Volume 8, Number 69, MARCH 2001

TOGA MEETS AT MOUNTAIN VIEW, MARCH 22^nd-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, March 22, 2001. Planning the 2001 Annual Convention, set for May 9-10 in Knoxville, will highlight the agenda. The Mountain View Golf Course and Lodge is south of Allardt, which is south of Jamestown. At the four-way stop in Allardt, turn south (toward Crossville). The Mountain View Golf Club and Lodge is on the left about 3 miles down. Informal reception at 6:00 p.m.(CST), dinner at 6:30 p.m. and the meeting will begin at 7:00 p.m.

ANNUAL CONVENTION, MAY 9-10, KNOXVILLE-The TOGA annual convention will be held Wednesday, May 9^th through Thursday, May 10^th at the Cedar Bluff Holiday Inn in Knoxville. There will be a convention registration form in the May issue of the newsletter. Tentative plans call for a kickoff reception and dinner on Wednesday evening. There will be a full day Thursday with a breakfast meeting followed by the traditional morning of high energy technical sessions, featuring authorities on a wide range of subjects important to Tennessee oil and gas operators. TENGASCO SCHEDULES GALA TO KICK OFF NEW PIPELINE-Tengasco has invited industry and government leaders to participate in an "extraordinary event announcing the grand opening of Tennessee’s first intrastate natural gas pipeline." The event opens with a Press Conference at 4 p.m., Thursday, March 8^th at the Eastman Chemical Company in Kingsport . The Press Conference is followed by a Reception from 5 p.m. to 7 p.m. at the Meadowview Conference Center in Kingsport.

The elaborate invitation notes that it took three years of construction through rugged terrain, digging under the environmentally protected Clinch River, crossing over three mountain ranges and securing land right-of-way for a 60-mile journey from the Swan Creek field to Kingsport for Tengasco to bring natural gas to the Tri-Cities. This event will no doubt change the way the oil and gas industry looks at Tennessee. Congratulations to TOGA member Mike Ratliff and his entire team.

SPEAKERS NEEDED FOR CONVENTION- We need a few more technical session speakers for the TOGA convention in Knoxville, May 9-10. If you are interested in being a speaker or have an idea for a speaker, contact the TOGA office at 615-263-1291.

CITIZENS OFFERS $4 PER MCF FOR ONE YEAR- Citizens Gas Utility District has notified gas producers that soaring natural gas prices makes it necessary for Citizens to pay a firm price for gas, rather than continuing to pay based on the index price. Citizens paid the February 2001 index of $6.13 mmbtu in February and will be paying the March 2001 index price of $4.91. After that, Citizens is offering producers a contract that calls for a firm price of $4 mcf for one year. Producers who fail to sign the contract by April 30, 2001 have the choice of either shutting in their production or accepting $2.75 per mcf.

Bishop, under whose leadership Citizens has grown from 1,500 to 9,000 customers, has pledged to work with TOGA to help increase the market for natural gas in the area.

OIL PRICES REMAIN ABOVE $23-South Kentucky Purchasing Company reports that crude oil prices remain in the $23-24 range. The Feb. 27^th price was $24.50. It dropped to $24 on the 28^th. On March 1, it dropped again to $23.25, then recovered to $23.50 on the March 2. On March 3^rd, it had moved up to $23.75 and was there when we went to press on March 12^th.

NEED A YOUNG GEOLOGIST? HERE’S A GOOD ONE-Kevin Glenn McCarty will graduate from Tennessee Technology University with a degree in Geology in May and is looking forward to going to work for a company operating in Tennessee. Kevin has been in contact with the TOGA office and we have his complete resume in file. If you are interested, give us a call and we will send you his resume. Or you can contact him directly. He now lives at 238 East 14^th Street, Apartment #2, Cookeville, TN, 38501. Phone 931-528-6916, e-mail KGM4736@tntech.edu.

CLAY COUNTY LEASE OPPORTUNITIES-With oil and gas prices up, landowners are contacting the TOGA office ready to lease. Here are a couple of leasing opportunities in Clay County, TN, for any of you interested in that area. It is right next to Overton County, currently the most active county in the state. Darvis Pitcock, 205 Grant Street, Unicoi, TN, 37692 has 80 acres just south of Celina. His phone number is 423-743-8188. Another landowner interested in leasing is Melvin Grace, 5805 Clay County Road, Red Boiling Springs, TN, 37150. His property is near Macon County, which had good oil production years ago. His phone number is 615-699-3523.

TAX DATA FOR 2000-The IPAA calculates that the 2000 percentage depletion is 19% and the 2001 estimate is 15%. Section 29, nonconventional fuel tax credit-applicable for qualified fuels, inflation adjustment factor is estimated to be 2.0402 for 2000. This equates to a natural gas price of $1.05529. The actual prices will be published in the Federal Register in early April 2001.

BUSH NAMES ENERGY TASK FORCE-President Bush has named Vice President Cheney to head a task force to develop a national energy policy. An energy bill is also slowly moving through Congress, containing tax incentives including marginal oil and gas well tax credits.

TENNESSEE FEBRUARY WELL PERMITS- - Anderson County- John Henry Oil Corp., Permit #9691, Coal Creek Mining #2, Lake City Quad, 6500 ft/ Hancock County Miller Petroleum, Inc., Permit #9693, Jeff Johnson #1, Swan Island Quad, 5200 ft./ Overton County- Gold Eagle Energy Resources, Inc., Permit #9685, Ledford Heirs #3, Alpine Quad, 2000 ft./ Target Oil & Gas Corp., Permit #9686, Jerry Garrett #2, Livingston Quad, 2000 ft./ Target Oil & Gas Corp., Permit #9687, Jerry Garrett #14, Livingston Quad, 2000 ft./ Basin Oil & Gas Corp., Permit #9689, Jimmie Clark & Jack Clark #2, Alpine Quad, 2000 ft./ Arnco Oil, Permit #9690, Union Bank & Trust #11A, Livingston Quad, 2000 ft./ Basin Oil & Gas Corp., Permit #9692, Bobby Almonrode #10, Alpine Quad, 2000 ft./ Ohio-Ky Oil Co., Permit #9694, Danny Smith #1A, Alpine Quad, 2000 ft./ PoDurco Energy, Permit #9695, Dolores Hancock #8, Alpine Quad, 2000 ft./ Pickett County- Bottom Line Oil & Gas, Permit #9688, Ronald Hoover #1, Riverton Quad, 2000 ft./

KENTUCKY FEBRUARY WELL PERMITS-Clinton County- Ohio Ky Oil Corp., Permit #91989, Eugene Groce #2/ Ohio Ky Oil Corp., Permit #91990, Ohio Ky Oil Corp., #3/ Cherry Oil & Gas, Inc., Permit #91993, Gayle Pitman #1/ Cherry Oil & Gas, Inc., Permit #91994, Margie Case #6/ Cherry Oil & Gas, Inc., Permit #91995, Margie Case #5/ Cherry Oil & Gas, Inc., Permit #91996, Margie Case #4/ Cherry Oil & Gas, Inc., Permit #91997, Prentis Brown #1/ Wilco Leasing, LLC, Permit #92008, Bobby Taylor #2/ Wilco Leasing, LLC, Permit #92009, Edward Taylor #7/ Joe Todd Oil Project, Permit #92047, Cordell Dickerson #7/ Wilco Leasing, LLC, Permit #92050, Mike Owens #8/ Ohio Ky Oil Corp., Permit #92051, Will E. Lowhorn #2A/ Ewin Miller Tallent, Permit #92056, Edwin Miller Tallent #3/ Young Oil Corp., Permit #92070, Will Edd Lowhorn #2/ Steve Burchett Oil Co., Permit #92071, Randell Harlan #NE/ Cumberland County-Arrowhead Crude, Inc., Permit #92055, Clint Carter #1/ Knox County- Merit Gas & Oil, Inc., Permit #92036, Ted Hampton #1/ Leslie County- West Bay Exploration Co., Permit #92007, Jan Wells #1/ NAMI Resources Co., LLC, Permit #92017, South Mississippi Electric Power, #46/ NAMI Resources Co., LLC, Permit #92018, South Mississippi Electric Power, #45/ Letcher County- Charles Bradley & Basin Energy Co., Permit #91992, Calvin Heirs Collins #1/ J W Kinzer, Permit #92068, KY River Coal Corp., #2/ Columbia Natural Resources Inc., Permit #92069, Ark Land Co. #824423/ Charles Bradley & Basin Energy Co., Permit #92076, N L Combs #2/ McCreary County-Champ Oil Co., Inc., Permit #92041, Hudson Harmon Jr., #2/ Whitley County- Cumberland Harlan Exploration Corp., Permit #92013, Alfred & Evelyn Cobb #1/ Energy Associates, Inc., Permit #92053, Princeton Etal #EA30

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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