Ky/Tenn Report

Volume 7, Number 61 JULY 2000

OPERATING IN THE PARK-ON TAP FOR JULY TOGA MEETING-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, July 27th. This meeting will focus on "Operating in The Park". "We knew that with the Great South Fork there would be new federal operating regulations for wells inside the park," said Bill Goodwin, TOGA President. However, those wells were there before the park. We are hopeful the federal regulators will recognize that fact. The purpose of this meeting is to begin to develop a TOGA policy for operating in the park. All operators with wells in or near the park are encouraged to participate in this meeting.

IPAA TACKLES FOREST SERVICE ROAD POLICY-The Independent Petroleum Association is attempting to determine how many individuals and companies have experienced "harm" due to the Forest Service attempting to implement its new no road policy. If you have had any problems regarding this new no road policy, you are asked to fax a note outlining the problems you have experienced or anticipate to the IPAA at 202-857-0444. Or you can e-mail your response to dmcmullen@ipaa.org.

B&H SUPPLY TO BUY 4 H2S MONITORS, DONATE TO TOGA- Barb and Bill Lockhart, owners of B&H Supply, announced at the June TOGA meeting that they were planning to purchase four H2S (Hydrogen Sulfide) monitors and donate them to TOGA. While the deadly H2S has only been found in a handful of Tennessee wells, having a monitor and alarm on a drilling rig can help prevent a crew being exposed to H2S. The B&H donated monitors will be available to be borrowed or rented by operators drilling in areas where the possibility of H2S exists. Barb reports that they are negotiating with a storeowner in Overton County to be the site where the monitors can be checked out and in by operators. The Lockharts are also working with other TOGA members to acquire more equipment and training in dealing with H2S.

CITIZENS SEEKS STRIPPING PLANT-Citizens Gas Utility District reports it is looking for a company to install a small stripping plant near the Burrville compressor. The company suggests that the company and the local producers could share in the profits of the stripping operation on a 50% basis. Citizens notes that high BTU gas continues to be a problem, although it will accept high BTU gas as long as they can market it safely. They will not, however, pay for any BTU content higher than 1200 BTU and may refuse to accept any gas that has a BTU greater than 1300. Give Freddy Bishop at Citizens a call for more information.

TENGASCO TO SELL GAS TO KINGSPORT-The city of Kingsport has granted Tengasco Pipeline Corp, a Tengasco wholly-owned subsidiary, the non-exclusive franchise authority for a period of 20 years to transport, deliver and sell natural gas to residential, commercial and industrial customers within the city limits of Kingsport, and to construct pipeline facilities necessary to perform these services.

TOGA TO DISCUSS INJECTION WELL RULES & REGS- TOGA board member Rivers Ford will head a committee meeting later this month with Oil & Gas Board officials to discuss the Division of Water’s proposed rules and regulations for Class 2 injection wells. During the TOGA convention in Knoxville, Division personnel presented an overview of its plan to assume responsibility for regulating Class 2 injection wells in Tennessee from the EPA. A series of public meeting have been scheduled throughout the state to allow public comment. The purpose of this initial TOGA- Oil & Gas Board meeting is to determine if TOGA should take a public position on this issue and either testify at one of the hearings or submit written testimony. Any operator with an interest in this subject should contact the TOGA office at 615-263-1291 or Rivers Ford at 270-781-7505.

TENNESSEE JUNE WELL PERMITS-Cannon County – Blue Flame Energy Corp., Permit #9558, Aravee Conley Unit TCI, Hollow Springs Quad, 999 ft./ Claiborne County- Miller Petroleum, Inc., Permit #9545, Carrol Rose #1,Howard Quarter Quad, 2950 ft./ Campbell County – Columbia Natural Resources, Permit#9555, Begley Lumber Co.823759, Jellico West Quad, 8800 ft./ Fentress County- Basin Oil & Gas Corp., Permit #9543, Sheldon G. Compton Heirs #1, Riverton Quad, 2500 ft./ Hancock County – Tengasco, Inc., Permit #9544, R.D Helton Unit #2, Swan Island Quad, 5000 ft./ Tengasco Inc., Permit #9552, Dwight Frazier Unit #1, Swan Island Quad, 5000 ft./ Miller Petroleum Inc., Permit #9553, Warlie Porkey Etal #1, Swan Island Quad, 5000 ft./ Jackson County- Blue Flame Energy Corp., Permit #9565, Lloyd Carwile #TJ1, Burnstorm Quad, 999 ft./ Blue Flame Energy Corp., Permit #9566, Eddy Jones Unit #TJ2, Dodson Branch Quad, 999 ft./ Overton County- Pryor Oil Company, Permit #9542, Peggy Averitt Endicott Etal #3, Alpine Quad, 2000 ft./ Arnco Oil Co., Permit #9547, Union Bank Trust #7A, Livingston Quad, 2000 ft./ Pryor Oil Co., Permit #9556, Campbell-Bilbrey Unit #1, Alpine Quad, 2500 ft./ Pryor Oil Co., Permit #9559, Bruce Bilbrey #1, Alpine Quad, 2500 ft./ Gold Energy Resources, Inc., Permit #9560, Livingston Quad, James McColler #1, Livingston Quad, 200 ft./ Ohio-Ky Oil Corp., Permit #9562, Lowell Ledbetter #1, Alpine Quad, 2000 ft./ Young Oil Corp., Permit #9563, Ronald Smith #1, Alpine Quad, 2000 ft./ NAMI Resources, LLC, Permit #9564, Larry Worley #1, Alpine Quad, 2000 ft./ Young Oil Corp., Permit #9567, Ralph Dishman #3, Alpine Quad, 2000 ft./ Pickett County- Target Oil & Gas Corp., Permit #9546, Jerry Garrett #5, Riverton Quad, 2000 ft./ Bottom Line Oil & Gas, Inc., Permit #9548, Sanford Whited #1, Riverton Quad, 2000 ft./ Ohio-Ky Oil Corp., Permit #9549, Brenda Hall-Boks Unit #1, Alpine Quad, 2000 ft./ Ohio-Ky Oil Corp., Permit #9550, Ray Cravens #2, Riverton Quad, 2000 ft./ Target Oil & Gas Corp., Permit #9551, Jerry Garrett #3, Riverton Quad, 2000 ft./ Ohio-Ky Oil Corp., Permit #9554, Connie Chapman #3, Riverton Quad, 896 ft./ Ohio-Ky Oil Corp., Permit #9557, Connie Chapman #4, Riverton Quad, 2500 ft./ Basin Oil & Gas Corp., Permit #9561, Clyde Craig #1, Riverton Quad, 2000 ft./

SOUTHERN KENTUCKY JUNE WELL PERMITS-Clinton County- Ohio –Ky Oil Corp., Permit #91203, Erest & Holland Wells #7, 2000 ft./ Stephen P. & Carol Peddicord, Permit #91235, Springhaven Farms Inc., #3/ Cherry Oil & Gas Inc., Permit #91242, P Heirs Melton #103 / Cherry Oil & Gas, Inc., Permit #91285, J Ballou #505, 1999 ft./ Clinton County Crude, Permit #91290, Regina Cool #101, 2000 ft./ Cumberland County- Todd’s Oil Project, Permit #91288, Johnnie Sells #1, 2000 ft./ Harlan County- Evan Energy Co., Permit #91222, Dulcimer Land Co., #700/ Evan Energy Co., Permit #91262, Dulcimer Land Co., 6300 ft./ Knox County- NAMI Resources Co., LLC, Permit #91261, Bill Helton #1, 2500 ft./ Letcher County-Columbia Natural Resources, Permit #91231, Ark Land Co., #824361/ Charles Bradley DBA Basin Energy Co., Permit #91237, Mararet Bowling Etal #1/ Columbia Natural Resources, Inc., Permit #91271, Ark Land Co., #824356, 5800 ft./ McCreary County – Champ Oil Co., Inc, Permit #91219, James Witt #2, 4000 ft./ Champ Oil Co., Inc., Permit #91289, Marjorie Hamlin #1, 4000 ft./ Metcalfe County – Ohio–Ky Oil Corp., Permit #91277, Michael Francher #20, 500 ft./ Ohio–Ky Oil Corp., Permit #91283, Michael Francher #18, 500 ft./ Ohio–Ky Oil Corp., Permit #91284, Michael Francher #17, 500 ft./ Ohio–Ky Oil Corp., Permit #91276, Michael Francher #19, 500 ft./ Simpson County- Virgil Smith, Permit #91234, Brenda M Harris #1

OIL PRICES HIT $29, DROP BACK-Oil prices dropped two dollars on word that the Saudi Arabia was increasing production by 500,000 barrrels. South Kentucky Purchasing reports that crude was $28.25 on June 28, dipped to $28 on the 29^th, hit $29 on the 30^th, dipped to $28.75 on July 1, then down to $26.75 on July 6^th. Citizens Gas Utility District reports that the July price for natural gas is $4.29 MMBTU.

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.