2019 March/April

What’s Inside? Chairman Letter...... 4 Annual meeting update...... 6 National Energy Policy...... 12 Public Information Efforts.....16 Membership is Influence...... 20 Statehouse Strivings...... 22 Message from Ed Cross...... 26 Fantasy Life...... 28 The Voice of the 116th Congress...... 30 Kansas Independent Bernhardt - Interior Dept...... 32 Petroleum Industry Wheeler - EPA Admin...... 34 Duffy Nominated KCC...... 38

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KIOGA 2019 Kansas. We are industry leaders, professionals, and fed- excited to be at eral and state officials, you will have a Midyear Meeting the Kansas Star unique opportunity to participate in a Preparing for Challenges Casino for the variety of discussions and activities. Ahead! first time and These will address current issues and look forward to tackle real challenges. That is why we The 2019 Kansas Independent Oil an outstanding meeting. need you at this year’s KIOGA Midyear & Gas Association (KIOGA) Midyear Attending KIOGA’s 27th Annual Meeting. We need to hear how these Meeting will be held April 17-19, 2019 Midyear Meeting is more important issues, concerns, and challenges affect at the Kansas Star Casino in Mulvane, than ever before. As we bring together Continued on page 10 KIOGA thanks the following KIOGA companies for their support through advertising in our Advertisers newsletter.

Advertiser pg # . Buyers Guide...... 33 CVR Refining...... 13 David Morris, P.A...... 21 Desk and Derrick of Wichita...... 31 Drill Baby Drill...... 29 Duke Drilling Company, Inc...... 27 Evenson Auctioneers...... 27 Foley Power Solutions...... 39 IMA...... 9 Insurance Planning...... 21 iWell...... 2 KIOGA...... 33,37 Lockhart Geophysical Co...... 7 Murfin Drilling Co., Inc...... 8 . Paragon Geophysical Serv. Inc...... 33 SOER...... 19 The Independent Oil & Gas Dir...... 35 Werth Wealth Management...... 25

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2 3 prepare for the future, so we now members understand how important have no representation in Topeka or it is that their association represents Washington. All we can afford is a one them in Topeka and in Washington room office in Beaver, Kansas manned D.C. And most of all, I know that by a guy known as “The Dickster”. Kansans know how important the oil Environmental activists have success- and gas industry is to the state and fully shut down all UIC wells in the they know that energy issues cannot state so we are not able to produce any be resolved with a “one size fits all” back for a rainy day, but they did some kind of pass into Colorado, all of the farming is done by oil or gas wells that make any water at mentality. Oil and gas, and cows, and not think they needed to make any the Green New Deal. It hand so there are plenty of low pay- all. And the oil we produce can only windmills can all exist side by side. changes because they thought they did for a while, since peo- ing jobs for those formerly high paid be sold to companies licensed by the (As the camera pans away from the had enough money in reserve to last ple really did get tired of oilfield workers. Thank God those rad- Democratic National Committee, who bed and to the window, the sun rises 12 years to the end of time, so they only being able to watch ical changes have not made their way gets to determine who gets to travel by in the distance and a drilling rig is seen decided to do nothing. T.V. on windy, sunny days. to Kansas where our biggest problem fossil fueled limos or private jets out in the pasture surrounded by cows Thank God for the Green New Deal But in a few short years, is that the State Legislature is still argu- (In a feverish daze, KIOGA and Lesser Prairie Chickens. The well- that my cousin thought up. And also natural gas producers like ing about who determines how much Chairman Ken White is awakened by site geologist is leaving the rig in his be thankful that President Kardashian me finally got tired of giv- money is needed to fund the public “Auntie Ed” who reassures him that he fossil fuel powered pickup truck, going was able to enact that legislation in its ing the gas to the pipeline schools. The State Supreme Court has just had a terrible nightmare) to town to shower and eat breakfast Message from entirety when she defeated Donald companies. That’s right, handed off that hot potato years ago Oh Ed, it wasn’t a dream, it was as the driller and roughnecks trip the Trump in the 2020 Presidential elec- there was a time in our his- to Department of Fish and Wildlife a place, and the KIOGA Chairman pipe out of the hole for a drill stem the Chairman tion. I am so thankful that fossil fuels tory when producers were and now those folks are passing it on was nicknamed K.O.W. and he told test. Out in the distance a windmill have been completely removed from actually paid for the natu- to the Department of Corrections. a story about how his cousin A.O.C. is standing still. Why? We don’t know Ken White society and we are now on equal foot- ral gas that we sold. Sure, Those are some folks who know how concocted legislation that destroyed but that’s usually how we see them.) to operate on a budget. Chairman, KIOGA ing with what we used to refer to as the consumer still pays for civilization as we know it. But the one third world countries. Back in 2019, it, but all that money goes But let’s get back to oil. It sure was thing I am sure of is that the KIOGA of A long time in the future, in a one of the co-founders of Greenpeace to the pipeline companies awful when we used it. Right here 2019 does not believe that the world is Your Chairman Kansas dream, far, far away……. predicted that the Green New Deal and the producer sees none in Kansas, the employment, mineral going to come to an end, and we are Ken White would lead to the end of civilization. of it. Why do some people income and taxes generated from pro- planning for our future, and we are not Hello everybody! The year is 2030 That of course has not happened, but continue to produce the gas ducing oil and natural gas exceeded going to squander our cash reserves. and I am your KIOGA chairman Ken we sure do have fewer trees worldwide wells? I guess because it is the gross domestic product of dozens That will take lots of planning and Ocasio-White. (K.O.W.) I don’t have since people are destroying the forests morally right. of small countries all over the globe. some difficult decisions. I know a lot to say, because back in 2019, my just for heat. So the implementation Now that we are morally right, thou- that K.O.W. was wrong, that KIOGA cousin, U.S. Representative Alexandra The Green New Deal ended the air- of the Green New Deal was sands of mineral owners have lost Ocasio-Cortez (A.O.C.) made the plane industry. A Boeing 737 has a really a blessing in disguise. much needed revenue used to sup- announcement that the world would maximum takeoff weight of 175,000 Colorado’s ban on beef plement their farm income, and over be ending in 12 years due to use of lbs. The plane itself weighs about has been supplemented 100,000 people whose jobs related fossil fuels and the fact that we peo- 90,000 lbs, but the batteries to provide by their recent state wide to the oil and gas industry are unem- ple just can’t stop reproducing. When the same amount of power as does resolution that 80% of all ployed. I am very happy to report that A.O.C. made this announcement, 40,000 lbs of jet fuel weighs about 14 food consumed be made a few dozen of those oilfield workers KIOGA’s future was just a little uncer- times the weight of the jet fuel. Don’t of hemp. As you will recall, who lost their high paying jobs have tain. We had recently suffered several worry about the math, because as my Colorado put an end to the secured employment at several wind major setbacks in product pricing and cousin A.O.C. says, “Facts don’t mat- oil and natural gas industry farms around the state. One of the our membership was declining along ter when you are morally right”. Now back in 2019, so they had most sought after jobs is the guy who with a decline in statewide oil and nat- it takes me about a week to drive to to do something with all of rides around in a golf cart each morn- ural gas production. The oil decline Houston because after every 300 miles their unemployed oilfield ing picking up the dead birds. was not too bad, but natural gas was I have to stop and spend 24 hours workers and growing Hemp The worst thing that has happened losing ground in a hurry, but let’s not charging my car. seemed like the best alter- since 2019 is that KIOGA ran out of talk about that just yet. At that time, When all of this was happening, it native. And since all fossil money 4 years ago. The folks who KIOGA had a little bit of money put appeared that Natural Gas may get fuels have been banned in ran KIOGA in 2019 did nothing to

4 5 KIOGA Mark Media Specialist and your Calendar

Climate Realist Event Name Date Location NSWA 2019 Energy Gala April 12, 2019 Oklahoma City, OK Scheduled for KIOGA and directed be driven by two doc- science, facts, KIOGA Midyear Meeting April 17-19, 2019 Mulvane, KS 82nd Annual Convention umentary and data, not IOGCC Annual Business Meeting May 5-7, 2019 Oklahoma City, OK in August films on a political energy. In agenda. EKOGA Midyear Meeting May 14, 2019 Fall River, KS Fractured With a AAPG 2019 Annual Conference May 19-22, 2019 San Antonio, TX he explained strong repre- how lan- sentation of J Fred Hambright Memorial Golf/Bingo June 3, 2019 Wichita, KS guage is exceptional AAPL Annual Meeting June 19-22, 2019 Pittsburg, PA used to dan- speakers, gerously panel discussions, seminars, and IPAA Midyear Meeting June 24-26, 2019 Colorado Springs, CO deceive us about the most essential exhibitors, the KIOGA 2019 Annual AESC 2019 Summer Meeting July 31-August 2, 2019 Coeru d’Alene, ID component to the function of the Convention is gearing up to continue KIOGA 82nd Annual Convention/Expo August 11-13, 2019 Wichita, KS modern world – energy. In spOILed its reputation as the leading oil and he examined the public’s ignorance gas event in Kansas. We could not Summer NAPE August 21-22, 2019 Houston, TX KIOGA is pleased to announce of the central role oil plays in our be more excited! Mark your calen- that Mark Mathis and Gregory lives. dars for August 11-13, 2019! Wrightstone will be our featured Gregory keynote speakers for the 82nd Wrightstone KIOGA Annual Convention to be is the author held at the Century II Performing of the book Arts & Convention Center in Inconvenient Wichita, Kansas on August 11-13, Facts: The Do business with other 2019. Science That Al Gore KIOGA members Doesn’t Want If they aren’t, encourage them You to Know Watch for it to join and help us stand up for that chal- lenges many apocalyptic predictions the oil and gas industry in about our ever dynamic climate. Topeka and Washington He is a geologist with more than 35 years of experience research- ing and studying various aspects of the earth’s processes. His findings have allowed him to speak at many venues around the world includ- Mark Mathis has spent most ing Ireland, England, China, and of his career challenging widely India. Wrightstone is a strong pro- accepted ideas that are simply www.kioga.org ponent of the scientific process and Coming in August untrue. Mark has written, produced believes that policy decision should [email protected] 8’ Curved Tension Display 6 7

Podium Graphic

email back approval to [email protected] or [email protected] We welcome the following KIOGA Weighs-in on Trump KIOGA members to the KIOGA family. Thank You for your Administration Position on New Members continued support!

Crude Oil Prices Name Company City & State

Last November and again in information to staffers with U.S. led to a strong economy. However, Brian Dicus Energy America, LLC Vincennes, IN Senate Energy Committee Members the leadership role the U.S. plays in February, President Trump called for Russell Winn Winn Insurance Group, Inc. Wichita, KS OPEC to soften output cuts to lower Barrasso (R-WY), Risch (R-ID), world oil markets has helped flip Noah Norford Victaulic Company Rose Hill, KS the cost of crude oil. President Hoeven (R-ND), Cassidy (R-LA), the historic model. Today, with Trump sees low oil prices as key to and Manchin (D-WV). He also pro- the U.S. leadership role in world oil Jordan Gist Colt Energy, Inc. Mission, KS sustaining and boosting economic vided the information to staffers with markets, higher oil prices give rise growth. OPEC brushed off Trump’s the U.S. House Energy Committee to an increase in production and request saying they were taking a Members Shimkus (R-IL), Scalise jobs in the U.S. Job creation is a very slow and measured approach (R-LA), Olson (R-TX), and Engel huge trade-off. Cross said the bot- to establish market stability. (D-NY). tom-line is policymakers and the This is a complicated issue for Cross provided an historical sum- Trump administration should work Kansas producers. KIOGA President mary of the impact of low oil prices to advance policies which lead to Edward Cross communicated the on the Kansas and U.S. oil and gas stable oil prices at a level which sup- concerns of Kansas producers to industry as well as the Kansas and ports healthy and robust economic White House staffers, several key U.S. economy. Cross said that his- activity. federal policymakers, and Kansas torically, high oil prices slowed Public Radio. Cross provided economic activity and low oil prices PROUDLY INDEPENDENT IN OUR FIELD

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8 9 From Page 1 2019 Midyear

Kansas Independent Meeting Continued Oil & Gas Association Preparing for challenges KIOGA 2019 Midyear Meeting Kansas Star Casino, Mulvane, Kansas you and your business. your data with Excel PivotTables. legislators have been April 1719, 2019 Former KIOGA Chairman Dick Attendees are welcome to bring laptops invited to make brief Schremmer has led the Midyear for this hands-on workshop. Bring your comments during the Register today! Call Kelly Rains at the KIOGA Wichita Office at Meeting Committee in putting together office staff, go to the workshop, and cocktail hour. Following 3162637297 or register online at www.kioga.org. a dynamic program. The 2018 KIOGA enjoy a fabulous lunch. the cocktail event, din- Midyear Meeting provides a perfect After lunch, a panel ner will be served in the Preparing for Challenges Ahead! setting in which to share experiences, of Kansas oil and gas Ballroom. Kansas ideas, and industry experts will First District Congressman Dr. Since 1937, the Kansas Independent Oil & Gas Association challenges look at some of the Roger Marshall will be our featured with policy- strategies Kansas com- speaker at the dinner event. (KIOGA) has successfully led and served the industry as the voice of makers and panies have used to Friday, April 19th will bring a golf other leaders survive, share their tournament at the Derby Golf & the Kansas independent petroleum industry. KIOGA’s greatest in the oil and Country Club in Derby and Kansas Independent views on the current state Sporting strength continues to be member opinions and experiences that help gas industry. of oil and gas markets, Clays at Shady Creek Sporting Clays in Oil & Gas Association The 2019 KIOGA Midyear Meeting and provide an outlook Belle Plaine. Breakfast and lunch will be shape our discussions with federal and state policymakers and the will kick-off on Wednesday, April 17th for what the future might served at both events. Wichita Office media. KIOGA member meetings such the Midyear Meeting offer the with a cocktail party and The Dickster have in store for the The 2019 KIOGA Midyear Meeting 229 E. William - Suite 211 Bash at his facility in Peck, Kansas. Join industry in a presenta- offers excellent networking and edu- Wichita, Kansas 67202 ideal format for members to share experiences, ideas, and challenges us for food, drinks, entertainment, and tion titled 2019 Kansas cational opportunities to independent 316-263-7297 networking. Transportation to and from Oil & Gas Outlook. oil and natural gas producers. For with friends, colleagues, policymakers, and other leaders from across Fax 316-263-3021 the Kansas Star Casino will be provided. Panelists include cur- registration information, contact the Email: [email protected] the state and nation. The KIOGA Midyear Meeting Committee is de- The 2019 KIOGA Midyear Meeting rent KIOGA Chairman KIOGA Wichita Office at 316-263-7297

will once again provide a trade show. Ken White of White or visit our website at www.kioga. veloping an outstanding program offering you an excellent line-up of The trade show provides an excellent Exploration, Inc., Dick org. Advanced registration will be Topeka Office opportunity for companies to exhibit the Schremmer of Bear accepted through Saturday, April 13, 800 S.W. Jackson Street speakers, a wide variety of exhibitors, and entertainment. Make latest products and services available to Petroleum, LLC, and Will 2019. Cancellations received prior to Suite 1400 plans to join us on April 17-19, 2019 at the Kansas Star Casino in Mul- the oil and gas industry. Darrah, of Darrah Oil. Friday, April 12, 2019 entitle the regis- Topeka, Kansas 66612 Thursday, April 19th will see a number The panel discussion trant to a full refund. No refunds will be 785-232-7772 vane to visit exhibitor booths, listen to speakers & seminars, visit of seminars from an excellent lineup of will be moderated by KIOGA President given after April 16, 2019. Refunds will Fax 785-232-0917 with other producers and friends, and just enjoy yourself! speakers addressing business develop- Edward Cross. not be made for “no shows”. The reg- Email: [email protected] ment needs and issues The KIOGA Board Meeting and istration desk will open at 8:00 a.m. on currently impacting the General Membership Meeting gives Thursday, April 18th for onsite registra- What to expect at this year’s Midyear Meeting way we do business. meeting participants the opportunity tion. KIOGA has secured special room Dawn Monroe, a cer- to hear first-hand about current federal rates for overnight accommodations at  Learn what KIOGA is doing to ensure your business is tified Microsoft Office and state government issues affecting oil the Hampton Inn (316-524-3777) at the successful well into the future Specialist Master from and gas businesses and the latest efforts Kansas Star Casino in Mulvane. Hotel  Value-Added Business Development Seminars to help Monroe Services, LLC KIOGA has been involved to help build room reservations should be made will share tips to customize your Excel your business. directly with the hotel prior to April 1, build your business environment in a presentation titled The Thursday evening entertainment 2019 to secure the special room rates.  Trade Show/Networking opportunities Advancing Your Data Analysis with begins with a cocktail party in the Fire Make sure you mention KIOGA when  Dinner and Entertainment Microsoft Excel. She will explain the Club Room of the Kansas Star Casino. making your reservation.  Golf Tournament and Sporting Clays best practices for managing large data Enjoy cocktails, network with friends, sets and demonstrate how to summarize and just enjoy yourself. Several local

10 11 KIOGA Contributes to Development of National Energy Policy KIOGA Education Foundation The KIOGA Educational Foundation (KEF) has given out five grants to date. We are in the process of taking appli- Meets with U.S. for a Secure America (CSA) and the DEPA is an organization of state Domestic Energy producers Alliance oil and gas associations from across cations thru the end of December to award other Kansas Secretary of State Mike (DEPA). the country who works to execute Schools for their STEM (Science, Technology, Engineering and Math) projects. If you know a school that would fit in Pompeo The CSA is a coalition of repre- on critical objectives of the onshore this catagory, please have their school contact us. sentatives from the independent independent oil and gas industry. President Trump has recognized Grants awarded to date: onshore oil and gas industry and the Cross is a DEPA executive board Gordon Parks Academy - Wichita, KS the importance of energy policy American Jewish community. Cross member. as a driver of the American econ- Heller Elementary - Neodesha, KS is a CSA board member. The pur- CSA/DEPA met with Secretary Marshall Elementary - Eureka, KS omy and national security. In late pose of CSA is to encourage and Pompeo to preview a recommended Victoria Elementary - Victoria, KS 2018, President Trump asked for support strengthening U.S. foreign energy plan and essential steps to Spaght Science & Communications - Wichita, KS policy objectives with smart domes- achieve American energy domi- tic energy policy. The CSA works to nance, particularly in regard to oil If you are interested in donating to the the program, educate the public about U.S. depen- and gas production. contact KEF at [email protected]. dency on foreign oil and the benefits The March 26th meeting was a Check out the new Facebook page. and reasons it is in America’s best follow-up to a September 17, 2018 interest to assist Israel in maintaining meeting with Secretary Pompeo. a strong and secure presence in the KIOGA President Edward Cross Middle East. voiced the positions of the small The CSA board met in July to dis- businesses that make up the onshore cuss how the CSA can raise its profile independent oil and gas industry and provide science-based informa- during the meetings with Secretary the development of a plan to ensure tion about the role oil and gas plays Pompeo. Cross outlined some of the American energy dominance for in improving lives and societies challenges and opportunities facing decades to come. around the world. Cross worked the small independent oil and gas On March 26th, KIOGA President with CSA and provided editorials industry and provided them a copy Edward Cross had the honor and and oil and gas industry strategic of the KIOGA white paper titled privilege of meeting with U.S. analyses to help develop an educa- State of the Oil & Gas Industry. Secretary of State Mike Pompeo. tional program on energy security. Pompeo is a long-time KIOGA mem- The program is directed toward ber and has attended and spoke at academics, corporate officials, con- several KIOGA Annual Conventions. gressional members, government At a time of rising turbulence, decision-makers, notable authors, Secretary Pompeo is the right chief and international diplomats. CSA diplomat who fundamentally under- met with Secretary Pompeo to stands that it takes development explain the purpose of the organiza- and diplomacy alongside defense to tion and highlight how we can help advance American global leadership. the Trump administration advance KIOGA President Edward Cross the goal of energy dominance met with Secretary Pompeo as part strengthen Israel’s presence in the of a group representing the Council Middle East.

12 13 KIOGA KIOGA Member News Newsline Update

Letter from a parent of child attending CALL TODAY - 316.269.5464 Gordon Parks Academy STEM Leaders Please feel free to edit and use the story to fit your format. Let us know if there is someone KIOGA, you would like to hear. These can also be heard on the website. As the parent of 2 current and 1 future KAY club members I have seen substantial growth in my children. Academically they have strived to both set and reach many goals. My daughter starting 9th grade, who has been KAY president for 2 years, is now enter- ing Northeast Magnet’s bio-med program. She is working hard towards starting a KAY club there. The organization and skills KAY Line 1 teaches has been vital in planning and obtaining these dreams. KAY camp has also helped my kids become more independent, develop Dick Schremmer, Bear Petroleum talks about the upcoming Midyear Meeting in Haysville. better social skills and have a positive attitude. The KAY outlook inspires them to dream big and take action. It teaches them re- sponsibility and accountability, which helps inside and outside of the classroom. My 7th grade daughter has taken an Upcoming interest in robotics and technology. The abilities she’s acquired have been very useful in preparing Edward Cross, KIOGA President will discuss his thoughts on 2019 and working with the for and competing in matches. She has learned to maintain persistence and never give up. My daugh- new legislation. ter who is only in 5th grade is constantly training. She is so excited to go to camp with her sisters next year. We look forward to the day she becomes a KAY member. My children and I are extreme- ly thankful for being given the opportunity to benefit from the KAY camp leadership experience. Sincerely, KIOGA Education Foundation

KEF has given out five grants to date. Gordon Parks Academy - Wichita, KS Coming soon to Heller Elementary - Neodesha, KS Marshall Elementary - Eureka, KS Hyatt/Century II Victoria Elementary - Victoria, KS Spaght Science & Communication Magnet - Wichita, KS August 11-13, 2019

KEF now has a Facebook Page - look for it and share

Please consider making KIOGA Educational Foundation as your donation in lieu of flowers. KEF is dedicated to the education of teachers and students, on the benefits of the oil and gas industry. KEF - 229 E William Suite 211 - Wichita, KS 67202 In Memory Of:

Kenneth W. Peterson - Kansas Petroleum Council - retired Larry E Keenan - Keenan Law Firm - retired Ivan LeRoy Holt - Ivan Holt Well Servicing - retired

14 15 embarked on a vigorous campaign to educate the media and the public on the many different and important ways oil and natural gas benefit people’s lives. Policy Issues Direct The campaign complements KIOGA’s ongoing campaigns to educate the media and public about energy security Public Information Efforts issues and the integral role of respon- These misconceptions are fueled by a continues to provide science-based integral part of industry’s considerations sibility in the oil and gas industry’s Opportunities Arise from fundamental lack of understanding of information and inform policymak- and decisions. KIOGA members have activities. KIOGA continually develops Addressing Critical Issues our industry – what we must do to get ers and the public about the economic spoken at several public forums in 2019 and update fact sheets, white papers, energy to the marketplace, how our and environmental benefits of safe and including: and reference materials on important industry functions in the marketplace, responsible oil and natural gas devel- • Kansas House Energy & economic, energy policy, and environ- These are critical times for the oil and and why oil and natural gas are so opment. Through aggressive media Environment Committee mental issues. Some of the most recent gas industry, economically and polit- important to our economy, security, and campaigns, speaking engagements, - Topeka provide fact-based information on the ically. An informed public has never standard of living. school presentations, editorials, and • Kansas Senate Utilities dynamic challenges facing the oil and been more important. Leading the Political and public perception real- media interviews, KIOGA has placed Committee - Topeka gas industry, oil market dynamics, way for the Kansas oil and gas indus- ities demand quick action. We now a much greater emphasis on sci- • Kansas House Appropriations injection wells and try in Kansas, Topeka, Washington, the view our energy education and public ence-based information. Committee – Topeka induced seismicity, KIOGA’s Proactive Forward- media, and the public, KIOGA continues information KIOGA’s communication efforts high- • Kansas Rural Revitalization energy tax policy, Looking Campaign to serve as the primary source of infor- efforts as a light the important role the independent Committee - Topeka hydraulic fracturing, mation on issues ranging from oil and campaign oil and gas industry plays in our quality • Dwight D. Eisenhower Excellence air emission regula- As issues affecting oil and natural gas gas taxation, environmental/regulatory where there of life. Media kits have been distributed in Public Service Lecture Series tions, Endangered production continue to dominate media issues, economic impact, energy policy, is no down- to media across Kansas providing fact - Wichita Species Act and focus, KIOGA continues to raise our and more. time and no sheets and reference materials describ- • Topeka Southwest Kiwanis Club more. profile as a source for the media. We room for ing how our industry can create more - Topeka continue our aggressive campaign to not Policy Issues Direct Public indecision. jobs, reduce the deficit, and enhance • Military Officers Association of only educate policymakers, but also edu- Information Efforts We are our nation’s energy security. Our efforts America - Wichita cate the public on policy issues. positioning are bringing a wealth of information • CSA Board Meeting – KIOGA Opinion Editorials - KIOGA Today, we are under one of the more ourselves on energy to the forefront separating Washington, D.C. opinion editorials (OpEd) continue to be difficult and intense assaults our indus- to be bet- fact from fiction, reality from myth, and • Interstate Oil & Gas Compact published by newspapers across Kansas try has ever faced. Promoting our goals ter able to, not only react to events, but proven practices from hyperbole. We Commission 2019 Annual and the nation including the Kansas and protecting our interests has become also anticipate events so we can prepare focus on informing policymakers, media, Business Conference – Oklahoma City Star, Wichita Eagle, Hays more challenging both in Washington effective preventive strategies. KIOGA’s and the public of the key advantages City Daily News, Salina Journal, Topeka D.C. and Topeka. We are faced with the aggressive communication campaign available to our nation through increased Capital-Journal, Gyp Hill Premier, task of focusing the harsh light of real- anticipates the scope of threats to the domestic oil and natural gas production. KIOGA members have been quoted Great Bend Tribune, Dodge City ity onto the fantasy world in which too Kansas independent oil and gas indus- in several media outlets and interviewed Globe, Holton Recorder, Manhattan many have taken refuge. Many people try before they materialize allowing us Expanding the Message of Oil & by radio, newspaper, and other media Mercury, Garden City Telegram, live in a make-believe world that allows to craft comprehensive information and Gas outlets providing information about oil Coffeyville Journal, Hutchinson them to speak with sincerity about an education efforts to pre-empt them. KIOGA continues our vigorous cam- prices, energy policy, hydraulic fractur- News, and McPherson Sentinel to economy and society that can thrive KIOGA has worked to develop salient paign speaking at public forums across ing, air emission regulation, injection name a few as well as newspapers in without oil and natural gas. Somehow, messages and thorough, well-prepared Kansas and elsewhere. Affordable, reli- wells and seismic activity, and other other states. All KIOGA OpEd’s focus in some minds, the concept that an materials to counter threats and attacks able energy is essential to the economy topics to media throughout Kansas and on relaying messages that our state and industry can exercise its traditional to the independent oil and natural gas because energy powers everything that elsewhere including: nation must continue to move forward goals while meeting its responsibility to industry. We are leveraging our early makes modern life possible. KIOGA has to promote comprehensive energy pol- protect the environment is seen as being preparedness to create opportunities also expanded our public information icy that will improve America’s energy against the best interest of the nation. with congressional policymakers, opin- efforts to include messages that relay supply and national security and that oil KIOGA’s public information efforts ion leaders, media, and third-party how oil and natural gas enriches life and natural gas must be a part of our were developed to respond to public groups. experiences and enhances our quality Developing good media relations energy solution. In addition, KIOGA misconceptions about important energy, KIOGA Multidimensional Public of life. We work hard to communicate are an important tool for achieving the communicates how responsibility is an economic, and environmental issues. Information Campaign - KIOGA and illustrate how responsibility is an goals of KIOGA. Recently, KIOGA has Continued on page 18

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From Page 17 Policy Issues Continued Opportunities Arise Make your reservations now integral part of industry’s considerations Moving Forward KIOGA’s public information efforts 27th Annual Midyear Meeting and decisions. KIOGA emphasizes how continue to make a huge positive dif- Kansas Star Casino the independent industry’s values align With targeted messaging and ference for the Kansas oil and natural with societal values and illustrate and expanded outreach, KIOGA’s influence gas industry. Events in Topeka and April 17-19, 2019 describe how the industry and enriches increases year by year. By focusing on Washington determine the direction of Find ALL forms here: life experiences and enhances our qual- the issues, KIOGA continues to broad- KIOGA’s public information initiatives ity of life. Editorials published in 2019 cast our messages to policymakers and going forward. With continued public www.kioga.org/memberservices/ include: the public that the independent oil and misconceptions about important oil and calendarofevents. • Oil, Gas Policy Integral to 2019 gas industry is an essential and critical gas economic and environmental issues, Economic Outlook; part of any plan to revitalize the U.S. KIOGA will continue to provide credible • 2018 – A Year of Recovery for Oil & economy. information and education to lawmak- Gas Industry; KIOGA communications are being ers, media, and the general public. We • America Needs an Energy Policy recognized and used by several pol- will continue to advance messages that Values Innovation Over icymakers and other energy groups and materials that redefine the energy Regulation; around the nation. In February, U.S. debate and inspire outside groups and • U.S. Oil & Gas Industry Helps Senator Todd Young (R-IN), U.S. Senator everyday Americans to stand up and act Achieve Emission Reductions; James Risch (R-ID), and Congressman on our behalf. • Energy Policy Perspectives for 2019; Doug Collins (R-GA) requested to use • Get the Facts About Injection Wells excerpts from the KIOGA January/ Need More Information? - Contact and Seismicity; February 2019 newsletter in their com- KIOGA for background materials, data • And more. munications. In addition, several oil and and statistics, industry information, gas groups from across the nation use and issue briefs. KIOGA can provide KIOGA newsletter articles and editorials assistance writing Letters to the Editor, in their communications. opinion editorials, press kits, speeches, KIOGA has several presentations and PowerPoints. Our guidance doc- scheduled in the coming weeks includ- ument titled “What We Say and How ing presentations to the U.S. Global We Say It!” provides a basic overview Leadership Coalition (USGLC) in about how we communicate with the March and June. KIOGA will also media. Please contact the KIOGA being presenting to the Military Officers Wichita Office at 316-263-7297 or visit Association of America (MOAA) in our website at www.kioga.org for more April. information.

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Membership is TITLE WORK Influence DRILLING & DIVISION ORDER OPINIONS KANSAS & NEBRASKA prosper through all kinds of market business strategies, new sources of DAVID A. MORRIS, PA Your KIOGA Membership conditions! capital, and important emerging trends Makes a Difference! KIOGA identifies and interprets public affecting your business. ATTORNEY AT LAW policies and regulations that are fun- KIOGA has always believed that the 8100 E 22nd N Bldg 600 Suite M damental to your success – the who, key to building an outstanding orga- WICHITA, KANSAS 67226 When what, where, how, and why behind nization was in developing proactive EMAIL ADDRESS: [email protected] you get oil and gas legislation, policy, regu- programs that met the needs of our TELEPHONE: 316.686.9998 FAX: 316.681.0153 your KIOGA lation, and public relations. KIOGA members. At the same time, we have dues state- is the government relations branch for never forgotten that our primary prior- ment, have your company. Our quick analyses ity is to advocate for the Kansas oil and you ever and evaluation of issues and concerns gas industry. We understand the diffi- wondered facing the Kansas oil and gas industry culties you faced during hard times and what that result in significant arbitrage value for the patient caution taken during not so represents? you and your company who benefit from bad times. KIOGA continues to develop What do I our substantial first-mover advantages. a strong voice through our membership get for my membership dues? How can Our personal and frequent contacts growth and have created a government my membership make a difference in the with key legislators and decision-mak- relations program second to none. Our oil and gas industry? ers effectively influence public policy track record reflects our emphasis on KIOGA is a non-profit member orga- on behalf of KIOGA members. Our results. nization, so we work to use your dues in cooperative partnerships with other The bottom line is that unsound an effective manner to represent you in state and national associations means policies threaten the profit and growth Topeka and Washington, D.C. Our big- your concerns are heard in Topeka and opportunities of every company in the gest expenses are related to government Washington, D.C. oil and gas industry. KIOGA will not relations and the opportunity to keep KIOGA has developed programs lose focus of this fact. We are “keepin’ you informed. that meet your business development it real” and are committed to protecting When KIOGA meets with state leg- needs and offers you opportunities to the interests of the Kansas oil and gas islators or federal policymakers, one of participate in meaningful ways. These industry. the first points KIOGA makes is that we efforts differentiate KIOGA from other represent over 4,000 members which advocacy groups. You receive analyses You know you can succeed in the includes over 1,400 companies. This is and publications that help keep your oil and gas industry. very significant because they are all vot- business competitive and current on Let KIOGA make your job a little ers. Other organizations represent large industry trends and issues. KIOGA’s easier. companies, but not necessarily voters. publications don’t just cover the Kansas What does this mean for you? It oil and gas industry. We understand If you are not a member of KIOGA, means state legislators and federal pol- that credible analyses and information we encourage you to join. Through icymakers listen to KIOGA’s position is crucial to your success in today’s mar- KIOGA you can play a significant role on issues, and if we support an issue, ket. We understand your need for cost in our efforts to win the political battles it helps them vote for that issue. IF effective operating strategies, enhancing in Topeka and Washington, D.C. and KIOGA opposes an issue, they will work access to capital, and improved efficien- the public relations battle in the court to find a solution. They don’t like to cies. So, KIOGA publications deliver of public opinion. Join us today. Your upset voters. practical information about national membership does make a difference! For 82 years, KIOGA has helped the and state policy discussions, regula- Kansas independent oil and gas industry tory issues, public relations activities,

20 21 gas industry. The legislative session is of this writing, the Senate was consid- ongoing and anything can and does hap- ering whether to conference with the pen, but here is an update on some of House on the bill or just concur and the important issues current as of this send it to the Governor. The measure Statehouse writing: wrecks Governor Kelly’s budget plans and makes fiscally impossible much of KPERS - On February 14th, the the Governor’s plans for expanding state Strivings Kansas House voted not to forward to government. While Governor Kelly has Kansas Legislative challenges faced by the small busi- with the Kansas Congressional delega- injection wells/induced seismicity issues final action not said outright that she would veto the nesses that make up the Kansas oil tion and other key federal policymakers. and concerns. (87-36) plan, she has indicated she may veto the Update and gas industry, and what industry Many state and federal policymakers Governor measure. is doing to address those challenges; have expressed their gratitude for factual Legislative Actions Kelly’s • The Whole Fracking Story – scientific-based information. All of the 30-year School Finance - The Senate has The Regulatory & Policy Considerations reference material can be found on the KIOGA Presentations to Key re-amorti- split the governor’s K-12 funding bill 2019 (January 2019) KIOGA website at www.kioga.org. Committees – KIOGA President zation of into two parts. Governor Kelly pro- Kansas • Hydraulic Fracturing & Drinking Edward Cross made presentations about KPERS liabilities. The re-amortization posed and had introduced a single bill Legislative Water Contamination (January Meetings with Key Legislators – the state of plan was a key component of Governor that makes a $92 million increase in Session 2019) KIOGA President Edward Cross met the Kansas Kelly’s budget plan. The measure would state aid to schools that is believed to is nearing • Climate Issues (January 2019) with House Speaker Ron Ryckman oil and gas have reduced the state’s contribution to satisfy the Kansas Supreme Court’s comple- • Facts About Induced Seismicity (R-Olathe) and Senate President Susan industry the state pension program (KPERS) free- judgment that the state isn’t adequately tion and (January 2019) Wagle (R-Wichita) in early January. and the key ing up money Governor Kelly wanted to financing public education. Kelly’s bill several of KIOGA’s priority issues are • Seismic Activity in Kansas (January He also met with the House Minority challenges use for K-12 funding and expanding state also includes the budget for the entire still in play. The 2019 Kansas Legislative 2019) Leader Tom Sawyer (D-Wichita), and oppor- government. The proposal came under Kansas Department of Education. Session kicked off on January 14th • Induced Seismicity & Injection Wells House Speaker Pro Tem Blaine Finch tunities the strong criticism from Republican leaders Senator Dan Kerschen (R-Garden Plain) and is scheduled to gavel out for first in Kansas (January 2019) (R-Ottawa), House Majority Whip Blake industry faces in 2019, including the in both chambers, who maintained the introduced bills on February 7th that adjournment on April 5th. The veto • Property Taxes in Kansas (January Carpenter (R-Derby), House Minority impact of volatile oil prices, federal leg- refinancing plan would endanger state splits the issue saying lawmakers should session is scheduled to begin May 1st. 2019) Policy Chair Eileen Horn (D-Lawrence), islative and regulatory challenges, and and school workers’ pensions and would consider separately the Department of KIOGA’s legislative agenda for 2019 • Economic Impact of Steel and Senate Vice President Jeff Longbine state legislative and regulatory chal- cost the state over $7 billion in interest Education budget and the $92 million is one in which we work to minimize Aluminum Tariffs (January 2019) (R-Emporia), Senate Majority Leader lenges. Cross made these presentations money. The February 14th House vote school finance fix the court wants. That legislative assaults on the oil and gas • And More Jim Denning (R-Overland Park), and before the Kansas House Appropriations essentially killed the measure. Also splits the issue into the less controver- industry. KIOGA is proactive and pre- the Senate Assistant Minority leader Committee and the Kansas House in February, the Senate unanimously sial general education budget and the pared in advance of the 2019 Kansas Oletha Faust-Goudeau (D-Wichita). Energy, Utilities, & Telecommunications passed a $115 million makeup of pen- more controversial $92 million “fix” that Legislative Session by developing and In addition, Cross met with the Chairs Committee on February 7th. The sion fund contributions bill, which makes Kelly supports. With the $92 million updating several white papers, fact of the House Energy Committee, Kansas House Rural Revitalization up for KPERS payments that lawmak- handled separately, there is more time sheets, brochures, and other informa- House Appropriations Committee, Committee examined property tax ers did not make two years ago when for lawmakers to consider the rest of the tional pieces in advance of the session. House Rural Revitalization Committee, impacts and asked KIOGA President the state budget was tight. The House Department of Education spending, and These include: Senate Utilities Committee, and Senate Edward Cross to share his narrative on passed the measure. Governor Kelly there are likely to be separate fights over • Kansas Oil & Gas Industry Strategic Insurance & Financial Institutions the development and progress of the signed the bill into law on March 8th. spending within the general budget. Analysis (January 2019) – an Committee. Cross discussed the state property tax in Kansas. Cross shared the annual comprehensive report that of the Kansas oil and gas industry and paper with the committee on January Taxes – On February 7th, the Kansas Numerous Bills Introduced at 11th provides the latest information on KIOGA what 2019 may hold for the Kansas oil 28th. Cross also met with a number Senate passed (26-14) its tax cut bill. Hour – Over 150 bills were introduced the economic impact of the Kansas shared these and gas industry, impact of volatile oil of key legislators multiple times during The measure would remove restrictions in the final days allowed for bill introduc- oil and gas industry including statis- white papers, prices, federal methane issues, electric the legislation session including the under current law preventing Kansas tions. Included in those last-minute bill tics on Kansas oil and gas industry fact sheets, rates, environmental assaults (injection Senate President, House Speaker, House individual income taxpayers from filings were several measures that could activity, taxes, production, issues, reports, bro- wells, induced seismicity, etc.), aban- Majority Leader, House Tax Committee itemizing deductions for state income impact challenges, and opportunities; chures, and doned well issues, and tax issues. Cross Chair, House Energy Committee Chair, tax purposes unless they also itemize oil and • State of the Oil & Gas Industry – other informa- also met with Representatives Eileen Senate Utilities Committee Chair, and deductions for federal income tax pur- gas oper- Dynamic Challenges Facing Kansas tional pieces Horn (D-Lawrence), Jason Probst several Republican and Democrat poses. The House passed the measure ations. Oil & Gas Industry (January 2019) with key state (D-Hutchinson), Jim Ward (D-Wichita), legislators. (76-43) on March 8th, but included a Each of – a white paper that summarizes legislators. John Carmichael (D-Wichita), and Annie KIOGA is currently tracking 19 issues 1% cut in food sales tax and added a the last America’s energy picture today, The reference material was also shared Kuether (D-Topeka) and discussed of interest to the independent oil and partial internet purchase sales tax. As Continued on page 24

22 23 From Page 23 Statehouse Strivings Continued Legislative Update

five years, the Sierra Club and other hew to strict scientific precision, but title problems excises, fees, charges, and other of oil and gas regulations that have no of all the activity occurring at the activists have had bills introduced that are instead hyperbole and non-verifi- that would oth- extractions. It would have also given environmental benefit but high associ- Legislature. KIOGA continues to be include a list of onerous rules and reg- able statements of subjective opinion. erwise render counties the ability to exempt them- ated costs. This list includes carefully alert and vigilant for legislative and/ ulations designed to stop oil and gas The good news is that many legisla- the land unable selves in whole or in part from any thought-out restrictions on hydraulic or regulatory issues and concerns production. This year (2019) was no tive leaders and committee members to be devel- enactment of the legislature. KIOGA fracturing, waste management, emis- that could impact the Kansas oil and exception with Representative Ponka-We recognized the misleading nature of oped for oil and gas production. and a number of other associations and sions, moratoriums on injection wells, gas industry. KIOGA will continue to Victors (D-Wichita) and Representative the bills. HB 2224 and HB 2240 did KIOGA Chairman Ken White and Joe groups voiced strong opposition to the establishing an earthquake risk pool diligently advocate for the Kansas inde- Jason Probst (D-Hutchinson) introduc- not receive hearings. There were also Schremmer, Attorney at Law at Depew measure. fund, and other measures with the pendent oil and gas industry throughout ing bills negatively impacting oil and measures introduced addressing county Gillen Rathbun McInteer, LC, testified goal of stopping oil and gas produc- the 2019 legislative session. In the end, - KIOGA gas operations in the final days for bill home rule, setback provisions, nuisance on behalf of KIOGA in opposition to the Environmental Assaults tion. KIOGA is prepared and ready to win or lose, know your KIOGA team has stays keenly poised to address any introductions. Much of the foundation abatement, and more. Please review measure. defend the oil and gas industry at every and will continue to give our all. attempts by those who oppose American for the bills was based on unfounded the legislative bill summary at the end opportunity. oil and gas development to promote leg- information and activist propaganda. of this report for a more complete brief- County Tax on Limestone – HB islation and/or regulations designed to Conclusion HB 2224 would direct the KCC to assess ing of all legislative measures in which 2114 would have allowed the board of The summary presented falls short stop oil and gas production. The Sierra a one-time fee in the amount of $100 KIOGA has been engaged. county commissioners of any county in upon each operator of a class II disposal Kansas to adopt a resolution imposing Club annually proposes a laundry list well in the state. The money collected Association Health Plan Bills a severance tax of $1 per ton on lime- would go to a newly designated state – KIOGA supported a measure that stone severed from the earth. KIOGA geological survey monitoring well fund removes the requirement that an asso- President Edward Cross met with to be used to drill monitoring wells in the ciation must have at least 25 members several key legislators to express our Arbuckle formation for the purpose of to be offered group accident and health strong opposition explaining that coun- measuring underground pressure in the insurance. KIOGA Chairman Ken White ties should not be allowed to impose Hays and formation and for the purpose of mon- submitted testimony to the Senate traditional state taxes and that such a Leawood itoring confining beds in the injection Financial Institutions and Insurance measure is a slippery slope that sets a Enhancing zone of the formation. HB 2240 charges Committee and the House Insurance bad precedent. the KCC with promulgating rules and Committee underscoring the need to Lives & regulations to require Class II disposal make sure 501(c)(6) trade associations Nuisance Abatement – HB 2382 well applications to include statements like KIOGA may participate in a ful- would have allowed counties the ability Strengthening that such well is not located above a ly-insured group health plan, that the to abate nuisances within unincorpo- known fault and does not pose a direct measure does not alter the ability of rated areas of the county. The measure Families risk of induced seismic activity, based associations to participate in fully-in- was problematic for the oil and gas on a seismic risk analysis conducted by sured group health plans, and that single industry as those who oppose American a professional geologist. HB 2224 and member small businesses not be left out energy development might see this as 1200 Main St, 6th Fl HB 2240 were assigned to the House of the opportunity to participate in their a tool for stopping oil and gas produc- We salute the businesses, Hays, KS 67601

Energy, Utilities, & Telecommunications association group health plan. tion. KIOGA President Edward Cross entrepreneurs, and individuals 11551 Ash St., Suite 205 Leawood, KS 66211 Committee. KIOGA President Edward expressed strong opposition to the that have grown from this land and Phone: 785.628.1712 Cross met with the House Energy Uniform Partition of Heirs measure to the House Appropriations have been committed to the www.werthfinancial.com Committee chair and several members Property Act – The Uniform Partition Committee. of the committee providing fact-based of Heirs Property Act proposal would development of the Kansas oil industry. Werth Wealth Management, LLC is not a registered broker/dealer and is independent scientific information about injection have made it practically impossible to County Home Rule Powers – This of Raymond James Financial Services.

wells and earthquakes explaining that partition many parcels of real estate measure would have amended the Securities offered through Raymond James We’ve developed many long-term Financial Services, Inc., member FINRA / SIPC. the bills and the information used by in Kansas. The problem is that par- Constitution of the State of Kansas relationships with Kansans just like you. Investment advisory services offered through those supporting the bills does not titioning is often the best option to fix to give counties ability to levy taxes, Raymond James Financial Services Advisors, Inc.

24 25 America Needs Energy

Policy that Values Innovation DUKE Over Regulation DRILLING A Message from your administration and Congressional lead- greenhouse gas production of oil and natural gas while COMPANY, KIOGA President, Edward ers to work to advance policies which emissions cutting greenhouse emissions, which are Cross lead to stable oil prices at a level which • 90% see personal now near 25-year lows. By focusing on more efficient use of energy, it is possi- The next generation of Americans supports healthy and robust economic value in oil and natu- INC. ble to lower emissions without imposing will be challenged to expand and main- activity. We have also urged the Trump ral gas even more environmental restrictions. tain our nation’s energy abundance and administration to end its policy of tar- Clearly, Americans sup- An American energy policy that val- global energy leadership. Currently, iffs and quotas on steel that can slow, or port developing domestic CONTRACT DRILLING ues innovation over regulation can turn America’s oil and natural gas industry is even stop, critical U.S. energy projects. energy resources and believe VERTICAL & HORIZONTAL energy policy challenges into great meeting record consumer demand and Debate continues across the coun- that can be done in a way opportunities for economic growth and leading the world in production, all while try on our nation’s energy future. Few protective of our environ- energy security. This approach is not 11 RIGS Serving the Mid-Continent driving emissions to their lowest level in doubt that energy has improved lives ment. Policymakers at all just good business, it’s good stewardship nearly seven decades. and enabled human progress. Yet one levels should pursue energy and a much better strategy for improving nd Today, oil and natural gas supply of the biggest challenges facing the policies that drives eco- 100 S. Main, Suite 410 5539 2 St./P.O. Box 823 the quality of life for all. Wichita, Ks., 67202 Great Bend, Ks. 67530 nearly 65% of all U.S. energy. Oil sup- world is the polarized debate over the nomic growth, lower costs 620-793-8366 The key going forward is to avoid 316-267-1331 plies 97% of U.S. transport needs and future of energy. Facts and economics for consumers, protects placing unnecessary political or legal natural gas supplies 34% of U.S. elec- are too often replaced with assertions the environment, increases obstacles in the way of innovation tricity. Oil and natural gas support over and emotions. Discussion about fossil American competitiveness, and expansion. That’s a prescription 10.3 million jobs in the U.S. including fuels and alternative energy sources and uses our considerable for economic prosperity and a cleaner over 118,000 Kansas jobs. In addition, often degenerate into a battle to delegit- energy resources as a way to environment. the latest EPA data shows total U.S. CO2 imize the other side. This is a recipe for lift people up. We should set aside the acrimony emissions decreased nearly 14%, while inaction. And it keeps billions of people The energy policy choices and division that has marked too much methane emissions were reduced by trapped in energy poverty. The world our nation makes today are of past national energy policy discus- 4% since 2005. Meanwhile, U.S. oil and expects and deserves better. among the most import- sions and work together as one nation natural gas production increased more A new energy poll was released ear- ant and far-reaching policy on a positive forward-looking energy than 80% and 51% respectively. The oil lier this year to learn what Americans decisions we will make in future. American energy policy should and natural gas industry has proven that think about U.S. oil and natural gas. Key the 21st century. If we are focus on what’s important: American over the long-term, it is possible to lead poll results include: to continue our nation’s pos- jobs, American energy security, and in energy production and environmental • 83% see oil and natural gas as itive energy trends, we must American global energy leadership. We stewardship. important to the future implement energy policies need a national energy policy based on We were pleased to hear President • 78% of voters support increased based on current reality and science, the free market, and entrepre- Trump highlight American oil and production of oil and natural gas our potential as an energy neurial spirit. Those who act on our natural gas producers in his State of resources leader. Too often, energy behalf at all levels of government should the Union address on February 5th. I • 84% support increased devel- policy discussions are dom- use those principles as the foundation for applaud the President’s commitment opment of the country’s energy inated by the ill-informed their energy policy decisions. to America’s energy leadership, which infrastructure whose contributions to the has the power to unify Republicans and • 77% support energy policies that discussions do little to edu- Democrats in a divided Congress to put the oil and natural gas industry cate and much to misinform. up some major wins for the American advocates: a secure supply of As the oil and gas industry people. abundant, affordable, available has shown, there is a better We have asked the Trump administra- energy. way. Just a few years ago, tion to end its call for OPEC to lower the • 75% support the role that natu- no one would have imag- cost of crude oil but instead urged the ral gas are playing in reducing ined the U.S. could increase

26 27 Life is Just a Fantasy, Can you Live this Fantasy Life Congressional are going to be very difficult. And it does recess. McConnell said Democrats will seem oblivious to the needs of low-in- lead, I think, young people to have a legiti- get to go on record about if they really come families, who would be directly Democrats introduce mate question, you know, “Is it okay to still “support hurt by the plan. “Green New Deal” have children?’” this fantasy Although global temperature has risen Representative Alexandria Ocasio- novel mas- about one degree Celsius since the start On January 21st, Democratic fresh- Cortez has zero expertise at any of the querading as of the industrial revolution, this has man U.S. Representative Alexandria things she pretends to know. public policy.” not wholly been caused by industrial Ocasio-Cortez McConnell warming gasses linked to the economic (D-NY) speaking The American People Deserve went on to say growth that has increased the world’s about climate to Know – The political left has said “It’s clear what we have here. It’s the wealth, health, and life expectancy so change said Americans need to do something far-left’s Santa Claus wish list dressed up dramatically. Atmospheric physicists that millennials urgently about climate change. In a to like serious policy. Now, bad ideas are on both sides of the debate over poten- understand that resolution introduced on February 7th nothing new. Silly proposals come and go. tial climate catastrophe agree that the we only have (Green new Deal) by Representative But the philosophies and the ideas behind first half of the rise, before 1945, was 12 years or ‘the world is going to end.’ Alexandria Ocasio-Cortez (D-NY) and this textbook socialism are not just foolish. largely caused by natural sources like Prominent climate scientists pushed Senator Ed Markey (D-MA), we see what They’re dangerous.” long-term cycles or solar fluctuations. back against the hype promoted by the political left really means. While it is The deal has no chance of passing At that point, emissions were too low activists and media that we have only nonbinding, the Green New Deal gives a the Senate. But it will force Senate to have much of an impact. The sub- 12 years to act on climate change or clear sense of direction and magnitude Democrats, including a slew of 2020 stantial feedback warming that many face an existential threat to human- in calling for a ’10-year national mobili- presidential candidates, to vote on the climate models have predicted from fos- ity saying we have a diverse array of zation’ to exorcise carbon from the U.S. proposal. Republicans have said the sil-fueled heat in the form of increased choices before us in terms of how economy. The plan calls for generating vote will clearly show Americans that humidity and hence water vapor, the soon the make emissions cuts. Ocasio- 100% of power from renewables and the Democrat party is too far left for the primary natural warming gas, has not Cortez responded that she only meant removing greenhouse gas emissions country. Activists have been calling for yet been observed. U.S. greenhouse gas that the world would begin to end in 12 from manufacturing and transportation. Senate Democrats to vote ‘present’ if emissions fell significantly from 2005 years if we don’t act. Media embraced Members of both parties have called the Senator McConnell calls for a vote on to 2017, even while oil and natural gas Ocasio-Cortez’ position and have been idea unrealistic. Senator Markey said the Green New Deal to avoid a public production skyrocketed, according to peddling her ideas via fear-mongering climate change should be “the highest of and intraparty fight. Senator Markey, the EPA 2019 greenhouse gas inven- and chicken-little style climate predic- Congressional priorities”, and stressed who earlier said time was of the essence tory. The EPA report shows total U.S. tions. Shallow, apocalyptic reporting on that time was of the essence. to act on climate change, now says a CO2 decreased nearly 14%, while meth- climate change encourages acceptance Republican Mike Simpson of Idaho, vote on the plan would be better later. ane emissions were reduced by more of poor climate policies. who sits on the House Appropriations than 4% since 2005. Meanwhile, U.S. Committee, said it was ‘looney’, and Facts Debunk Green New Deal oil and natural gas production increased A swing John Barrasso, Republican Chairman of Ideas – Many scientists, policymakers more than 80% and 51% respectively. and a miss – the Senate Committee on Environment from both parties, and common sense The EPA data also show that electric Representative and Public Works labeled it an ‘absurd have discredited the dingbat ideas pro- power sector CO2 emissions continue Alexandria socialist manifesto’. Even House posed in the Green New Deal. Climate to decline, a trend that has been widely Ocasio-Cortez Speaker Nancy Pelosi (D-CA), failed to science conventional wisdom is flawed, attributed to the increased use of natu- (D-NY) said: bless it. relies on alarmist scenarios, exaggerates ral gas in electricity generation. In fact, “Our planet is Senate Majority Leader Mitch economic impacts, and fails to note the growth in natural gas consumption was going to hit disaster if we don’t turn this ship McConnell (R-KY) said the Senate will climate has actually become milder. The credited for 61% of electric generation around and so it’s basically like, there’s a vote on the Green New Deal resolution ‘Green New Deal’ will fail for many rea- CO2 reductions since 2005. scientific consensus that the lives of children before the Senate leaves for the August sons. One is that the people pushing it

28 29 Significant Challenges Face 116th Congress decision-makers and have developed President Trump Infrastructure was another high prior- vital national infrastructure projects,” U.S. House Democrats Studying ity issue for voters with 70% of voters said Perry. “In doing so, we can keep Drop in Fines by EPA – U.S. House credible relationships with a number of Requests $2.7 trillion saying this was an important priority for delivering affordable, reliable energy Democrats are scrutinizing a dramatic key Democrat and Republican members Spending Cut them. Dropping off significantly in voter more securely, cleanly and efficiently, drop off in enforcement action at the of Congress. We are assisting a number priority is climate change with 58% of while creating jobs and increasing EPA under the Trump administration, of U.S. Senate and House members with Over the past two years, the Trump voters saying this was an important pri- opportunity here and around the world.” as it continues to reduce burdensome credible information to defend against administration has dismantled many of ority, but 31% saying no action should Trump 2020 Budget Request – regulations. Last year, the EPA collected efforts to eliminate critical oil and gas the failed energy policies of the previous JOIN! be taken. Rounding the top five issues President Trump released his 2020 less than $4 billion through enforcement tax provisions, impose federal hydrau- administration unleashing America’s oil voters thought Congress should focus is budget request on March 11th. The actions. This was two-thirds of what it lic fracturing oversight, Endangered and natural gas producers from crip- gun reform where 54% of voters want budget cuts spending by $2.7 trillion, collected in 2009 said U.S. House Energy Species Act abuses, impose emissions pling federal regulations. While much Congress to pass additional restrictions the largest cut by any administration in and Commerce Chairman Frank Pallone regulations, and more. has been accomplished, much more is on gun ownership and 37% think no American history. There was a decrease (D-NJ). Pallone said he would soon KIOGA works with our allies at the needed to free our energy markets and The Wichita Desk and Derrick is a dynamic action should be taken. in spending across the majority of schedule the EPA to appear before the Domestic Energy Producers Alliance empower consumers and businesses to organization that promotes the education of departments, with the Small Business House Energy Committee. (DEPA), Independent Petroleum the petroleum, energy and allied industries make their own energy choices. State of the Union - On February Administration seeing the highest Association of America (IPAA), National and advances the professional development of its members. 5th, President Trump delivered his State increase and the EPA and Corps of KIOGA’s Federal Advocacy Stripper Well Association (NSWA), U.S. Legislative Issues Facing the of the Union address Engineers seeing the highest cuts to Strategy Going Forward - KIOGA Global Leadership Coalition (USGLC), Member Benefits: – The 116th Congress 116th Congress to Congress and the their budgets in fiscal 2020. The U.S. is fully engaged in federal legislative Liaison Committee of Cooperating Oil & • Learn from energy industry experts. has a long list of legislative priorities and • Network with energy industry leaders nation. President Department of Energy (DOE) Office and regulatory advocacy. We are tak- Gas Associations, and others to engage and colleagues. Trump highlighted of Energy Efficiency and Renewable ing our case directly to congressional not only in advocacy, but also in legal • Attend regional and national meetings. challenges. • Receive critical updates and information American oil and gas Energy would see its $2.3 billion budget policymakers and regulatory agency about the energy industry. producers and how slashed by 70% to $700 million. Officials decision-makers. We have met with • Enhance communication and leadership the United States is said the budget for energy efficiency and over 350 federal policymakers over skills. set to export more renewable energy is completely out of the last 9 years as well as key agency • Make friends for life! energy than it imports by 2020. control and even with the reduction it For more information about the Wichita President Trump said: would still be one of the largest budgets Desk and Derrick and to learn about In a statement ...we have unleashed a rev- in the energy line. member eligibility, visit our Wichita Desk and Derrick facebook page, or contact voters have strong opinions on many of after the presi- olution in American energy. those issue. Polls conducted in February Shannon Wiseman dent’s address, The United States is now the The next step is for the [email protected]| 316.267.4214 2019 provide insights into what voters Secretary of number-one producer of oil and CBO to submit economic want the 116th Congress to prioritize. The Wichita Desk and Derrick is a proud Energy Rick Perry natural gas anywhere in the and budget reports to affiliate of the Association of Desk And Derrick Healthcare was the issue voters empha- Clubs, www.addc.org called for a focus world. And now, for the first congressional budget sized the most with 79% of respondents on reducing reg- time in 65 years, we are a net committees in both the saying this was the most important pri- ulatory hurdles in exporter of energy. U.S. House and U.S. ority for them. Voters made it clear that order to maintain Senate, who will then border security and immigration was an the momentum hold hearings, question important issue for them, regardless of on energy production. “Continued administration officials and draft a bud- which side of the issue they’re on, with American leadership in energy will get resolution. 74% of respondents saying this was require that we come together to reduce the most important priority for them. burdensome regulations and invest in

30 31 Bernhardt Nominated to Lead Interior Department A decision on that finding would be 71% since the peak of the drought in Lesser Prairie Chicken expected 12-18 months after publication 2013 without ESA regulations in place lawsuit Filed of any proposed rule. due to increased rainfall and on-the- The U.S. Fish & Wildlife Service ground conservation measures. (USFWS) listed the Lesser Prairie KIOGA President Edward Cross On February 4th, President Trump met with U.S. Department of Interior Providing Quality Seismic Since 1993 nominated David Bernhardt, current Secretary David Bernhardt last year and Acting Secretary of the Interior, to lead urged him to intervene in actions by the the department. USFWS to consider the LPC as a threat- KIOGA President ened or endangered species. Cross Edward Cross met told Bernhardt that by electing to list with Mr. Bernhardt the LPC in spite of the unprecedented last May and last level of voluntary conservation efforts, July when he was Chicken (LPC) as a threatened species the Obama Administration significantly 3500 N ROCK RD. BLDG. 800 • Wichita, KS 67226 the U.S. Department in March 2014 following a multi-year reduced the incentive for stakeholders to Phone: (316) 636-5552 • Fax: (316) 636-5572 E-mail: [email protected] of Interior Deputy drought that plagued the habitat area pursue future initiatives to preserve the www.paragongeo.com Secretary to discuss lesser prairie and reduced population numbers. That species. The heavy-handed approach chicken concerns. Mr. Bernhardt knows listing was vacated in September 2015 also sent a strong signal to those work- the department well, and understands by the U.S. District Court for the Western ing to preserve species nationwide that the integral role that the Department District of Texas because the USFWS no amount of private investment or vol- of the Interior plays in oil and natural failed to consider the impact of volun- untary conservation could satisfy the gas development, both onshore and tary conservation efforts to preserve the federal government. If the listing of a offshore. David Bernhardt is knowledge- LPC habitat area. The USFWS withdrew species is viewed as inevitable, stake- Membership in KIOGA able about the independent producers its appeal of the court decision, instead holders lose the incentive to invest in gives you: and our operations and we look forward electing to move forward with a new private, voluntary conservation efforts. to working with the Department on new Species Status Assessment and will ulti- Cross told Bernhardt that they have • A united Voice in Topeka & ways to continue growing our economy, mately issue a 12-month finding on a the opportunity to chart a different Washington while improving the environment and petition to list the species. course than the previous administration • Access to legislative & business enhancing life for all Americans. The USFWS 12-month finding was that reduces regulatory burdens and information supposed to come in September 2018. encourages stakeholder involvement in • A Way to build public understanding • A stronger industry voice USFWS expected to be sued by envi- the conservation of our nation’s wildlife Lesser Prairie Chicken Lawsuit • Access to industry publications Filed ronmental groups for failure to meet the species. He urged Secretary Bernhardt statutory deadline. Many believe the to not make the same mistake of the On February 14th, Defenders of delay in the USFWS 12-month finding Obama Administration by listing the Become a member today Wildlife, Center for Biological Diversity, on the LPC is putting the outcome in the species under the ESA. Instead, we Pass the newsletter and Wild Earth Guardians jointly filed hands of the courts. encourage the USFWS to collaborate to non-members a Notice of Intent (NOI) to sue the U.S. Stakeholders in Kansas have seen sig- with stakeholders on positive solutions Help us grow our network in the oil and gas industry Department of Interior for failure of nificant progress made in improving the that protect the species without causing USFWS to produce a 12-month finding bird’s population and securing its future. unnecessary harm to the livelihoods of for the lesser prairie chicken (LPC). This While the voluntary initiatives currently the people of our states. is a development that was expected. in effect could be improved to maximize Member The USFWs will likely have an abbre- conservation gains, it is notable the pop- viated timeline to produce a finding. ulation has increased by approximately

32 33 Wheeler Confirmed as Get on Board the KIOGA Express Contact the Wichita office and get your EPA Administrator office signed up today to start receiving up to date information. to demonstrate that the contribution comment period on the regulation. In the law covers pollution that moves Methane Study of methane emissions from marginal December 2018, the EPA signed a pro- through groundwater before reaching a Approved - New WOTUS oil and gas wells are much lower than posed rule revising the definition of federal waterway. Rule Proposed what the EPA determined and used in WOTUS to clarify the scope of waters “This is the most significant environ- its methane rule. Having the informa- federally regulated under the Clean mental law case in the last few years,” On February tion necessary to counter the specious Water Act. The proposed rule would said Beveridge & Diamond PC attorney 5th, the U.S. Senate EDF study can provide a basis for future reduce the number of waterways and John Cruden, former head of the Justice Environment and decisions on whether low producing well wetlands subject to federal Clean Department’s environment division. www.kioga.org Public Works regulations are needed. Water Act protections compared to the The Maui litigation involves a munic- [email protected] Committee The primary purpose of the DOE Obama-era version of WOTUS. The ipal wastewater treatment facility on the approved Acting project is to develop data from well sites EPA held a public hearing on the pro- Hawaiian island. Environmentalists sued EPA Administrator in basins across the U.S. to help address the county after alleging a link between Andrew Wheeler’s critical knowledge gaps and support the wastewater injection wells and pol- nomination to take over as permanent best management practices that are lution that seeped through groundwater head of the Environmental Protection appropriate for marginal wells. KIOGA and ended up in the Pacific Ocean. The Agency (EPA). The Committee submitted a comprehensive white paper 9th U.S. Circuit Court of Appeals sided approved Wheeler’s nomination on on the impact of methane regulations on posal in Kansas City on February 27th with them, endorsing the so-called con- a party-line vote, 11-10. The full U.S. marginal oil and gas producers in Kansas and 28th to provide interested parties duit theory, and found that the county Senate voted to confirm Wheeler as that includes compliance cost estimates, the opportunity to present data, views, should have had a Clean Water Act EPA Administrator on February 28th. project economics, documentation bur- or information concerning the proposed permit. Wheeler has a deep understanding of den, and more. The KIOGA white paper rule. In addition, the U.S. Small Business The CWA statute governs the dis- the issues facing EPA. He has a proven included defensible data and supporting Administration’s Office of Advocacy charge of a pollutant to “waters of the history as a sound and responsible pub- information to help build a solid posi- hosted a small business-focused forum United States,” or WOTUS. While the lic servant and will continue to bring tion for reinstituting a low-production in Kansas City on February 27th. The U.S. Supreme Court and EPA have spent these attributes to EPA. well exemption. KIOGA also join the comment period on the proposed action years wrestling with the definition of industry methane litigation coalition ends on April 15th. KIOGA President WOTUS, the new case focuses on a dif- Methane Update: DOE Marginal comments to EPA. In comments filed Edward Cross participated in the EPA ferent element of the law’s reach: Does Well Emissions Study with the EPA, KIOGA recommended public hearing and U.S. Small Business the discharge have to be directly into a that EPA suspend any regulations of Administration forum on the proposed federally regulated waterway, or does it In October 2018, low production wells until the results of new WOTUS rule in Kansas City on just have to end up there? the U.S. Department the DOE project were available in order February 27th. In addition, Cross will Maui County and its supporters say it of Energy (DOE) to determine if any cost effective regu- be submitting comments on behalf of must be a direct discharge. While sup- announced the lations were appropriate, and, if so, to KIOGA before the April 15th deadline. porters of a narrowed interpretation say approval of a proj- use the results from the project to design other federal laws and state regulation ect to quantify such regulations based on actual emis- U.S. Supreme Court to Debate can fill the gap, advocates warn that the methane emissions sions information. Scope of Clean water Act U.S. Supreme Court will leave a big loop- from marginal oil and gas wells. KIOGA hole in the Clean Water Act if it exempts President Edward Cross met with EPA Proposes New WOTUS Rule The U.S. Supreme Court is taking up pollution from the law simply because it Energy Secretary Rick Perry in May another far-reaching debate over the reaches a federal waterway via an indi- 2018 to encourage DOE support for the The EPA’s revised Waters of the scope of the Clean Water Act (CWA). rect route. survey. DOE also met with several other United States (WOTUS) proposal was On February 20th, the justices agreed to The eventual outcome in the case groups too who encouraged support published in the Federal Register on hear County of Maui, Hawaii v. Hawai’i could affect permitting for pipelines, coal for the survey. The survey is needed February 14th, opening a 60-day public Wildlife Fund, a case involving whether ash ponds and other sites.

34 35 Get your registration forms on the KIOGA website. www.kioga.org

Midyear Meeting April 17-19, 2019 Brazil’s Growing Crude Registration | Sponsorship | trade show Hampton Inn and Suites Production Concerns OPEC Mulvane, KS A new large facility – the P-67 Blanch, head of commodities Petrobras, and Royal Dutch Shell Reservations - 316.524.3778 Plc. The second platform to start floating oil production vessel – is research at Bank of America Corp. ***************************************** the first of four similar platforms to in New York. “US shale is not the this year, P-76, can also process up 82nd Annual August 11-13, 2019 begin pumping crude this year, lifting only driver of increased volumes.” to 150,000 barrels daily. The facili- Brazilian output by roughly 365,000 Brazil has been disappointed in ties are scheduled to be followed by Sponsorship | Trade Show barrels a day, its largest annual the past, with output growth com- P-68 and P-77 in 2019, and between Hyatt Regency increase in at least 20 years, accord- ing far below expectations because 2020 and 2023, Petrobras aims to Wichita, KS ing to the International Energy of maintenance issues, declines in install another ten big vessels. Reservations - 316.293.1234 Agency. A second platform, P-76, mature fields, and delays installing OPEC itself is keeping tabs on has also started production, accord- new vessels for oil production and Brazil, noting that the nation will ing to a recent regulatory filing. storage. The Tartaruga Verde field, boast the second-largest increase The Brazilian surge, combined which should have come online in annual output oil growth within with more oil from shale fields from in late 2017, didn’t start until June the non-OPEC camp, only behind Texas to North Dakota, is set to cre- 2018. The P-67 itself was delayed the U.S. shale. In its latest monthly ate a headache for OPEC. In the several months. Still, oil traders and report, OPEC said Brazilian oil pro- worst-case scenario, it may force executives believe this year Brazil duction could rise substantially in Saudi Arabia and Russia to roll will make good on its promises. The 2019 if the delayed floating storage their production cuts over into the P-67 vessel will pump about 150,000 and production vessels and other second half of the year, testing the barrels a day in the next few months, scheduled facilities start this year. strength of the Riyadh-Moscow oil when it reaches its plateau. Brazil produced almost 2.7 million relationship. P-67 is owned by a consortium barrels a day of oil in December, “Brazil is on the verge of major including Brazilian state-controlled putting its production roughly in line supply growth,” said Francisco oil giant Petroleo Brasileiro SA, or with OPEC-members Kuwait and Iran.

Find pictures of the midyear and annual conventions at: www.kioga.org/ memberservices/ photos

36 37 Susan Duffy Nominated SHORT TERM. New KCC Commissioner LONG TERM. Susan Duffy Kansas Department of Revenue, “Susan is a distinguished and was nominated and the Division of the Budget. She experienced public service leader,” YOUR TERMS. by Kansas has served as general manager of said KCC Chairman Dwight Keen. Governor Laura the Topeka Metropolitan Transit “Kansas and the commission will Kelly on March Authority the last several years. signifi cantly benefi t from her service 18th to serve “My administration is focused on the KCC.” as a Kansas on strength- Duffy will serve a term on the Corporation ening the KCC through March 15, 2023 and Commission (KCC) Commissioner. KCC’s ability is eligible for reappointment. Duffy Duffy will replace KCC to serve the will join KCC Chairman Dwight Commissioner Jay Emler, whose people of Keen and Commissioner Shari Feist- term expired in March 2019. Duffy Kansas now Albrecht on the three-commissioner will now proceed through the Senate and into the agency. confi rmation process. future,” said Governor Kelly. “Susan KIOGA congratulates Susan Duffy served as the KCC exec- Duffy has the skills and experience Duffy and extend our best wishes utive director from 2003-2011. to enhance and improve how Kansas for success! She has also worked in the Kansas provides critical services in energy, Legislative Research Department, telecom, natural resources, and Kansas State Historical Society, transportation.”

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38 FoleyEq-319.indd 1 3/10/16 2:14 PM 39 PRSRTPRSRT STD STD US Postage The Voice of the PAID Kansas Independent Wichita, KS Petroleum Industry Permit No. 8468

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