Ky/Tenn Report

Volume 14, Number 9 September 2007

REG REVIEW CALLS FOR MORE STAFF, TRAINING, MORE - The final STRONGER Report, evaluating Tennessee's oil and gas regulations, calls for additional staff, more training for the staff as well as the need for specific written goals and objectives for administering the oil and gas program. The STRONGER review was conducted by a team of out-of-state regulators, environmentalists and operators in June 2007. The STRONGER program, which reviews oil and gas regulation's in oil producing states is managed by the Interstate Oil Compact Commission and funded by the U.S. Environmental Protection agency.

GRIFFITH SERVICES HOSTS FALL MEETING - Griffith Services LLC hosted the fall meeting of the Tennessee Oil & Gas Association, Thursday, September 13th at the Oak Ridge Country. Meeting prior to the reception and dinner, the TOGA Board of Directors discussed the Stronger Review, as well as the ongoing discussions with the regulators, and then approved plans for the fourth quarter Christmas party meeting as well as the 2008 annual convention. Board member Frank Lynch and Roy Shirley, former owners of the Somerset refinery, also briefed the directors as to the status of the refinery.

TOGA MEETS WITH REGULATORS - TOGA representatives, including President Lynn Wagoner, Bill Goodwin and Scott Gilbert met with state regulators, September 13th, prior to the TOGA board meeting, to discuss TOGA concerns with current regulations. Among the items disused were: pre-drilling inspections, the red tag program, withholding permits, pits/liners, reclamation bonds, time limits for permits, completion reports and plugging, as well as permit fees, plugging bonds and inspections. "We are not that far apart and agreed to communicate by e-mail and in person until we resolve these issues," said President Wagoner.

FORMER OWNERS SEEK CONTROL OF REFINERY - Frank Lynch, former co-owner of the Somerset Refinery, told the TOGA directors, at the Oak Ridge meeting, that he and his partner, Roy Shirley, were working through the courts to regain control of the refinery. He noted that he feels they made a mistake in selling to Bill Spears and believes Spears violated the stock purchase agreement. If they are successful, Lynch says they have several buyers, standing by, with the financial capability and expertise to deal with the existing debt, upgrade the refinery, bring in additional crude and put the refinery back in operation. In the meantime, the existing owners, who put the refinery into bankruptcy, are also working within the bankruptcy court to get the refinery back into operation. They have yet to provide operators with a plan to deal with the debt.

MONTELLO DRILLING AHEAD ON BASEMENT TEST - Montello Resources Ltd. (TSX Venture: MEO) has run 9 5/8 inch intermediate casing on the John Bowen #2 and installed a sub-surface downhole deployment valve that can be activated to shut off the well. The deep test is located in Morgan County within 1.25 miles of the Howard-White #1 that blew out and flowed at an initial rate of over 400 barrels of light gravity crude per hour.
Montello reports it hit the Knox at 3,511 feet and reported that they were drilling at a rate of 25 feet an hour. The firm announced it "appears through the analysis of drilling cuttings that as much as 17 feet of porosity has been drilled through." The firm expects the Knox to be about 2,500 feet thick and says it plans to drill to a depth of between 7,000 and 9,500 feet to hopefully discover one or more high pressured zones that were encountered in the Howard-White well.

NEXT MEETING, CHRISTMAS PARTY - The next meeting of the Tennessee Oil & Gas Association Board of Directors will be held Saturday, December 1, 2007, prior to the Annual Christmas party. The meeting and party will be held at the Knoxville Marriott. Directors and members are asked to pencil this date in on their calendars. More details will follow in the October and November newsletters.

2008 CONVENTION IN KNOXVILLE -The 2008 TOGA convention will be held May 14th- 16th at the Marriott Hotel in downtown Knoxville, Tennessee. Members are asked to pencil this date in on their calendars now. More convention details and room reservation information will be featured in future newsletters.

REAL ESTATE APPRAISER SEEKS LANDMAN POSITION - Experienced in leasing land for cell towers, familiar with courthouse research. Member: AAPL. Recently completed AAPL's Petroleum Land Practice's course. Located in Birmingham, AL, will relocate and travel. Contact Lydia Lindberg at 205-296-5389 or LLLhenry@hotmail.com. Any leads appreciated.

TENNESSEE AUGUST PERMITS: Anderson County, Atlas America LLC, Coal Creek Mining & Mfg Co, CC-2090, CC-2500, 3755', CC-2095, 5530', CC-2094, 1000' CC-2501, 5775', CC-2503, 5605',Vinland Energy, The Coal Creek Co #3, 3900', #6A, 3400', #5A, 3100',Windrock / Fentress County, Larry R. Moody, Larry R. Moody #1, 2000', Burrville / Hawkins County, Appalachian Energy Corp, Kenner #1, 2000', #2, 2000', #3, 2000', Lee Valley / Morgan County, Atlas America LLC, Coal Creek Mining & Mfg, CC-2134, 3365', CC-2138, 3400', Petro / Vinland Energy, Calvin & Rosa Eads #3, 2600', #1, 2600', #2, Willaim Q Ruppe Jr. Etal #2, 2650', Cardiff / Overton County, Jerry Carr, Diana Adams #2, 2000', Young Oil Corp, Kelly Paul, #1, 2000', National Energy Development, Juanita Story, #J4N, 2000', Alpine / Pickett County, McDonald Oil Co, Laura Lewis Etal #4, 2000', Alpine / Scott County, Atlas America LLC, Fund 7 Domestic, LLC, BR1136, 3440', Norma, BR-1158, BR-1152, 3525', Fork Mountain /

KENTUCKY AUGUST PERMITS: Barren County, Lyle Energy & Development, Inc, Sexton, David, #LE-2-A, Knox Gp / Bell County, Amwes Exploration, LLC, Creech, Kermit ET AL, #1, Lexington Ls Breathitt County, Kentucky River Resources, LLC, Mullins, Bobby, #1, Corniferous / Clinton County, Lucky Production Oil Expl, LLC, Brown, Danny #1A, Steve Burchett Oil Co, Asberry, Joyce, #1, Knox Gp - Signature Oil Corp, Owens, Mike, #1, #2, Knox Gp / Cumberland County, Wilson, Bruce Oil Inc, Holman Grady, #5, Knox Gp / Knox County, Gaddis Gas Company, Wirth, Kevin, #1, King, Norwood ET AL #1, Woodlee, Bobby ET AL, #1 - P & C Land Company, #2, Burnett, Alfred, #1, Hoskins, Peggy, #1,Phipps, Sherry ER AL, #1, Clinton Sh - Amwes Exploration, LLC, Williams, Bennie, #1, Clinton Sh - Nami Resources Company, LLC, Woolum, Green, #1, Detherage, Joan , #8, Amwes Exploration, LLC, Messer, Vantory, #1, Clinton Sh / Leslie County, Clean Gas, Inc, Wilson, Oma, #216, Devonian, LP - Nami Resources Company, LLC, Medina Royalties, LLC, SMEPA-147, SMEPA-148, SMEPA-149, SMEPA-150, Corniferous / Letcher County, Equitable Production Company, Kentucky River Properties, LLC, 566721,566928, Devonian, LP / Whitley County, Energy Associated, Inc, Princeton ET AL, EA59

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
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