Ky/Tenn Report

Volume 16, Number 2 FEBRUARY 2009

OIL & GAS BOARD TO MEET MARCH 4TH - The Tennessee Oil & Gas Board will hold its first 2009 meeting at 8:30 a.m., Wednesday, March 4, 2009 at the L&C Tower, 401 Church, 17th floor conference room. Three items are on the agenda. 1. The request for the application of a vacuum pump by Koger Energy Partners for use on the Jean Bowling #1, Permit 11686. The second item is to consider a request for a contested case by Deloy Miller, CEO, Miller Petroleum, Inc, Miller is alleged to be in violation of "Time Limit for Plugging Wells". The fine is $193,000. An Administrative Law Judge will conduct the proceedings. The Law Judge will also conduct the proceedings of the third item on the agenda, which is a request by Anderson Oil LTD for a contested case of a Force Change of Operator, approved by the Oil & Gas Board in favor of Greg and Rhonda Keisler. The well is located in Campbell County.

TOGA WINTER MEETING, OAK RIDGE, MARCH 12TH - The winter Tennessee Oil & Gas Association will hold it's winter meeting on Thursday, March 12th, at the Oak Ridge Country Club. We need a host for the meeting. If you are interested in learning more about hosting, call President Scott Gilbert at 865-679-6161 or email at scott.gilbert@vinlandenergy.com.

2009 CONVENTION RETURNS TO KNOXVILLE, MAY 13TH TO 15TH - Informational packets have been mailed to potential exhibitors and membership registration packets will be in the mail later this month. The registration fee for members this year will be $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.

CONVENTION SPONSORS NEEDED - $250. 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.

VICKI GUESS MAGIC - Vicki Guess and her crew at Griffith Services is handling the registration for the 2009 convention. They did a great job with the Christmas Party and volunteered bring their magic to the convention as well. So when you get your packet, don't just automatically send your forms and checks to the TOGA office. You will be sending your forms, checks and credit card information to Vicki. Her contact information will be prominently displayed on all the forms

CALL FOR CONVENTION SPEAKERS - President Scott Gilbert and Bill Goodwin are working together to arrange for speakers for the 2009 convention. If you are interested in speaking or if you know someone you believe would be an interesting speaker, please contact Scott Gilbert at 865-679-6161 or email scott.gilbert@vinlandenergy.com or Bill Goodwin at 615-944-0832 or email tmdbill@aol.com

DRILLING PERMIT COST GOES UP IN MARCH The Tennessee drilling permit fee will be increased from $150 to $500 on March 2, 2009. The fee increase was requested by the Oil & Gas Board and approved by the Attorney General's office.

2009 DUES MAILING ON THE WAY - TOGA members will soon be receiving 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.

READY TO WORK - Will Goodwin has earned his degree in GIS mapping from Tennessee Tech and is looking for work in the oilfield. He is working part time for his dad, but has time for other projects. He is proficient in the extensive mapping software, ArcView. He has ArcGis 9 or his computer and is building an excellent database of Tennessee wells, pipelines, leases, etc. He is good and fast at pulling records at the state and making copies. He also has sales experience and would like to try sales in the oil patch in Tennessee. Contact him at 615-419-7661 or email at djdr.know@gmail.com.

LEASE OPPORTUNITY - Frank Chesnut has 66 acres in Hawkins County, Tennessee, he is interested in leasing. You can reach him at 423-272-2057

TOGA PRESIDENT AT LIAISONS MEETING - I recently attended a meeting of the Liaison Committee of Cooperating Oil & Gas Associations. All of the larger producing states have a professional staff running their organizations. The President of the Indiana O & G Ass. and myself were the only volunteer associations represented. This committee often works with the IPAA to try to show a unified front of the US Oil & Gas Industry against or for legislation or regulations that pertain to our industry. There are some very sharp individuals involved with this committee.

In the 1970's and 1980's the Federal Government passed laws related to the environment. Among these were Safe Drinking Water Act (SDWA), Clean Water Act (CWA), Clean Air Act (CAA), CERCLA (Superfund), Resource Conservation and Recovery Act (RCRA), and the "public

right to know" provisions of the Emergency Planning and Community Right -To-Know Act (EPCRA). These laws were mainly aimed at large scale industrial operations. Certain industries were given exemptions to provisions within the Acts, the largest being Agriculture. Special provisions for the Oil and Gas Industry were included in these acts. These special provisions were negotiated between oil & gas industry representatives and the legislators and their staffs at the time. These legislators and staffs are generally not in office today. Without these special provisions, the oil and gas industry could not operate, especially small stripper well operations. These exemptions are being portrayed by environmental organizations to today's Congressional leaders as "good ole boy" favors.

For the past several years, the Natural Resources Defense Council (NRDC), along with a number of other environmental organizations such as the Oil and Gas Accountability Project (OGAP) and Rocky Mountain Clean Air Action, have been pursuing an aggressive campaign pushing for greater federal environmental oversight over U.S. E&P operations. In October 2007 the NRDC issued a report entitled "Drilling Down; Protecting Western Communities from the Health and Environmental Effects of Oil and Gas Production" which alleges that a number of "loopholes" in federal U.S. statutes and regulations allow U.S. Oil and Gas producers to circumvent environmental regulations imposed on other industries . Drilling Down is backed by Henry Waxman, US Representative from Beverly Hills, who is the new Chairman of the House Committee on Energy and Commerce. Some groups are pushing to have Hydraulic fracing placed under federal regulation and permitting.

The Liaison Committee is trying to form a unified front against the groups trying to put us out of business. A public relations firm has been hired to develop a response to these proposals along with educational videos used to show how, drilling, fracing, production, etc. is done in an environmentally responsible manner. These products will then be used by state associations and companies to then talk to their congressmen or staffs to get our story across. The main point we wish to make is the federal regulation of oil and gas operations (especially fracing) is currently being regulated successfully by respective states without problems and therefore, federal oversight or regulation is not required. When I get the products mentioned I'll get them to whoever is willing to help in this endeavor.

TENNESSEE JANUARY PERMITS: Claiborne County - Daugherty Petroleum, Corrigan TLP LLC, DPI-207,6500', DPI-206, 6500', Eager / Morgan County - Eastern Energy Resources, H.P. Kemper, #2-A, 5000', Robbins / Overton County - Outdoor Resources, Inc., Nelson Parrigan, Etal #1, 2000', Okalona / Scott County - Atlas America, Doug & Pauline Krahn, Krahn-7, 2425', Pioneer, Krahn-8, 2640' Krahn, 2405', Huntsville

KENTUCKY JANUARY PERMITS: Bell County - Daugherty Pet, Inc, Begley Properties, #25, Cleveland Mbr, Ohio St, / Clinton County - Kenneth Conner, Janet Ballew ET AL, #1, Knox Gap/ Cumberland County - HI-MI Exploration, LLC, Archie Aaron, C-9-A, C-10-A, Knox Gap, Joe Todd Oil Project, Clem Nienaber, #1, Barry Barnett, #1, Richard Yeder, #1, Knox Gap / Harlen County - Daugherty Pet, Inc., Kentucky River Prop. LLC/Equitable Production, DPI-1249, DPI-1260, Huron Mbr, Ohio Sh,/ Leslie County - Clean Gas, Inc, Stanley & Oma Wilson, #171, Oma Wilson ET AL, #201, Devonian, Lower Part, Daugherty Pet, Inc, Kentucky River Properties, LLC, DPI-1258, Hurib Mbr, Ohio Sh/ Letcher County - Equitable Production Company, Equitable Production Company, #567671, #568437, Ohio Sh, #567672, #568436, Cleveland Mbr, Ohio Sh, Robert Coal Company ET AL, #568434, Huron Mbr, #568435, Cleveland Mbr, Ohio Sh, Clean Gas, Inc., Troy Cornett ET AL, #315, Dover Cornett ET AL, #316, Evan Heirs Cornett ET AL, #287, #288, Violet S Frazier ET AL, #335, Devonian, Lower Part

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