Ky/Tenn Report

Volume 16, Number 12 December 2009

MORE SPONSORS NEEDED FOR XMAS PARTY, DEC. 12TH, "We are going to have a great Christmas Party, but we really need more sponsors," Vicki Griffith, TOGA VP and Party Chairman said. The TOGA Christmas Party will return to the Dancing Bear Lodge in Townsend, Saturday, December 12th. Cost is $40 per person and $99 for a room. The reservation deadline has passed but you might get a room, especially if you agree to be a sponsor. Call Vicki at 865-220-8850. The party will feature an open bar, hors d'oeuvrs, Christmas carolers, buffet dinner, Santa Claus and Mrs. Claus, gifts and surprises and a live band, The Retroholics. We really need more sponsors, so far we have: Atlas America, Charles Stivers CPA, McJunkin-Redman, Keystone Drill Services, Jerry Fox, Wells Fargo Insurance, Jim Washburn and AC Insurance and Griffith Services, CNX and Miller Petroleum.

TOGA BOARD OF DIRECTOR TO MEET, DEC 12TH - Scott Gilbert. TOGA President, has called a Board of Directors meeting for Saturday, December 12th at 4:30 p.m. at the Dancing Bear Lodge in Townsend. "We will meet just before the Christmas party in the Hemlock Hall (that is where the dance is held). With the reception beginning at 6:00 p.m. we should be finished in plenty of time," Gilbert noted. On the agenda are the new regulations that the state plans to introduce at the January Oil & Gas Board meeting.

PLATT'S GAS STORAGE OUTLOOK, JAN. 12-14, HOUSTON - Platts is holding its 8th Annual Gas Storage Outlook Forum, January 13-14, 2010, Hilton Americas, Houston, TX. It has become the seminal event for anyone interested in this niche gas industry sector. Last year's event was attended by over 150 industry leaders. The 2010 forum will cover major issues of interest, including: valuing/trading against storage amid oversupply; working potential cap-and-trade and OTC gas trading restrictions into storage costs; structures for project financing using a pad gas lease and project debt; gas industry transformation; storage asset bid-ask spreads; debt ratings; and project finance. The event attracts leading independent storage developers, pipeline/LNG companies, gas marketers, LDCs, IPPs, E&P firms, private/public investors, regulators, analysts, and law firms. Tennessee Oil & Gas Association members receive a $400 discount. If you want more information, go to www.gasstorageoutlook.platts.com. To register, please call 866-355-2930 (781-430-2100 outside the US) and be sure to mention that you are a TOGA member.

OBAMA'S OIL STRATEGY - STOP U.S. OIL PRODUCTION- Alan Kruger, assistant secretary for economic policy at the Treasury Department, recently told a Senate Finance Committee that the administration believes it is no longer enough to address the U.S. energy needs simply by finding more fossil fuels, and that dramatic steps toward becoming a clean energy economy must be taken. "The tax subsidies that are currently provided to the oil and gas industry lead to inefficiency by encouraging an overinvestment of domestic resources within the industry. To the extent that current tax subsidies for the oil and gas industry encourage over-production of oil and gas, they divert resources from other, potentially more effective investments, and they are inconsistent with the Obama administration's goal to reduce emissions and build a new, clean energy economy." he said.

GILBERT REPRESENTS TOGA AT LIASON MEETING - TOGA President Scott Gilbert represented Tennessee at the recent meeting of the Liaison Committee of Cooperating Associations in Biloxi, MS, where Lee Fuller, V.P. of government relations for The Independent Petroleum Association of American, said he believed stripper wells will not survive without the proposed elimination of IDC's and percentage depletion by Obama. The loss of a projected 745,000 barrels a day offset the entire $36 billion the administration expects to raise by eliminating the industry tax provisions.

NATIONAL DRILLER OP-ED PIECE SAYS IT BEST - Those of us in the drilling industry have known about shale gas for years, but it was more of an un-economic nuisance than a reliable energy source. In the first place, shale wells didn't produce much, and depleted quickly when compared to an oil well. In addition, you couldn't put gas in a tank battery and haul it away by truck. It takes a pipeline. This is where free enterprise and drillers' ingenuity come in. We now have a tremendous infrastructure of pipelines running from most of the major producing areas to the areas of highest load. We also have learned how to frack these shales to produce much more gas."

TENNESSEE NOVEMBER PERMITS: Campbell County: Atlas America, Ketchen Land Co, Elk 2241, 2645', Elk 2242, 2650', Elk 2014, 2655' - Pioneer/ Fentress County: Hornet Oil & Gas Corp, Dwight Prescott #2, 2000' - Moodyville/ Pickett County: Ronnie Oil & Gas, Co., Coleman Crouch, #5, 2000'; Duncan Drilling, Herman Johnson, 6-A, 2000', David Cope #2, 2000' - Moodyville/ Morgan County: Outdoor Resources, Inc., Virginia Dewberry #1, 5000' - Twin Ridge/ Overton County: Freddie Paul, Freddie Paul #1, 2000'; Overton Oil & Gas, Inc., Smith Unit #1, 2000', Lonnie & Richaw Smith #2, 16, 2000', Estelle & Ralph Smith #2, 2000'; National Energy Development, Wilburn Wright Trust #10, 2000'; Able Oil Company Inc., Barry Johnson #7, 2000' - Alpine/ Scott County: Atlas America LLC, Hammer Resources, Inc., 3360', Hammer Res Larry Lavdermilk #144, 2885' - Pioneer, Ketchen Land Co Elk 4542, 2250', Elk 4441, 3155', Elk 4541, 3000', Elk 4442, 2425' - Ketchen/

KENTUCKY NOVEMBER PERMITS: Barren County: Angel Rose Energy, LLC. Addie Morgan, #SUSANA3 - Leipers Ls, James & Linda Morrison, #SUSANA4 - Sunnybrook/ Bell County: Amwes Exploration, LLC, Alex Slusher, #1 - Lexington LS; Daughtery Pet, Inc., Daugherty Petroleum, Inc., ET AL, #DPI 1421 - Cleveland Mbr, Ohio Sh/ Clinton County: McIver Drilling, LLC, Donald Cummings & Justice Franklin, #CLINTON 6, Donald Cummings & Lexie Et AL, #7; Steve Burchett Oil Co, Larry Koger ET AL, #GR2; John Poore, #AMTEX 28, #TS5, # AMTEX 21, Jean Maupin, #AMTEX 8; James Holsapple, #4, Rick-Rod Oil Company, Inc.; Denton Neal, #2R; Teddy Hicks, #13R, #14R, #15R, ; Martin Poore, #4R, #3R; Commonwealth Forest Management, Inc., Danny Brown, #1; G&R Oil, Ruth Claywell, #W1 - Knox Gp; TN-K Energy Group, Inc., David & Tammy Irwin, #1 - Stones River/ Cumberland County: Overton Oil & gas, Inc., David Melton, #10 - Knox Gp/ Harlen County: Daugherty Pet, Inc., North Coast Energy Eastern, Inc., #DPI 1750 - Cleveland Mbr, Ohio Sh/ Knox County: Amwes Exploration, LLC, Mary Elizabeth Chadwell, #1 - Clinton Sh/ Leslie County: Daugherty Pet, Inc., WPP, LLC, #DPI 1285, DPI 1280 - Huron Mbr, Ohio Sh; Nami Resources Company, LLC Medina Royalties, LLC, #SMEPA 109 - Clinton Sh/ Letcher County: EQT Production Company, EQT Production Company, #568266, #569382, #567737, #569621; Kycoga Land Company, #568423, Elkhorn Coal Company, #568034 - Cleveland Mbr, Ohio Sh, #568265, #568276, #568083, #568735, #567736, #567767, #567665; Elkhorn Coal Company, #568035, #569683 - Huron Mbr, Ohio Sh/

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
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