Ky/Tenn Report

Volume 18, Number 4 APRIL 2011

WE ARE UNDER ATTACK! LIMIT FRACS TO 1,500 GALLONS - Tennessee Oil industry is under attack. Environmental groups have gotten legislation introduced in the Tennessee State Assembly to require public notice and a long comment period before the state can issue a drilling permit. And they have drafted an amendment that limits all fracs in any Tennessee well to only 1,500 gallons of water. If this passes, there will be no drilling in Tennessee, because to make a well, you almost always have to frac it. We don't use the 2.3 million gallons of water that is used in Marcellus shale in Pennsylvania or New York, but we certainly need more than 1,500 gallons of water to do a frac. This is only 30 barrels. We use more than this just to cement casing.

WE ARE FIGHING BACK, NEED YOUR HELP - We have retained a top lobbying firm to represent us in the legislature. They have successfully defended the coal industry in Tennessee for several years. And we have retained a lobbyist to help us get Oil & Gas Regulation moved back from Water Pollution Control to Geology, where it belongs. We can better defend ourselves if we are regulated by people who know and understand our business. We need your help to fund these lobbying campaigns. We are asking every TOGA member to contribute all they can to the lobby effort. Please send your check today to: TOGA-Fighting Back, to TOGA, 750 Old Hickory Blvd, Suite 150-2, Brentwood, TN, 37027. Every dollar is needed if we are to survive as an industry and every dollar is needed now. Please send your check today. We need to raise more than $50,000. If you have any questions or suggestions, call TOGA President Jim Washburn at 931-979-0076 or TOGA Director Bill Goodwin, who is coordinating the lobbying campaign, at 615-944-0832 or Director Jim Bruner, who is coordinating the fund raising drive, at 865-693,4113.

40TH CONVENTION, MAY 11-13, NASHVILLE, SHAPING UP GREAT - The 40th annual meeting of the Tennessee Oil & Gas Association, May 11-13 at the Sheraton Music City Hotel in Nashville may be the best ever yet. There is already a great line up of technical speakers and newly elected State Legislator Kelly Keisling will keynote the Thursday luncheon. The convention opens with a golf outing at the Hermitage Golf Course on Wednesday. That evening there is a gala welcome reception at the hotel. There is a full day of technical sessions Thursday, plus a Spouses Trip and the Keynote luncheon. That evening there will be dinner, entertainment and an auction in the court yard at the hotel. The convention wraps up Friday with the annual membership meeting. Registration for members is $215 before April 19th and $240 after that. For non-members it is $265 before the 19th and $295 after that. A block of rooms has been reserved at a rate of $139, but you need to make your reservation by April 10. And more sponsors are needed. For more information, registration forms, etc., go to the TOGA website at www.tennoil.com.

REG CHANGES SPARK SECOND PUBLIC FORUM, APRIL 28, KNOXVILLE - Following the first public hearing, held February 22nd in Knoxville, the Water Pollution Control staff has scheduled a second public hearing on the proposed changes to the oil and gas regulations, despite the fact that the proposed changes were never mentioned by any of those attending the meeting. Following a presentation of the regulations by the Water Pollution Control staff, each speaker voiced concerns about the assumed problems with hydraulic fracing. Hopefully, during the April 28th meeting, speakers will stick to the subject at hand. TOGA members are encouraged to submit their comments about the proposed regulations changes in writing to Mike Burton.

VINLAND BUYING CHESAPEAKE PROPERTIES - The word spreading through the oil business here is that Vinland Energy, LLC, is in the process of buying all of the Chesapeake Energy oil and gas properties in Tennessee and Kentucky. The properties Vinland is buying are known as the Wiser properties.

MILLER MOVING UP TO THE NYSE - Miller Petroleum, Inc. d/b/a Miller Energy Resources has announced the pending transfer of the listing of its stock from NASDAQ to the New York Stock Exchange. The company is expected to begin trading on the NYSE on April 12, under its new name, Miller Energy Resources and the symbol MILL. On April 13th, the Miller team will ring the opening bell at the New York Stock Exchange.

FENTRESS COUNTY LAND TO LEASE - Mr. and Mrs. Gerald Mclean have recently moved to Fentress County and are leasing their land which is just off highway 672, near Muddy Pond on Campground Road. If interested in leasing their property, call them at 931-863-2207.

TENNESSEE MARCH PERMITS: Pickett County: Keblo Energy, Eddie Dean Smith #5, 2500', Moodyville/ Overton County: Overton Oil & Gas, Myrna Bayer Revocable Trust, 2500'; Able Oil Company, Barry Johnson #10, 2000', Alpine; Mountain V Oil & Gas, Inc., Kuell White #1 T003, 2500'; Edwin Garrett #1 T004; Ramsey #1 T005, 2500', Livingston/

SOUTERN KENTUCKY MARCH PERMITS: Barren County: H B Oil, Inc, Basil, Danny & Marla, Hb1, Sunnybrook, Hb2 Corniferous/ Bell County: Forexco, Inc, LMD Enterprises LLC, 2, 14 Devonian, Lower Part; Vinland Energy Operations, LLC, Appalachian Royalty Trust, Lewis Hrs 51, 55, 56, Corniferous Clinton County: Oil Valley Energy, LLC, Buford, Anis C/O Gardner, Sandra, 3; Steve Burchett Oil Co, Freeman, Orville, Burchlew 47, 60; Jones, Steve, St-71; Maupin, Jean, Burchlew 59, Poore, Chris, St-69, St-70, John, Burchlew 39, 40, 55, 58; Stalcup, Patricia, Burchlew 51, 52; Storie, Robert, 1, Knox Gp; Poore, John, Burchlew 49, Fort Payne Fm; Durham, Terrill Dba Ruth Oil Co, Trustees Of Highway Church Of The Nazarene, 1 Knox Gp/ Cumberland County: Hi-Mi Exploration, LLC, Aaron, Archie, Jdh-Aa-10, Murfreesboro; Sunset Energy, LLC, Bradshaw, Clifford, C15, Granville; Wilson, Bruce Oil Inc, Holman, Grady, B-C3, Knox Gp/ Natural Gas Corp Of Tennessee, Inc, N.D.H Corporation Of Kentucky, Inc, 6, Stones River; Riverside Oil & Gas, Inc, Willen, Heirs c/o Willen, Michael, 3 Knox Gp/ Letcher County: Quality Natural Gas, LLC, Day, R C Heirs Et Al, 2046 Devonian, Lower Part; Eqt Production Company, Eqt Production Company, 569,992,569,993 Huron Mbr, Ohio Sh, 569994, Cleveland Mbr, Ohio Sh; Roberta Coal & Coke, 567941, 570528 Cleveland Mbr, Ohio Sh, 568213, 570527 Huron Mbr, Ohio Sh/ Wayne County: Rick-Rod Oil Company, Inc, Denney, Tom, 6p, 10r Knox Gp/

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