Ky/Tenn Report

Volume 15, Number 8 JULY 2008

CNX HOSTING FALL TOGA MEETING - CNX is sponsoring the September Board of Directors meeting, which will likely be held in either Oak Ridge or Knoxville. Date, time and location will be announced in the August newsletter.

VICKI GUESS NAMED CHRISTMAS PARTY CHAIRMAN - TOGA director Vicki Guess, Griffith Services, Inc., has been named 2008 Christmas Party Chairman. Vicki is currently checking out possible locations and dates for the meeting. If you have a suggestion, give her a call at 865-220-8850.

TENNESSEE HORIZONTAL DRILLING INCREASING - CNX (Knox Energy) has drilled five horizontal wells in Morgan County. Two are online, two are in the clean up state and one is scheduled for completion. CNX has more planned. Atlas America has drilled one horizontal well in Anderson county that is scheduled to go on line in late July. Vineland Energy also has its first horizontal scheduled.

WATER POLLUTION STAFF DRAFTS NEW REGS - In a recent email to Scott Gilbert, TOGA President, Paul Schmierbach, Division of Water Pollution Control, wrote, "Due to a substantial increase of well blowouts above and below ground surface, the Tennessee Oil and Gas Board has developed Casing and Wellhead control procedures to improve Safety and Environmental Protection. This direction is taken pursuant to 1040-2-7-.02 Surface Casing, 1040-2-6-.02, Blowout Prevention. Effective July 31, 2008 all Tool Pushers and Drillers operating in the State of Tennessee are required to furnish certification of satisfactory completion of the International Association of Drilling Contractors (IADC) or other state approved training program on well control equipment and techniques. The certification shall be renewed every two years by attending a refresher course. The attached policy applies to the specific locations for which you have submitted a Permit to Drill application. An exception to all or part of this policy may be granted by the supervisor upon receipt and subsequent review of a written request and supportive data. Casing Policy 1 and Blowout Prevention policy 1 applies to oil and gas exploration statewide. Casing Policy 2 and Blowout Prevention Policy 2 applies to oil and gas drilling in Overton, Pickett and Clay Counties and the area in Fentress County west of U.S. Highway 17. The Casing Policy(s) are effective July 31, 2008. The Blowout Prevention Policy(s) are effective January 1, 2009. Casing Policy (1) (Condensed. Full text on TOGA website) All Conductor casing will have a cement seal at the surface. All Surface casing will be set at a depth of 300 ft. up to 800 ft. 50 feet below the lowest known fresh water aquifer with class A cement only, A minimum of 8 hours wait before drilling. When Gel or water circulates back to surface but no cement returns are received then a 25 foot trimming pipe must be used and cement must be brought back to surface. An intermediate string of casing will be set prior to the drilling into any known oil and gas producing zone.
Blowout Prevention Policy (1) All wells shall be equipped with a minimum of the following equipment and shall be attached to the Intermediate casing and shall conform to the API specification for wellhead equipment: (a) A double ram blowout preventer, including pipe and blind rams, and an annular-type blowout preventer (b) Accessible controls both on the rig floor and at a safe remote location of at least 50 feet from wellhead.(c) An Annular choke valve (d) A drill pipe or Air head valve capable of pump truck connection (e) A flow line of the proper size and working pressure, must be installed in a straight line to pit and must be anchored properly. (f)) Blowout prevention equipment that has a rated working pressure of 3000 psi. In unknown or expected higher pressures a 5000 psi working pressure will be required. (2) The blowout preventers shall be installed above ground level. No cellar shall be deeper than 3 feet (3) Blowout preventers, accumulators, and pumps shall be certified as operable under the product manufacturer's minimum operational specifications. (4) Blowout prevention equipment and intermediate casing shall be tested to a pressure of 1,500 psi at surface for not less than 30 minutes, before drilling the plug on the intermediate casing, and at other intervals as approved or requested by the supervisor. The Site Coordinator must be present for pressure test. (5)No pre existing well may be deepened without a (MIT) mechanical integrity test of 1,500 psi with no more than 10% loss of pressure in 30 minutes, must be witnessed by inspector. Casing Policy (2) Very similar to requirements in (1) See TOGA website for details. Blowout Prevention (2) Annular type blowout preventer required with accessible controls both on rig floor and at safe remote location, an annular choke valve, drill pipe or air head valve capable of pump truck connection and flow line of proper size and pressure 1500 psi BOP must be installed above ground. No cellar shall be deeper than four feet. BOP must be certified annually and tested to 500 psi for 30 minutes before drilling. Site coordinator must be present for test. (5)No pre existing well may be deepened without a (MIT) mechanical integrity test of 500 psi with no more than 10% loss of pressure in 30 minutes, must be witnessed by inspector.

TOGA officials are meeting with the Water Pollution staff to hear TOGA member's thoughts and concerns about these proposed new regs. If you have any comments, thoughts or suggestions, contact Scott Gilbert at 865-220-8457 or email at scott.gilbert@vinlandenergy.com. Copies of the proposed regs and our initial modifications can be found here >>

LEASING OPPORTUNITIES- Hugh Claiborne has 145 acres in Putman County with a gas well on the property. He would like to talk to someone about leasing. Call him at 423-618-0412. Scott Halsey has 30 acres he would like to lease in Wilson County, near Lebanon. Contact at: 615-549-1141 or email at Halsey@ys24404.americablejapan.com. There are 82 acres available in Fentress County in the Little Crab area. Contact Neil Zierden at 352-636-0429 or email at fireinv@comcast.net. Lana Carr would like to lease her land in Sevier County. They are getting oil seeps out of their spring. Contact: 865-436-9327 or email gburgtenngal@aol.com. Donna Pittsley has 100 acres near Jamestown in Fentress County that she would like to lease. Contact: 508-880-5675 or email donn_pil@msn.com. Dave Hayes has 110 acres in Henderson County he would like to lease. Oil sheen on creek. A Superior Oil Company rep once was close to a deal but was in an auto accident and didn't return. Contact: 731-967-1616 or email canyelk@bellsouth.net.Dina Bruce has land for lease in Adams, TN, 11 miles from Guthrie, KY. Contact: email dina.bruce@terexutilities.com. David Kelly has 119 acres near McMinnville he would like to lease. Call him at 931-607-3889. Chad Mains has some acreage in Whitley County KY he would like to lease. Contact him at 901-831-6433.

HOTSHOT SERVICE- I recently purchased a new one ton truck and 40 foot trailer for transporting oil field tools. I live in South Carolina and will travel 48 states. Contact Beason at Costal Seafood & Transport Company via email at hbeeson@comcast.net.

TENNESSEE JUNE PERMITS: Anderson County - Atlas America, Coal Creek - Lake City 73, 3960', 71, 3945', 74, 4260', Coal, CCLC-56, 3725', CCLC-57, 3520', CCLC-58, 6290', CCLC-54, 3440', CCLC-55, 3465', Lake City, / Campbell County - Atlas America, Coal Creek - Lake City CCLC - 72, 3345', CCLC-62, 3430', Jacksboro, CCLC-69, 3120', CCLC-61, 3455', CCLC-65, 3125', CCLC-64, 3835', CCLC-63, 3825', CCLC-60, 3415' Lake City, CNX Gas Company LLC, Becky Properties LLC JW-001, 3300', Jellico West / Clay County - Chris Farmer WC Vaughn #1, 2000', Dale Hollow Res SE 1968, #2, 2000', Dale Hollow Dam / Fentress County - Lucky Production Oil Expl, Judy Beaty GK-3, 2000', Moodyville ,Outdoor Resources, Inc., William York #1, 2500', Wilder / Morgan County - Atlas America, Coal Creek Mining & Mfg, CCH21, 3190, C Creek H_, 3135', H20, 3255', CCH-19, 3080', H-18, 3050', CCH-17, 3210', CCH-16, 3735', Petros / Overton County - Freddie Paul, Reddie Paul #22, 2000', Riverside Oil & Gas, Mavis Norrd #3, 2000', Tennessee Petroleum, Inc., Richard Smith #2, 2000', Alpine / Pickett County - American Oil & Gas Inc., Roquell Chabers #A2, 2000', Chambers #1A, 2000', Byrdstown / Scott County - Atlas America, Kitchen Land Co. KLC-29, 2420', Klc-21, 3100', KLC-25, 2370', KLC-24, 2695', KLC-28, 2380', KLC-26, 2380', KLC-27, 2400', KLC-22, 3170', KLC-20,3030', KLC-23, 3210', KLC-31, 2475', KLC-30, 2450', Huntsville, KLC-32, 2925', Winfield / Orea Energy Group, Todd Heirs #6, 2000', Robbins /

KENTUCKY JUNE PERMITS: Barren County - Global Resources Mgmt Group, LLC, Lee R Nunn, #3, Devonian, LP, David M Borders, David M Borders, #1, #2, #3, Corniferous / Clinton County - Melton Rental & Well Service, LLC, April Wade, #1, E B Conner Jr., Danny Thomas, #2, Steve Burchett Oil Co, Orville Freeman, #T-REX1, Koger Energy Partners, LLC, James Dicken, #1, Knox Gp / Tennessee Properties, Inc., Gertrude Mae Elmore, #11, Stones River, Papineau Drilling, Inc., Bill Papineau, #1D, Knox Gp / Cumberland County - Jose Ortega, Lou Ortega, #3, #4, #1, Global Exploration, LLC, Hershell Wayne Flowers, #4, STL Energy, Todd Turner, #5, #6, #7, #8, #9, #10, #11, #12, Knox Gp, Hi-Mi Exploration, LLC, Joyce Pharis, #3, Sunnybrook / Harlan County - Daugherty Pet, Inc., E T Creech Heirs, #DPI 1241, Huron Mbr, Ohio Sh, Knox County - Gaddis Gas Company, Velma Davis, #1, Raymond Owens, #2, #1, Vinland Energy Operations, LLC, Tommy Gambrel, #9, Cassandra Jones, #2, Enpro, Inc., #10, #7, Clinton Sh, Young Oil Corporation, Willie Mills, #1,Tommy Norman, #6, Marty Hollin, #1, Keith Sears, #4, Clarence Hinkle, #1, Corniferous, Vinland Energy Operations, LLC, Carley & Odie Bennett, #1, Clinton Sh / Leslie County - Equitable Production Company, Equitable Production Company, #567953, CNX Gas Company, LLC, Begley Properties, LLC, #HK-002, #567579, Huron Mbr, Ohio Sh, Vinland Energy Operations, LLC, Medina Royalties, LLC, #SMEPA-162, Corniferous, Rachel Helton Heirs, #1, Clinton Sh / Letcher County - Quality Natural Gas, LLC, Charles C Jr & Maurine G Hall, #1831, S G Fairchild Estate ET AL, #1847, Clean Gas, Inc., Kentucky River Properties, LLC, #EX21, Devonian LP, Equitable Production Company, Equitable Production Company, #567659, #567749, #568021, Huron Mbr, Ohio Sh, #567660, #567748, #568072, #567727, Cleveland Mbr, Ohio Sh / Whitley County - Energy Associates, Inc., Princeton, ET AL, #GWS13, #GSW25, Devonian, LP, Champ Oil Co., Inc., Irving Scharfenberger, #1, #6, Knox Gp, Energy Associates, Inc., Princeton, ET AL, #GWS20, Clinton 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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