Ky/Tenn Report

Volume 18, Number 2 February 2011

TOGA BOARD MEETING, MARCH 10, ONEIDA - The Tennessee Oil & Gas Association Board of Directors will meet at 4 p.m. EDT, Thursday, March 10th at First Trust Bank building, 285 S. Main St, Oneida, which is now owned by TOGA Director Bill Ray. Scheduled for discussion will be the proposed changes in the Oil & Gas Regulations, the effort to re-locate Oil & Gas Regulations back to Geology, proposed fracking regulations, the selection of TOGA's first scholarship winners and the annual convention. As always, all members and guests are invited to attend and participate.

EFFORT TO RETURN REGS TO GEOLOGY UNDERWAY - TOGA has retained the services of an attorney to manage an effort to convince state officials to move the regulatory functions of oil and gas back to Geology from Water Pollution Control. Shortly after Governor Bredesen was elected, the Commissioner of Environment and Conservation suddenly moved regulation of oil and gas to Water Pollution Control, making Tennessee the only state regulated by any authority other that geology. Efforts to move the regulation functions back to Geology failed under Governor Bredesen. TOGA officials believe that the recently-elected Governor Haslam, a business man, may be more receptive to TOGA's effort to return to Geology. There will be cost involved in retaining the services of this attorney Jim Bruner is heading the fund-raising effort. All donations will be greatly appreciated.

REG CHANGES PUBLIC FORUM, FEB. 22, KNOXVILLE - Changes to the Regulations that govern the oil and gas industry, drafted by the staff of Water Pollution Control staff, will be the subject of a public hearing, at the Water Pollution Control office in Knoxville, at 6 p.m. Tuesday, Feb. 22, 2011. The proposed regulation changes are posted on the TOGA website at www.tennoil.com. While TOGA officers were consulted when these new regulations were drafted, very few of TOGA's recommendations were followed by the staff. All members are encouraged to study the rules and be prepared to comment either in writing or during the February 22nd meeting.

CONVENTION SPEAKERS NEEDED - The search is underway for technical sessions speakers for the TOGA convention in Nashville, May 11-13. If you would like to speak or know someone who would be a good speaker, contact either TOGA President Jim Washburn at 931-979-0076 or Bill Goodwin at 615-944-0832 or via e-mail at tmdbill@aol.com.

TOGA ANNOUNCES SCHOLARSHIP PROGRAM - This is the first year TOGA is awarding four $500 educational scholarships to deserving high school seniors to applications in Anderson, Campbell, Claiborne, Fentress, Morgan, Overton, Pickett and Scott Counties. Scholarship applications were recently mailed or delivered to guidance counselors in all high schools in those counties. The scholarships will be based on need, community involvement and scholastics, with emphasis placed on a student's desire to overcome hardship. Applications are due in the office of Vicki Griffith, Chairman, Scholarship Fund, by March 6, 2011. The TOGA directors will decide who is to be awarded the $500 scholarships by April 15, 2011. Scholarships will be presented at the TOGA annual convention luncheon, May 12, 2011 in Nashville. More information and the scholarship form can be found on the TOGA website at www.tennoil.com.

SITE COORDINATOR TRAINING ON FOR MARCH 10TH - Tennessee Site Coordinator Training will be conducted March 10th in Knoxville. The session for the required training begins at 8:30 a.m. est. at the Rothschild Catering and Conference Center. The website for registration is at www.tnespc.org and look for the TDEC Oil & Gas registration link to the home page. The cost is $75 per person and includes lunch.

MORE NEW REGS FROM PARK - The National Park Service has announced it plans to prepare an environmental impact statement for revisions to nonfederal oil and gas regulations. Currently, 11 of the 392 units of the National Park System (including the Big South Fork) have active nonfederal oil and gas operations within their boundaries. The current regulations at 36 CFR Part 9, Subpart B have been in effect for 30 years and have not been updated. The park service seeks to revise the regulations to update them to reflect current policies, legal requirements, and practices, as well as improve the ease of applying the regulations for the NPS and the industry. The announcement regarding the new environmental impact statement was announced on December 10, 2010 and the public comment period closes February 28, 2011.

The oil and gas industry is expected to oppose this effort. Legal experts do not believe the CRF Park 9, Subpart B regulations can be enforced in the Big South Fork because those wells were there when the park came in and refused to acquire the minerals and leases. Many landowners received unrealistic low payments for their surface and saw their mineral interest reduced to nothing when the Park Service refused to allow operators access to their wells. One operator of a big gas well submitted a plan to clean the water out of the well. He waited 10 years for the Park Service to approve his plan and when they did the new regulations they demanded made the project no longer economical. This battle is just beginning.

TENNESSEE JANUARY PERMITS: Morgan County - Knox Energy LLC, Emory River, LLC #H-H1012, 2347'; #HH-1034, 2347'; #HH-1032, 2347', Gobey/ Overton County - Arnco Oil Company, William Roop #7, 1700', #6, 1656', Dale Hollow Reservoir Sei; TN-K Energy, Inc., Charles & Lynda Anderson #10, 2000'; Lonnie Richard Smith #2, 2000'; Riverside Oil & Gas, Bonnie Hancock #1, 2000'; Overton Oil & Gas, Inc., Lonnie Richard Smith #16, 2500', Alpine/ Pickett County - Keblo Energy, Shirley Williams #1, 2000'; Eddie Dean Smith #1, Moodyville/ Scott County - Miller Petroleum Service, Baker-Senior #1 Mill, 2530', Robbins/

SOUTHERN KENTUCKY JANUARY PERMITS: Barren County: Bell, Ricky Wayne Boston, #8, Knox Gp; Onyx Int'l Exploration LLC Stanley Wilson, #16, Fort Payne Fm/ Bell County: Beckner Energy Resources LLC Henderson Heirs , #1, Clinton Sh; Ngas Production Company (NGAS) Begley Properties LLC , #42, #43, Cleveland Mbr, Ohio Sh/ Clinton County: Conner Jr, E B Raymond Delk, #9, Granville/ Clinton County, Hornet Oil & Gas Corporation Jimmy Sawyers, #7, #8, #9; Steve Burchett Oil Co Kenneth Beaty, #ST-58, #ST-61; Robert Boles, #BURCHLEW 37, #BURCHLEW 17, #BURCHLEW 16; Weldon Haddix, #BURCHLEW 30; Randell Lee, #ST-60; Donald Neal, #ST-51, John Poore, #BURCHLEW 36; Gaylon Rector, #ST-62; June Upchurch, #BURCHLEW 38, #ST-63; Shirley Williams, #BURCHLEW 34; Tallent, Edwin Miller Edwin Heirs Riddle, #1; Natural Gas Corp Of Tennessee, Inc Ndh Corporation Of Kentucky, Inc , #4, Knox Gp/ Harlan County, Ngas Production Company (NGAS) North Coast Energy Eastern Inc , #DPI 1743, #DPI 1752, #DPI 1757, Cleveland Mbr, Ohio Sh/ Knox County, Amwes Exploration, LLC Albert & Emily Napier Et Al , #3, Pennsylvanian System; Vinland Energy Operations, Llc Hammons William Et Al , #ET AL 5, Corniferous; Eqt Production Company Eqt Production Company , #571282, Weir Sd; , #571283, Cleveland Mbr, Ohio Sh; #571284, Huron Mbr, Ohio Sh/ Letcher County, Quality Natural Gas, LLC, Richard Day Et Al, #2169; Sandra Kincer Et Al, #2227, #2228, Devonian, Lower Part/ Logan County, Miller, Marvin Marvin Miller, #1, Laurel Dol/ Monroe County, S W O Drilling R E Gentry, #7, Leipers Ls/ Russell County, R & S Energy, Inc David Johnson, #28, Granville/ Wayne County, Carbon Atom Flow, LLC Ed & Joann Piercy, #1, Stones River/

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