Ky/Tenn Report

Volume 16, Number 4 APRIL 2009

SIGN UP FOR CONVENTION NOW AND SAVE - TOGA members are encouraged to sign up now for the 2009 TOGA Convention to be held at the Marriott in downtown Knoxville, May 13-15. The registration fee for members is $215 before April 20th and $240 thereafter. Non-members will pay $265 before April 20th and $295 thereafter. Spouse registration is $100 before April 20th and $110 thereafter. The golf outing is $60 and the spouses trip to Pigeon Forge with shopping at Tanger Outlet Mall is $25. A block of rooms has been reserved at the Knoxville Marriott at a special rate of $119.95. Registration forms and more information on the convention have been mailed to all members and can be found on the TOGA website at www.tennoil.com.

KNOXVILLE MAYOR BILL HASLEM INVITED TO SPEAK - Knoxville Mayor Bill Haslam, who is a candidate for governor, has been invited to speak to the TOGA convention delegates at the Thursday luncheon. His staff has responded that he would like to speak if some scheduling details can be worked out.

TOGA ASKS FOR BOARD HEARING TO REVIEW "POLICY" - The TOGA board of directors voted at its March meeting in Oak Ridge to write a letter to Oil & Gas Board Chairman Chuck Head, ask him to hold an oil and gas board hearing to review "policy" being drafted and enforced by Water Pollution Control staff. The TOGA letter from President Gilbert said, "To the best of our knowledge, the policies of the staff regulating the oil and gas industry have never been reviewed by the Oil & Gas Board. That may be our fault for never asking for such a review.

"Secondly, as you noted in commenting on policy at a recent Oil & Gas Board hearing, policy should be an extension or explanation of existing laws or regulations. It is our belief that some are either completely new regulations or are a contradiction to the Oil & Gas Regulations.

"Our primary areas of concern are policies now being enforced or being drafted regarding casing policy, inactive wells and plugging." TOGA expects a response form Chairman Head shortly.

OBAMA'S BUDGET PASSES DESPITE OIL INDUSTRY CAMPAIGN - TOGA joined with other state and national oil and gas associations in a campaign to show Congressmen the consequences of the tax hit on the oil industry in the Obama budget. But the budget passed both houses and now goes to a joint committee to resolve House and Senate differences. There is a little hope that we may get some relief in committee. The Obama administration budget eliminates what it calls "oil and gas company preferences", which includes repealing the enhanced oil recovery credit, the marginal well tax credit, expensing of intangible drilling costs, the deduction for tertiary injections, and the passive loss exception for working interests in oil and gas properties.

TOGA members were alerted to this devastating tax proposal via both slow mail and e-mail and asked to contact their Congressmen. It may be late, but it is never too late to warn your Congressman what will happen to our industry with this new tax in place. Go to the TOGA website www.tennoil.com for more information and a letter draft.

REPUBLICAN BUDGET DROPS OBAMA OIL TAX - The substitute budget, presented by the Republican party and ignored by the press, lays a firm foundation to position U.S. to meet three important strategic energy goals: reducing dependency on foreign oil, deploying more clean energy and ensuring energy policy facilitates economic growth rather than constrains it. To that end, the Republican budget rejects the President's proposed $31 to $80 billion tax increase on domestic oil and gas producers. Studies show that every $1 billion invested in oil and gas industry creates 5,400 jobs that pay substantially more than the national average. On that basis, the President's tax increase on the domestic oil industry could cost the economy 167,000 to 432,000 jobs, and would undoubtedly increase U.S. dependence on foreign oil.

MORE CONVENTION SPONSORS SPEAKERS NEEDED - We have several excellent technical session speakers, focusing on various aspects of the Chattanooga Shale in Tennessee and other topics committed to make a presentation at the convention. We will soon have the title of each speaker's presentation and a convention schedule on the TOGA website, www.tennoil.com.

We still need technical session speakers for the convention. Contact Scott Gilbert (cell 865-679-6161) or Bill Goodwin (cell 615-944-0832) if you are interested or have a suggestion for a speaker. Sponsors are also needed. There are two ways to be a sponsor. You can make a donation of well service work, logging, drilling, well equipment, sports equipment, event tickets, condo rental or merchandise for the Thursday night auction. Or you can make a cash contribution. $1000 for Platinum, $500 for gold, $250 for silver and bronze for any donation under $250.

2009 DUES NOW DUE - TOGA members have now received an invoice for their 2009 TOGA dues. President Gilbert put a brief note on the invoice noting how much every member is needed as we deal with the critical issues facing our industry, both in the state and across the country.

TENNESSEE MARCH PERMITS: Anderson County - Atlas America, LLC, Coal Creek Mining & MFG Co. Coal Creek Lake City-20, 3245', Lake City/ Campbell County - CNX Gas Company, LLC, Morgan/Begley Properties JW, 6255, Jellico West Quad/ Fentress County - Plateau Well Service, Alan Rader, #1, 2000', Riverton, Outdoor Resources, Inc., Lester Gooding #1, 1000', Jones Knob/ Grundy County - People of the Living God, Homeland Acres #3, 1000', Irving College/ Hancock County - Ry Holland Fielder, Inc., Cecil Lawson, #1, 4500', Swan Island/ Overton County - Chatham Drilling, Dixie White #8, 2000', Alpine, National Energy Development, Williams/Williamson #3N, 2000', Alipne/ Scott County - Atlas America, LLC, Gerald McGinnes etal #5, 2620', #6, 2635', #7, 2625', Gregory Tipton & Timothy McGimmes #3, 2580', #2, 2615', Pioneer

KENTUCKY MARCH PERMITS: Barren County - Jeff & Carlton Botts, Jeff & Carlton Botts, #J1, Leipers Ls/ Bell County - Daugherty Pet, Inc., Begley Properties, #23, #35, Devonian, Lower Part / Clinton County - Crude Ex Co, Junior C Melton, #3, Knox Gp, Rick-Rod Oil Company, Inc., Rocky Beaty, #9R, Knox Gp/ Harlan County - Chesapeake Appalachia, LLC, Penn Virginia Operating Company, LLC, #827438, #827440, #827441, Weir Sd, Daugherty Pet, Inc, Kentucky River Properties, LLC/Equitable, #DPI 1266, #DPI 1250, Huron Mbr, Ohio Sh/ Leslie County - Equitable Production Company, Kycoga Company, LLC, #567277, Huron Mbr, Ohio Sh/ Letcher County - Chesapeake Appalachia, LLC, Penn Virginia Operating Company, LLC, #827443, Weir Sd, Equitable Production Company, Roberta Coal Company, #568212, #567938, Cleveland Mbr, Ohio Sh, Equitable Production Company, #568906, #567738, #567724, #567723, #568067, #568211, Huron Mbr, Ohio Sh, #567739, #567725, #567722, Cleveland Mbr, Ohio Sh, Quality Natural Gas, LLC, The Lewis Company ET AL, #1820, Devonian, Lower Part/ McCreary County - Koger Energy Partners, LLC, Henley Burkes, #3, #4, Sunnybrook

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, #150-2, Brentwood, TN, 37027. Phone 615.371.6137, Fax 615.599-1806. Web site: www.tennoil.com.

KY/TENN REPORT
750 OLD HICKORY BLVD, #150-2
BRENTWOOD, TN 37027