Ky/Tenn Report

Volume 15, Number 10 OCTOBER 2008

TOGA PRESIDENT COMMENTS ON NEW CASING POLICY -" We believe requiring BPO training and testing to be adequate and reasonable for wells testing the Chattanooga Shale and the additional regulations should be applicable for deeper formations," TOGA president, Scott Gilbert, wrote to Paul Schmierbach, Water Pollution Control. Scott added that the industry felt that a modified version of the new policies should be implemented for "deep wells." He noted that he would follow up later with an itemized discussion of the recommended policies for the deep wells.

OIL & GAS BOARD SESSION STILL ON FOR OCT 27-28TH-The Tennessee Oil & Gas Board will meet Monday and Tuesday, October 27 and 28th at the office of Water Pollution Control office in Knoxville. The board is scheduled to hear the state's case against Miller Petroleum and East Tennessee Consultants for falling to plug or produce wells. However, attorneys for the firms and the state are trying to resolve the cases. TOGA is also scheduled to outline its concerns about the newly enacted "casing policy" during the hearing.

SOMERSET REFINERY SOLD FOR $2.42 MILLION A New Yorker bought the Somerset Refinery at auction, Friday, September 26th and says he wants to have it up and running by early next year. Michael Grunberg, managing principal of Grunberg Realty bought the company for $2.42 million, which is located on 105 acres of land in Somerset, Kentucky. The refinery is the company's first foray into the oil business. The auctioneer said business interests from the Mideast and more than 30 states expressed interest in the refinery. But only two bidders showed up. A Texas businessman submitted a pre-auction bid of $1 million. Grunberg's pre-bid was $2.1. When he raised it the Texas group dropped out. Commenting on the past, Grunberg said the prior owners were undercapitalized and couldn't afford to run the refinery at full capacity. He said he has adequate capital and no other investors to please, so he can take a longer view. "I'm happy to break even for awhile," he said. "That's the problem with America these days. Everyone wants to make a buck right away." Frank Lynch and Roy Shirley initially sold the refinery to Bill Spears for stock in one of Spears companies. Spears promised to have the necessary funds to get the refinery running right away. Instead of funding the recover, he put the refinery into Bankruptcy. Lynch and Shirley are battling Spears in court, claiming the stock he used to purchase the refinery was valueless.

TOGA CHRISTMAS PARTY DECEMBER 13TH- Vicki Guess and her team at Griffith Services began thinking of Christmas in August. In a fax, mailing and email to members, Vicki announced that the party would be held on December 13th at the Dancing Bear Lodge in Townsend. On tap will be carriage rides (with sleigh bells), open bar and horsd'oeuvers, dinner buffet, Santa with presents and a live band. Rooms will be available at $99 per night. Vicki is asking for sponsors of $100 to $1000. They are also looking for volunteers to help Santa. If you want to sponsor, volunteer to help or just ask a question, call Vicki Guess or Kathy Daugherty at 865-220-8850. They welcome any and all suggestions.

JOHNSON CITY PROSPECT- Landowner has 42 acres in Johnson City, TN. When drilling a water well, driller said he might have natural gas. Contact Mariea Ward, 423-833-5190.

LOOKING FOR WATER, HIT OIL - Landowner in Union County, drilled a 1,250 foot water well but found oil. Oil is up to within 400 feet of surface. Nick Frisa is interested in leasing or working with investors as the operator. Call him at 865-992-2914.

DON'T MISS GAS CONFERENCE, OCT. 29-30TH -Tennessee operators shouldn't miss the Platts Appalachian Gas Conference, October 29-30th in Pittsburg, Pa. The event focuses on reserves, production activity, pipeline access, prices and more. Go to www.Platts.com. For more info.

WILD WELL TRAINING SOON - TOGA has six students tentatively signed up for the next IADC well control training program. When we reach 10, we will schedule a class. Call Teresa at the TOGA office 615-371-6137 to sign up. According to the state's new casing policy, effective immediately, all tool pushers and drillers are required to complete an IADC well control training school.

CROWN HAS OILFIELD LINE IN STOCK- Crown Wire & Cable, Inc., a TOGA AND KOGA member They have many oilfield items in stock, including cable tool drill line, winch cable and rotary drilling line, submersible pump cable and manila rope.. Call them free at 800-222-4597.

LEASES & PIPELINE FOR SALE - Springfield North Oil & Gas Project. Approximately 7,000 acres in TN/KY area. Partially completed 10 mile gas pipeline. Contact: Brenda.stone@ionsightbb.com or call George L. Virgin at 270-827-9144.

LEASE TEAM AVAILABLE - Powell Land Company LLC, a full services land company serving the Southeast, Midwest and Appalachian Basin. Thirty six years experience. Large or small teams. Contact: Bob Powell, 12816 Farmgate Lane, Knoxville, TN. powellland@tds.net. Call 423-360-5907.

TENNESSEE SEPTEMBER PERMITS: Anderson County - Knox Energy LLC, The Coal Creek Co, CH-1008, 3430', Fork Mountain / Atlas America LLC, Coal Creek Mining & Mfg Co CCLL50 4465', Lake City / Campbell County - Delta Producers Inc., Lindsay Land Co., #23, 4400', Jacksboro, CNX Gas Co LLC, Gary Hicks, KH-002, 2250', Ketchen / Fentress County - Lucky Production Oil Expl., Butris Threet, GK-4, 2000', Moodyville / Morgan County - Knox Energy LLC, The Coal Creek Co., CH-2004, 3500', Windrock, CNX Gas Co. LLC, Walls Properties, WH-002, 4200', Petros / Overton County - National Energy Development, Clyde McDonald Heirs c/c G. McDonald, 2000', Alpine / Pickett County - Carr Drilling, Jay Storie #1, 2000', Moodyville / Scott County - Atlas America, Ketchen Land Co., KCL-34, 3140', Daryl & Pauline Krahn Krahn-1, 2440', Krahn-2, 2455', Krahn-4, 2265', Huntsville, Krahn-5, 2265', Pioneer.

KENTUCKY SEPTEMBER PERMITS: Barren County -Angel Rose Energy, LLC, Larry & Anita Houchens, AR-18, Sunnybrook / Bell County - Mammoth Resources, LLC, Larry Browning ET AL, #LB-17, Corniferous / Clinton County - Steve Burchett Oil Co., John Mason, JAX1, JAX2, Kenny Denney, BB1, Kenneth Conner, Carvin Hadley, #3, James Holsapple, #21, #48, Joe Summers, TS 1, TS 2, June Upchurch, DESTINY 1B, Kenneth Conner, Robert Reneau, #3, Knox Gp / Cumberland County - Hornet Oil & Gas Corporation, Royce Harris, #1B, Knox Gp, G & R Oil, Randy & Dottie Gibson, #1, #02, Murfreesboro, Hart Oil, LLC, Randy & Dottie Gibson, #2, Knox Gp / Knox County - Vinland Energy Operations, LLC, Enpro, Inc, #18, Clinton Sh, Christopher Thomas, ET AL, #1, William Hammons ET AL, #10, Clinton Sh, Enpro, Inc & Tuggle, #4A, Roderick Messer, #2, Cecil Wilson, #7, Dorothy Mills, #1, Enpro, Inc & Wynn, Oscar, #16, Doreen Cornelius, #1, Enpro, Inc., #15, Clinton Sh, Rockcastle Energy Inc., Georgia Baker, #1, Corniferous / Leslie County - Equitable Production Company, Equitable Production Company, #568224, Huron Mbr, Ohio Sh, Clean Gas, Inc., Paul Hensley ET AL, #343, Flora Wilson Heirs, #295, Devonian, LP / Letcher County - Equitable Production Company, Kycoga Land Company, LLC ET AL, #567997, Huron Mbr, Ohio Sh, Charles R Bradley DBA Basin Energy Co., William Collins, Heirs, #2, Quality Natural Gas, LLC, Bill Lewis, #1874, Rolling L Twining, #1952, Devonian, LP, Equitable Production Company, #568428, #567745, #567746, Elkhorn Collieries, Inc ET AL, #567976,Cleveland Mbr, Ohio Sh, #568429, Daugherty Pet, Inc., Kentucky River Properties, LLC, DPI 1243, Equitable Production Company, #567747, #567744, Elkhorn Collieries, Inc ET AL, #567386 Equitable Production Company ET AL, #568321, Huron Mbr, Ohio Sh, Clean Gas, Inc., Rover Land, LLC, #332, #333, Devonian, LP / Pike County - Chesapeake Appalachia, LLC, Kentucky Berwind Land Company, #827024, Devonian, LP Russell County - Forell Energy Company, Paula Foley, #1, Rozella Wright, #1, 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