Ky/Tenn Report

Volume 16, Number 10 October 2009

OIL & GAS BOARD TO MEET NOVEMBER 4TH - The Tennessee Oil & Gas Board has scheduled a meeting for 9 a.m., Tuesday, November 4th, in the 17th floor conference room at the L&C Tower, 401 Church. The meeting is to consider a request for the use of a vacuum pump by David Wilson, under the following companies: LRS, Inc. For Eugene Storie #5, #7038, Delzia Winning ham #2, #8659 and for Wade Energy, the Troy Winning ham #P7-5, #8833.

CHRISTMAS PARTY DEC. 12TH, DANCING BEAR LODGE- The TOGA Christmas Party will return to the Dancing Bear Lodge in Townsend again this year, Saturday, December 12th. TOGA VP Vicki Griffith, in charge of the event, says a letter with details will go out soon. Rooms and cabins are $99 each. Reservations are being handled through Vicki's office. Call her at 865-220-8850. Should be a great party with Santa, gifts, Christmas carolers and the same band we danced to last year, the Retroholics. We have a few sponsors but need more: So far we have: Atlas America, Charles Stivers CPA, McJunkin-Redman, Keystone Drill Services, Jerry Fox, Wells Fargo Insurance, Jim Washburn and AC Insurance and Griffith Services.

TENNESSEE OPERATORS MOVING UP IN TOP 150 LIST - Three of the five public oil companies operating in Tennessee moved up in the ranking of Oil & Gas Journal's Report of the top 150 Oil Companies in the United States for 2008. Atlas America was the top listed company, ranked 46th, the same as last year. CNX Gas Corp., move up to 47th from 50th last year. NGAS Resources came in at the 86th position, the same as last year. Knoxville-based Tengasco Inc., moved up from 109th in 2007 to 103rd for 2008. Huntsville-based Miller Petroleum, Inc., moved up to 138th place in 2008 from 141st in 2007. CNX Gas Corp. lead the same group in drilling in the United States, with a net of 552 wells drilled in 2008. Atlas America was second with 419 net wells drilled for the year.

OBAMA BELIEVES U.S. OVERPRODUCING CRUDE OIL - Independent Petroleum Association of America (IPAA) officials that have met with the House and Senate leadership, Treasury officials and the White House "energy Czar" Carol Browner report that the Obama administration remains wedded to its rationale that oil industry tax deductions should be eliminated to "stop overproduction of crude oil and natural gas."

ELIMINATING DEPLETION, IDC WILL COST ECONOMY BILLIONS - According to the Energy Policy Research Foundation the incremental value of domestic oil production over imported oil is $14.70 per barrel. The IPAA calculated that by reducing American production by 750,000 barrels a day by eliminating percentage depletion and the deduction for intangible drilling cost would offset the entire $39 billion the administration expects to raise by eliminating the industry tax provisions. "You will lose marginal production which means you already have cost the country more, economically, than you have gained," the IPAA has told the White House.

ANNOUNCING PLATTS GAS CONFERENCE- Platts is holding its 2nd Annual Appalachian Gas conference on October 29-30 in Pittsburgh, PA. Topics this year include the effect of current gas prices and national demand on Marcellus development; changing regulations for water, wastewater, and hydraulic fracturing; current production costs, new technologies, and controls on production decline; funding sources, terms, and conditions; markets for Appalachian gas, including LDC, IPP, and utility perspectives; case studies on gathering, processing, storage, and pipeline infrastructure development. TOGA members receive a $400 discount. For more call 866-355-2930 or go http://www.platts.com.

NEW ENERGY BILL FILED IN U.S. SENATE-When the Waxman-Markey cap-and-trade bill was introduced last year, it was met by jaw-dropping opposition by most independent oil and gas producers. According to the Texas Independent Producers and Royalty Owners Association newsletter, that opposition has grown as consumers, manufacturers, agriculture and job-conscious state elected officials have realized how harmful it would be to the economy. As odds of passing decreased, Senators Kerry and Boxer filed a new bill this week, the "Clean Energy Jobs and American Power Act." The new bill signals a change in the legislative attitude toward natural gas, the one fuel that was inexplicably penalized in the Waxman-Markey bill, despite its clear advances in emission reductions, consumer costs and availability to the market.
Most groups - both industry and environmental - regard the bill as a starting point for new discussions, not as a final product. IPAA's Barry Russell commented, "While the Waxman bill would move the nation further away from reaching our clean energy goals and weaken our security, the Senate now has an opportunity to make this legislation better and more balanced so the consumers are not left paying more for energy."

TENNESSEE SEPTEMBER PERMITS: Fentress County - Plateau Well Services, Alan Rader, #2, 2000', Riverton/ Morgan County - Outdoor Resources, Inc., Bruns Wougan, #1, 5000', Twin Bridges/ Overton County - Able Oil Co., Barry Johnson #6, 2000'; Overton Oil & Gas, Inc., Robert Winton Etal #1, 2000', Ronald Lee Smith #DR-2; Lonnie Richard Smith JR6, 2000' Alpine

KENTUCKY SEPTEMBER PERMITS: Bell County - Amwes Exploration, LLC, Christopher Wilder ET AL, #1, Lexington Ls/ Clinton County - Conner Jr., E.B., James Bookout, #1, Raymond Reneau Heirs, #10; Rick-Rod Oil Company, Inc., Rocky Beaty, #14R, Martin Poore, #1R, Teddy Hicks, #11R, #10R, #7R; Steve Burchett Oil Co., James Holsapple, #AMTEX1, James Holsapple, #AMTEX2; Delmer Parrish, Delmer Parrish, Unit #10P; Joe Todd Oil Project, Josh Oesterreicher, #1, Knox Gp/ Cumberland County - Tenalta Energy, Ltd., David, Steve & Brenda Teal, #1, Knox Gp; Sunset Energy, LLC, Margie Shepard, #1, Granville; Daniel C Terry, H&J Resort Properties, Inc., #3, Stones River/ Edmonson County - Commonwealth Energy Group, LLC, Billy Joe Martin, #1, #2, Corniferous/ Harlan County - Daugherty Pet, Inc., Kentucky River Properties LLC/EQT Production, #DPI 1277, Huron Mbr, Ohio Sh/ Letcher County - EQT Production Company, EQT Production Company, #569297, #569473, #567656, #567158, Huron Mbr, Ohio Sh, #569298, #567666, #569472, Cleveland Mbr, Ohio Sh; Clean Gas, Inc, Emory Moore Heirs, #348, #413, #411; Charles Bradley DBA Basin Energy Co, James M Adams, Watson Blair 1, Devonian, Lower Part/ Russell County - G&R Oil, Otha Antle, #J3, J1, 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