750 Old Hickory Blvd. Suite 285,   Brentwood, TN 37027
   Phone: 615.263.1291    Fax: 615.263.1282

Ky/Tenn Report
Volume 9, Number 88   OCTOBER  2002  

MANY THANKS, BALON, MILLER-Almost 100 folks showed up for the Balon Valves steak cookout, held at the home of Sharon & Deloy Miller, following the September 13th TOGA Board meeting, held earlier at the offices of Miller Petroleum.  The cookout is Balon’s way of advertising, so ask for Balon Valves the next time you need valves.  By the way, Balon says they will do cookouts for company employees and families. Give them a call to see if you can work something out.  Call Alan Canady at 404-580-0438.

PRYOR OIL’S BIG WELL ON HOLD-Pryor Oil Co., drilled in the Elmer Howard-White Unit #1, Permit #9893 on July 19th.  It came in an estimated 1800 psi, flowing 200-500 barrels an hour, caught fire and spilled oil into Clear Creek.  The operator and volunteers had 95% of the oil contained within a few hours, but the fire caught the attention of the Environmental Protection Agency.  The operator is currently trying to work through the EPA's demands so the well can be put into production.

TRAINING REQUIRED FOR TENNESSEE DRILLING-Tennessee operators will soon be receiving a notice from the Oil & Gas Board announcing new procedures for drilling in Tennessee, as a result of the Morgan County well that blew out, caught fire and spilled oil into Clear Creek.  The new procedures include better blowout prevention, as well as required training for “Site Coordinators” in drilling procedures, containment and safety. The state has given operators six months to complete the training.  The TOGA office is working with the state to develop a curriculum for the training program, scheduled to begin in January 2003.  Until the training is completed, state regulators will work with the operators to develop a drilling, containment and safety program for each well.  Operators are reporting the permitting time is a bit longer due to these new procedures, so keep that in mind when you plan your next well.  The TOGA office will be contacting operators within the next 30 days regarding the required training.

TOGA BOARD APPROVES REGS UPDATE-In addition to the new procedures brought about by the Morgan County fire and spill and the permit, reclamation legislation, TOGA has been working with the Oil & Gas Board staff to update the state oil and gas regs.  The TOGA Board of Directors has approved the proposed changes at the Sept 13th meeting. The proposed regs have been submitted to the Oil & Gas Board staff for review.  Proposed regs updates include eliminating or rewriting regulations not being enforced because they are not relevant to Tennessee, lowering the plugging bond to $500 for landowners taking wells over for domestic gas use, updating the plugging requirements, changing spacing for portions of Fentress County, eliminating producers production reports and requiring an annual well report.

SOMERSET REFINERY TO HOST TOGA CHRISTMAS PARTY, DEC. 13- Frank Lynch, CEO, Somerset Refinery, announced at the TOGA board of directors meeting that Somerset Refinery and South Kentucky Purchasing Co. would once again host the TOGA Christmas party in Somerset, Kentucky.  Tentative plans call for the board of directors to meet Friday afternoon, December 13th at the Refinery, followed by a plant tour.  The Christmas Party, dinner-dance, will be held at the Eagle’s Next Country club.  Once again, Somerset will provide rooms at the Hampton Inn for those who want to spend the night. 

MORE EPA REGULATIONS- Just when you think it can’t get any worse, it does.  The EPA has been working on some new rules for 10 years. Now they give oil and gas operators all across the country six months to prepare plans and another six months to implement them.  The new regulations will force operators to design new response and training plans, perform integrity testing and do additional reporting.  For a summary of the new EPA regs, see September 2002 issue of the American Oil & Gas Reporter, page 32.

SPECIAL IPAA MEMBERSHIP OFFER- So independents can speak out with one voice in Washington, (Such as the new EPA Rules), the Independent Petroleum Association is offering a half price membership deal to all TOGA members.  This means $200 annual dues to IPAA. Call the TOGA office for details (615-262-1291).

GARY BIBLE TO REPRESENT TOGA IN STUDY- Dr. Gary Bible, VP, Miller Petroleum, Inc., is representing TOGA in a newly created Appalachian Oil & Gas Research Consortium.  The first meeting of the consortium was held at West Virginia University in Morgantown, W.V.  The purpose of the meeting was to create an industry-government research partnership to conduct a basin-wide, multi-disciplinary, two-year study of the Trenton-Black River.

CRESSEL THOMPSON RESIGNS FROM TOGA BOARD-With regret, the board of directors of the Tennessee Oil & Gas Association, has accepted the resignation of long-time board of director member, Cressel Thompson.  “I want to enjoy my retirement and let a younger person deal with the oil business,” he said in reporting that he would like to resign effective December 13th.  “Cressel is the best membership chairman this association has ever had and probably ever will have,” said Bill Goodwin, TOGA President, “he will be missed.”

RAY POSTON HAS PASSED AWAY-Ray Poston, known as “Big R” has passed away.  The long time driller from Rickman, is the father of Ed, Keith, Belinda and Trish.

TENNESSEE SEPTEMBER WELL PERMITS- Clay County-Riverside Oil & Gas Corp., Permit #9933, Tamara Cordoba & Newell #6, Burristown Quad, 2000 ft./ Hancock County-Tengasco Inc., Permit #9941, Paul Reed #10, Swan Island Quad, 5000 ft./ Morgan County-Miller Petroleum Services, Permit #9935, Midcalf #1, Hebbertsburg Quad, 5000 ft./ Ohio Ky Oil Corp., Permit #9940, Wendell Byrd #1, Twin Bridges Quad, 3000 ft./ Ohio Ky Oil Corp., Permit #9944, Hopper Unit #1, Twin Bridges Quad, 3000 ft./ Overton County-Basin Oil & Gas Corp., Permit #9926, Ostil & Freddie Paul #18, Alpine Quad, 2000 ft./ Diamond “S” Oil, Permit #9927, William-Roop #10, Dale Hollow Reservoir Quad, 2000 ft./ Ohio Ky Oil Corp., Permit #9928, Allen Sells #5A, Alpine Quad, 2500 ft./ Consolidated Agarwal Resources, Permit #9932, Richard & Robert Winton #3, Alpine Quad 2000 ft./ John Henry Oil Corp., Permit #9934, Roger McDonald #13, Alpine Quad, 2000 ft./ Energy Drilling Co., Permit #9936, Cecil O’Daniel #7A, Okalona Quad, 2000 ft./ Ohio Ky Oil Corp., Permit #9939, Bilbrey-Campbell Unit #2, Alpine Quad, 2000 ft./ Dolomite Energy LLC, Permit #9945, Robert Wright #2, Alpine Quad, 2000 ft./ Pickett County-Basin Oil & Gas Corp., Permit #9937, Currence-Edwards #2, Riverton Quad, 2000 ft./ Basin Oil & Gas Corp., Permit #9942, Currence & Edwards #3, Riverton Quad, 2000 ft./ Bottom Line Oil & Gas Inc., Permit #9943, Lincoln & Ceifer Davis #1, Riverton Quad, 2000 ft./ Scott County-Knox Energy LLC, Brimstone Co. #KE-23, Norma Quad, 4700ft./ Knox Energy LLC, Permit #9930, Brimstone Co #BRM-1008-34, Fork Mountain Quad, 5200 ft./ Knox Energy LLC, Permit #9931, Brimstone Co. #BRM-1010-36, Norma Quad, 6200 ft./ Knox Energy LLC, Permit #9938, Brimestone Co #BRM-1012-38, Robbins Quad, 4900 ft./

KENTUCKY SEPTEMBER WELL PERMITSClinton County-Steve Burchett Oil Co., Permit #94053, Joe Summers Lease B, #ZOG 2/ Steve Burchett Oil Co., Permit #94052, Geneva McFarland #ZOG 1/ Steve Burchett Oil Co., Permit #94054, Joe Summers Lease B #ZOG 3/ Harold Joergens, Permit #94122, Berel Nation #Joergens 1/ National Energy Development Inc., Permit #94096, Clara Campbell #1-N/ Cumberland County-Bruce Wilson Oil Inc., Permit #94055, Raymond Carver #2/ Knox County-NAMI Resources Co., Permit #94040, Garrett Cobb #1/ Columbia Natural Resources Inc., Permit #94073, Begley Properties Et Al #824977/ Columbia Natural Resources Inc., Permit #94074, Begley Properties #824978/ NAMI Resources Co., Permit #94116, George Humfleet #2/ Daugherty Petroleum Inc., Permit #94117, Equitable Production Co. #BLC-70/ NAMI Resources Co., Permit #94115, George Humfleet #1/ Anderson Oil Ltd., Permit #94130, Everett Gilbert #1/  Letcher County-J W Kinzer, Permit #94091, The Lewis Company #1229/ J W Kinzer, Permit #94092, The Lewis Company #1227/ Charles Bradley DBA Basin Energy, Permit #94087, Coastal Coal Co. #Hollybush 1/ Metcalfe County-Shef-A-Lor Oil Inc., Permit #94112, Teddy Ray #SAL4 Ray/ Shef-A-Lor Oil Inc., Permit #94111, Don Butler #SAL 1/ Whitley County-Columbia Natural Resources Inc., Permit #94075, Begley Properties #825003/ Columbia Natural Resources Inc., Permit #94076, Begley Properties #825004/ Kenneth Patrick Et Al, Permit #94128, Kenneth Patrick Et Al #1/ Columbia Natural Resources Inc., Permit #94097, Begley Properties #825018/ Columbia Natural Resources Inc., Permit #94098, Begley Properties #825016/

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, #285, Brentwood, TN, 37027. Phone 615.263.1291, Fax 615.263.1282. Web site: www.tennoil.com.

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