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

Ky/Tenn Report
Volume 9, Number 86   SEPTEMBER  2002  

MILLER HOSTS BOARD AT OFFICE, COOKOUT AT HOME, SEPT. 13- The TOGA board of directors will meet at 4:30 p.m. at the offices of Miller Petroleum in Huntsville followed by a steak feast provided by Balon Valves at his and Sharon’s home in Ponderosa Estates.  Everyone in the oil business, members and non-members, is welcome to attend both the board meeting and the cookout. (To make certain Balon doesn't run out of steaks, call Teresa at Miller Petroleum, Inc. 423-663-9457 to let us know you are coming.) She will give you directions.  As of now, she has more than 35 reservations.

NEW PROPOSED PROCEDURES ON BOARD AGENDA-New procedures being proposed by the Oil & Gas Board staff, as a result of the Morgan County well that blew out, caught fire and spilled oil into Clear Creek, will be on the agenda for the TOGA board of directors meeting.  Following the fire and spill the Environmental Protection Agency, Water Supply, Water Quality, Water Pollution and a host of environmental groups descended upon the Governor’s office demanding more regulations to govern the oil and gas industry.  Some even wanted to stop all drilling in Tennessee, at least in Morgan County.  The Governor’s office, working with the Department of Conservation’s policy office and the Oil & Gas Board staff developed a set of procedures designed to allow Tennessee operators to drill economically, safely and without putting oil in the streams of Tennessee.  Plan to attend the board meeting, September 13th to as the TOGA board discusses these new procedures.

PERMIT FEES UP, RECLAMATION BONDS DOWN, MORE-Also on the agenda for discussion is plans by the Oil & Gas Board to go before the legislature to ask for an increase in permit fees, a rework of the reclamation bond program and other items. Each year in the fall, each department of state government reviews its rules, regs, fees, etc., to determine if it should go before the state legislature in the next session to ask for changes.  The Division of Geology is currently evaluating this matter and has asked for TOGA comments. They may also be receptive to including legislation that TOGA members feel should be added to the Division’s list.

NEED YOUR COMMENTS ON SPACING, OTHER REGS-In addition to the new procedures brought about by the Morgan County fire and spill and the permit, reclamation legislation, TOGA has been taking to the Oil & Gas Board staff for nearly a year regarding some possible changes in spacing regulations and other Oil & Gas Board rules.  We need to have our recommendations to the state within the next 30-60 days.  If you have suggestions, mail, e-mail or fax them to the TOGA office. (Don’t call and expect us to write them for you) Or come to the Board Meeting and participate in the discussion.

APPEX READY FOR TENNESSEE PROSPECTS-Thanks to Somerset Refinery, TOGA was able to participate in APPEX 2002 in Houston in August.  The Prospect and Property Expo was sponsored by the American Association of Petroleum Geologists and featured prospects from across the nation.  The TOGA booth featured our “There Really Is Big Oil In Tennessee” and a computer-generated map of the state, produced for TOGA by Miller Petroleum, Inc.  The map featured many of the recent discoveries in Tennessee.  After participating in three of these shows, oilmen and financial types now know there really is oil in Tennessee.  At the next prospect expo, we need to feature some actual prospects.  Get Ready.  There are two next year.

CAN’T WAIT FOR EXPO? LIST YOUR DEALS, NO COMMISSION- In addition to Prospect Expos, you can list your drilling deals and leases through the Petroleum Listing Service (PLS) again, thanks to the financial support of Somerset Refinery.  PLS is a nation-wide membership service that matches properties, leases or drilling deals with other companies or investors, and takes no commission.  Membership in PLS is through TMD Energy.  To get your deal listed, call Bill Goodwin, Chuck Murchison or Juli Golemi at 615-263-1291.

KOGA QUARTERLY MEETING, SEPT 12-The Kentucky Oil & Gas Association will hold its 3rd Quarterly Meeting, Thursday, September 12, 2002 at the Ramada Inn in Paintsville, KY.  The Thursday evening meeting opens with a reception at 5:00 p.m. (EST) and a dinner at 6:00 p.m.  The dinner is $25 and advance registration is required. Call the KOGA office at 502-226-1955 for more information. And make a note that KOGA has a change in its web site. It is now www.kyoilgas.org.

REA COUNTY OPPORTUNITY-Some folks were drilling for water and hit oil along Highway 27 between Dayton & Spring City.  It was free oil and looked like Sunnybrook. Might be a new play. For more information call Ann Clark (o) 423-478-6203 (h) 423-775-7954.

TENNESSEE AUGUST WELL PERMITS-Campbell County-Miller Petroleum Inc., Permit #9910, Ketchem #1B, LaFollette Quad, 4000 ft./ Morgan County-Knox Energy LLC, Permit #9907, heartwood Forest Land Fund #2, Gobey Quad, 5300 ft./ Dan Potts, Permit # 9912, Walls Properties # 6, Petros Quad, 3000 ft./ Knox Energy LLC, Permit #9915, Heartwood Forest Land Fund #24, Gobey Quad, 5100 ft./Knox Energy LLC, Permit #9917, Brimstone Co KE-33, Gobey County, 6100 ft./ Knox Energy LLC, Permit #9918, Heartwood Forest Land Fund KE-25, Gobey Quad, 5200 ft./ Knox Energy LLC, Permit #9921, Heartwood Forest Land KE-26, Gobey Quad, 5150 ft./  Overton County-Buffalo Properties, Permit #9908, Sheena Garrnett #1A, Livingston Quad, 1800 ft./ Dolomite Energy LLC, Permit #9909, Robert Wright #3, Alpine Quad, 3000 ft./ Young Oil Corp., Permit #9911, TL Mullins #7, Livingston Quad, 2000 ft./  Young Oil Corp., Permit #9916, TL Mullins #6, Livingston Quad, 2000 ft./ Arrowhead Crude Inc., Permit #9919, Charles Vaughn #1, Crawford Quad, 2000 ft./ Consolidated Resources, Permit #9920, Richard & Robert Winton #2, Alpine Quad, 2000 ft./Pickett County-US Petroleum LC, Permit #9913, Wayne Poore 3-4, Moodyville Quad, 2000 ft./ US Petroleum LLC, Permit #9914, Wayne Poore #3-5, Moodyville Quad, 2000 ft./Consolidated Gas Inc., Permit #9923, Riverton Quad, Denver Smith #1, Riverton Quad, 2000 ft./ Consolidated Gas Inc., Permit #9924, Denver Smith #2, Riverton Quad 2000 ft./ Scott County-Knox Energy LLC, Permit #9922, Brimstone Co, KE-31, Fork Mountain Quad, 6240 ft./ Knox Energy LLC, Permit #9925, Brimstone BRM #1011-32, Norma Quad, 6000 ft.

KENTUCKY AUGUST PERMITSClinton County-Steve Burchett Oil Co., Permit #93934, Joe Summers #1/ Target Oil & Gas Corp., Permit #93937, Staton Brothers Farms #58/ Steve Burchett Oil Co., Permit #93935, Summers HRS #14/ Wilco Leasing LLC, Permit #93975, Mike Owens #119-7A/ Explo Oil Inc., Permit #93963, Troy Burchett #1/ Gold Eagle Energy Resources Inc., Permit #93955, Granville Gibson #1/ Steve Burchett Oil Co., Permit #94002, Joe Summers Lease B # ZOG 1/ Steve Burchett Oil Co., Permit #94026, Lonnie Davis # ZOG 1 Cumberland County-Wilso Leasing LLC, Permit #93978,Harold Reeves, Trustee of Reeves Trust, #120-4/ Wilco Leasing LLC, Permit #93976, Harold Reeves, Trustee of Reeves Trust, #120-2/ Wilco Leasing LLC, Permit #93977, Harold Reeves, Trustee of Reeves Trust, #120-3/ Humphrey Oil & Gas Inc., Permit #93957, Dick Stockton #1A/ Steve Burchett Oil Co., Permit #93991, Joe, Randall & Summers Starnes # ZOG 1/ Edmonson County-Resources & Energy Technologies Co., Permit #93985, Randall Houchin #1/ Resources & Energy Technologies Co., Permit #94007, BJ Honeycutt & H Houchens #1/ Knox County-NAMI Resources Co., Permit #93939, Alva Howard Et Al #2A/ Amwes Exploration LLC, Permit #93956, Alice Gibson #1/ Barbourville Utility Commission, Permit #93992, City Of Barbourville #1/ Amwes Exploration LLC, Doug Vaughn #1/ NAMI Resources Co., Permit #94040, Garrett Cobb #1/ Letcher County-J W Kinzer, Permit #93946, Tandy Bates Jr. #1223/ Equitable Production Co., Permit #93942, Equitable Production #565398/ J W Kinzer, Permit #93980, The Lewis Co #1218/ J W Kinzer, Permit #93982, The Lewis Co #1220/ J W Kinzer, Permit #93979, The Lewis Co #1217/ Clean Gas Inc., Permit #93952, Ky River Coal Corp. #KRCC/SB-EX10/ J W Kinzer, Permit #93981, The Lewis Co $1219/ J W Kinzer, Permit #93983, The Lewis Co #1221/ Clean Gas Inc., Permit #93996, N L Combs # KRCC/SB-EX6/ Clean Gas Inc., Permit #93997, Thomas Steele Et Al # KRCC/SB-EX7/ Columbia Natural Resources Inc., Permit #94025, Ark Land Co. #823983/ Columbia Natural Resources Inc., Permit #94010, Ark Land Co # 825008/ Daugherty Petroleum Inc., Permit #94006, Arlie Cornett Unit #1/ Charles Bradley DBA Basin Energy Co/ Metcalfe County-Ohio Ky Oil Corp., Permit #93932, Robert Bell #15/ Beck Oil Inc., Permit #93940, Lola Paul #1/Ohio Ky Oil Corp., Permit #93933, Robert Bell #16/ Young Oil Corp., Permit #93951, Carolyn Young #3/ Young Oil Corp., Permit #93987, Carolyn Young #4/ Ohio Ky Oil Corp., Permit #93999, Ronnie Jeffries #9/ Young Oil Corp., Permit #94028, Carolyn Young #6/ Young Oil Corp., Permit #94029, James Fancher #2/ Young Oil Corp., Permit #94031, Young Oil Corp. #5/ Young Oil Corp, Permit #94030, Freddie Palson #1/ Whitley County-Energy Associates Inc., Permit #93961, Cumberland College Et Al #1/ Cumberland Valley Resources LLC, Permit #93995, Faulkner Et Al #1.

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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