Ky/Tenn Report

Volume 16, Number 9 September 2009

ATLAS TO SPONSOR TOGA MEETING, SEPT 10TH-The fall TOGA meeting, to be sponsored by Atlas America, with be held Thursday, September 10th at the Oak Ridge Country Club. The Board of Directors will meet at 5:00 p.m. Items on the agenda include the new TVA power plant that will require 160 MMCFPD, the Oil & Gas Board's lack of action on policy, announced regulation changes by Paul Schmierbach, the 2009 TOGA Christmas Party, the 2010 TOGA Convention.

BANK LENDING FOR DRILLING POSSIBLE, SAYS TVA-TVA's Blake Baxter, in comments to Nashville Public Radio, said that because of the potential held in a gas formation called the Chattanooga Shale, he believes local gas producers could supply the plant if they had financing for exploratory drilling. He added that TVA's commitment to purchase the gas could open banks to lending.

"If I'm willing to go out to this producer and say I'll give a long term contract, they should be able to take that to the bank and say ' here, TVA has agreed to enter into a long term contract with me. Please give me my financing."

API RALLYS AGAINST ACESA IN NASHVILLE-Several TOGA members participated in Nashville rally, held by the American Petroleum Institute, August 26, against the Waxman-Markey bill, known as the American Clean Energy & Security Act (ACESA). It has passed the House and is now before the Senate. This bill represents a Category 5 hurricane bearing down on the oil industry and our entire economy. The bill may be the most far-reaching piece of legislation in U.S. history and gives the government more control over our economy that it had during World War II.
The bill reported out of committee was 940 pages long, eventually grew to more than 1,500 pages by the time it passed the House, and was still being revised at 3 a.m. the day of the vote. It is unlikely that anyone who voted for it had read the bill, much less understood it.

FRACING REGS BIGGEST THREAT- A move to regulate hydraulic fracturing federally is the "biggest threat our industry has ever seen in Washington," Bruce Vincent, vice-chairman of the Independent Petroleum Association of America, said. Ninety percent of wells are hydraulically fractured, some dozens of times, Vincent told the Summer NAPE E&P Forum in Houston. In the 60 years that the industry has been fracturing wells under state regulation, no case of fresh water contamination by the procedure has been documented, he said.

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/Events/2009/pc933.

LINDSEY NICHOLS NAMED MULTI-PRODUCTS VP- Multi-Products announces the addition of. Lindsey Nichols as Vice President of Sales and Marketing. In more than 20 years in the oil industry, Nichols has managed operations ranging from oilfield equipment service to exploration and production, most recently serving as the top production executive for Vinland Energy. In his new role at Multi, Mr. Nichols is responsible for leading the continued growth of Multi Products in the areas of plungerlift, well optimization and efficiency equipment. He will be working with Multi's engineers, sales and service professionals to assist oil and gas production companies in improving efficiency and boosting return on capital through the utilization of Multi's diverse product line.

CRUDE OIL-NATURAL GAS GAP HITS 24 TO 1-The gap between natural gas and crude oil process reached their widest margins to about 24.5 to 1 after gas prices plunged in late August, highlighting how a boom in U.S. Gas output is overwhelming the fundamental links between the markets. The ratio since the New York Mercantile Exchange gas contract begin trading in April 1990 historically has varied between 6.5 to 1 and 10 to 1.

TENNESSEE AUGUST PERMITS:
Fentress County - Hornet Oil & Gas Corp., Dwight Prescott #1, 2000', Moodyville / Outdoor Resources, Inc., Juanita Taylor #1, 2500', Riverton / Overton County - Riverside Oil & Gas, Howard Nolen #2, 2000', Alpine / National Energy Development, Gary Smith Unit #1, 2500', Livingston / Riverside Oil & Gas, William Sells #3, 2000', Overton Oil & Gas, Inc., Melvin M. Norrod #2, 2000' , Ronald Lee Smith DP1, 2000' McDonald Oil Co., Roger McDonald # G-A, 1700' Alpine / Pickett County - Duncan Drilling Co., Herman Johnson #5A, 2000', Overton Oil & Gas, Robert Stove #1, 2000', Moodyville / Scott County - Atlas America, Ketchen Land Co. Elk-5H, 3335', Ketchen / Knox Energy, LLC, MPO406#AH-1004, 5561', Fork Mountain.

KENTUCKY AUGUST PERMITS:
Barren County - Linda Lyle, Daivd Strader, LE-1, Fort Payne Fm / Christian County - Daugherty Pet, Inc., High Splint Gas & Oil Inc,/Davis DPI 2486-21, New Albany Sh / Blackhawk Energy, LLC, Vogler Heirs & Johnson, Don #1, McClosky Ls / Cumberland County - Overton Oil & Gas, Inc., Welby Estate c/o Tim Hicks #5, #6 Sunnybrook / Allen Page, Phillip Berrong #2, Stones River / Letcher County - EQT Production Co., Equitable Production Co. #567658, #568001, #569292, #569466, #569365, Elkhorn Coal Co., # 568037, Cleveland Mbr, Ohio Sh / EQT Production Co., Equitable Production Co. #569363, #568002, # 569364, #569149, #569150, #566371, #569467, Elkhorn Coal Co., #568036, Huron Mbr, Ohio Sh / Clean Gas, Inc., Emery Heirs ET AL Moore # 410, #412, Kentucky River Properties, LLC #427, #429, Dale ET AL Huff #435, Devonian, Lower Part / Kentucky River Properties, LLC #567280, #567278, Huron Mbr. Ohio Sh. / Letcher County Coal Improvement Co., #568691, Cleveland Mbr, Ohio Sh / Knox County - Nami Resources Co., LLC, Garrett Bowling #1, Knox Gap / Russell County - KYTX Oil & Gas, LLC, Eugene Antle #3, #4, Knox Gap .

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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