Ky/Tenn Report

Volume 19, Number 6 July 2012

FRACKING REGULATIONS UP FOR PUBLIC COMMENT - Currently, the Tennessee Department of Environment and Conservation (TDEC) is taking public comment on the “The Revised Tennessee Oil and Gas Regulations for well fracturing, blowout prevention, casing and well plugging.” These rules will affect many aspects of the Tennessee oil and gas industry. Therefore, it is imperative that the association participate in the rule making process by submitting substantial comments. Otherwise, the Department and the environmentalists will propose what they want, get it passed and we will have to live with it!

In our June 15th meeting with TDEC, we were advised that some of the language in the rules has been left very vague in order for TOGA to comment on the best phrasing. One of the issues we have already identified is the horizontal drilling method whereby packers are used and not cement, which would affect the bond long requirement.  TDEC is open to split requirements for different locations, similar to the casing policy proposed.  We were also advised that it is equally important to “support the things that are good or that we like in these comments”.  The comment period is now open and will last until 4:30 pm (CST) July 20, 2012. On July 10th, TDEC will host public hearings on the rules from 2:00 – 4:00 pm (EST) and again from 6:00 – 8:00 pm at the Knoxville Field Office. Verbal comments may be given at this hearing. However, written comments carry the same weight, so if you’re not able to attend, please send in your suggestions. Below you will find an outline of the major rule changes provided to TOGA by the Department. Additionally, you may view the proposed rule changes and the procedure for submitting written comments online at http://www.tn.gov/environment/wpc/ppo/og_ph071012.pdf.

Please, don’t depend on somebody else in TOGA to write the comments for you.  Write them yourself and send them in.  Participate!!!!

Public Participation:  Post all new well permits on TDEC website; Require a 15-day Public Notice for all new wells proposing to fracturing using >200,000 gallons of water. They will not hold public hearings but would accept comments and then issue a final decision. They stressed that there are no restrictions on fracks over 200,000 gallons just that the public would be notified of the intent to engage in the activity.
Notification of Fracturing: Applications must include intent to fracture and if method will utilize >200,000 gallons of water; Operator must notify the inspector at least 24 hours prior to beginning the fracturing activity; Operator must have personnel on-site during the fracturing activity and during the backflow period; Add a definition for ‘fracturing’ to the definitions section of the rules.
Disclosure of Fracturing Volumes and Additives:  Post-drilling well reports must include actual volumes used to fracture, amount/concentration of all additives used, amount of groundwater generated and method of disposal; Fracturing data from each well must be entered on a public website.
Well Siting Restrictions:  Prohibit siting of wells, pits or storage facilities in flood-prone areas or wetlands; Require additional setback distance of 330 feet from any Outstanding National Resource Waters (ONRWs)
Improvements to Casing Requirements: Incorporate the existing Casing Policy into the body of the rules; Specify that conductor pipe cannot be pulled up if >40 feet of pipe was used; Require surface casing to be cemented at least 100 feet below any freshwater strata (was 50 feet); Require cement bond logs or other well integrity tests on all wells to be fractured, and on wells proposed to be placed into temporary abandonment – this provision would apply to all wells and begs the question of how integrity testing will be done and accomplish what is needed?
Minimum Standards for Control Structures: Specify some minimum standards for pits, liners and tanks
Baseline Monitoring of Wells: Require applicants to identify all drinking water wells within a ½ mile radius on their plans two weeks prior to the beginning of drilling operations; Require applicants to notify owners of such wells prior to drilling; Applicant must collect a pre-drilling sample for petroleum product from any of these drinking water wells IF the owner requests it.

NOMINTATIONS BEING ACCEPTED FOR NEW OIL & GAS BOARD – The Tennessee Department of Environment and Conservation is currently accepting nominations for positions on the new Board of Water Quality, Oil and Gas. The Department has requested three nominations from TOGA to fill the position of oil and gas representative on the Board. The nomination process is open until the end of July. Should you wish to be considered for the Board, please forward your resume and a biographical sketch to TOGA President, Vicki Griffith at vgriffith@griffithservicesllc.com. According to the new law, the board changes will go into effect October 1, 2012.

TENNESSEE JUNE PERMITS:

KENTUCKY JUNE PERMITS: 

Adair County: Tammy Shive, G&R Oil (Cheatham Farm), #1, Knox Gp; Allen County: Majestic Management Corporation, HGF, LLC, #1,2 & 3, Knox Gp; Clinton County: V&T Oil & Gas, Inc., Cummings & Thurman, #2, Knox Gp; Overton Oil & Gas, Inc., Lance York, #1, Knox Gp; Shannon Portman, Raymond Delk, #10, Knox Gp; Overton Oil & Gas, Mitchell Neal, #2, Knox Gp; SWO & ISM, LLC, Morris Talbott, Morris 4, Knox Gp; SWO & ISM, LLC, David Cravens, #1, Knox Gp; SWO & ISM, LLC, J.E. Brown, #6, Knox Gp; Allen Page, Wayne Daniel, #5, Sunnybrook; SWO & ISM, LLC, Alan Glidewell, #2, Knox Gp; Steve Burchett Oil Co., Clinton County Board of Education, KT-15, Knox Gp; TN-K Energy Group, Inc., Teddy Hicks, #1, Knox Gp; SWO & ISM, Morris Talbott, Morris 3, Knox Gp; SWO & ISM, LLC, Alan Glidewell, #7, Knox Gp; V & T Oil & Gas, Inc., Cummings & Thurman, #4, Knox Gp; Crudewell Drilling, Inc., Tony Sloan et al., #3, Knox Gp; Crudewell Drilling, Inc., Sumner Stienmann, #8, Knox Gp; Duncan Drilling Co;, Randall Beaty, #1, Knox Gp;  TN-K Energy Group, Inc., Billy Duvall, #3, Knox Gp; Cumberland County: Keller Drilling, LLC, Jackie Norris, #1, Knox Gp; Daniel C. Terry, Darrell Scott, #1, Stones River; Explo Oil, Inc., Bruce Held, 1R, Knox Gp; Explo Oil, Inc., Richard Yater, 2RE, Knox Gp; Green County: Whitney Oil & Gas Co, LLC, Robert Simmons, #68, Knox Gp; S & C Drilling, Edwin Blaydes, Jr., #007 & 005, Knox Gp; Greenup County: Nytis Exploration Company, LLC, Addington Land Company, LLC, ALC-INGLES 3, Berea Ss; Hart County: Stinson, Ernest (dba Logsdon Valley Oil), Logsdon Valley Oil Company, Inc., #18, OLD 1, Corniferous; Jim Davis Oil Trust, Robert Srygler, #2, Corniferous; Henderson County: Navitas Land and Mineral Development, LLC, Richard & Helen Posey, #1, 2, 3, 4, 5, Warsaw Fm; Navitas Land and Mineral Development, LLC, Virginia Hailman, #1 & 2, Warsaw Fm; Trey Exploration, Inc., James O. Embry, #2, McClosky Ls; Johnson County: Harry S. Roberts &/or McKinley Ray, Howes Land Company, #15, Devonian, Lower Part; Knox County: Amwes Exploration, LLC, Michael Mills, #2, Big Lime, Metcalf County: Branch Production, LLC, Tony Estes, #2, Mississippian System; S & C Drilling, Inc., Stan Reece, #1 & 2, Fort Payne Fm; Caprock Drilling & Operating Co, Inc., Ed Hiser, #4, Devonian, Lower Part; Steve Burchett Oil Co., Donnie Page, #102 & 103, Knox Gp; Monroe County: Steve Burchett Oil Co., Dale Page & Jack Carter et al, T7 & #102, Knox Gp; S&C Drilling, Inc., Johnny Miller, W009 & W0010, Stones River, SWO & ISM, LLC, Johannah Hayes, H-2, H-3, H-4, H-5, H-6, H-7, H-8, H-9, H-10, H-11, Knox Gp; Steve Burchett Oil Co., Jack Carter et al., #101, Knox Gp; Steve Burchett Oil Co., Jackie Thompson, #105, Knox Gp; Rockcastle County: Pacific-Northwestern Energy, LLC, William Henry VanWinkle, #1, Knox Gp; Pacific-Northwestern Energy, LLC, Anthony French, #1, Knox Gp; CNG Technology, Inc., Scott & Jonathon McQueen, A, Knox Gp; Todd County: Hilltopper Energy, LLC, Jeff Johnston, #3A, O’Hara Lime Union County: Joseph L. Nally, Culver,T.J. McDonald Heirs Unit, #1, Cypress Ss; Joseph L. Nally, Kuester & Zimmerman Heirs Unit, #1, Cypress Ss; Wayne County: J3 Natural Resources, LLC, Gleason Foster, FJ3#2, Beaver Ls; Warren County: Minotaur Consulting, LLC, Blanche Lowe, RDG11, Clear Creek Fm; JTH Capital Group, LLC, Scuffle Hill Farm, SHF-JTH #1, Corniferous; JTH Capital Group, LLC, James Michael Giorgio, #1, Corniferous; Webster County: Core Minerals Operating Co, Inc., McGary-Adams, #2, Tar Springs Ss; Countrymark Energy Resources, Geiger Minerals LLC & Bill S. Gough LLC, 8/13/2010 & 8/12/2011, McClosky Ls; Navitas Land and Mineral Development, LLC, Virginia Hailman, #3, Warsaw Fm;

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

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