Ky/Tenn Report

Volume 14, Number 11 November 2007

STATE TO ASK BOARD TO INCREASE PERMIT FEES, NOV. 8TH-President Lynn Wagoner is encouraging TOGA members to attend the Oil & Gas Board hearing, 9:00 a.m., Thursday, November 8th, 17th floor conference room, L&C Tower, 401 Church St., Nashville. The Water Pollution Control regulators will ask the Board to increase drilling permits from $150 to $500.

$500 DRILLING FEE AMONG HIGHEST IN NATION-Water Pollution Control regulators will be asking the Oil & Gas Board to approve one of the highest permit fees in the nation, when it recommends raising the drilling fee from $150 to $500. The permit fee in Ohio is $250, $300 in Kentucky and Mississippi. The drilling fee is $250 in Indiana and $25 in Arizona. The fee is $100 in Illinois and $75 in Nebraska. In Pennsylvania the permit fee is $350 for a gas well and $250 for an oil well. In West Virginia the drilling fee for a well 6000 feet or less is $650.

BOARD TO GET FIRST LOOK AT STRONGER REPORT-The TOGA team, meeting with Water Pollution Control regulators, learned that the Stronger Review has not officially been presented to the Oil & Gas Board. The state plans to give the board members their first official look at the STRONGER report when it asks to raise the permit fees from $150 to $500 to hire a new inspector. The STRONGER review was conducted by a team of out-of-state regulators, environmentalists and operators in June 2007 and the report was issued in August. The STRONGER Report cites the need for more training for the staff, specific written goals and objectives for administering the oil and gas program and more staff. The STRONGER program, which reviews oil and gas regulation's in oil producing states is managed by the Interstate Oil and Gas Compact Commission and funded by the U.S. Environmental Protection agency.

"DISAPPOINTED" SAYS TOGA PRESIDENT-In an e-mail to TOGA directors, President Wagoner said, "We are disappointed to learn that the STRONGER review has not been officially presented to the Oil & Gas Board." TOGA had hoped that the Board would consider the STRONGER recommendations when it considered the state's request for a drilling permit increase.

LITTLE HELP ON TOGA ISSUES- TOGA representatives, President Lynn Wagoner, Bill Goodwin and Scott Gilbert have met twice recently with Water Pollution Control officials in Knoxville in hopes of getting some changes in the administration of several matters including gas tests, the red tag program, withholding permits, pits/liners, reclamation bonds, time limits for permits, completion reports and plugging. The Water Pollution Control regulators said they didn't believe these were major issues and had no plans to offer any changes during the board hearing. The regulators did agree to support the elimination of pre-drilling inspections, but warned that this change will have to be approved by the state legislature.

DEADLINE NEAR FOR CHRISTMAS PARTY ROOMS - The Christmas Party will be held, following the Board of Directors meeting, Saturday, December 1, 2007, at the Marriott-Knoxville. The deadline for getting the $99.95 TOGA room rate is November 10th. Call the hotel at 865-637-1234 before the 10th and mention TOGA to get this rate. The Christmas Party Reception, with an open bar, will begin at 6 p.m., followed by dinner and dancing. Cost is $25 per person, so sponsors are needed. Invitations and sponsor information will be mailed next week.

2008 CONVENTION IN KNOXVILLE-The 2008 TOGA convention will be held May 14th- 16th at the Marriott Hotel in downtown Knoxville, Tennessee. Plans for the convention will be reviewed at the December 1, 2007 Board of Directors meeting.

MONTELLO DRILLING UNDER-BALANCED TO BASEMENT Montello Resources Ltd. (TSX Venture: MEO) has announced that it has run 7 inch casing to the top of the Rome Formation at 7,850 feet, in the John Bowen #2, in Morgan County, and is drilling ahead under-balanced, using nitrogen. Some $5.1 million has been spent on the well as of October 24th, 2007. The deep test is scheduled to be drilled to basement, anticipated to occur at between 8,500 and 9,500 feet.

POSSIBLE INVESTOR ASKS TO BE CONTACTED-G.D. Wegener, P.O. Box 663. Waynesboro, TN 37485, 931-722-8985, wannesboro12@yahoo.com. , has notified the TOGA office that he would like to hear from any company exploring in Kentucky or Tennessee.

JACKSON, HENDERSON COUTY OPPORTUNITIES-47.29 acres in Gainsboro, Jackson County, available for leasing. Contact Joe Whittenton at 870-270-6071. 110 acres in Middleburg, Henderson County. Standard Oil collected satellite images, said had potential, then landman had auto accident, hasn't returned. Contact Dave Hays, 1665 Harrington, Scotts Hill, TN 38374.

TENNESSEE OCTOBER PERMITS-(Not available at press time. Will include next month)

KENTUCKY OCTOBER PERMITS: Barren County - Thomas Neal, Cornell, Mark, #1, Leipers Ls / Bell County, George Jones, ET AL, Forexco Co., #1, Devonian, LP / Carl B Jones, Beckner Energy Resources, #1, Clinton Sh / Daugherty Petroleum, Inc., Daugherty Pet, Inc., #LF-11, Big Six Sd / Enro, Inc., Daugherty Pet, Inc., #2, Devonian, LP / Hunter, ET AL, Kentucky Indiana Oil and Gas, #3, Devonian LP / Clinton County, James Douglas Sells, Fox Auto Sales Of Tennessee, Inc., #21 / Jerry Lowhorn, RKT Petroleum, LLC, #3 / Collin Sevier, Conner Jr, E B, #3 /Harold Littrell, Explo, Inc., #1J, Knox Gp / Morris Smith, Petrotech Resources Corp., #1, Knox Gp / Cumberland County - Royster & Lucille Garner, Papineau Drilling, Inc., #5D, / Carl Taylor Fudge, Rich, Joe, #F-2 / Emma Capps Estate, STL Energy, #4, Chat Chowining, Hart Oil, LLC, #4,#3, Knox Gp / Windell Radford, Lucky Production Oil Expl, LLC, #2, Granville / Harlan County - Pardee Minerals, LLC, Equitable Production Company, #537546, Devonian, LP / Knox County - Kenneth Lee, Young Oil Corporation, #1, Knox Gp / Leslie County - KRCC Oil & Gas, LLC/Equitable Production Co., Daugherty Pet, Inc., #DPI-945, Devonian, LP, Vance & Elsie Mosley, Vinland Energy Operations, LLC, #1 / WPP, LLC, Daugherty Pet, Inc., #DPI-1213, Corniferous / Robert J. Hart, Clean Gas, Inc., #251, Devonian, LP / Letcher County - Fernando Cornett Heirs, Bradley, Charles R DBA Basin Energy Co., #1, Devonian, LP / Equitable Production Company, Equitable Production Company,#565863, Huron Mbr, Ohio Sh / Kentucy River Properties LLC, Equitable Production Company, #566725, Huron Mbr, Ohio Sh / Wright Craft, Quality Natural Gas, LLC, #1776, Devonian, LP / Severstal North America, Inc, ET AL, Equitable Production Company, #566603, Huron Mbr, Ohio Sh / Kentucky River Properties, Equitable Production Company, #566842, Huron Mbr, Ohio Sh / The Land Wright Company, Quality Natural Gas, LLC, #1777, Devonian, LP / Whitley County - Champ Oil Co, Inc., J L White, #5-B, #6-B, #7-B, Knox Gp /

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