research on topics such
as Kansas’ basic industries, tax competitiveness, and
regulatory structure. The Governor named 16 members to
the council including KIOGA members Dave Murfin and
Gerry O’Shaughnessy.
Meetings with Governor Brownback and Cabinet
Secretaries - At the request of the Governor,
KIOGA President Edward Cross met with Governor
Brownback on August 2nd to discuss the development
of the Mississippi Lime Play in southern Kansas. Cross
discussed the potential impact of the field - the impact to
the oil and gas industry, economic impact for the state of
Kansas, and some of the potential challenges it will bring
for industry as well as the state of Kansas and regulatory
agencies. Cross met with the Governor again on August
15th to continue discussions about the Mississippian
Lime Play development, wind project issues, COTA filing
fees, KDOR severance tax issues, and KCC 10-year TA
Exception rule. On September 21st, Cross along with
Dave Murfin and representatives from Woolsey Energy
Corporation including Wayne Woolsey, Scott Frazier, and
Dean Pattisson met with Governor Brownback along with
Kansas Commerce Secretary Pat George, Kansas
Revenue Secretary Nick Jordan, Kansas Department
of Health & Environment Secretary Robert Moser,
Kansas Corporation Commission Chairman Mark
Sievers, and a number of agency staffers to continue
discussions about the potential impact and challenges
posed by the Mississippian Lime development in Kansas.
Interim Hearing on Hydraulic Fracturing - The Kansas
Legislative Joint Committee on Energy and Environmental
Policy met on September 9th and discussed a number
of issues including hydraulic fracturing. At the request
of committee chairman, Representative Carl Holmes
(R-Liberal), KIOGA President Edward Cross gave the
committee an update on hydraulic fracturing policy and
regulatory issues from across the nation. KCC Oil &
Gas Conservation Division Director Doug Louis was also
requested to give an update on how the KCC regulates
hydraulic fracturing. Cross told the committee that an
extensive regulatory apparatus at all levels of government
was in place to ensure hydraulic fracturing continues to
be well regulated. He went on to say that because they
understand the regional and local conditions and have
every motivation to protect the environment in which they
and their families live, state regulators are in the best
position to protect groundwater and drinking water sources.
He also said that industry too has strong incentives to
maintain a high level of environmental performance, and
have worked hard to review and improve our operations
and communication with the public. Cross said that
environmental groups attempts to criticize the state
regulatory process is illustrative of the shallow and wholly
flawed approach they use to link unrelated incidents in an
innuendo filled collection of unfounded allegations. Governor’s Economic Summit on Energy - KIOGA
President Edward Cross was invited by Governor
Brownback to participate in the Governor’s Economic
Summit on Energy on October 4th in Wichita. Cross was
part of a roundtable discussion about what Kansas can
do to maintain and grow the energy sector. Cross related
the need for pro-growth and competitive tax structures
that encouraged capital development in the oil and gas
industry. Cross said tax structures that allow oil and
natural gas producers to retain more of their revenues
to reinvest translates into new resources and economic
development in Kansas. Cross also related the need to
streamline oil and gas regulation to balance the protection
of the environment and correlative rights without inhibiting
active development of multi-billion barrel, long-life reserves
in Kansas.
KCC Conservation Fee & Severance Tax Lawsuits - In
a class action lawsuit filed against The Trees Oil Company
in Haskell County, plaintiffs asserted that the statutory
conservation fee is not payable by royalty owners and the
severance tax should not be applicable to helium produced
from any wells. These issues have significance for all oil
and gas operations in the State of Kansas as the Kansas
Corporation Commission (KCC) has issued regulations
regarding the manner in which the conservation fee is
to be paid and the manner in which the severance tax
is to be collected upon helium production. A motion for
Summary Judgment was heard in Haskell County District
Court, which ruled against the plaintiffs. The plaintiffs
appealed the decision of the district court to the Kansas
Court of Appeals seeking a reversal of the District Court’s
decision. A Kansas Court of Appeals decision to uphold
the District Court’s decision would be beneficial to KIOGA
members. Likewise, a decision reversing the District
Court’s decision would be detrimental to KIOGA members.
For this reason, KIOGA filed an Amicus Brief. The KIOGA
Amicus Brief was prepared and filed by Kimberly A, Green
Legislative Session...continued from page 14
(assisted by David W. Nickel) of Depew, Gillen, Rathbun &
McInteer LC. KIOGA’s Amicus Brief provided information
supporting the district court’s grant of summary judgment
in favor of The Trees Oil Company with respect to the KCC
conservation fee; the Kansas Department of Revenue
filed an Amicus Brief which supported the district court’s
decision with respect to the severance tax issue. KIOGA’s
Amicus Brief stated: “Consistent with the findings of the
district court, the KCC’s rules and regulations with respect
to conservation fees and royalty payments made to the
royalty interest owners are clearly within long-standing
custom and practice of the Kansas oil and gas industry.
Thus, the district court correctly ruled that the Conservation
Fee is to be imposed on all parties owning an interest in
the gas so assessed. Accordingly, the district court’s order
in these regards should be affirmed.” On May 20th, the
Kansas Supreme Court affirmed in part and reversed in
part the District Court’s decision. The Kansas Supreme
Court held that helium was subject to the severance tax
but the conservation fees assessed by the KCC are not
postproduction costs that can be assessed to the royalty
owner. Subsequently, Murfin, Inc. was sued by a royalty
owner over these issues in the Carlile v. Murfin case in
Seward County. The Carlile case seeks class action
status to include all Kansas royalty owners and all Kansas
operators. Damages are being sought for the conservation
fees improperly charged to royalty owners.
Conservation Fee Fund Sweep Case - The case against
the State of Kansas for sweeping money from fee funds,
including the KCC Conservation Fee Fund, in 2009 and
2010 continues. The court heard State arguments to
dismiss the case on January 14th and made a ruling on the
consideration on August 12th. The courts decision was a
disappointing and convoluted and neither grants nor denies
the motion to dismiss. The judge acknowledged the merits
of the challenge to the fee sweeps but seems to doubt there
is a remedy. Our attorney, Mike O’Neal, is discussing the
case with the Kansas Attorney General office and plaintiffs
will be conferencing with O’Neal probably in September.
Initial thoughts are to file a Motion for Reconsideration, to
Modify, Clarify, or, in the alternative, to Certify the Decision
for Interlocutory Appeal.
COTA Increases Marginal Well Exemption Filing Fees
- The Kansas Court of Tax Appeals (COTA) announced
on June 2nd that they were proposing to increase filing
fees affecting a number of industries including raising
the marginal well exemptions filing fee from the current
$125 to $1,000. KIOGA President Edward Cross visited
with the Chief Judge of COTA, Bruce Larkin, and the
Governor’s Office in July expressing strong opposition
to raising marginal well exemption filing fees from $125
to $1,000. Subsequently, COTA revised their proposal
to increase filing fees for marginal well exemptions from
$125 to $400. KIOGA filed written comments objecting
to the fee increase from $125 to $400 on July 27th and
appeared in opposition during the COTA public hearing
on August 4th. Richard Koll and Dave Dayvault prepared
the written comments and Dayvault and Cross appeared
before COTA to communicate KIOGA’s opposition. COTA
reported that due to budget cuts from last legislative
session, they were short about $325,000. KIOGA had
made an open records request to COTA on August 2nd
asking for information regarding the number of oil and
gas filings over the last year. COTA responded on August
3rd by saying there were 837. Dayvault emphasized in
comments before COTA that increasing oil and gas filing
fees from $125 to $400 would raise some $230,000 of
the $325,000 shortfall and such a proposal appears to
be discriminatory by imposing an unfair burden on one
industry (that being the oil and gas industry). COTA heard
objections from a number of other concerned groups and
entities that also saw filing fees increase exponentially. COTA announced on August 24th that they approved their
proposed filing fee increases including raising the marginal
well exemption filing fee from $125 to $400. The new filing
fee went into affect on September 16th. Kansas Mineral Severance Tax Issue - KIOGA continues
to work to address the mineral severance tax issue with
the Kansas Department of Revenue (KDOR). The KDOR
is incorrectly interpreting long-standing tax laws. Two
principal issues are involved. The first is how we measure
gas that is subject to the severance tax. KDOR has taken
the position that pumper production estimates should be
used to determine the amount of gas that is subject to
severance tax, as opposed meter readings reported by
gas purchasers. The second issue is how to determine
whether wells qualify as marginal wells exempt from
severance tax. Instead of considering any day in which
the well is open to the line a production day, KDOR is
including only days when the well actually produces gas.
As a result of that interpretation, wells that should qualify
as marginal do not qualify in the KDOR audits. Thus the
KDOR is imposing severance tax on marginal wells. The
law clearly contradicts the KDOR interpretations. KIOGA’s
Legislative Committee Chairman David Nickel said the
law specifically says the severance tax applies only to gas
that is physically transported off the lease, measured by
gas meter readings, and reported to KDOR by the gas
purchaser, unless the operator elects to undertake that
duty. The law is also clear that as long as a well is open to
the pipeline, it is having a production day. To address the
KDOR’s inaccurate interpretation, KIOGA representatives
have been meeting with KDOR. KDOR asked KIOGA to
develop a position paper advocating KIOGA’s position
on each of the issues we discussed. KIOGA Legislative
Committee Chair David Nickel developed the KIOGA
position paper and it was reviewed and edited by Dick
Schremmer, Steve Dillard, Emma Richmond, David
Bleakley, and Dwight Keen. The paper was submitted to
the KDOR on August 9th. As of this writing, KIOGA has
yet to receive a reply from KDOR. We are confident we
will prevail on this issue because the KDOR is taking a
position that is entirely inconsistent with customary audit
15
Legislative Session..continued from page 15
practices and contrary to statute. The problem is that the
monetary value of the additional taxes is small relative to
the time and capital it takes to challenge the audit. That is
why KIOGA’s involvement is essential. We can represent
the small producer.
Some County Appraisers Questioning PVD Oil & Gas
Appraisal Guide - Several county appraisers have been
questioning the low-volume oil and gas ad valorem tax
exemptions for marginal wells saying the provision had
outlived its purpose. In addition, it appears the Kansas
County Appraisers Association is mounting an assault on
various aspects of the PVD Oil & Gas Appraisal Guide
and are preparing a number of suggested changes to the
Guide and asking the Guide be critiqued by an independent
firm to determine if changes are needed and what areas
need to be addressed. KIOGA Ad Valorem Committee
Chair Richard Koll heard more about these proposals
during a Guide meeting in Wichita on August 23rd. Oil and
gas ad valorem taxes have increased over 179% over
the past ten years, despite the low-volume exemptions.
Any attacks on low-volume exemptions or other punitive
measures against oil and gas ad valorem tax provisions
and/or structure will be monitored closely and addressed
with credible information in timely responses.
Horizontal Drilling Regulatory Issues - With the
continued development of the Mississippi Lime Play in
south-central Kansas, concerns about permit processing
have arisen. KIOGA visited with Governor Brownback
about this concern on August 2nd and he asked that we
meet with KCC Chairman Mark Sievers to discuss the
issue. KIOGA met with Chairman Sievers on August 8th.
KIOGA expressed concerns that the expected increase
in the number of horizontal well permit applications could
slow approvals for both horizontal and conventional vertical
well permit applications. We suggested streamlining the
horizontal well permitting process to mitigate the issue.
KCC Oil & Gas Director Doug Louis held scoping meetings
on this issue in Wichita on August 11th and September
28th. The scoping meetings are designed to explore the
possibility of streamlining the horizontal well permitting
process. A number of subcommittees were formed to
examine various issues. The application subcommittee
is chaired by the KCC, Environmental Subcommittee
chaired by Jimmie Hammontree of Chesapeake,
Allowables Subcommittee chaired by Linda Guthrie of
SandRidge Energy, and Notice Subcommittee chaired
by Brent Sonnier of Oxy. Ultimately, the Commission will
make the final decision on any changes to horizontal well
drilling permit applications, but this group will be a valuable
resource for helping determine if changes are needed and
if so whether changes should be made by a rule adoption
or regulation change.
16
KCC 10-Year TA Exception - Last year, several KIOGA
members voiced concerns about the complicated process
the Kansas Corporation Commission (KCC) used for 10year temporary abandonment (TA) exception applications.
KIOGA listened and discussed the concerns of independent
oil and gas operators with the KCC in a meeting with KCC
Chairman Tom Wright. Chairman Wright agreed that the
process was cumbersome and indicated he would like to
see the 10-year TA exception process streamlined. The
KCC subsequently changed the 10-year TA exception
process to make it an administrative procedure for most
applications. However, this year KIOGA received a
number of comments from operators who reported the
new procedures remain very complicated and onerous.
KIOGA continues efforts to find a workable solution for a
10-year TA exception that protects fresh and usable water,
prevents waste, and protects correlative rights without
being overly burdensome on operators. KIOGA Legislative
Committee Chair David Nickel and KIOGA President
Edward Cross met with KCC Commissioner Tom Wright
in Topeka on May 24th to discuss the continued problems
many operators were having with the KCC 10-year TA
exception application process. Commissioner Wright was
very open and willing to listen and promised to work to help
address our concerns. On June 17th, we received a draft
of a new simplified application for 10-year TA exception. Upon review of the draft, we still found the application to
have costly procedural complications, namely the notice
requirements. KIOGA President Edward Cross met with
KCC Chairman Mark Sievers on August 8th to discuss
industry’s concerns and offered a proposal developed by
David Nickel. Cross suggested the notice requirement be
eliminated and the TA form be modified to allow extended
TA status without going through the application process.
The proposal suggested the TA form be modified to
include a check box if the well is being TA’d beyond the
tenth year. KCC staff could review the reason stated on
the TA form and if it did not appear to be reasonable, they
could schedule an informal meeting with the operator to
listen and discuss any concerns. If KCC staff still were
not convinced of the need to continue the TA status, then
the matter could be set for a hearing. Chairman Sievers
seemed open to the idea and asked that such a proposal
be presented to Doug Louis, KCC Oil & Gas Conservation
Division Director, which Cross did on August 8th. Louis
said he would explore any regulatory procedural and/or
political challenges to such a change and get back with
KIOGA.
Wind Development Issues - BP Wind Energy and Westar
initiated action to develop their Flat Ridge II Wind Farm
Project in Harper and Kingman Counties, Kansas. The
project covers 66,000 contiguous acres and is in large part
situated directly over the Spivey-Grabs Oil & Gas Field. The project could have significant negative impact on day
to day operations of existing oil and gas properties and
development of oil and gas assets in the field. KIOGA
sent out a “KIOGA Producer Alert” on July 21st that better
described the potential impacts of the project. Pickrell
Drilling, Mull Drilling, and McCoy Petroleum met with
BP Wind Energy on July 27th. BP appeared to be very
Legislative Session..continued from page 16
understanding of oil and gas operator needs and concerns
and seemed to be much more flexible than anticipated in
how they could work with operators. BP will be exchanging
a draft accommodation agreement with all three operators
and will meet with other operators to do the same. The
agreement is expected to provide accommodation of
the present and future operations around turbines and
overhead collection lines. BP also indicated they would
improve and help maintain lease roads on which they
commonly use for turbine and oil and gas lease access. Operators are working with them to locate and map lease
lead lines.
Budget Issues Leading up to 2012 Session - Governor
Brownback has stressed that federal budget cuts are on
the way and will reduce federal dollars flowing into state
agencies and programs. Shrinking federal aid will force
Kansas to either cut programs or come up with its own
money for those programs and is one of the primary drivers
for Brownback’s strong efforts to cut state spending.
Brownback has made some broad comments about
reducing income taxes and finding a balance between
individual income taxes and corporate taxes. Brownback
is expected to provide more details about his tax proposals
in October. KIOGA will be watching and reviewing
those proposals very carefully.
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18
K A N S A S
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&
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G A S
Kansas oil and natural gas producers are united
in vision and purpose, using the resources
under our feet to power our state and move
America toward energy independence.
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billion annually in family income
thousand jobs supported statewide
Daily, we’re fulfilling our pledge to keep
Kansas strong.
million in state funding building
schools and roads
KansasStrong.com
19
Member News
KIOGA Convention pictures can be found at:
www.collages.net
KIOGA 2011 - 18832
KIOGA Team Jerseys
Available now
KIOGA 75 is on the back.
These will make great Christmas
presents. Call for more information.
316-263-7297 KIOGA @swbell.net
2012 Desk and Derrick Board
Brandi Biggs, KIOGA - Secretary
Kelly Rains, KIOGA - Director
Mary Combs, Grand Mesa - President
Charlene Fortner, NCRA - Vice President
Peggy Cleaton, Mull Drilling - Past President
Phyllis Brewer, Grand Mesa - Treasurer
Gun Raffel for Desk and Derrick
The Wichita Desk and Derrick Club will be
having a drawing at the Supplier’s Party
in December held at the Petroleum Club
for your choice of two shotguns. Tickets
will be $10.00 each and you can get more
information and tickets by emailing Mary
Combs at [email protected] or calling
316-265-3000. Tickets can be purchased by
anyone, even those who do not live in Wichita,
and the gun can be shipped anywhere in the
United States where there is a gun dealer
close by. One of these guns would make a
great Christmas gift so contact Mary Combs
today for tickets!!!
20
If you have pictures or news
articles from past KIOGA events, we
would love to have a copy for our
75th convention next summer.
Mitch Driscoll - Southwind Drilling, Inc. - Ellinwood, KS
Terry Monroe - New Spirit, Inc. - Effingham, IL
Rebecca Passion - Mai Oil Operations, Inc. - Dallas, TX
Amy Fellows Cline - Triplett, Woolf & Garretson, LLC - Wichita, KS
Charles Brewer - Geotechnical Services, Inc. - Wichita, KS
Bill Crimmins - Champion Technologies - Tulsa, OK
Robert L. Patton - Lipizzan Petroleum - Wichita, KS
David Hodges - Superior Pipeline Company - Tulsa, OK
Chuck Hallbert - BlueRock Energy Capital - Houston, TX
Jason Hulsey - Excel Stimulation - Cleo Springs, OK
Tony L. Atterbury - Depew Gillen Rathbun & McInteer, LC -Wichita, KS
Robert Kramer - Empire Energy E&P, LLC - Wichita, KS
Bruce Workman - BW Oil, LLC - Hamel, MN
Core Minerals Operating Co., Inc. - Evansville, IN 47708
Becky Johnson - M A E Resources, Inc. - Parker, KS
Leon C. Smitherman, Jr. - 14431 Tipperary Circle - Andover, KS
Erik Bartsch - Shell - Houston, TX
Gerald A. Achatz - Samuel Gary Jr. & Associates, Inc. - Great Bend, KS
Kevin Strube - Samuel Gary Jr. & Associates, Inc. - Great Bend, KS
Kurt Strube - Samuel Gary Jr. & Associates, Inc. - Great Bend, KS
John Hummel - M&M Pump & Supply - Olivette, MO 63132
Member Deaths
Ralph Hamilton - Duke Drilling Co., Inc.
Dixie Sebits - Pickrell Drilling Co., Inc.
21
Hydraulic Fracturing Debate Comes to Kansas
Air Emissions and SPCC Issues Also Federal Regulatory Concerns
E
nvironmental activists continue their efforts to establish
barriers to responsible oil and natural gas development
by proposing a host of new regulatory burdens and
procedures that could discourage exploration, slow production, reduce oil and natural gas supplies, raise energy costs,
and erode high-paying jobs.
Unable to get environmental and regulatory
initiatives passed through Congress, President Obama
continues to take a stronger role on the regulatory front
to push environmental proposals. The scale of the EPA’s
activity is unprecedented.
Since President Obama
took office, the EPA has proposed or finalized 29 major
regulations and 172 major policy rules.
Hydraulic Fracturing
The hydraulic fracturing (HF) debate continues
to rage across the country and is now starting to rear its
head in Kansas. The Topeka Capital-Journal ran a frontpage story about HF on September 6th and the Kansas
Legislature held an interim hearing on HF on September
9th. A number of key developments on HF have recently
emerged.
22
“Drilling Down” Series in New York Times - Beginning
last February, the New York Times began a series
titled “Drilling Down” which attacked American natural
gas producers. Many of the facts in the series were
misrepresented or simply untrue. The series claimed the
natural gas industry is exempt from major environmental
regulations (which we all know is not true), and asserted
that producers release high levels of radioactive materials
into public waterways, which later make its way into
drinking water. The series was extremely misleading as our
industry is committed to providing the best environmental
protection for the communities where we work and live.
The series also implied that the natural gas industry had
an extraordinary level of influence over federal agencies
such as the EPA, which we all know is simply not true.
The “Drilling Down” series is yet another attempt by those
who use scare tactics and fear to further their anti-fossil
fuel agendas. The New York Times continued the series
in June and August by attacking hydraulic fracturing using
the misinformation disseminated by environmental groups
like the Natural Resource Defense Council (NRDC) and
the Environmental Working Group (EWG), both wellknown opponents of oil and natural gas. On August 3rd, the
Times blamed hydraulic fracturing for contributing to the
contamination of a single water well nearly 30 years ago
in West Virginia. Lee Fuller of the Independent Petroleum
Association of America (IPAA), responded to the Times
piece by stating: “We’re talking about a technology that’s
been deployed more than 1.2 million times in more than
25 states over the course of more than 60 years. Three
decades later, the technology today is better than it’s ever
been, the regulations are broader and more stringent, and
the imperative of getting this right, so that we can take
full advantage of the historic opportunities made possible
by shale, has never been more apparent. Despite the
Times’ best efforts, this story does not prove that hydraulic
fracturing had anything to do with the contamination of a
water well 30 years ago.”
FracFocus - Environmental activists continue to
generate unreasonable anxiety around the country over
chemicals used in the hydraulic fracturing process. Despite a clear and compelling history that state regulation
of the environmental risks of HF protects drinking water
supplies, environmental group’s unyielding accusations
create demands for more information on chemicals. Potential federal legislation described as the “FRAC Act”
would put the EPA in the position to initiate a federal
reporting requirement for every state permitted well.
Responding to the concerns and politics, the Ground
Water Protection Council (GWPC) and Interstate Oil &
Gas Compact Commission (IOGCC) have developed a
web-based database that allows companies to voluntarily
disclose chemical constituents in frac fluids. The webbased national registry is known as FracFocus (www.
fracfocus.org). KIOGA supports FracFocus and believes
it can be a significant factor in refuting the arguments that
a federal reporting program is needed. Currently, the
registry is voluntary, although several states are moving to
make FracFocus mandatory reporting. However, in those
states where reporting remains voluntary, wide spread
participation is critical to push back on environmentalist
claims that nothing short of mandated federal regulation
will get industry to the table. KIOGA strongly encourages
all producers that hydraulically fracture wells to register
and submit their information. KIOGA arranged a webinar
on September 22nd where a number of Kansas producers
learned more about the program and how to submit
information. If you would like to learn more, visit www.
fracfocus.org.
Hydraulic Fracturing E-Reference - The IOGCC
announced last June their new project to develop a website
that allows viewers to collect state-specific oil and gas
regulations associated with HF. The developing website
will allow the user the ability to cross-reference state
statutes and rules that regulate HF and generate a PDF
report. The E-Reference website along with FracFocus
will provide more transparency in the disclosure of frac
fluid components.
STRONGER
Review
of
Hydraulic
Fracturing
Regulations - The IOGCC established a state review
process in the 1990’s and management of the process
was shifted to a non-profit corporation known as the State
Review of Oil & Natural Gas Environmental Regulations
(STRONGER). Since 1999, STRONGER has been active
in reviewing state regulations on oil and natural gas and
Hydraulic Fracturing...continued from page 22
reporting on the progress of state regulation. STRONGER
has reviewed 21 state regulatory programs, including
Kansas, accounting for over 90% of the national oil and
natural gas production. STRONGER recently unveiled HF
guidelines for state regulatory programs. The guidelines
are not prescriptive regulatory standards, but an outline
of key elements for effective state HF regulation.
Pennsylvania, Ohio, Louisiana, and Oklahoma have
recently had a STRONGER review of their HF regulations.
Paradigm Shift - With growing number of STRONGER
review of state HF regulations along with the development
of FracFocus, E-Reference, and a number of state level
efforts on frac fluid disclosure underway, environmental
groups are seeing their ability to scare the public and
generate fund raising erode. Environmental groups
attempts to criticize the state regulatory process is
illustrative of the shallow and wholly flawed approach
they use to link unrelated incidents in an innuendo filled
collection of unfounded allegations. Several environmental
groups (73 total) sent a letter to President Obama on
August 8th asking Obama to put a moratorium on HF
nationwide until a complete study of the impacts of HF
was completed. KIOGA joined 61 other oil and gas groups
and other concerned citizens in letter exposing the flawed
assertions environmental groups stated and provided the
results of an IHS study showing that placing a national
moratorium on HF would result in 2.9 million jobs lost. The
letter was sent to the President in early September. DOE Report on HF - Earlier this year, President Obama
formed a DOE panel to study the risks of ground water
pollution from HF and asked that they produce a report
in 90 days. The DOE released their report on August
11th. The report called for transparency and education
of the public and stated that state and federal regulatory
processes effectively protected the public.
SEC Wants Companies to Disclose Compounds in HF
Fluid - The Securities Exchange Commission is asking
oil and gas companies to provide detailed information
including chemicals used in HF fluids. The SEC move
shows the broad interest among Washington regulators
in looking at HF and suggests companies will increasingly
need to weigh disclosing techniques. Interim Hearing on Hydraulic Fracturing - The Kansas
Joint Committee on Energy & Environmental Policy held a
hearing on September 9th in Topeka to discuss hydraulic
fracturing. KIOGA President Edward Cross and Kansas
Corporation Commission (KCC) Oil & Gas Conservation
Division Director Doug Louis testified at the hearing
explaining the HF process and describing how the HF
process was regulated by the KCC. Air Emissions
In an effort to settle a lawsuit with environmental
groups in 2009, the EPA agreed to review and revise air
emission standards for oil and gas operations. On August
23rd, the EPA published the proposed air regulation rule
for New Source Performance Standards and National
Emission Standards for Hazardous Air Pollutants. Comments on the proposed rule are due October 24, 2011. The EPA held public hearings for the oil and gas sector
rules on September 27th in Pittsburgh, PA, September
28th in Denver, CO, and September 29th in Arlington, TX. A number of industry folks voiced their concerns at the
public hearings citing how the proposed regulations would
place heavy burdens on the industry and eliminate oil and
gas jobs. IPAA is petitioning the EPA for 60 more days to
review and comment on the proposals.
As the EPA’s screws tighten on air emission
regulations, the costs will be passed along to consumers,
with the same damage as a tax increase but none of the
revenues. The EPA is quick to count almost anything as
a benefit of their regulatory schemes, but ignore costs
such as jobs lost, competitiveness of U.S. industries, and
energy reliability. Eventually, the EPA plan will appreciably
lower the U.S. standard of living. President Obama
released a plan on August 23rd for ending or cutting
back some regulations. President Obama appears to
have finally recognized the job-killing potential of undue
EPA regulations as the President stopped the EPA from
continuing with their plan to tighten ozone regulations. The
Administration estimates the changes will save businesses
$2 billion per year. However, an SBA commissioned study
indicates regulations costs businesses $1.75 trillion per
year. A number of Congressional Members applauded the
action and urged the President to continue down the road
of lifting excessive burdens so the economy can grow.
House Speaker Boehner said the Obama Administration
is hampering the economy with undue regulatory burdens
and asked President Obama on August 26th to provide
Congress a list of all newly proposed regulations with a
projected economic impact of at least $1 billion. The House
is considering legislation that would require congressional
review and approval of any proposed federal regulation
determined to have a significant impact on the economy.
Kansas Attorney General Derek Schmidt Files Amicus
Brief - Kansas Attorney General Derek Schmidt filed an
amicus brief in June on the role of EPA in greenhouse gas
regulation. Schmidt asked the EPA to reconsider their
endangerment ruling due to unreliable science.
23
Hydraulic Fracturing. .continued from page23
SPCC Regulations Effective November 10, 2011
The EPA issued regulations in late 2010 for typical
oil and natural gas facilities that are effective November
10, 2011. The IPAA developed a toolkit that summarizes
the current rule and provides information specific to oil
and natural gas production. The toolkit can be found on
KIOGA’s website at www.kioga.org.
KIOGA’s Actions
KIOGA remains fully engaged in federal advocacy
on all regulatory issues impacting the independent oil
and gas producer. KIOGA submitted comments to the
EPA explaining why onshore oil and natural gas facilities
should not be aggregated for air emissions standards.
We visited 26 key congressional members in March
2011 underscoring that definitive court rulings on the
EPA’s endangerment finding have not been made yet
and the EPA’s flawed interpretation of the Clean Air Act
was creating a regulatory crisis. We have visited 22
U.S. Senators and 32 U.S. Representatives this year
expressing that the states have regulated HF effectively
for decades through laws and regulations related to well
design, location, spacing, operation, abandonment as
well as environmental activities and discharges including
water management and disposal, waste management and
disposal, air emissions, underground injection, surface
disturbance, and worker health and safety. We emphasized
that all laws, regulations, and permits that apply to oil and
natural gas exploration and production activities also apply
to HF. In addition, we also informed the Congressional
members of the ongoing GWPC/IOGCC effort to develop
a web-based database (FracFocus) that would allow
companies to voluntarily disclose chemical constituents
in frac fluids. We urged that any congressional action
keep the regulation of HF with the states and away from
the EPA. When asked by Senator Udall (D-CO) why we
did not want EPA involved in the regulation of HF, KIOGA
President Edward Cross said “The EPA has shown a
propensity not to follow sound science, but appear to be
MELLAND ENGINEERING, INC.
Petroleum Engineering and Geological Consulting
Drilling/Workovers
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more politically motivated.” Cross delivered a presentation
on HF regulatory and policy considerations at the TORP
Hydraulic Fracturing Workshop in Wichita last June, the
Kansas Joint Committee on Energy & Environmental
Policy in Topeka on September 9th, and will be making a
presentation at the KBA/KIOGA Oil & Gas Conference in
Wichita on October 21st.
Over the past 2 ½ years, KIOGA has been
educating Congressional members on the hydraulic
fracturing process. We illustrate how industry is striving
to address the real concerns of the public while providing
the energy America needs, which is contrary to the
extreme environmental agenda of President Obama and
environmental activists who are not as much concerned
about environmental protection or energy security as they
are about getting rid of fossil fuel production. Our efforts
were key in helping stave off attempts earlier this year
by Representative DeGette (D-CO) and Senators Casey
(D-PA) and Schumer (D-NY) to amend the Safe Drinking
Water Act (SDWA) to empower the EPA with authority to
pre-empt states in regulating hydraulic fracturing under the
SDWA. We are making a difference. Senator Udall (DCO) was quoted in an August 10th newspaper in Colorado
that HF was a “safe technology”. KIOGA will remain fully
engaged in federal advocacy on hydraulic fracturing, air
emissions, and other regulatory issues.
25
Chairmans Letter. .continued from page2
Politics is the art of looking for trouble, finding it
everywhere, diagnosing it incorrectly and applying
the wrong remedies. – Groucho Marx
Beyond any doubt, with these and other challenges, our
plate is full. However, our resolve is firm. We will diligently
confront each challenge head on. Needless to say, we all
want safe working conditions and clean water and clean
air. To me, the real question becomes how to achieve
these goals. I believe that regulation is likely to lead to
over-regulation with detrimental economic consequences:
• If there is no compelling fact-based demonstration of the need for regulation; or
If the perceived public benefits of regulation are not balanced with the real costs of
compliance or with the potential costs to the
overall economy; or
•
If regulated industries are denied meaningful
and timely access to a rulemaking process
that is deliberative and unbiased.
•
Notwithstanding formidable headwinds, I believe
that the future of our industry is very bright. For KIOGA,
the real source of our strength in responding to challenges
is no great secret – it is a combination of several key
factors.
An important factor critical to our success
is the continuing stewardship and dedicated volunteer
efforts of our members who consistently have been willing
to unselfishly give of their time and effort to serve and to
aid us in pursuing our common goals. Of very special
significance and importance to KIOGA is the professional,
knowledgeable and steadfast leadership of our President
Ed Cross. In addition, we benefit from the leadership and
guidance of our excellent committee chairmen and from
our superb administrative support capabilities as overseen
by Kelly Rains.
To maximize industry effectiveness, KIOGA ‘s
efforts will continue to be coordinated with similar efforts by
our fellow industry association partners – most prominently
including the Independent Petroleum Association of
America (IPAA), the Domestic Energy Producers Alliance
and the National Stripper Well Association . We will
also coordinate our efforts with the Kansas Oil and Gas
Resources Fund and the Eastern Kansas Oil & Gas
Association. In particular, we also owe a very special
recognition and debt of gratitude to KIOGA’s financial
enablers, our industry sponsors whose generous support
provides for the success of major KIOGA events, including
our annual and mid-year meetings.
The foundation from which our industry proceeds
and grows is strong:
• The commodities we produce are of such
strategic significance that they underpin
our national security;
26
•
The commodities we produce provide our
state and nation with the most reliable, affordable and cost efficient energy sources
available today and for the foreseeable future;
•
And, perhaps most importantly, from the
very beginnings of our industry with the
first commercial oil discovery at the Drake
Well in Titusville, PA in 1859 and throughout the ensuing 152 years, the commodities we produce, and the products derived
from those commodities, have contributed
to the economic viability of the United
States and have played a significant role
in delivering to our nation the highest standard of living in the world.
As a barometer of national competitiveness worldwide,
there is an undeniable correlation between fossil fuel
usage and any nation’s standard of living. For industry
detractors who oppose the use of fossil fuels to advance
our standard of living, these are pesky facts – facts that
they would prefer to overlook, ignore or distort.
As the nation has witnessed business cycles
from boom to depression, our industry has demonstrated
resilience and renewal throughout its remarkable history.
From our industry’s beginnings in Kansas with the
completion of the Norman #1 well at Neodesha in 1892 (12
bbls/day); to three wells that became the major pioneering
wells of the El Dorado field -- the Stapleton #1 (400 bbls/
day in 1915), the Trapshooter #3 (20,000 bbs/day in
1917) and the Shumway #5 (19,200 bbls/day in 1917
and flowing 2.5 million barrels in its first 222 days); and
from these great wells to the pioneering well in Western
Kansas -- the Carrie Oswald #1 near Russell (200 bbls/
day in 1923); and then from this well, to the development
of the great gas fields overlaying the Hugoton embayment
in Southwest Kansas; to the horizontal drilling efforts today
in Central Kansas and along our southern tier of counties,
from Comanche east to Cowley; and, to the extensive
development of coal and shale gas throughout Eastern
Kansas ----from all of these beginnings and renewals,
the Kansas oil and gas industry has transformed the
Kansas economy and will remain a major component of
any solution to the state and the nation’s energy needs.
As one of the state’s largest industries, we are a major
contributor to the state’s economic well-being through job
creation, through participation in the economic growth of
our communities throughout the state, and through our
substantial contributions to the tax base of the state, the
counties and the local units of government.
When
considered
collectively,
these
accomplishments represent an amazing showing for an
industry whose results and achievements have always
been powered and nurtured by a spirit of entrepreneurial
Chairmans Letter .continued from page26
risk taking. For the independent industry, entrepreneurship
is the embodiment of who we are and what we are about;
it defines our way of life. Certainly that entrepreneurial
spirit remains undaunted as we continue to push new
technological frontiers to produce more energy for our
nation. With this past as our prologue, our future should
be very bright indeed – and Kansas strong.
The accomplishments of our great industry provide
a track record for us to extol and to celebrate, a track record
for us to unabashedly defend and a track record for us to
continue to build upon and to enhance in the years ahead.
In the months ahead, I look forward to the opportunity of
working with all of you in protecting and advancing our
industry.
Your Chairman,
Dwight D. Keen
“Selling Oil & Gas Production at Auction Since 1975”
Regularly scheduled bi-monthly auctions
December 1, 2011
316-683-7733
www.EvensonAuctions.com
260 N. Rock Road, Suite 140 – Wichita, Kansas 67206
27
Energy Tax Policy
N
A complex Issue
ational energy policy is a complex issue. Opponents
of American energy development have been conducting information campaigns that confuse the public
and policymakers. In addition, the media appears to have
difficulty covering energy policy issues in any detailed way.
Contributing to this dilemma is the tendency of
some elected officials to appeal to the public’s concern
about rising gasoline prices in ways that can be factually
misleading. To complicate matters further, it is not always
easy to determine whether elected officials promoting a
particular solution are doing this intentionally or out of
incomplete information.
The Obama Administration has been trying to
eliminate oil and gas tax provisions ever since they took
office in 2009. The President has specifically targeted a
series of tax provisions that are critical to small domestic
independent oil and gas producers. President Obama
has justified ending these tax provisions on the basis that
the big five major oil companies have record profits and
don’t need these tax provisions. This theme has been
echoed by some Democrats in the House and Senate who
are clearly worried about their own re-election prospects
confronting a public upset about high gasoline prices.
However, here is where the facts get in the way.
The big five major oil companies do most of their
drilling outside the U.S. The Independent Petroleum
Association of America (IPAA) estimates that 94% of the
new wells in the
U.S. are drilled by domestic
independent
KIOGA 2011 halfpg adCLRFol.pdf
1
8/22/11
4:15 PM
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producers and that 67% of the oil and natural gas produced
in the U.S. each year come from these wells.
The tax provisions targeted by the President are
only available on wells drilled in the U.S. and not available
at all for wells drilled elsewhere. Thus, the tax provisions
are used primarily by small domestic independent oil and
gas producers and are of limited value to the major oil
companies which the President says he is targeting. IPAA
estimates that, if the President is successful in eliminating
these tax provisions, the number of wells drilled in the U.S.
will be reduced by at least 30%.
But, it gets even more interesting. Percentage
depletion (one of the major tax provisions cited by the
President) was repealed for the major oil companies
in 1975 - some 36 years ago. And the deduction for
intangible drilling costs, which also is only available on
domestic production, is utilized by small independent oil
and gas producers two-thirds of the time and only one-third
by major oil companies. And when it is taken by major oil
companies, these firms take it on a reduced basis.
All this means that some Democrats railing against
major oil company profits are not always pursuing policies
that harm just major oil companies. It would be nice if
everyone were using facts and working off the same script.
This opinion editorial was written by Edward Cross, KIOGA
President, and appeared in newspapers and media across
Kansas and the nation in September.
74th KIOGA Annual Meeting Elects Dwight Keen
D
2011-2013 KIOGA Chairman
wight Keen, President of Keen Oil Company in
Winfield was elected the 2011-2013 KIOGA Chairman
at the KIOGA board meeting held during the KIOGA
Annual Convention on August 21st. Keen is a U.S. Army
Vietnam Veteran and has been in the oil and gas business
since 1975. He has practiced security law and is an adjunct
professor of business at Friends University in Wichita teaching 5 graduate level courses in business. He is a former
Kansas Securities Commissioner, former member of the
Kansas Board of Tax Appeals, and served on the Kansas
Commission on Veterans Affairs. Keen brings a unique set
of skills and leadership at a time when the challenges facing
the oil and gas industry are equally unique. Keen replaces
outgoing Chairman Dick Schremmer of Haysville, who completed his two-year term at KIOGA’s Annual Convention in
Wichita on August 23rd.
Twenty-nine of the 68 Directors were elected to fill
the vacancies from expired terms on the KIOGA Board of
Directors. The following 29 Directors will join the remaining
39 Directors on the KIOGA Board:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
A, Scott Ritchie, III, Ritchie Exploration, Inc.
Wichita, KS
Adam E. Beren, Berexco, Inc, Wichita, KS
Alan R. Hoffman, Kansas Natural Gas, Inc., Hays,
KS
Brock R. McPherson, McPherson & McVey Law
Offices, Great Bend, KS
Charlie Wilson, Berexco, Inc., Wichita, KS
Dan Klaus, Basic Energy Services, LP, Wichita, KS
Darrell Walters, Berentz Drilling Company, Inc.,
Wichita, KS
David T. Jervis, Range Oil Company, Inc., Wichita,
KS
Earl M. Knighton, Jr., Knighton Oil Company, Inc.,
Wichita, KS
Ed Nemnich, K&N Petroleum, Inc., Ellinwood, KS
Eugene A. Reif, Pickrell Drilling Company, Inc.,
Wichita, KS
I. Wayne Woolsey, Woolsey Energy Corporation,
Wichita, KS
J.M. Vess, Vess Oil Company, Wichita, KS
Jeff Kennedy, Martin Pringle Oliver Wallace &
Bauer LLP, Wichita, KS
Jennifer Mull, Mull Drilling Co., Inc., Wichita, KS
Kent A. Deutsch, Deutsch Oil Company, Wichita,
KS
Kevin McCoy, McCoy Petroleum Corp., Wichita,
KS
Klee R. Watchous, Palomino Petroleum, Inc.,
Newton, KS
Kurt R. Mai, Mai Oil Operations, Inc., Dallas, TX
Margery Nagel, F.G. Holl Company, LLC, Wichita,
KS
Mark Evenson, Evenson Auctioneers, Inc., Wichita,
KS
Ralph R. Hamilton, Duke Drilling Co., Inc., Wichita,
KS
•
•
•
•
•
•
•
Richard A. Hiebsch, Vincent Oil Corporation,
Wichita, KS
Rick Stinson, Lario Oil & Gas Company, Wichita,
KS
Ronald L. Cook, Sullivan & Cook Petroleum
Consultants, Overland Park, KS
Ronald Sinclair, Grand Mesa Operating Company,
Wichita, KS
Shawn P. Devlin, Viking Resources, Inc., Wichita,
KS
Thomas D. White, White & Ellis Drilling, Inc.,
Wichita, KS
Wm. S. Raymond, Raymond Oil Company, Inc.,
Wichita, KS
The Directors unanimously elected the following officers:
•
•
•
•
•
Chairman – Dwight Keen, Keen Oil Company,
Winfield, KS
Southwest Vice Chairman – Kenneth S. White,
White Exploration, Inc., Wichita, KS
Northeast Vice Chairman – Nick Powell, Colt
Energy, Inc., Fairway, KS
South Central Vice Chairman – Alan Banta, Trans
Pacific Oil Corporation, Wichita, KS
Treasurer – Scott Frazier, Woolsey Operating
Company, LLC, Wichita, KS
The following Advisory Board Members were also elected:
•
•
•
•
Carl W. Sebits, Pickrell Drilling Co., Inc., Wichita,
KS
Thornton E. Anderson, Anderson Energy, Inc.,
Wichita, KS
James W. Rockhold, Rockhold Engineering, Inc.,
Great Bend, KS
Lee Banks, Banks Oil Company, Wichita, KS
29
Thank you
For your support and participation in the 74th Annual
2011 KIOGA Convention
Wildcatter Sponsor
Palomino Petroleum, Inc.
Black Gold Sponsor
IMA of Kansas, Inc.
Gold Sponsors
Basic Energy Services
Consolidated Oil Well Services, LLC
DCP Midstream LP
Jayhawk Oilfield Supply, Inc.
Kimray, Inc.
Presley Petroleum Company, LLC
Silver Sponsors
American Energies Corporation
Baker Hughes
Chesapeake Energy Corporation
Coffeyville Resources Refining & Marketing
D.S. & W. Well Servicing, Inc.
Lockhart Geophysical Company
LUMEN Midstream Partnership, LLC
Maclaskey Oilfield Services, Inc.
Mai Oil Operations, Inc.
Mull Drilling Company, Inc.
Murfin Drilling Co., Inc.
NCRA
Plains Marketing, LP
Pratt Well Service, Inc.
Raymond Oil Co., Inc.
Sunrise Oilfield Supply, Inc.
Swift Services, Inc.
The Buckeye Corporation
Trilobite Testing, Inc.
30
Gore Oil Company
Gressel Oil Field Service & Copeland Acid
H&B Petroleum Corporation
High Sierra Crude Oil & Marketing, LLC
Hinkle Law Firm, LLC
INTRUST Bank
J&D Pump and Supply, LLC
John O. Farmer, Inc.
K & N Petroleum, Inc.
KBK Industries, LLC
Knighton Oil Company, Inc.
LOG-TECH
McCoy Petroleum Corporation
McDonald Tank & Equipment Company, Inc.
Midwestern Pipeworks, Inc.
MTM Petroleum
Mud-Co./ Service Mud Inc.
MV Purchasing, LLC
ONEOK Partners
Pacer Energy Marketing, LLC
Pickrell Drilling Company, Inc.
Ritchie Exploration, Inc.
Southwind Drilling, Inc.
Stelbar Oil Corp., Inc.
TGT Petroleum Corporation
Tidelands Geophysical Co., Inc.
Trans Pacific Oil Corporation
VAL Energy, Inc.
Wellkeeper, Inc.
Woolsey Operating Company, LLC
General Sponsors
Albert Hogoboom Oilfield Trucking, Inc.
Anderson Energy, Inc.
Andy’s Mud & Chemical Company
Bachman Production Specialties, Inc.
Bank of Oklahoma
Banks Oil Company
Bronze Sponsors
Buffalo Creek Oil & Gas, LLC.
Butterfly Supply/ Great Plains Inspection
Abercrombie Energy, LLC
Cathodic Systems Co., LLC
American Eagle Drilling, LLC
Central Power Systems & Services
American Energies Pipeline, LLC
DaMar Resources, Inc.
American Warrior, Inc.
Deutsch Oil Co.
Apollo Energies Inc.
Dick’s Engine & Machine Service, Inc.
BEREDCO
Express Well Service & Supply, Inc.
Berentz Drilling Co., Inc.
F.G. Holl Company, LLC
BP America
Geo R. Shaw Living Trust
Champion Technologies, Inc.
Gore Nitrogen Pumping Service, LLC
Claflin Pump & Supply, Inc.
Grand Mesa Operating Company
Colt Energy, Inc.
Hi-La Engine Pump & Supply, Inc.
Commerce Bank
Insurance Planning, Inc.
Corrosion DC, Inc./Francis Casing Crews,
Insurance Specialists Group, LLC
Inc.
J. Fred Hambright, Inc.
Crawford Supply Co., Inc.
Jones Gas Corporation
Daystar Petroleum, Inc.
Kansas Acid, Inc.
Discovery Drilling Co., Inc.
Domestic Energy Producers Alliance (DEPA) Lario Oil & Gas Company
Log Tech of Kansas, Inc.
Duke Drilling Co., Inc.
Lotus Operating Co., LLC
Edmiston Oil Co., Inc.
Lowry Exploration, Inc.
Evenson Auctioneers, Inc.
Martin, Pringle, Oliver, Wallace & Bauer, LLP
F&M Bank & Trust Co.
Midcon Oil Tools, Inc.
Mohican Petroleum, Inc.
Morris, Laing, Evans, Brock & Kennedy,
Chtd.
National Oilwell Varco
Norris Sucker Rods
Novy Oil & Gas, Inc.
Orecat Energy, Inc.
Orvie Howell
Parrish Oil Company, LC
Petroleum Consultants/ Sullivan & Cook
Petroleum Management, Inc.
R&R Exploration Fund, LLC
Range Oil Company, Inc.
Roberts Resources
S.R. Weilert Oil, LLC
Shields Oil Producers Inc. &
Shields Drilling Co., Inc.
Superior Well Services
Sweetman Investments, LLC
T&C Consulting
Territorial Magazine
The Trees Oil Co.
Tomcat Drilling
TRC Rod Services of Oklahoma, Inc.
True Grit Energy, Inc.
Venture Resources, Inc.
Vincent Oil Corporation
Wallace Energy, Inc.
White Exploration, Inc.
Trade Show
Allied Cementing Co., Inc.
Arrow Engine Company
Baker Hughes
Basic Energy Services
Caseco Truck Body
Central Power Systems & Services
Century Graphics & Sign, Inc.
CeRam-Kote Coatings Incorporated
Consolidated Oil Well Services, LLC
DanCo Systems, Inc.
E.B. Archbald & Assoc./ SSI
EOGA
Foley Equipment Co.
Hampel Oil Distributors
I.H.S.
IACX Energy, LLC
IMA of Kansas, Inc.
JB Ranch Kansas, LLC
John Crane Production Solutions
Kansas Geological Society
Kansas Geological Survey
Kansas Strong
Kimray, Inc.
Koger Remote Sensing
Lubrication Engineers Inc.
LUMEN Midstream Partnership, LLC
Manatron
ONEOK Partners
Pratt Well Service, Inc.
Pictures
www.collages.net
KIOGA 2011 - 18832
Reichlinger Business Services
Sco-Jo Land & Environmental, Inc.
Seal Tite Lining System
Straub International
Terracon Consultants, Inc.
Tertiary Oil Recovery Project (TORP)
Tidelands Geophysical
Weld-Tech
Wellhead Systems, Inc.
Hospitality Rooms
Allied Cementing Company
American Energies Inc./ Terratech
Global Artificial Lift
Hess Services, Inc.
INA Alerts
Maclaskey Oilfield Services, Inc.
PetroPower
Production Enhancements Systems
Tucker Energy Services
Wellkeeper
31
Communication Priorities Key in Today’s Environment
A
KIOGA Stays Focused on Energy Security Message
confluence of events from the European debt crisis,
the slowing growth of emerging markets, and the tenuous fiscal situation in the U.S. are driving economic
and political uncertainty. Wall Street is selling, K Street is
preparing for fundamental policy changes, and Main Street is
worrying about jobs. Communication is critical for maintaining
the oil and gas industry’s credibility with policymakers and
the public and ultimately in protecting our industry.
Communication Priorities
As the oil and gas industry continues to face
enormous challenges of providing adequate and reliable
energy supplies in the years ahead, an informed public has
never been more necessary. In light of current economic
and political uncertainty, KIOGA is currently focused on
three communication priorities.
32
1. Educating policymakers and public on critical
energy taxes and regulatory issues. The Super
Committee mandate to produce $1.5 trillion in
budget savings means that KIOGA is continuing
our aggressive efforts to tell our story about the
jobs our industry supports. KIOGA has a strategy
for protecting critical oil and gas tax provisions and
will continue to explain to policymakers and the
public the detrimental impact that repealing these
provisions would have on American energy security
and economic recovery. KIOGA has established
a strong voice with federal and state lawmakers
and the media and have kept misguided legislation
from advancing further.
2. Developing good media relations. KIOGA has
taken on a number of communication and advocacy
initiatives to educate lawmakers, consumers,
media, and school children about the importance
of American oil and natural gas production and
why it is so critical to the future of our economy
and energy security. KIOGA’s employs a 5-point
strategy for developing media relations and
improving the industry’s image and credibility:
• We provide sincere, honest, and frequent
communication with media.
KIOGA
continues to grow as a source for the media.
In addition, we continue developing and
distributing timely opinion editorials, letter to
editors, press releases, and visiting editorial
boards and reporters.
• We put a face on the industry. Several
KIOGA members have been interviewed by
news outlets across Kansas. Dwight Keen,
Wayne Woolsey, Dick Schremmer, Alan Banta,
Jon Callen, Dave Dayvault, and Jeff Kennedy
are a few KIOGA members who have provided
outstanding interviews on a number of energy
topics to media across Kansas this Fall.
• We explain oil and gas industry values and
educate about the integrity of our industry.
KIOGA on-air awareness messages are
broadcast on 58 radio stations across Kansas
providing important information about the
oil and gas industry to folks in every Kansas
county.
• We provide industry information. KIOGA
provides credible information to media about oil
and gas economic and environmental issues
including fact sheets, data and statistics,
economic impact studies, and issue briefs.
• We establish a long-term commitment.
KIOGA media relations efforts foster a better
public understanding of energy issues. We will
continue to advance messages and materials
that redefine the energy debate and inspire
outside groups and everyday Americans to
stand up on our behalf.
3. Keeping KIOGA members informed. Independent
oil and gas producers across Kansas are nervous
about the implications of the current turmoil on their
companies. Employees of these producers too are
concerned about their jobs. KIOGA will continue
our frequent communication efforts with members
through KIOGA Newsletters, KIOGA President
Reports, KIOGA Express, Federal & State
Legislative Reports, Educational brochures,
and the KIOGA website (www.kioga.org).
KIOGA’s frequent communications with members
will speak directly and candidly about current
economic and political situations. Our direct and
frequent communications give confidence to our
members and their employees that our industry
can weather economic and political challenges.
KIOGA Public Information Efforts
For years, KIOGA has served as a primary source
of information for the media on issues ranging from oil and
gas taxation, environmental issues, economic impact of
oil and gas industry and more. In 2011, the association’s
media outreach efforts are reaching new highs with 44
media mentions already this year. As issues affecting the
oil and gas industry continue to dominate media focus,
KIOGA has raised our profile as a source for the media.
The message we send is clear. Domestic oil and gas
production must remain a top energy priority because it’s
good for the economy, jobs, government revenue, and
energy security.
KIOGA’s aggressive public information efforts
have resulted in thousands of Kansans who have heard
KIOGA’s key messages. Major Kansas news outlets from the Kansas City Star, Wichita Eagle and Topeka
Capital-Journal to the Hays Daily News, Manhattan
Mercury and Eagle Radio - are turning to KIOGA as the
leading oil and natural gas industry news source.
Communication...continued from page 32
Nation Needs to Rethink Its Energy Approach - KIOGA
Tells Groups Across Kansas
Providing for our future energy needs is one of the
great challenges of the 21st century, KIOGA members told
civic groups in presentations delivered across Kansas.
KIOGA emphasizes that setting a national goal for energy
independence would bring disappointment that would
undermine the longer-term commitments that are required
for a sound energy future and that an energy security
strategy would be much more useful. KIOGA presentations
outline a well-reasoned, fact-based comprehensive
energy security strategy. KIOGA members spoke to 43
groups across Kansas in 2010 and have spoken to 26
groups already in 2011 including presentations in Wichita,
Topeka, Dodge City, Great Bend, Russell, Salina,
Louisburg, and Kansas City. During the remainder
of 2011, KIOGA President Edward Cross has or will be
speaking to a number of groups about critical oil and gas
issues including:
Hydraulic Fracturing - Kansas Joint Committee on
Energy & Environmental Policy, KBA/KIOGA Oil & Gas
Conference.
Energy Security - Association of Desk & Derrick Clubs
Annual Convention, Cowley County Economic Forum,
Manhattan Rotary Club, Russell Chamber of Commerce
Ag & Oil Expo.
Energy Tax & Economic Policy - Governor’s Economic
Summit on Energy.
Energy Security for America - KIOGA Opinion
Editorials
KIOGA continues our vigorous campaign to
educate media and the public about energy security
issues and the integral role of responsibility in the oil and
gas industry’s activities. KIOGA opinion editorials (OpEd)
continue to be published by newspapers across Kansas
and the nation. KIOGA President Edward Cross wrote
and distributed opinion editorials and magazine articles
on a number of energy issues that have been picked up
by the Kansas City Star, Wichita Eagle, Salina Journal,
Topeka Capital-Journal, Johnson County Sun, Great
Bend Tribune, Abilene Reflector-Chronicle, Holton
Recorder, Manhattan Mercury, Garden City Telegram,
Lawrence Journal World, McPherson Sentinel,
Southwest Daily Times, American Oil & Gas Reporter
as well as newspapers in Illinois and Florida. All KIOGA
OpEd’s focus on relaying messages that our state
and nation must continue to move forward to promote
comprehensive energy policy that will improve America’s
energy supply and national security and that oil and natural
gas must be a part of our energy solution.
Getting Energized for Kansas Classrooms
The Kansas Oil & Gas Resources Fund (KOGRF)
has been busy preparing energy education curricula
focused on K-2nd grade for delivery to Kansas schools.
KOGRF Director of Communications J.L. White-Fuller
and KOGRF Education Director Catherine ThorpeShirley have done an excellent job organizing materials
and teacher workshops for K-2 teachers over the past
several months. The Kansas Strong teacher workshops
are designed to assist educators in providing a model for
collaborative learning using crude oil, natural gas, and
energy issues. Teachers learn activities for a solid energy
curriculum and receive resource materials and classroom
supplies. The program holds great promise for getting
factual, hands-on energy education curricula to students
and teachers across Kansas.
KIOGA has been invited to a number of Kansas
classrooms this fall. KIOGA began the “Petroleum
Professionals in the Classroom” (Petro Pros) program
in Kansas in 2004 and have since developed a strong
presence in Kansas schools having reached over 11,500
Kansas students. Petro Pros are trained Kansas oil and
gas professionals who volunteer their time and effort to
visit Kansas schools to educate students about the science
and business aspects of the Kansas oil and gas industry.
In 2010, the KOGRF began their classroom energy
education program and KIOGA’s Petro Pros Program was
rolled into the KOGRF effort. KIOGA continues to work to
help the KOGRF classroom energy education effort move
forward. Classroom presentations will be made in October
and November to:
•
•
•
Bonner Springs 8th Grade (200 students)
St. Marys 6th Grade (40 students)
South Barber High School (100 Students)
The KOGRF is also preparing a Rolling Oil &
Gas Education Exhibit. The exhibit is currently being
constructed and will be a self-contained truck and box
containing small scale working models of oil field equipment
commonly used during the exploration and production of
crude oil and natural gas. The exhibit will tour Kansas
schools and other venues in support of KOGRF energy
education programs. A special thanks goes to Clarence
Denning who is building and installing the small scale
working models, Nate Carter and Ricky Miller of Pacer
Energy Marketing who volunteered their time and effort
to deliver the truck and box to Colby, Kansas where
Clarence’s workshop is located, and to Dick Schremmer
who has spearheaded the effort to move forward with this
valuable educational tool.
33
Communication...continued from page 33
Moving Forward
Events in Topeka and Washington will determine
the direction of the latest KIOGA public information initiative
in the months to come. KIOGA’s public information efforts
will continue to play an increasingly active role in helping
determine how, when, and to what extent those events
unfold. We will continue to advance messages and
materials that redefine the terms of the debate, and inspire
outside groups and everyday Americans to stand up and
act on our behalf.
KIOGA’s messages are getting out and continue to
penetrate markets statewide through news media, civic club
presentations, Op/Ed pieces, and other venues. KIOGA is
playing an important role in energy education advocacy
efforts, from state and federal advocacy to working with
the media to educating teachers and students. KIOGA’s
energy education advocacy efforts work hand-in-hand with
our government relations activities to optimize KIOGA’s
effectiveness as an advocate for the Kansas independent
oil and gas industry. Our pubic information efforts are
making a positive difference and create an atmosphere
that helps us negotiate positive legislation from a better
position.
Need More Information?
Contact KIOGA for background materials, data and
statistics, industry information, and issue briefs. KIOGA
can provide assistance writing Letters to the Editor, opinion
editorials, press kits, speeches, and PowerPoints. Our
guidance document titled “What We Say and How We Say
It!” provides a basic overview about how we communicate
with the media. Please contact the KIOGA Wichita Office
at 316-263-7297 or visit our website at www.kioga.org for
more information.
34
“Miller Plastics”
115 S. Patton Road
Great Bend, KS 67530
800-772-6060 or 620-792-4388
[email protected]
www.timmillersales.com
___________________________________
____
W.C. Norris Sucker Rods
~~
Polyethylene Pipe
Oilfield Transportation or Domestic Distribution
~~
PVC Plastic Pipe
Pipe (40’ Joints w/ Deep Socket Couplings)- Fittings
~~
*Seal Tite* Lined Steel Tubing
*Fiberglass Pipe-Tanks-Fittings*
*Steel Pipe-Tanks-Vessels-Fittings*
~~
*FULL LINE OF OILFIELD SUPPLIES*
*LARGE INVENTORIES OF ALL PRODUCTS*
*Delivery Available Statewide*
Less time gathering.
More time strategizing.
Enjoy the freedom and efficiency of an uninterrupted workflow.
Direct connection to IHS data helps increase productivity,
reduce data management costs, and enable better decision
making about opportunities for oil and gas production.
Regular updates ensure the most recent information is
available, regardless of your platform. Realize new
efficiencies through the integration of critical information
and decision support tools from IHS.
See more solutions at www.ihs.com/kioga
Resources
WORKFLOW WITHOUT DATA INTEGRATION
Data Gathering
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Transformation
Data
Analysis
Management
Response
Time
WORKFLOW WITH DATA INTEGRATION
Resources
Spend your time more wisely with continuous data access
and analysis. IHS now connects more information types to
our products across the globe. This seamless integration
extends to our customers’ proprietary systems. With a
comprehensive array of data and interpretive tools, E&P
processes can move faster—and with greater accuracy.
Comprehensive
Analysis &
Strategic Insight
Data
Gathering
Thoughful &
Informed
Management
Decisions
Time
35
PRSRT STD
U.S. POSTAGE
PAID
WICHITA, KS
PERMIT NO 411
105 S. Broadway Suite 500 • Wichita, KS 67202
(316) 263-7297 • www.kioga.org
MEMBERSHIP APPLICATION
(The undersigned applies for New Membership)
NAME:______________________________________________________________________________________________________
COMPANY:__________________________________________________________________________________________________
ADDRESS:__________________________________________________________________________________________________
CITY:________________________ COUNTY:_________________________ STATE:___________ZIP CODE:____________________
PHONE NUMBER:________________________________________ FAX:________________________________________________
EMAIL:______________________________________________________________________________________________________
Would you like to receive email alerts ❑ Yes ❑ No
ANNUAL DUES
❑ Enroll me as a Producer Member and bill me accordingly. Call for details.
❑ Enclosed is my check for a Regular Membership at $150.00
❑ Enclosed is my check for the Voluntary Public Relations contribution at $25.00
Mastercard or Visa Number________________________________Exp Date___________
For Federal income tax purposes, membership dues and contributions to KIOGA
are deductible as business expenses, not as charitable contributions.
MAIL TO: KIOGA • 105 S. BROADWAY, SUITE 500 • WICHITA, KS 67202

September-October 2011 - Kansas Independent Oil and Gas

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