Volume 7, Number 62 AUGUST 2000

TOGA MEETS AUGUST 24, PARK ON AGENDA-The Tennessee Oil & Gas Association will hold its monthly meeting at the Mountain View Golf Course and Lodge at 6:30 p.m.(CST),Thursday, August 24^th. The focus of the meeting with be a report by a committee named to develop a TOGA policy regarding operating in the Great South Fork.

The Mountain View Golf Course and Lodge is south of Allardt, which is just outside Jamestown. At the four-way stop in Allardt, turn south (toward Crossville). The Mountain View Golf Club and Lodge is in the left about 3 miles down the road. Dinner will be at 6:30 p.m.($3 each) with the meeting to start at 7:00 p.m.

LOCKYEAR NAMED TO HEAD PARK COMMITTEE-Gene Lockyear was named at the July TOGA meeting to head a blue ribbon panel of TOGA members to determine if TOGA should become involved in the situation regarding operating oil and gas wells in and around the Great South Fork wilderness area. The committee is charged with the responsibility to first determine if TOGA should be involved then recommend what the TOGA policy should be. Members of the committee are: Lawrence LaRue, Bill Ray, Deloy Miller, Mark Liming, and Ray Calvert.

TOGA OPPOSESD STATE PRIMACY OF CLASS II INJECTION WELLS-The Board of Directors of the Tennessee Oil & Gas Association voted at its July meeting to oppose the proposed plan for the Tennessee Department of Environment and Conservation, Division of Water Supply to take over primacy for class II injection wells from the U.S. Environmental Protection Agency. Rivers Ford, who headed the TOGA committee and represented the association at a public nearing on the matter, said that there are only five injection wells in the state. Even if the state collected the proposed $2,500 permit per well, the program couldn’t be self funding.

In a letter to state officials, TOGA President Bill Goodwin pointed out that there were five compelling reasons why Class II injections wells should be excluded from the state proposal to assume primacy for various classes of wells from the EPA. 1. Income from fees would not cover the cost to the state. 2. This would create an additional tax burden on Tennessee taxpayers. 3. It would be a new, unnecessary financial burden to Tennessee oil operators. Proposed fees are thousands more than current fees. 4. Tennessee operators believe the EPA is doing a good job regulating Class II injection wells. 5. Tennessee assuming primacy from the EPA does not support Governor Sundquist’s less regulation, not more regulation pledge.

GOP ENERGY PLATFORM-The following is an excerpt from the 2000 GOP platform- "By any reasonable standard, the Department of Energy has utterly failed in its mission to safeguard America’s energy future. Foreign oil now accounts for one-third of our total trade deficit. Meanwhile, domestic oil production has fallen 17% over the last eight years as vast areas of the continental U.S. have been put off limits to energy leasing- although we depend on oil and natural gas for 65% of our energy supply. America needs a national energy strategy-and a Republican president will work with congressional Republicans to enact their National Energy Security Act.

CITIZENS GAS UTILITY DISTRICT RAISES FEES-Citing rising costs and a decline in production in the area, Citizens Gas Utility District has notified gas producers that the $.30 brokerage fee will be increased to $.75 effective August 1. Freddy Bishop, General Manager, pledged to continue to purchase as much locally-produced gas as possible. He added that he is hopeful that recent price increases will generate new gas production along the system.

SAVE DOMESTIC OIL SCORES VICTORY-The U.S. Court of International trade has entered an order in the crude oil anti-dumping case, instructing the Commerce Department to appear on Monday, August 14, 2000, to show cause of why the Motion to Save Domestic Oil should not be granted. As expected, the court has apparently seen the merit of SDO’s appeal of Commerce’s denial of its standing.

DAUGHERTY ANNOUNCES LEASE ACQUISITION, DISCOVERY-Daugherty Resources (Nasdaq:NGAS) has announced the discovery of a new oil and gas field on its 5,000 lease block in Bell County, Kentucky. The firm also announced the acquisition of 12,300 acre lease adjacent to the discovery from the J.M. Huber Corporation.

PTTC SCHEDULES COAL BED METHANE SEMINAR, SEPT. 13-"Innovative Technology for Coal Bed Methane Appalachian Basin" is the title of a September 13^th, seminar, just announced by The Appalachian Basin Petroleum Technology Transfer Council. The day long workshop will be held at the Glade Springs Resort in Daniels, WV. The cost is $75. For registration information contact: Mark Hoffman( 304) 293-2867x5446.

NEW ONLINE SERVICE CONNECTS BUYERS/SELLERS-BOK Financial Corp. has launched an online oil and gas leasing service, to act as a nationwide clearinghouse for unleased mineral interests. The site (www.bokproperties.com) will eventually list more than 1,000 mineral tracts throughout the nation.

BUYER FOR TENNESSEE GAS- Doc Mayne says he has a legitimate buyer for Tennessee natural gas. Producers with shut in wells are asked to send the details to Doc at 615-646-0838.

PETROLEUM ENGINEER READY FOR CHANGE- Ivan R. Puckett, P.E., 20 years experience with Shell Oil Co., is ready for a change. Call at home at (504)845-0759 or email-ipuckett@shellus.com.

TENNESSEE JULY WELL PERMITS- Fentress County- Basin Oil & Gas Corp., Permit # 9573, Joe Pile #10, Riverton, 2000 ft./ Hancock County- Tengasco Inc., Permit # 9579, Stephen Lawrence Unit # 4, Swan Island, 5700 ft./ Morgan County- Energy River Pipeline‘s, Permit # 9570, Daniel Garrett #2, Gobey, 2000 ft./ Overton County- John Henry Oil Corp., Permit # 9568, Swallows-Wright Unit #1, Okalona, 2000 ft./ Southeastern Energy Inc., Permit # 9569, Steve Looper # 3, Alpine Quad, 2000 ft./ Ohio-Ky Oil Corp, Permit # 9571, Lowell Ledbetter #2, Alpine Quad, 2000 ft./ Poduco Energy Co., Permit #, 9572, Delores Hancock 32, Alpine Quad, 2000 ft./ Seabco V.R. Inc., Permit # 9574, Alan Seber #J1, Dale Hollow S.E., 2500 ft./ ./ Southeastern Energy Inc. Permit # 9577, Steve Cooper #4, Alpine Quad, 2000 ft/ Ohio-Ky Oil Corp., Permit # 9580, Charles Norrock Etal # 1A, Alpine Quad, 2000 ft.,/ Ohio-Ky Oil Corp., Permit # 9581, Ralph Dishman #1-A, Alpine Quad, 2000 ft./ Pryor Oil Company, Permit # 9583, Kelly Paul #1, Alpine Quad, 2000 ft./ Riverside Oil-Gas Inc., Permit # 9584, Chris King # 1, Alpine, 2000 ft/ Ohio-Ky Oil Corp., Permit # 9586, Lois Dishman # 1-A, Alpine, 2000 ft./ Ohio-Ky Oil Corp., Permit # 9588, Charles Norrock Etal #2, Alpine Quad, 2000 ft./ Pickett County- Target Oil & Gas Corp., Permit # 9575, Jerry Garrett #4, Riverton Quad, 2000 ft./ Ohio-Ky Oil Corp., Permit # 9576, Curtis M. Boles #2, Riverton, 2000 ft./ Danny Cronel, Permit # 9578, Danny Cronel Et Al #21, Moodyville, 2000 ft./Ohio-Ky Oil Corp., Permit # 9582, Roger Wright #8, Alpine Quad, 2000ft ./ /Herman Johnson, Permit # 9585, Johnson-Reynolds Unit #2, Moodyville, 2000 ft./ Pryor Oil Co., Inc., Permit # 9589, Randy Campbell # 1, Alpine Quad, 2500 ft./ Scott County- Bruce Anderson, Permit # 9587, J. Randolf Miller # 1, Pioneer, 3000 ft.

SOUTHERN KENTUCKY JULY WELL PERMITS- Bell County-Daugherty Pet Inc., Permit # 91375, Equitable Production Co.EH-15, / Daugherty Pet Inc., Permit # 91372, Equitable Production Co.EH-11,/ Daugherty Pet Inc., Permit # 91373, Equitable Production Co., EH-12/ Daugherty Pet Inc., Permit # 91374, Equitable Production Co EH-14.,/ Daugherty Pet Inc., Permit # 91422, Equitable Production Co. #6,/ Daugherty Pet Inc., Permit # 91408, Equitable Production Co.EH-10,/ Clinton County- Explo Oil Inc., Permit # 91394, Jess Heir Keens B-3,/ Explo Oil Inc., Permit # 91393, Jess Heir Keens # 3/ Billy Butler, Permit # 91388, Glen Ray Smith #1/ Steve Burchett Oil Co. , Permit # 91424, Pryse Haddix #1/ Duncan DRLG CO., Permit # 91423, Luther Dalton #4/ Knox County- Nami Resources Co., Permit # 91402, Jackson Emanuel #1/ Nami Resources Co., Permit # 91403, Mike & Delbert Helton #1/ Nami Resources Co., Permit # 91383, Delbert Cooper#1/ Nami Resources Co., Permit # 91382, Kenneth Engle #1/ Nami Resources Co., Permit # 91385, Joe Patrick #1/ McCreary County- Forexco Inc., Permit # 91384, John A. Stephens #1/ Metcalfe County- Ohio-Ky Oil Corp, Permit # 91390, Michael Fancher #1 Whitely County- Nami Resources Co., Permit # 91367, Reed Helton#1, 3000 ft./ Columbia Natural Res. Inc. Permit # 91370, Arlene Rhodes # 824012,/

OIL PRICES HIT $26, DROP BACK $1—Oil prices hit $24 per barrel on August 2^nd, up to $24.50 the next day, on up to $25 on the 4^th and hit $26 on the 5^th, before dropping back to $25 on the 8^th, according to Shirley Diamond, South Kentucky Purchasing. The natural gas price for August is $3.74 MMBTU, according to Citizens Gas Utility District.

The Ky/Tenn Report is published monthly and distributed at no cost to oil and gas operators in Tennessee and Southern Kentucky. It is owned and operated by W.D. Goodwin, Inc., The editor is Bill Goodwin, e-mail: tmdbill@aol.com It is the official publication of the Tennessee Oil & Gas Association, 750 Old Hickory Blvd, #170, Brentwood, TN, 37027. Phone 615.263.1291, fax 615.263.1282. Web site: www.tennoil.com.

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