Ky/Tenn Report

Volume 16, Number 3 MARCH 2009

TOGA WINTER MEETING, OAK RIDGE, MARCH 12TH - The winter Tennessee Oil & Gas Association will hold its winter meeting on Thursday, March 12th, at the Oak Ridge Country Club. Items on the agenda for the 5:00 p.m. meeting include the proposed casing policy, the Obama administrations budget and tax cuts for the oil and gas industry and the May 13th convention in Knoxville. Members and guests are encouraged to attend and participate. We still need a host at this late date. If you are interested in hosting or co-hosting, call President Scott Gilbert at 865-679-6161 or email at scott.gilbert@vinlandenergy.com.

OIL & GAS BOARD MARCH 4TH MEETING CANCELLED - The Tennessee Oil & Gas Board's March 4th meeting was cancelled on March 3rd, when all three items on the agenda were either withdrawn or settled.

HELLO OBAMA, GOOD BYE, IDC -The Obama administration proposed budget calls for eliminating what it termed "oil and gas company preferences", which includes repealing the enhanced oil recovery credit, the marginal well tax credit, expensing of intangible drilling costs, the deduction for tertiary injections, and the passive loss exception for working interests in oil and gas properties. It also calls for the repeal of the manufacturing tax deduction for oil and gas companies.

OIL INDUSTRY PREPARES TO BATTLE THE BUDGET - Barry Russell of the Independent Petroleum Association of America called the Obama oil industry budget proposal "a devastating blow to the American oil and natural gas industry." He noted that independent producers drill 90% of the oil and gas wells in the United States, which means tax increases hurt these companies the most "Hurting American oil and natural gas production runs counter to the Obama Administration's interest, Russell continued. "American's clean-burning, abundant natural gas would be essential to any clean energy agenda for the Administration. And America's natural gas and oil are critical to decrease our reliance on foreign oil. These proposals make no sense during this economy when increased American energy could result in new jobs and more tax and royalty revenue". He called on every oilman to join hands to oppose these new tax cuts, aimed at ending the oil business in America.

INVITATIONS TO 2009 CONVENTION MAILED - Packets including an invitation to attend the 2009 TOGA Convention in Knoxville, May 13-15, have been mailed to all TOGA members. 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 -. 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.

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

NEW CASING POLICY BEING DEVELOPED - Water Pollution Control's proposed new casing policy is still being developed, according to state officials. The TOGA board reviewed a draft of the proposed policy at its December 2008 meeting and earlier this year provided the state with its comments. The state is currently reviewing comments and expects to have a final draft of the new casing policy available soon.

2009 DUES MAILING OUT, NEED CHECKS NOW - TOGA members have all received 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. Please send your check now. We need your help and support in our continued battle for survival in the climate we find ourselves operating in.

CNX REPORTS TENNESSEE SHALE RESERVES - CNX Gas reported its Tennessee Chattanooga Shale reserves for the first time on Feb. 17, 2009. It reported Proven Developed of 4 bcf from 5-7 wells, Proven Undeveloped of 78 bcf and Probable of 9 bcf, and Possible of 23 bcf for a total of 43 bcf. Schlumberger Data & Consulting Services did the report. CNX also updated its range of net unrisked potential from its 244,000 acres in Tennessee from a low of 1.1 tcf to a high of 2.5 tcf.

TENNESSEE FEBRUARY PERMITS: Anderson County - Knox Energy, Inc., The Coal Creek Co., CH-2005, 6,375', Clinton, CH2008, 7,388 PTMD, Windrock/ Hancock County - Ry Holland Fielder Inc., Ronald Cantwell, #1, 4600', Swan Island, Cecil Lawson, #1, 4500', Swan Island/ Morgan County - Eastern Energy Resources, H.P. Kemper, #2-A, 5000', Robbins, Knox Energy, Inc., Emory River Land Co., HH-1010, 5370 PTMD, Gobey, Plateau Properties, Inc., Pd-1002, 5325', Gobey Quad/ Scott County - Atlas America, Schonsheck, #2-H, 2985', #1-H, 2640', Huntsville

KENTUCKY FEBRUARY PERMITS: Bell County - Daugherty Pet, Inc., Begley Properties, #24, #36, Devonian, Lower Part, Mammoth Resource, LLC, Larry Browning, ET AL, #LB-15, Corniferous/ Clinton County - Steve Burchett Oil Co, John Poore, Robinson #1, Knox Gp/ Leslie County - Clean Gas, Inc., Derek Farmer, #407, Hobart Morgan, #408, Devonian, Lower Part, Journey Operating, LLC, Equitable Production Company, #KP-1253RD, Big Lime, Equitable Production Company, Kycoga Land Company, #567276, Huron Mbr, Ohio Sh, Mammoth Resource, LLC, Lucy Nield Heirs/DBNF, #2, #3, #4, #5, Corniferous/ Letcher County - Clean Gas, Inc., Kentucky River Properties, LLC, #192, Emory Moore Heirs ET AL, #409, Equitable Production Company, #370, Devonian, Lower Part, Equitable Production Company, Equitable Production Company, #568009, #567711, Cleveland Mbr, Ohio Sh, #505330, #567211, #568732, Roberta Coal Company, #567939, Huron Mbr, Ohio Sh, Quality Natural Gas, LLC, Woodrow Pendleton, #1664, 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