2020 September/OctoberJanuary/February

What’s Inside?

Chairman Lett er ...... 4 Regulatory Issues ..... 6 Congress in Washington ...... 12 Pompeo Webinar ...... 16 Edward Cross Message ...... 18 State Elections ...... 20 Vote in this Election ...... 22 The Voice of the Legislative Interim ...... 26 EPA Methane Rule ...... 28 Kansas Independent Making an Impact ...... 30 Petroleum Industry KIOGA Board Meeting ...... 34

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With the cancellation of on-site decision-making. KIOGA Launches events in the near future, KIOGA We began with our first webinar on New “Let’s Talk launched our new “Let’s Talk About . . August 17th when we engaged members .” series of industry webinars. The mis- of the Kansas Congressional Delegation About...”Webinar sion of the virtual webinars is to provide in a con- Series educational opportunities for KIOGA versation Webinar Series Showcase members on important issues, regula- about the tions, and topics of interest. KIOGA upcoming Top Oil & Gas Professionals, is hosting regular webinars to bring 2020 elec- Elected Offi cials, and our members informative content that tion and Governmental Offi cials will guide future business and policy Continued on Page 8 Thank You KIOGA 2020 Annual Convenon Donors Sincere appreciaon to the companies listed below who donated their sponsorships to KIOGA even though the convenon was cancelled this year due to the coronavirus pandemic. You help keep KIOGA strong!

Mai Oil Operaons, Inc. ELI Wireline Services Berexco, LLC ExpressWell Service & Supply Gore Oil Company Murfin Drilling Co., Inc. Grand Mesa Operang Company Colt Energy, Inc. Insurance Planning, Inc. CVR Refining J&D Pump & Supply, LLC IMA J. Fred Hambright, Inc. Jayhawk Oilfield Supply John O. Farmer, Inc. Maxidize Producon Services K&N Petroleum, Inc. Kansas Strong Mull Drilling Company, Inc. Law Offices of Morris Laing Palmer Manufacturing Lotus Operang Co., LLC Scheck Oil Operaons McCoy Petroleum Corp Sunrise Oilfield Supply, Inc. MV Purchasing Swi Services, Inc. Pipeline Tesng Consorum, Inc. Vincent Oil Corporaon Ritchie Exploraon, Inc. Waterflood Equipment, LLC Sensorfield Woolsey Operang Company Stelbar Oil Corp, Inc. The Trees Oil Company CHS Tim Miller Oilfield Sales Cobalt Energy, LLC Trans Pacific Oil Corporaon Corrosion DC, Inc. Trilobite Tesng, Inc. DaMar Resources, Inc. Monster Pump Operaons David and Kay Bleakley VAL Energy, Inc. Depew Gillen Werth Wealth Management Edmiston Oil Co., Inc.

2 KIOGA thanks the following KIOGA companies for their support through advertising in our Advertisers newslett er.

Advertiser pg # .Buyers Guide ...... 15 CVR Refi ning ...... 35 David Morris, PA ...... 7 Drill Baby Drill...... 11 Officers The Kansas Independent Oil & Gas Duke Drilling Company, Inc...... 7 Association (KIOGA) believes in Evenson Auctioneers...... 32 Foley Power Solutions...... 17 David Bleakley - Chairman seeking common ground, through Insurance Planning...... 27 common sense solutions, to the Murfi n Drilling Co., Inc...... 27 Ed Nemnich - Northwest Vice Chair challenges facing the Kansas oil and Paragon Geophysical Serv. Inc...... 6 Charles Wilson - Southwest Vice Chair gas industry. Our bipartisan The Independent Oil & Gas Dir...... 11 approach provides a uniquely Werth Wealth Management ...... 19 Alan Banta - South Central Vice Chair powerful voice for our members at Wildcat Resources, Inc...... 25 Barry Hill - East Vice Chair the state and national level.

Scott Fraŝzer - Treasurer Our work is critical. Your support is vital. Front Cover Photo Jeff Bloomer - Secretary Provided by: KIOGA Wichita Office 229 E. William - Suite 211 Staff Wichita, Kansas 67202-4027 316-263-7297

Edward Cross - President KIOGA Topeka Office 800 SW Jackson Street - Suite 1400 Kelly Rains - Operations Manager Topeka, Kansas 66612-1216 785-232-7772

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Contact Wichita Offi ce for additional copies Gas Field Oil Field Oil & GasField

3 work and large investment areas of KIOGA’s current of time to help develop this fi nances and operations with Vision 2020 Plan. the goal of finding a way to At the annual Board meet- increase operating effi ciencies ing, an excellent PowerPoint and to update all operations to presentation of the Vision add value for the members. Message from 2020 plan was led by Barry Hill, CEO Vess Oil Co. and Steps already being taken the Chairman included various sub-commit- from the findings of the tee reports from the Executive Executive Committee and David Bleakley Committee detailing the cur- the recommendations of the rent status of KIOGA and Strategic Planning Committee 2019-2021, Chairman KIOGA direction for its future. Barry include: Hill, along with the other pre- senters -- Scott Fraizer, Andrea KIOGA Board Supports and Krauss and Jeff Kennedy did Initial Cost Savings Approves Vision 2020 Plan an outstanding job of identify- Initiatives ing and outlining the fi ndings 1. Termination of part- The KIOGA Board on Wednesday of the sub-committees and time clerical position in September 23rd overwhelmingly the Executive Committee to the Wichita offi ce as of voted to support and approve the present to the Board. Detailed 12-31-19 Vision 2020 plan developed by the explanations showing where 2. Wichita office rent Executive Committee and presented KIOGA is financially, oper- reduced by $600 per at the Live/Virtual annual board ationally and structurally month meeting. This Vision 2020 plan has and the steps being taken 3. Kansas Strong taking been in development for over a to move KIOGA forward over the Kansas State year with the Executive Committee, were discussed. Committee Fair booth 100% sav- Strategic Planning Committee, reports from the Roundtable ing $900 per year and Roundtable Committee and many Committee, Strategic Kansas Strong will still other KIOGA members giving rec- Planning Committee, Sub- be utilizing KIOGA vol- ommendations and suggestions Committees of the Executive unteers at the booth to this plan. The months of ideas, Committee including the 4. Old KIOGA sign discussions, strategic initiatives and Bylaws Committee, Finance (pre-Kansas Strong) actions steps have begun to shape Committee, Investment taken down in the direction for KIOGA. I want to Committee and Human McPherson $900 per sincerely thank all who participated Resources Committee were year in helping formulate the plan for also included. These commit- 5. Entertainment account KIOGA’s future, and I especially want tees performed an in-depth be discontinued in to thank the Executive Committee analysis of all aspects and Wichita without prior members for their dedication, hard

4 and had a chance to respond, I will and Washington; and 3) The strong schedule a Town Hall Meeting for organization that our members questions followed by a vote on expect. restatement of the KIOGA Bylaws. Although these are diffi cult times for the oil and gas industry, our approval VISION 2020 Direction: Vote of members and the association will 6. Convention cost reduced this Support prevail. We will stand together as an year but unrealized because of 1. Refine and Affirm KIOGA organization prepared to take on the cancelation President’s Responsibilities challenges and adversaries we face 7. All invoices and expense 2. Expand Executive Committee today and will face in the future. The reports being reviewed for to include Three At-Large Executive Committee and I thank both Wichita and Topeka Members you for your support. 3. Reaffi rm the Composition of Outsourcing Initiatives the Nominating Committee Sincerely, 1. Hired Syndeo HR company 4. Reaffirm the Role of the to assist Ed Cross and the Legislative Committee David P. Bleakley HR Committee on personnel in Setting the Agenda for KIOGA Chairman issues beginning 8-15-20 KIOGA’s Advocacy Efforts 2. Hired BT & Co., CPA’s starting 5. Refine Chairman Selection 10-1-20 to assist with account- Process ing functions 6. Improve Board Effectiveness 3. Hired E & M to produce, print, by Consolidating Board mail and handle advertising Size, Instituting Term Limits for KIOGA’s Newsletter start- and Selecting New Board ing January 2021 Members from Active 4. Currently evaluating two Committed Participants website companies for new 7. Outsource Key Administrative KIOGA website and Staffi ng Functions 8. Consolidate All KIOGA New KIOGA Bylaws Operations Within the Topeka Bylaw Committee consisting Offi ce of Jeff Kennedy, Chair, Charlie Wilson, Nick Hess, David Bleakley With the overwhelming vote and Dr. Leonard Young Professional of support and approval from the Parliamentarian has been through six KIOGA Board for Vision 2020, the drafts to develop a good base docu- Executive Committee will execute ment for the Executive Committee on this plan. We all understand & Strategic Planning Committee to that change is hard, but change review and make comments. Their is necessary to survive and set a revised draft will then go to the new direction for our association Board for review and comments and to continue to be the: 1) The strong then be forwarded to the General Voice of the Kansas Independent Members to review and comment. Petroleum Industry; 2) A strong Once all members have reviewed advocate for its members in Topeka

5 Kansas Regulatory Issues KIOGA Engaged injection/seismicity issues, emission • KCC Budget issues, electric rate issues, carbon cap- • Abandoned Wells ture issues, and more. Cross provided • Temporary Abandonment Chair Duffy with a packet of information • Exceptions that included several reports and white • Public Notice papers KIOGA developed to address • Potential Regulatory and educate about important energy, Amendments environmental, and regulatory issues. In addition, Governor Kelly formed KIOGA Members Engage on an Arbuckle Study Workgroup to study Regulatory Issues Arbuckle injection/seismic activ- ity. Governor Kelly asked for KIOGA Several KIOGA members have representation on the workgroup and State regulatory engagement is a core engaged on state regulatory issues. KIOGA representatives Dana Wreath focus for KIOGA as we work to protect Several KIOGA members engage on of Berexco, LLC, Ken White of White operational certainty across Kansas. state regulatory issues through the KCC Exploration, Inc., and Dylan Klaus of KIOGA regulatory efforts emphasize Oil & Gas Advisory Committee. Ken Vess Oil Corporation were appointed to common-sense regulatory policy and White is KIOGA’s representative on the the workgroup. Dana, Ken, and Dylan includes engagement at all levels with KCC Oil & Gas Advisory Committee. have participated in the workgroup state regulatory agencies. KIOGA has The KCC Oil & Gas Advisory Committee expressing KIOGA concerns with the been engaged in a number of state reg- is currently evaluating several regulatory Arbuckle injection/seismic activity issue. ulatory issues during in 2020. Several issues that impact the Kansas oil and gas KIOGA members have participated in industry including: regulatory meetings focusing on issues important to the independent oil and natural gas industry.

KIOGA Meets with KCC Chair Susan Duff y

KIOGA President Edward Cross met Providing Quality Seismic Since 1993 with the KCC Chair Susan Duffy on February 14th and again on July 29th when he listened to her take on the direction of the KCC. The meetings were very productive with discussion of 3500 N ROCK RD. BLDG. 800 • Wichita, KS 67226 several ongoing issues of importance to Phone: (316) 636-5552 • Fax: (316) 636-5572 the Kansas oil and gas industry includ- E-mail: [email protected] ing abandoned well issues, Arbuckle www.paragongeo.com

6 KIOGA Mark your Calendar

Event Name Date Location 41st Annual KS Eco Outlook Conference October 8, 2020 Wichita, KS

IOGCC Virtual Annual Conference November 3-10,2020

IADC Virtual Annual Meeting November 4-6, 2020 San Antonio, TX

2020 Kansas Water Conference November 9-10, 2020 Wichita, KS

IPAA Annual Meeting November 11-12, 2020 New Orleans, LA

TITLE EXAMINATION DRILLING & DIVISION ORDER OPINIONS KANSAS & NEBRASKA DAVID A. MORRIS, PA

ATTORNEY AT LAW 8100 E 22nd N Bldg 600 Suite M WICHITA, KANSAS 67226 EMAIL ADDRESS; [email protected] TELEPHONE: 316.686.9998 FAX 316.681.0153

DUKE DRILLING COMPANY, INC.

CONTRACT DRILLING VERTICAL & HORIZONTAL

11 RIGS Serving the Mid-Continent

100 S. Main, Suite 410 5539 2nd St./P.O. Box 823 Wichita, Ks., 67202 Great Bend, Ks. 67530 316-267-1331 620-793-8366

7 From Page 1

Let’s Talk About... Continued

Webinar Series security, international arms embargo on Iran, Trump administration’s progress addressing Palestinian/Israeli issues and energy policy dynamics. More than getting UAE/Israeli relations to normal- 125 virtual participants heard comments ize, and Russian, Iranian, and Chinese from U.S. Senator Pat Roberts, U.S. interference in upcoming U.S. elections. Representative Roger Marshall, and U.S. Representative Ron Estes. On October 12, 2020, KIOGA hosted a webinar where virtual participants heard Dawn Monroe of Monroe Training cover best practices for data visualization and storytelling with charts that illumi- nate your message and engage your On September 28, 2020, KIOGA audience. Monroe’s presentation hosted a webinar with a panel of land covered best practices to determine team professionals who reviewed the We followed up our first webinar context, type of graph, and clutter basics of the lease form to allow a bet- with a September 14, 2020 webinar fea- reduction to tell the story of your ter understanding of what can be done turing a panel discussion from Kansas data analysis with high-impact visu- to maintain a lease from a land and Corporation Commission (KCC) offi- als that connect. legal standpoint and to mitigate the risk cials who provided a KCC regulatory KIOGA would like to specifi cally of lease termination. Over 80 virtual and fi eld developments update. More thank our sponsors for this webinar participants heard the panel discus- than 100 virtual participants heard the series. Each of the following compa- sion featuring Will Boone of Wildcat KCC panel discussion featuring KCC nies were signifi cant sponsors for the Resources, Inc., Nathan Jiwanial of Commissioner Dwight Keen, KCC KIOGA 2020 Annual Convention. Trans Pacifi c Oil Corp., Adam Petz Oil & Gas Conservation Division With the cancellation of the KIOGA of Grand Mesa Operating Co., and Director Ryan Hoffman, KCC 2020 Annual Convention, we are Tyler Turner of Jeter Law Firm. District #1 Supervisor Scott Alberg, very grateful that you allowed KCC District #2 Supervisor Jeff your contribution to KIOGA stand. Klock, KCC District #3 Supervisor Thank You for your generosity! Troy Russell, and KCC District #4 More KIOGA webinars will Supervisor Case Morris. be coming in the future. The next KIOGA Midyear Meeting is sched- uled for Garden City, Kansas in April 2021 and the KIOGA 2021 Annual On October 5, 2020, KIOGA hosted Convention is scheduled for Wichita, a webinar where virtual participants Kansas in August 2021. KIOGA heard Jeremy Jordan of IACX Energy continues to serve our members as discuss helium markets, how helium is we navigate the uncertainty associ- extracted from natural gas streams, ated with the COVID-19 pandemic. and the impact helium can have on On September 24, 2020, KIOGA Thank you for your patience and producer’s bottom lines. In addition, hosted U.S. Secretary of State Mike understanding. participants heard Warren Martin, Pompeo in a webinar where over 210 Executive Director of Kansas virtual participants heard a robust and Strong, provide an update and sum- very interesting discussion. Secretary mary of the activities and progress of Pompeo talked about Russian natural Kansas Strong public outreach efforts. gas supply threats to European energy

8 U.S. Senator Pat Roberts Receives 2020 KIOGA President’s Leadership Award Award on August 17th. The Senator Roberts with the KIOGA President’s Leadership 2020 KIOGA President’s Award is a special award to rec- Leadership Award is a ognize individuals who have small way we can say thank made unique contributions to the you to Senator Roberts for success of KIOGA’s state and/or his amazing dedication, federal advocacy efforts. Senator commitment, and efforts. Roberts is by far and away the Senator Roberts joins most engaged and best U.S. past KIOGA President’s The Kansas Independent Oil Senator to work with on energy Leadership Award win- & Gas Association (KIOGA) issues and has been an absolute ners Dave Murfin, State took a moment to recognize champion for our industry in the Senator Rob Olson, Adam U.S. Senator Pat Roberts for U.S. Senate for decades. Senator Beren, Richard Koll, David his many years of amazing Roberts has provided insights, Nickel, Steve Dillard, Dave service and dedication over time, consideration, and leader- Dayvault, Andrea Krauss, many years. Senator Roberts ship to KIOGA to address critical and Tim Hellman. was presented the 2020 federal advocacy issues and con- KIOGA President’s Leadership cerns for decades. Honoring

9 KIOGA Member News

KIOGA EDUCATIONAL FOUNDATION

Our Misson Types of Support How You Can Help Testimonials

Consider making a yearly donation to KEF We are a 501 (c) (3) organization To date, the KIOGA Educational Foundation Marshall Elementary | Eureka, KS has awarded several grants, totaling over so that we can continue to help teachers 3D Printer that conducts educational programs and students with their STEM projects. & provides educational materials $4,700. The grants have been used to provide the following types of support: Contact your school, talk to the teachers relating to energy sources and and let them know about the STEM grant processes. We have implemented program. a grant program to teachers and schools across Kansas for STEM Donations can be sent directly to: KIOGA Educational Foundation (Science, Technology, Engineering 229 E. William, Suite 211 and Math) related projects. KEF will Wichita, KS 67202 “I just wanted to get back to you with some work in conjunction with Kansas [email protected] pictures and another heartfelt thank you for the Strong and KIOGA to identify grant grant money. We were able to purchase the 3D Gordon Parks Academy | Wichita, KS printer and we are working on learning how to use prospects. The grants will provide Leadership Camp it!! We have had some success and continue to funding for items such as books, learn more everyday.” FXUULFXOXPHTXLSPHQWÀHOGWULSVDQG Heller Elementary | Neodesha, KS supplies to help teachers implement Tulsa Geoscience Center Field Trip STEM Education.

“KAY camp has also helped my kids become more independent, develop better social skills and have a positive attitude. The KAY outlook inspires them to dream big and take action. It teaches them responsibility inside and outside of the classroom. ... My children and I are extremely thankful for being JLYHQWKHRSSRUWXQLW\WREHQHÀWIURPWKH.$<FDPS leadership experience.” 100% of funds donated are used to fund grant requests

Please consider making KIOGA Educational Foundation as your donation in lieu of fl owers. KEF is dedicated to the education of teachers and students, on the benefi ts of the oil and gas industry KEF | 229 E William Suite 211 | Wichita, KS 670202 In Memory Of: Ronald S. (Ron) Schraeder Retired Petroleum Engineer Wichita, KS

Dave Wertz Retired KCC Compliance Offi cer O&G Goddard, KS

10 We welcome the following KIOGA members to the KIOGA family. Thank You for your New Members continued support!

Name Company City & State Shani Hoebener Assured Partners Wichita, KS Jake Viets Seal Tite Independence, KS Rick Briscoe Briscoe Petroleum, LLC Sheridan, WY Randy Prater Flat Rock Consulting, LLC Plainville, KS

11 Congress Returns to Washington Ahead of Election KIOGA Engages in Federal Policymakers Seek votes, Tweets and fundraisers aimed KIOGA Input on Current Crude Oil at mobilizing the base and inflicting Several Critical Energy Market Impacts whatever partisan political damage pos- Issues sible, Congress would pass a Continuing In April, June, and Resolution (CR) and limp out of town. August, KIOGA was In doing so our political leaders would asked by several defer any fi nal spending and policy deci- federal policymak- sions until after the election. This is our ers for our take on ordinary reality. the current crude However, these are no ordinary times. oil market dynamics Make no mistake the American polit- and the impact of ical process is shifting into high gear. Congress returned to Washington on the current oil mar- However, this time around they have September 8th to begin session. KIOGA ket situation on the small businesses some serious issues that carry serious continues to be engaged in addressing that make up the independent oil and consequences. With the fl ip of a switch, energy policy challenges. gas industry. KIOGA President Edward governments across the planet shut KIOGA has provided key federal pol- Cross provided federal policymakers, down the global economy. In a matter icymakers input on crude oil market the White House, Kansas Governor of weeks, the American economy went dynamics, addressing fl aws in the “green Kelly, and other key state and federal from historically low unemployment new deal’, and facts about carbon cap- decision-makers a report titled Crude rates across every demographic to huge ture and oil and gas industry emissions. Oil Market Dynamics. The report sum- job losses. Having infl icted this massive In addition to the Kansas Congressional marizes the potential implications from economic wound on businesses and Delegation, KIOGA has communicated oversupplied markets and the antic- workers, the healthcare system, schools, with 17 federal policymakers (both ipated demand destruction. Several colleges and universities the federal gov- Democrat and Republican) this year. federal policymakers and the White ernment responded to the consequences “We cannot be silent with this House expressed appreciation for the of its own action with profl igate spend- Congress,” said Edward Cross, KIOGA information saying: “Your report is very ing – essentially replacing business with President. “We must voice our con- informative and easy to comprehend.” government to the tune of more than $6 cerns. The oil and gas industry has trillion and counting. This brings us to proven that over the long-term it is pos- Political/Public Policy Landscape the serious consequences. sible to lead in energy production and for 2020 Key COVID aid programs such as environmental stewardship. The key paycheck assistance which provides is to avoid placing unnecessary polit- In an ordinary general election direct aid to unemployed workers and ical or legal obstacles in the way of year, the July 4th recess signals the funding for main street lending programs innovation and expansion. American start of ceaseless campaigning to are set to expire soon. The U.S. econ- energy policies that value innovation the first Tuesday in November. The omy is showing signs of life as governors over regulation can turn energy policy Administration would shift focus to gradually ease restrictions in the deli- challenges into great opportunities for rulemaking. Congress is reduced to cate effort to balance the urgent need to economic growth and energy security. one session over a September omnibus restart the economy and get kids back This approach is not just good business, spending bill as together they would in schools while protecting the elderly it’s good stewardship and a much better stage one last show in September and those whose underlying health con- strategy for improving the quality of life against the backdrop of a govern- ditions make them uniquely vulnerable for all.” ment shutdown. After a series of to COVID19. However, it remains clear

12 need for such protections. This will be the fi ght. Everything else will be noise.

Net Income Limitation on Percentage Depletion

KIOGA President Edward Congress and the Administration will Cross engaged have to pass at least one more COVID with several key relief package. federal policy- Making things more complicated, makers in late the debate on COVID spending will August and early September regarding unfold in the midst of growing nation- information and language for a pos- wide social unrest increasingly fueled by sible amendment for the continuing larger socio-economic unease as COVID resolution (CR) Congress is currently economic crisis persists. Early signs are working on. KIOGA provided infor- that as businesses reopen workers are mation for an amendment to eliminate returning – preferring work to enhanced the net income limitation on percentage government assistance. What is less depletion. Cross told policymakers that clear is how displaced workers in urban, in the current low oil and natural gas coastal and liberal states respond as price environment, few things are more they are increasingly left behind as important to keeping marginal wells KIOGA Weighs in on Federal midwestern, southern and politically in operation than eliminating the net Funding for Plugging Orphan Wells conservative states push forward – open- income limitation on percentage deple- ing businesses and schools and getting tion and doing so would greatly help people back to work. the small businesses that make up the Despite all the political posturing, the independent oil and gas industry. The parameters of the COVID aid debate policymakers asked KIOGA President have been set since May. First, ignore Edward Cross to prepare amendment the noise. There is no meaningful dif- language. Cross prepared the language ference between Republicans and and sent it to key members of the U.S. Democrats on providing additional Senate Finance Committee and the relief to displaced workers. The same U.S. House Ways & Means Committee goes for whatever is necessary to help including Senator Pat Roberts On June 16th, KIOGA received inqui- struggling businesses. The real fight (R-KS), Senator Mike Crapo (R-ID), ries from several federal policymakers will occur around aid to state and local Senator Mike Enzi (R-WY), Senator including members of the Kansas con- governments (including schools) and Bill Cassidy (R-LA), Senator Steve gressional delegation regarding our COVID- related liability protection Daines (R-MT), Senator Todd Young thoughts on including federal funds to for Hospitals, schools and businesses. (R-IN), Congressman Kevin Brady plug orphan wells in a COVID-19 relief Democrats and teacher unions are (R-TX) and Congressman Ron Estes package. KIOGA President Edward demanding broad-based and unre- (R-KS). Cross provided the policymakers facts stricted funding for state and local aid and information to counter some of while Republicans argue aid should be the misinformation they had received limited to only helping fill the gap for regarding the orphan well issue. Many COVID-related costs and revenue short- news outlets report more than 3.2 mil- falls. On liability, Republicans are asking lion abandoned oil and gas wells across for limited federal pre-emption so that the nation. However, the Interstate Oil hospitals, schools and businesses are & Gas Compact Commission (IOGCC) not subjected to frivolous class action conducted a survey in 2019 and found lawsuits. Democrats argue there is no Continued on page 14 13 From Page 13 Congress Returns to Washington Continued

Critical Energy Issues

about 57,000 documented abandoned KIOGA Engages on Proposed Gas within federal jurisdiction covering taps wells across the nation. A June 19, Gathering Line Regulations off transmission or distribution lines. 2020 report lays out how the number The homeowner owns the pipeline, the of wells and cost of plugging have been The meter, the regulator, and all equipment. overestimated. federal The producer allows the homeowner In early September, a bill was intro- Pipeline access to the supply point but does not duced in Congress (House Orphan Well and control nor own any of the equipment. Cleanup and Jobs Act) that included fed- Hazardous As such, producers cannot enter onto a eral funding for plugging orphan wells. Materials homeowner’s property (trespass) and be Several oil state policymakers (namely Safety Administration (PHMSA) pub- required to inspect facilities they do not the New Mexico delegation) were hop- lished a gas Pipeline Regulatory Reform own (trespass and liability). Production ing to get Republican co-sponsors for notice of proposed rulemaking (NOPR) pipeline is unregulated by PHMSA. the bill. Several federal policymakers on June 9th. Many of PHMSA’s pro- Farm taps should be unregulated as asked for KIOGA’s perspective on the posals affect natural gas producers well. measure. KIOGA President Edward through regulation of gathering and On August 6th, the U.S. Senate passed Cross shared the thoughts and concerns efforts to move the point of regulation the Pipeline Safety Act reauthoriza- of the Kansas oil and gas industry with upstream toward the wellhead. KIOGA tion. While it goes further in regulating the Kansas Congressional Delegation President Edward Cross is a member of gathering (requiring leak surveys on and several other key federal policymak- the Independent Petroleum Association regulated gathering lines), the bill left ers. Cross explained that Kansas oil and of America (IPAA) Pipeline Safety Task out unregulated gathering. The latest gas producers already pay into a state Force. This IPAA task force met (via version allows for leak surveys as an plugging program to plug abandoned/ Zoom) and agreed to submit a letter alternative to advanced leak detection orphaned wells in Kansas. We are con- to PHMSA urging that they reconsider for Class 2,3, and 4 gathering lines. This cerned that federal funds allocated to the NOPR section pertaining to free gas is a positive step, in that reauthorization plug abandoned/orphaned wells could connections originating from production under a possible Democratic U.S. Senate cause the state government to see these and rural gathering facilities. PHMSA and/or President would most likely be federal funds as a surrogate for the fee has focused on farm taps as service more stringent. funds paid by Kansas oil and gas pro- lines. KIOGA joined with IPAA on June ducers to plug abandoned/orphaned 18th to offer comments to PHMSA. The KIOGA Federal Advocacy Strategy wells and sweep the fee funds paid by comments state in part: Kansas oil and gas producers to use for For producers, farm taps usually For much of something else. Federal funds allocated have provided access to a homeowner’s 2020, KIOGA to plug abandoned/orphan wells could property for an oil and gas lease or for President risk the fee funds the Kansas oil and gas a right of way to lay piping. In return, Edward Cross industry have been paying for decades. the homeowner usually would contract has been com- Several other oil and gas states too with a plumber to install the necessary municating weighed in. Ohio said they also have a equipment to receive the producer’s with key fed- state plugging fund but have only been gatherer’s gas off the tap. The gas is eral policymakers and administration able to spend about two-thirds of the often “free,” or the homeowner would offi cials. In 2020, Cross has met and/ funds available because they have a hard be allowed a specifi c volume of “free” or held Zoom meetings with U.S. Senate time getting the limited number of qual- gas, then pay for volumes taken above Majority Leader Mitch McConnell ifi ed contractors in Ohio to bid on the that amount. These were viewed as con- (R-KY), Senator Pat Roberts (R-KS), jobs. This case is true in Kansas as well. tractual arrangements that did not fall Senator John Barrasso (R-WY),

14 KIOGA Federal Advocacy Strategy Going Forward - KIOGA will continue to work with the Trump Administration and key members of Congress. KIOGA President Edward Cross is an executive board member of the Domestic Energy Producers Alliance (DEPA), board mem- ber of the Council for a Secure America Senator Jon Tester (D-MT), Senator (CSA), advisory board member of Bill Cassidy (R-LA), Senator Todd the U.S. Global Leadership Coalition Young (R-IN), Senator Jerry Moran (USGLC), committee member of the (R-KS), Senator John Hoeven (R-ND), Independent Petroleum Association of Senator Joe Donnelly (D-IN), Senator America (IPAA), and Kansas Associate Joe Manchin (D-WV), U.S. House Representative to the Interstate Oil & Minority Leader Kevin McCarthy gas Compact Commission (IOGCC). (R-CA), Representative Henry KIOGA works with our allies at DEPA, Cuellar (D-TX), Representative Doug IPAA, CSA, USGLC, IOGCC and others Collins (R-GA), Representative Steve to engage not only in advocacy, but also Watkins (R-KS), Representative Roger legal challenges. Marshall (R-KS), Representative Ron The relationships KIOGA has built Estes (R-KS), Representative Sharice over the last 11 years with several key Davids (D-KS), U.S. Energy Secretary Democrat and Republican federal poli- Dan Brouilette, U.S. Department of cymakers (over 350) puts us in a unique Interior Secretary David Bernhardt, position to educate federal policymak- EPA Administrator Andrew Wheeler, ers about the importance of prioritizing and the White House Offi ce of Political policies for getting and keeping our Affairs to discuss a variety of energy nation energy independent. We will dil- issues. KIOGA has provided credible igently work going forward for the rest information to defend against efforts of 2020 and into 2021 to consolidate to eliminate critical oil and gas tax relationships built over the last 11 years provisions, impose federal hydrau- to address both policy and regulatory lic fracturing oversight, Endangered reform challenges. Species Act abuses, impose emission regulations, and more.

Cross followed up the meetings with written correspondence providing addi- tional information on questions and concerns posed by policymakers and staffers.

15 U.S Secretary of State Michael R. Pompeo Speaks to KIOGA Members in Webinar Secretary of State Highlights Drilling Contractors (IADC) Texas Alliance of Energy Producers • Independent Petroleum Secretary Pompeo shared insights KIOGA’s series of Industry Association of America (IPAA) about how nations around the world Webinars • National Stripper Well are concerned about sourcing energy, Association (NSWA) namely oil and natural gas. He also With the cancellation of on-site discussed how advancements in U.S. events in the near future, KIOGA State Associations oil production over the last 15 years launched our new Let’s Talk About . . . • California Independent Petroleum has reshaped U.S. foreign relations series of industry webinars in August. Association (CIPA) and has made all the difference in the KIOGA is hosting regular webinars to • Eastern Kansas Oil & Gas bring our members informative content Association (EKOGA) world. Secretary Pompeo spent most of that will guide future business and policy • Illinois Oil & Gas Association his time during the webinar answering decision-making. (IOGA) questions from the virtual audience. We • Independent Oil & Gas were honored and delighted that U.S. Association of West Virginia Secretary of State Michael R. Pompeo (IOGA-WV) would take time from his busy sched- • Indiana Oil & Gas Association ule to talk to KIOGA membership. As (INOGA) expressed during the webinar, we are all • Kentucky Oil & Gas Association very proud of the work he is doing. (KOGA) • North Dakota Petroleum Council • Petroleum Alliance of Oklahoma

The highlight of our webinar series came on September 24th when U.S. Secretary of State Michael R. Pompeo engaged in a robust and very interest- ing discussion with KIOGA members in Watch for the a webinar hosted by KIOGA. We were “Let’s Talk About...” series at honored and thrilled to get time from kioga.org such a distinguished and busy man’s schedule. Over 210 folks participate in the webinar including folks from a num- ber of our allied state and national oil and gas associations including:

National Associations • Council for a Secure America (CSA) Picture by: • Domestic Energy Producers Francis Denning Alliance (DEPA) • International Association of

16 POWERING KANSAS PRODUCERS

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17 A Consequential Moment is at Hand A message from your KIOGA President, fuel production and use, restor- regulations. ing Obama-era policies that As we think about Edward Cross President Trump has rolled back. energy policy this elec- These attacks on the oil and gas tion season, we should industry are not only impractical, listen to American voters but also reckless. on the direction of our Increasing taxes and reg- nation’s energy policy. ulations results in fewer jobs A new poll released in because businesses spend their August 2020 found that resources on tax burdens and 64% of voters are “much regulatory compliance instead more likely” or “somewhat of job creation. When tax expen- more likely” to vote for a We stand at a critical juncture in ditures and regulatory costs candidate who “supports the life of our nation and our state. increase more than the real econ- policies that ensure con- We face what could be a very conse- omy, the results are destructive sumers continue to have quential election cycle. to economic growth. The wrong access to oil and natural Due to political agendas target- governmental policy framework gas produced in the U.S.” ing oil and natural gas production, generates wrong policy and this Looking ahead, survey federal and state debate over taxes, is what we are seeing with the respondents saw a major regulatory issues, and energy policy Biden Plan and Democrat Party role for oil and natural gas often puts the oil and gas industry in energy policy. in America’s future energy the crosshairs. In addition, activist That’s not only bad politics; mix with 73% saying the groups across Kansas and the nation it’s bad policy and it is an unnec- fuels will play a very sig- continue to work to obstruct energy essary drag on a still shaky nificant role in meeting development under a false belief that economy. This is an example energy needs 20 years oil and gas production and use are of what happens when political from now. incompatible with environmental orthodoxy drives energy policy The upcoming elections progress. Mischaracterizing oil and and highlights the need to get our could be a very conse- gas activity has been and continues nation’s energy policy right. quential moment for our to be a common practice and strat- Over the last four years, the future. In a political cli- egy for these groups. Trump Administration has dis- mate rife with hyperbolic On July 14th, former Vice mantled many of the failed rhetoric, unsubstantiated President Joe Biden released his energy policies of the previous claims, and naïve pleas energy and environment plan that administration and unleashed to keep it in the ground included an enormously damaging America’s oil and natural gas calling oil the “fuel of and historically large tax increase. producers from crippling fed- the past”, the choices for The Biden Plan adopts liberal cli- eral regulations. The Trump the American people are mate change priorities and would Administration energy policy is becoming clear. cost $16 trillion – or about $55,000 to achieve energy dominance Inexpensive energy for every American. through responsible energy is necessary for eco- The Democrat Party Energy production, which entails nomic advancement by Platform calls for an end to fossil smart regulations, not punitive the world’s poor and

18 America’s energy progress – deliver- moral, intellectual, and strate- ing affordable, reliable, and cleaner gic clarity and courage from our energy to all Americans while also policymakers. leading the world in emission reduc- Every stakeholder in the U.S. tions. The way the American people economy must mobilize in defense decide to face our future energy of energy, technology, and manu- challenges may be one of the most facturing independence. American important events in the 21st century. energy makes it all possible. How for recovery from the staggering American energy policy is not effectively we mobilize between now economic effects of COVID-19. a Republican issue or a Democrat and the election will largely deter- Ideological opposition to fossil fuels issue. It is an American pros- mine whether the U.S. and our allies is an anti-human stance that views perity and leadership issue. The are a beacon for energy indepen- ordinary people not as problem-solv- American people want, expect, and dence and wealth or are relegated to ing sources of ingenuity but as only deserve elected leaders who will energy dependence and poverty. mouths to feed, producing environ- place what’s best for our state and Future generations are looking to mental damage. nation’s economy and energy future us to get our nation’s energy policy At a time when energy and the above partisan ideology and political right. They are counting on us to economy are two of the most posturing. leave them a country that is second important issues facing everyday I strongly believe that the to none in energy production, secu- citizens, Americans are beginning American people need and want rity, and economic prosperity. to realize that we need to build on

19 Kansas State Elections Important for Oil & Gas Producers - The Kansas Other Key Senate Races KIOGA Engaged in 2020 Chamber and other conservative inter- • District 10 -- Senator Mike Election Cycle ests targeted several races and were Thompson (R-Shawnee), a successful. There was plenty of money conservative appointed in supporting moderate candidates too, January to replace Mary The 2020 election cycle is upon us. with highway contractors, wind energy Pilcher-Cook, easily held off New candidates, election turnout, and companies and other interests investing a challenge by Representative the political leaning of the Kansas leg- heavily. The spending cycle is expected Tom Cox (R-Shawnee) 72%-27%. islature all make for a very intriguing to be repeated for the November Thompson will face Shawnee election cycle. The Kansas primary elections. City Councilwoman Lindsey election was held on August 4th and Senate Utilities Committee - Three Constance in one of the most- the general election will be November members of the Utilities Committee watched races in November. 3rd. All and House of were unopposed for reelection and will In addition to general partisan Representatives seats are up for elec- be returning to the Senate next year: dynamics, Thompson is con- tion this year. There are 40 seats in Elaine Bowers (R-Concordia), Marci sidered a climate change denier the Kansas Senate and 125 seats in the Francisco (D-Lawrence) and Rick while Constance co-founded Kansas House of Representatives. Wilborn (R-McPherson). Three commit- Climate Action KC, a bistate tee members had competitive primaries: group working to address climate Kansas State Elections • District 11 - Senator change. KIOGA encouraged sup- The Kansas primary elec- (R-Overland Park), a moderate, port for Thompson. tions were lost to House member Kellie • District 14 -- Senator Bruce held August Warren (R-Leawood) 63%-35%. Givens (R-El Dorado), mostly a 4th. Several Warren will face former State moderate, lost to former incumbents Representative Joy Koesten in • mayor Michael Fagg 54%-36%. lost, includ- November in a very competi- There is no general election. ing moderate tive race. Warren beat Koesten, KIOGA encouraged support Senators Berger, then a Republican, in the 2018 • for Fagg. Givens, Hardy, Taylor, Goddard, and primary. KIOGA encouraged • District 15 -- Senator Dan Skubal, along with conservative Senator support for Warren. Goddard (R-Parsons), mostly a Rucker. In the House, Representatives • District 23 - Senator Rob Olson moderate, lost to House mem- Karleskint, Capps, Moore, and Dierks (R-Olathe), a conservative, ber Virgil Peck by 41 votes in a lost. beat Chris Lingquist 57%-41%. rematch from the 2016 primary. The conservative near sweep in the Olson will face Wendy Budetti in There is no Senate primaries positions Senator Ty November. KIOGA encouraged • general election. KIOGA encour- Masterson well for the Senate President support for Olson. aged support for Goddard. role, helping KIOGA maintain strong • District 24 – Senator Randall • District 33 -- Senator Mary Jo Senate support for our issues. But there Hardy (R-Salina), a moderate, lost Taylor (R-Stafford), a moderate, are several key races in November that to House member JR lost to House member Alicia could still tip the balance. • Claeys 63%-37%. There is no Straub 60%-40%. There is no KIOGA supported 14 candidates in general election. KIOGA encour- general election. KIOGA encour- the primary, prevailing in 12 of those aged support for Claeys. aged support for Straub. races. Overall it was a successful elec- The remaining members of the • District 34 -- Senator tion for KIOGA. committee have general elections in (R-Hutchinson), a moderate, November. lost to Mark Steffen 57%-43%.

20 • Other Key House Races KIOGA Legislative Contact • District 8 -- Representative Chris Volunteer Program – Election season Croft (R-Overland Park) eas- is in full swing. Candidates are unveil- ily beat Clay Norkey 69%-29%. ing their policies and priorities. As the Norkey had amassed signifi- voice of the Kansas petroleum industry, cant community support. Croft KIOGA is engaged. was first elected in 2018, beat- KIOGA implemented our Legislative ing a popular incumbent in the Contact Volunteer Program to provide Steffen will face Shanna Henry in primary. There is no general fi nancial support to pro-business and pro November. KIOGA encouraged election. KIOGA encouraged oil and gas political candidates. Thanks support for Steffen. support for Croft. to each of you who are participating in • District 39 -- Senator John Doll • District 20 – Representative Jan the KIOGA legislative contact volun- (R-Garden City), a moderate, beat Kessinger (R-Overland Park) teer program. Our program is designed former County Commissioner lost 56%-41% to conservative to provide Lon Pishny 57%-43%. Doll challenger Jane Dirks, who ran financial angered many when he became on Right to Life issues. Dirks support to an Independent to run with will have a very competitive pro oil and Greg Orman for Governor in general election against recent- gas can- 2018, then re-registered as a ly-turned-Democrat Mari-Lynn didates in Republican, but he remains pop- Poskin. KIOGA encouraged sup- tight races ular. There is no general election. port for Dirks. where fund- KIOGA encouraged support for • District 59 -- House Speaker Pro ing makes Pishny. Tem (R-Ottawa) a difference – candidates in leadership Overall in the Senate, conserva- beat former House Majority roles – candidates on committees where tives picked up fi ve seats, but there are Leader Sheri Weber 70%-30%. oil and gas concerns are most often several races in November where con- He’ll face Caren Rugg in the gen- examined (tax, energy, environmental) servatives face signifi cant challenges. eral. KIOGA encouraged support – and legislative friends who espouse for Finch. our positions during caucuses when oil House Utilities Committee - Two • District 93 -- Representative J.C. and gas issues are discussed between members of the Utilities Committee Moore (R-Haysville), elected legislators. KIOGA looks at a number were unopposed: Emil Bergquist (R-Park in 2018 in an upset, lost his of factors when evaluating candidates. City) and Randy Garber (R-Sabetha). race to Brian Bergkamp 81%- We look beyond fl oor votes and watch Two members ran for the Senate: Kellie 11%. There is no general how they vote in committees on energy Warren (R-Leawood) ran for Senate election. KIOGA encouraged issues. Also, personal visits help deter- District 11 and won, and Tom Cox support for Bergkamp. mine candidates position on important (R-Shawnee) ran for Senate District 10 KIOGA is now poised to be in a energy issues. Our program is support- and lost. Representative very strong position for the 2020 leg- ing 20 Kansas Senate candidates, 38 (R-Spivey) retired from the Legislature. islative session. But our work is not Kansas House candidates, 4 U.S. House Four members had primaries, although done. We still have a number of races candidates, and 1 U.S. Senate candi- most were not as serious as the Senate in November’s general election where date. KIOGA President Edward Cross primaries: legislators who support oil and gas and has participated in several “Meet and • District 5 -- Rep. Mark Samsel business are being challenged. KIOGA Greet” and campaign events over the (R-Wellsville) beat Mark Powls of is engaged in these campaigns. past weeks to meet with Republican and Garnett. Samsel will face Roger Several groups who oppose oil and Democrat candidates and learn more Sims in the general. The district is natural gas development provide fi nan- about their positions and understanding safely Republican. cial support to political candidates who of oil and gas issues. KIOGA uses these • District 97 -- Rep. Nick Hoheisel either support or are open to supporting opportunities to learn more about can- (R-Wichita) beat Michael Walker anti-oil and gas development ideas. We didates and interact to educate them on 73%-27%. He’ll face Kim Webb must support those candidates who lis- issues of importance to our industry. in November, although the dis- ten, understand, and support the needs trict is safely Republican. KIOGA and concerns of the independent oil and encouraged support for Hoheisel. gas industry.

21 Vote in this Election - It is Essential! Energy Future at Republican seats to take effective con- Democrat and Republican Energy trol of the Senate. Given that Democrat Platforms Crossroads in 2020 Leader Schumer is signaling openness Elections to eliminating the fi libuster for ordinary legislation, that means if Democrats run the table, we should anticipate they will jam through the progressive agenda in the same way they did in the first two years of the Obama Administration when Democrats controlled the White House and Congress. That means the Democrat Party Energy Platform Green New Deal would most likely – The Democrat Party Energy Platform We stand at a critical juncture in become reality. This is the stated and calls for an end to fossil fuel production the life of our nation and our state. demonstrated position of the Democrat and use. These attacks on the oil and We face what could be a very conse- leadership and rank and fi le members. gas industry are not only impractical, but quential election cycle that could have Biden has signed off on a joint policy also reckless. It appears the Democrat profound impact on our industry. The platform that commits to Green New party is out-of-touch with working peo- nation’s energy future is at a crossroad Deal objectives. House Democrats ple and the economy. Many scientists, in the 2020 elections. In the U.S. Senate, have introduced transportation, energy, policymakers from both parties, and 35 seats are up for election which tax and spending legislation that would common sense have discredited the includes 23 seats held by Republicans implement Green New Deal policy, tax ideas proposed by the candidates. and 12 held by Democrats. In the U.S. and spending objectives. The Democrat party energy policy House, all 435 seats are up for election. baseline includes restoring Obama-era Democrats currently hold 232 seats and policies that President Donald Trump Republicans hold 198 seats. The current has rolled back and re-orienting federal assumption is that Democrats will hold taxes and spending toward renewable their majority in the House. energy and away from fossil fuels. Democrats have seven proposals that Democrat and Republican Parties represent the common ground among Position Themselves in Advance of This doesn’t have to be reality. Every liberals on fi ghting climate change. The General Election stakeholder in the U.S. economy must seven Democratic ideas for fi ghting cli- mobilize in defense of energy, technol- mate change include: Both parties (Democrat and ogy and manufacturing independence. • Rejoin the Paris Climate Accord Republican) have been positioning American energy makes it all possible. - The Paris climate agreement is themselves as we head into the general How effectively we mobilize between a non-binding resolution signed election. While President Trump and now and the election will largely deter- by 195 countries to reduce green- Congressional Republicans are doubling mine whether the U.S. and our allies are house gas emissions. In 2017, down on U.S. energy independence, a beacon for energy independence and Trump announced that he would House Congressional Democrats and wealth or are relegated to energy depen- withdraw from the accord, effec- Joe Biden are going all-in on the anti-fos- dence and poverty. tive November 2020. Democratic sil fuel – Green New Deal agenda. Keep candidates have universally in mind that if Biden wins the White agreed that the U.S. should rejoin House, Democrats only need to net 3 the Paris climate deal.

22 “vague”. The U.S. oil and gas industry overreaching Obama regula- currently supports 10 million good-pay- tions to reduce greenhouse ing American jobs, provides $714 billion gases. Several Democratic con- in labor income and contributes more tenders have proposed setting than $1 trillion to our GDP. a far-reaching goal of net-zero To be clear, parts of Biden’s energy emissions by 2050 or earlier. plan are sensible. It does not include a • Boost Spending on Clean Energy ban on hydraulic fracturing, the process Research – President Trump rec- used to extract oil and natural gas from • End Fossil Fuel Tax Provisions ognized the importance of energy dense rock formations. But it’s also clear – Federal government tax pro- policy as a driver of the American that a massive increase in renewable visions for fossil-fuel exploration economy & national security. energy is a central part of Biden’s plan. and production (like percentage The Trump administration’s for- Biden’s blueprint also calls for the depletion and intangible drill- ward-looking energy policies are creation of a climate conservation ing costs) are estimated to be market-based and refrain from corps modeled after the work relief pro- worth about $4.6 billion. While picking winners and losers in gram President Franklin D. Roosevelt these provisions are cost-recov- the nation’s future energy profi le. created during the Great Depression. ery mechanisms used mostly by Several Democratic candidates The plan also embraces Senator Chuck small businesses, Democratic want to dramatically expand Schumer’s (D-NY) plan to rapidly turn candidates largely support scrap- renewable energy subsidies and over the nation’s automobile fl eet, with ping the fossil fuel tax provisions. mandates. taxpayers enticed by cash vouchers • Halt New Drilling on Federal to trade in their gas-powered cars for Land - The Trump administration Biden Campaign Releases plug-in electric, hybrid, or hydrogen fuel attempted unsuccessfully to over- Energy Plan - On July 14th, former cell cars. The initiative also would steer turn an Obama administration Vice President Joe Biden released an tens of billions toward building charging moratorium on new coal min- updated energy and environment plan infrastructure. ing leases on federal land. Most that included an enormously damaging Americans who have observed Democratic candidates support and historically large tax increase. The stay-at-home orders or quarantined extending it to new oil & natural plan calls for setting a 100% clean-elec- themselves at home this year need to gas leases. tricity standard by 2035 and investing $2 look around and think about what their • Reinstate the Clean Power Plan trillion over four years on clean energy. lives would be like if they no longer had - Unveiled in 2015, the Obama The Biden plan would cost $16 trillion ample and affordable power, or natural administration’s Clean Power – or about $55,000 for every American. gas to use to cook their meals. Because, Plan sought to cut carbon pollu- A nationwide survey conducted in May make no mistake about it, that is what tion from power plants by setting 2020 indicated voters don’t place a high Biden is really proposing. unattainable standards that indi- priority on climate change. Moreover, What Harris brings to the Biden vidual states then have to meet. when asked how much they are will- Campaign – In picking Senator Kamala This year, the Trump administra- ing to pay to address climate change, Harris as his running mate for his third tion replaced it with a much more the median response was consistently run for the White House, Joe Biden ele- reasonable Affordable Clean between $25 and $50 a year. vated the California Energy rule. Most Democratic Democratic Democrat as a candidates have called for rein- presidential potential leader on stating the Obama standards. nominee Joe climate policy. The • Pay Farmers to Reduce Emissions Biden’s new plan selection also posi- – Most Democratic candidates marks a clear tions her as the de have suggested paying farmers shift toward lib- facto front- runner to change farming practices to eral’s climate to succeed Biden, reduce carbon footprints. change priorities and cutting the use of 77, who would become the nation’s old- • Set a Goal of Net-Zero fossil fuels. Biden said his plan would est president if he were to be elected. Emissions by 2050 - The Trump create 10 million jobs. But even the Harris brings a record that has pleased Administration has rolled New York Times noted that the plan’s back many burdensome and job-creation claims were “rosy” and continued on Page 24 23 From Page 23 Vote is essential Continued Energy Future

most climate activists, though her vision lifetime costs from wasteful, expensive agencies to identify at least two gets more praise than her accomplish- regulations. regulations to repeal when pro- ments. She is a far-left extremist whom President Trump’s accomplishments posing new rules. Democrats are trying to redefine as a in his first term are more impressive, • Rollback of the flawed moderate. In the Senate Harris was an extensive, and material than most Obama-era methane emission original co-sponsor of the Green new Presidents who have served two terms. regulations. Deal. She recently introduced environ- His achievements with respect to mental justice legislation. During her energy, the environment, and regula- Trump’s 2nd Term Energy Plan presidential campaign, Harris vowed to tions are especially noteworthy. These – Fossil fuels remain a big deal for ban fracking, spend $10 trillion on cli- accomplishments include: President Trump who said he would mate programs, reach carbon neutrality • Announcing the United States’ continue to enthusiastically support his for electricity by 2030 and eliminate intent to withdraw from the America-fi rst agenda. Trump’s fi rst term transportation emissions by 2035, all United Nations’ Paris Agreement focused on trashing Obama-era regu- positions to Biden’s left. But Harris also on climate change lations. The next four years will likely vacillated on health care. She supported • Finalizing the Affordable Clean focus on defending policy changes and “Medicare for All” before advocating a Energy (ACE) rule, which regulatory overhauls in court. He would role for commercial health insurance. replaces the Obama administra- continue his push to get the U.S. out of That fl ip/fl op fueled suspicions among tion’s Clean Power Plan (CPP) the Paris climate change accord. Energy some liberals that her policies were • Implementing the Safer Secretary Dan Brouilette said the U.S. borne of expediency rather than ideo- Affordable Fuel Effi cient (SAFE) under Trump would seek to “maintain logical commitment. Vehicles Rule our posture as the number 1 producer • Revoking the Obama administra- of oil and gas.” President Trump’s Energy tion’s move to “allow California Accomplishments – Over the last four to set fuel mandates and environ- Voters Support Oil & Natural Gas years, President Trump has repeatedly mental policy” for the rest of the emphasized his commitment to mak- country A new poll released in late August ing America a dominant player in the • Approving the Keystone XL 2020 shows that voters across the coun- world energy markets. This rhetoric has pipeline try are ready to back candidates who underpinned a set of policies designed • Signing an executive order expe- support oil and natural gas development to deregulate and encourage oil and gas diting construction permits for and that they believe this American- activity. pipelines and other infrastructure made energy has been vital in the The Trump projects economic recovery from the COVID-19 administration has • Overhauling the Waters of the pandemic. dismantled many United States rule The poll released by the American of the failed energy • Making the Clean Water Act Petroleum Institute and conducted by policies of the pre- certifi cation process more trans- Morning Consult, a non-partisan survey vious administration parent and effi cient for pipeline fi rm - found that 64% of respondents are and unleashed infrastructure projects “much more likely” or “somewhat more America’s oil, nat- • Leading efforts to modernize the likely” to vote for a candidate who “sup- ural gas producers National Environmental Policy ports policies that ensure consumers from crippling federal regulations. Act (NEPA) continue to have access to natural gas This regulatory rollback has saved • Establishing the “one in, two and oil produced in the U.S.” Americans from more than $8 billion in out” directive requiring federal This strong support for oil and

24 protective equipment that are critical should use those principles as the to healthcare providers and patients.” foundation for the energy policy deci- Looking ahead, respondents see a sions. We must make it clear to our major role for oil and natural gas in elected leaders that energy policy America’s future energy mix. Seventy- should not be a partisan talking point three percent said the fuels will play “a because it is too important and funda- very signifi cant role” or “somewhat” mental to our way of life. significant role” in meeting energy “We stand at a crossroads for natural gas is the big takeaway head- needs 20 years from now. the nation’s energy future and the ing into November as the poll surveyed choices policymakers make in 2020 voters in 12 different swing states Nation’s Energy Future at Cross and beyond will determine whether including Colorado, New Mexico, Road we build on America’s energy prog- Ohio, Pennsylvania, and Texas. Those ress or shift to foreign energy sources energy-producing states will help As we look ahead to November’s with lower environmental standards,” decide whether Donald Trump or Joe elections and beyond, we need energy said KIOGA President Edward Cross. Biden wins the White House and if policy focused on facts and reality, not “You can’t address the risks of climate Republicans or Democrats take control of Congress. political ideology and hyperbole. We change without America’s oil and nat- need a national energy policy based ural gas industry, which continues to on science, the free market, and entre- lead the world in emissions reductions preneurial spirit. Those who act on while delivering affordable, reliable, our behalf at all levels of government and cleaner energy to all American.”

In addition to supporting pro-oil and natural gas candidates, several ques- tions revealed just how important these fuels are to American consumers and workers. Nearly 60% of respon- dents said it was “very” or “extremely important” that the U.S. continues to improve how to get oil and natural gas to make it more effi cient and 82% said that oil and natural gas provides “a great deal of value” or “some value” to their lives. Another 75% said they «strongly agree» or «somewhat agree» that oil and natural gas are «essential to a modern lifestyle.» A majority of respondents also stated they value the contribution of oil and natural gas in helping the econ- omy bounce back from the COVID-19 pandemic with 63% saying it has a “very important” or “somewhat important” role, while 66% agreed that oil and natural gas products byprod- ucts “help make medical devices and

25 KIOGA Actively Engaged During Legislative Interim it with the Kansas Division of Budget, rules and regulations does an excel- KIOGA Testifi es before KLRD, 17 federal policymakers, the lent job of protecting the environment Special Committ ee on White House, the entire Kansas congres- and encouraging compliance. KIOGA Economic Recovery sional delegation, and others. On August encouraged the Special Committee on 6th, the Kansas Interim Legislative Economic Recovery to include in their Special Committee on Economic Recovery, recommendations that KCC oil and gas asked Cross to make a presentation fee schedules and penalty amounts stay before the Committee. The Special where they are and not be increased in Committee on Economic Recovery met the near term as the industry recovers August 12th and 13th to hear from a from the demand destruction created by broad array of representatives of sec- the pandemic and the concurrent global Since the COVID-19 crisis began last tors of the Kansas economy regarding crude oil supply shock. KIOGA also March, KIOGA has been and continues the impact of the pandemic and asso- encouraged the committee to include a to stay engaged providing updates and ciated shutdowns and restrictions on recommendation that any evaluation of resources important for the Kansas oil their sector, as well as receiving recom- future KCC oil and gas industry fee and/ and gas industry. mendations for policy changes in light or penalty changes follow the rule of law of the pandemic. Cross provided com- and proceed through the regulatory rule KIOGA Testifies Before Kansas ments to the committee based on the making process that allows participation Interim Legislative Special Crude Oil Market Dynamic Challenges by affected stakeholders and not pro- Committee on Economic Recovery white paper he prepared. In addition mulgated through Agency orders that to comments from Cross on the oil and bypass the rulemaking process. KIOGA gas sector, the Special Committee heard President from representatives from the Financial KIOGA Legislative Interim Edward Services sector, Insurance sector, agri- Actions Cross culture sector, health care sector, retail received and real estate development sector, Since the COVID-19 crisis began last inquiries restaurants and hospitality sector, and March, KIOGA has been and continues from the utilities sector. to stay engaged providing updates and Kansas On September 11th, Cross provided resources important for the Kansas oil Division the Special Committee some recommen- and gas industry. In addition to pro- of Budget dations for policy changes for committee viding input to the Kansas Legislative and Kansas consideration. KIOGA expressed that Legislative the Kansas oil and gas industry pay sig- Research nifi cant fees to the Kansas Corporation Department Commission (KCC). We support the (KLRD) state regulatory process, but do not and several think fees and penalties should increase. federal pol- Cross told the committee that fees Interim Special Committee on Economic icymakers and penalties should be specific to Recovery, Some of KIOGA’s actions this for a sum- Kansas and to specifi c circumstances. year include: mary report Penalties should be specific to indi- • Working with the Kansas on current crude oil market dynamics vidual circumstances and designed to Department of Revenue Property and impacts of the pandemic on the protect the environment and adequate Valuation Division (PVD) to small businesses that make up the inde- to encourage compliance. KCC com- secure an amended crude oil pendent oil and gas industry. Cross pliance records confirm the current price schedule for 2020 adjust- prepared a report titled Crude Oil penalty schedule established through ing the crude oil price bulletin for Market Dynamic Challenges and shared 26 2020 to $23 from the $46 set in January. • Working with Kansas Governor to ensure that petroleum drilling, extraction, production, processing, refi ning, terminal operations, transpor- CONTRACTORS AND PRODUCERS tation, onshore maintenance operations, and oil and gas emer- 250 N. Water, Suite 300, Wichita, KS 67202 gency response workers were classifi ed as essential workers in 316-267-3241 Governor Kelly’s Kansas Essential Serving the Oil and Gas Industry Since 1926 Functions Framework (KEFF). • Working with Kansas electric cooperatives to consider actions to provide electric rate relief in these critical times. While not successful to date, we continue our efforts to seek electric rate relief. • Engaged in confirmation over- sight hearing for new KCC Commissioner Andrew French to learn more about French’s posi- tion on oil and gas environmental issues. • Meeting with KCC Chair Susan Duffy in February and again in July to listen to her take on the direction of the KCC and discuss several ongoing issues important to the Kansas oil and gas indus- try including abandoned wells, Arbuckle injection/seismicity issues, emission issues, electric rate issues, carbon capture issues, and more. • Launched KIOGA’s Let’s Talk About . . . webinar series to provide KIOGA members educa- tional opportunities on important issues, regulations, and topics of interest. KIOGA is hosting reg- ular webinars to bring members informative content that will guide future business and policy decision-making. 27 EPA Releases Methane Rule Revisions Appeals Court Issues the wellsite falls below 15 barrels/day September 14th and 15th respectively, or 90 mcfd. While this change will have the EPA published the policy rule and Temporary Stay of New little effect on the large hydraulically technical rule for ‹Emission Standards Methane Rules - U.S. fractured shale wells that have 15 to for New, Reconstructed, and Modifi ed District Court Judge 20 wells on the site, it will lift an unrea- Sources› – often referred to as the EPA’s Remands Migratory Bird sonable burden from the small business changes to the agency’s methane rules wellsites where there are only one or for oil and natural gas. Environmental two wells per site. groups and a coalition of 20 states and One of KIOGA’s top federal pri- four municipalities, led by California, orities was EPA’s ongoing efforts to sued the EPA arguing that the rules rewrite methane emission regulations violate the Clean Air Act and that the released by the Obama administration agency must reinstate methane emis- in 2016. KIOGA has long argued that sions standards issued by the Obama the basis for the implementation of the administration. A group of environ- In a move touted by the rules in the Obama administration was mentalists have also sought a stay of Environmental Protection Agency (EPA) improper, as the EPA made none of the the policy and a summary judgment as signifi cantly reducing the regulatory required statutory fi ndings before doing to vacate it. The appeals court issued and cost burden to U.S. oil and gas so. KIOGA also successfully pushed for a temporary stay on the policy rule on operators, the EPA released on August an exclusion for low-volume wells in the September 17th requiring responses 13th two final rules that complete the new rule and those provisions made the from EPA and others. While it is unlikely Administration’s efforts to roll back fi nal cut as well. KIOGA’s full summary the court would take action to summar- the Obama-era methane regulations. of the new rules can be found on our ily vacate the policy rule, the policy rule The Kansas Independent Oil & Gas website at www.kioga.org. may be more vulnerable than the tech- Association (KIOGA) commended the On August 19th, nical rule. Responses from the EPA and EPA for the corrections it made to the air KIOGA President others are due by the end of September. emissions regulations affecting oil and Edward Cross talked natural gas operations. with EPA Administrator Background - EPA’s August 13th The fi nalized version of the two rules Andrew Wheeler ruling to change the regulated emis- will make it simpler and less costly for through a Zoom meet- sion from methane to volatile organic oil and gas producers to comply with the ing. Cross commended compounds is entirely appropriate. It Clean Air Act New Source Performance Wheeler and the EPA corrects what was a political policy Standards (NSPS). The two parts of the for the corrections they made to the air decision instead of a technical one. It rulemaking are (1) a policy package, emission regulations and the modifi ca- prevents the use of the federal reg- and (2) a set of technical amendments. tions they made to the fl awed methane ulatory process from shutting down Combined, the change to the NSPS rules provisions promulgated under the hundreds of thousands of small busi- is likely to save the industry hundreds of Obama-era EPA. Wheeler was grateful ness, low production oil and natural millions of dollars in compliance costs for our comments and said he only does gas wells without information to sup- each year. what he has legal justifi cation to do. port such an action. For oil and natural The finalized revision will allow a gas production operations, VOC and wellsite to be excluded from the burden- DC Court Issues Stay of New methane are emitted together and some fugitive emissions program when EPA methane Emissions Rule - On the equipment that manages one also

28 exemption. Going Forward – KIOGA has Migratory Bird Protections

On August 12th, the U.S. District Court for the Southern District of New York struck down the Interior Department’s 2017 interpretation of the Migratory Bird Treaty Act (MBTA) that manages the other. removed penalties for activities or haz- EPA’s decision to regulate methane ards, such as power line electrocutions, in 2016 was a political decision driven that result in the accidental taking of a by environmental activists and lobbying bird. groups like the Environmental Defense standing in the methane case before The Trump Administration was Fund. These groups demanded meth- the Appeals Court and will be submit- seeking to make changes that would ane regulation for a single purpose ting comments in support of the EPA’s bring the MBTA back into line with the — to use a little utilized provision of the actions and to counter the hyperbolic original intent of the law. KIOGA sub- Clean Air Act (Section 111(d)) to regu- characterizations of these regulatory mitted comments to the Department of late low production existing wells out of changes from environmental activ- Interior (DOI) on July 20th underscor- business. ist groups and Democrat Attorney ing and supporting the important step Because 111(d) uses new source Generals. In addition, KIOGA joined DOI sought to clarify the legal role of Best Systems of Emissions Reductions Kansas to a group of states (MI, KS, IN, the MBTA to support species protec- technology for existing sources instead IL, WV, KY) that the U.S. Department tion while limiting inappropriate legal of Reasonably Available Control of Energy was looking to conduct fi eld impacts on otherwise lawful activities. Technology like other sections of the measurements of methane emissions Interior Solicitor General Daniel Act, these groups saw 111(d) as a and volatile organic compounds (VOC) Jorjani wrote in a 2017 legal opinion pathway to require the cost ineffective from marginal wells and production site that “[i]nterpreting the MBTA to apply Subpart OOOOa fugitive emissions tank facilities. The fi eld measurements to incidental or accidental actions hangs requirements to push low production are necessary to counter the argument the sword of Damocles over a host of wells to shut down. presented by environmental groups otherwise lawful and productive actions. KIOGA President Edward Cross sub- that marginal wells are super emitters. “ mitted comments on behalf of KIOGA Measurements were taken in Kansas Judge Valerie Caproni, an Obama to EPA in November 2019 supporting in December 2019. Preliminary results appointee, scrapped the Jorjani opinion the EPA’s proposal to change the reg- from fi eld measurements of VOC’s and and remanded the issue to Interior. ulated emission for oil and gas from methane emissions from marginal wells “Yesterday’s opinion undermines a methane back to VOC. We also joined and tank facility sites in KS, WV, KY, IN commonsense interpretation of the comments submitted in November 2019 found no quantifiable or measurable law and runs contrary to recent efforts, by our industry methane litigation coa- emissions from wells or tank facilities. shared across the political spectrum, to lition. The coalition comments were Additional DOE funding has been decriminalize unintentional conduct,” legal intensive. Cross met and discussed secured and plans are made to con- said DOI spokesman Conner Swanson. our comments with EPA Administrator duct a second fi eld campaign, originally Andrew Wheeler in late 2019 and he scheduled to begin in April 2020 in the was pleased that KIOGA would submit Permian in Texas and Anadarko basin the comments. KIOGA’s comments (including western Kansas). However, complemented the legal intensive com- due to the COVID-19 pandemic, the sec- ments with technical support and cost ond fi eld campaign has been postponed. of compliance information. KIOGA’s It is hoped that the second campaign submitted comments also gave KIOGA can be completed before the end of standing and build a solid position 2020 and the fi nal report ready by early for reinstituting a low production well 2021.

29 Making an Impact KIOGA Continues Next efforts are proactive, forward-looking The KIOGA efforts. The Association has worked to newsletter con- Step to Raising Energy develop salient messages and thorough, tinues to be a Awareness Program well-prepared materials to counter nationally recognized threats and attacks to the independent and industry-lead- These are critical times for the oil and oil and natural gas industry. ing communication gas industry, economically and polit- tool. KIOGA has ically. An informed public has never KIOGA Recognized Nationally received many pos- been more necessary. Leading the as a Leader in Raising Energy itive endorsements way for the Kansas oil and gas indus- Awareness from members, other try in Kansas, Topeka, Washington, the oil and gas groups, media, and the public, KIOGA continues KIOGA President Edward Cross national publications, to serve as the primary source of infor- authored and published articles about and profession- mation on issues ranging from oil and the need for energy awareness ini- als from across the gas taxation, environmental/regulatory tiatives. These articles and papers nation. issues, economic impact, energy policy, appeared in publications across the and more. nation including World Oil magazine and Some comments When our the American Oil & Gas Reporter. Cross KIOGA has received industry is has also made presentations before in the last few attacked in national groups including the Interstate months include: media, by activ- Oil & Gas Compact Commission “Your newsletter is ist groups, or (IOGCC) on the development of effec- very informative and others, KIOGA tive energy awareness campaigns easy to comprehend. stands ready It is about the only to respond. source I now read to stay current.” KIOGA has developed fact sheets, “Your newsletter is excellent! I consider it talking points, issue briefs, press kits, and as my number one resource for keeping up industry information on current and rel- with federal and other issues.” evant energy and industry topics. Major KIOGA’s public information efforts Kansas media outlets, policymakers, and expanded in 2019-2020 to highlight many public groups depend on KIOGA’s the many different and important ways expertise and explanations and turn to oil and gas benefi t people’s lives. Our KIOGA as the leading oil and gas indus- messages are designed to illustrate the try news source in Kansas. central role oil and gas play in spark- Included in KIOGA’s fact sheets and ing invention, advancing technological messages are information that com- breakthroughs, and enabling a modern municates how the independent oil quality of life. and natural gas industry cares and addresses people’s needs and concerns. Getting the Message Out We illustrate how responsibility is an integral part of industry’s decisions and KIOGA is currently using editori- considerations. als, white papers, webinars, and Zoom KIOGA’s public information initiatives opportunities to get our message out.

30 provided interviews to KSN and KWCH The Center for Economic 12 in Wichita. Former KIOGA Chairman Development and Business Research Nick Powell and KIOGA President at Wichita State University has asked Edward Cross provided comments on KIOGA President Edward Cross to write the oil market situation for an article in an article summarizing Kansas oil and the Sentinel. Eagle Communications gas industry economic impact and fore- in Hays, Kansas ran an interview with cast going forward for their 2021 Kansas KIOGA President Edward Cross on the Economic Outlook publication. KIOGA President Edward Cross has Gary Shorman Forward Ever program in The Energy Education Partnership, published several editorials, articles, and June. Finally, former KIOGA Chairman Inc. (EEPI), a white papers in media across Kansas Dick Schremmer was interviewed by non-profit corpo- and elsewhere in 2020 including: the London Financial Times in July for rate organization • We’ve been through tough times a story about the EPA’s methane rules. consisting of rep- before; resentatives appointed to serve on • Tumultuous Times – Rapid the Interstate Oil & Gas Compact Transition from Economic Commission (IOGCC) is working to Growth to Decline; develop programs for state regulatory • Crisis brings oil, gas challenges fi eld inspector education and training. into focus; KIOGA President Edward Cross serves • A much needed injection of truth; as Vice Chair of the EEPI. Cross shared • What is our energy future? several papers and presentations on • Crude Oil Market Dynamics basic oil and gas operations with the EEPI group to help develop a field inspector training program. As the debate around oil and natural gas production continues to resonate around the country, KIOGA continues our vigorous campaign to provide fact- based scientific information to inform policymakers and the public about the economic, environmental, and social benefi ts of safe and responsible oil and natural gas development. Going Forward - When it is safe and COVID-19 restrictions are relaxed, KIOGA has several speaking engage- ments scheduled with the Dwight D. Eisenhower Excellence in Public Service Series in Abilene, the KIOGA in the News – Over the last Vanguard Club in Kansas City, and several months, several KIOGA mem- the U.S. Global Leadership Coalition bers engaged media to talk about oil (USGLC) State Leaders Summit and prices, COVID-19 impacts, and more. more. KIOGA Chairman David Bleakley and former KIOGA Chairman Ken White provided comments on the oil market situation for an article that appeared in the Topeka Capital-Journal. Former KIOGA Chairmen Dick Schremmer and Ken White as well as KIOGA South/Central Vice Chair Alan Banta

31 Congressman Ron Estes Recognized for National Oil & Gas Leadership

The National Stripper Well Representatives. He is also a mem- bureaucracies requires strong lead- Association (NSWA) took a moment ber of the House Energy Action ers. The NSWA Annual Energy Gala to recognize some of America’s Team (HEAT) and the Congressional celebrates the accomplishments of distinguished energy leaders at its Western Caucus. Congressman leaders that make extraordinary 14th Annual Energy Gala held in Estes has been a steadfast supporter contributions to step up and to get Oklahoma City, Oklahoma on August of the independent oil and gas indus- others to step up and get active on 28, 2020. The NSWA presented its try on a number of issues critical for the issues that affect the indepen- 2020 leadership awards before an the oil and gas industry. dent oil and natural gas industry.” audience of U.S. independent oil and “This was a wonderful evening, Congratulations natural gas industry policy and busi- as we took a moment to recognize Congressman Estes! ness leaders. some of America’s true energy lead- The NSWA honored Kansas ers,” said Dick Schremmer NSWA Congressman Ron Estes with Chairman. “The critical importance this year’s Legislator of the Year of America’s independent oil and award. Congressman Estes serves natural gas producers to our nation’s as a U.S. Representative repre- economy and energy security could senting Kansas’ 4th Congressional not be clearer. Addressing the many District. Congressman Estes serves challenges affecting the nation’s on the U.S. House Ways & Means smallest and most economically Committee, the chief tax-writing vulnerable wells before Congress, committee in the U.S. House of the Administration, and the Federal

32 KIOGA partnering with E&M ConsulƟng, Inc. to produce KIOGA newsleƩer

The Kansas Independent Oil & Gas AssociaƟon (KIOGA) is excited to announce its partnership with E&M ConsulƟng, Inc. to produce our KIOGA NewsleƩer. The publicaƟon will be available in both print and digital for- mats beginning in 2021. E&M will be managing the project, including adver- Ɵsing sales and layout/graphic design. They are ex- tremely professional and produce a high-quality publica- Ɵon, and we ask that you give them a moment of your Ɵme. E&M will be contacƟng all members about the ad- verƟsing opportuniƟes available. The publicaƟon will be mailed to every member – a great opportunity to pro- mote and give your company addiƟonal exposure. If you have any quesƟons or would like to adverƟse, please contact an E&M sales associate at 800-572- 0011 or adverƟsing@emconsulƟnginc.com. As always, your support of KIOGA is greatly appreciated!

33 KIOGA Board Meeting a Success! New Offi cers and • Mark Galyon, Abercrombie LLC, Wichita, KS Energy, LLC, Wichita, KS • Garry Walker, Woolsey Directors Elected • Brian Gaudreau, Vess Oil Petroleum Corporation, Corp., Wichita, KS Wichita, KS • Michael Harms, Gore Oil The KIOGA Board of Directors Company, Wichita, KS The directors unanimously elected met Wednesday, September 23, 2020 • Timothy Hellman, Lotus the following offi cers: for the annual Board of Directors Operating Company, LLC, • Northwest Vice Chair – Ed Meeting. The meeting was held as Wichita, KS Nemnich, K&N Petroleum, a live (in person)/virtual meeting at • Nicholas Hess, Cobalt Energy, Inc., Great Bend, KS the Hyatt Regency in Wichita. LLC, Wichita, KS • Southwest Vice Chair – Thirty-one directors were elected • Richard Koll, Wichita, KS Charles Wilson, Berexco, LLC, to fi ll vacancies from expired terms • Andrea Krug Krauss, John O. Wichita, KS on the KIOGA Board of Directors. Farmer, Inc., Russell, KS • Secretary, Jeff Bloomer – The 31 directors elected join the • Robert Krehbiel, Pretty Prairie, Sunrise Oilfield Supply, LLC, remaining directors on the KIOGA KS Wichita, KS Board. The following 31 directors • Doug Louis, Geotechnical • Chair Elect – Andrea Krug were elected for a term of two (2) Services, Inc., Wichita, KS Krauss, John O. Farmer, Inc., years at the September 23rd KIOGA • Robert McGrath, Stelbar Oil Russell, KS Board Meeting: Corporation, Inc., Wichita, KS These newly elected offi cers will • K. Todd Allam, Val Energy, • Todd Morgenstern, Southwind join KIOGA Chair David Bleakley, Inc. Wichita, KS Drilling, Inc., Ellinwood, KS KIOGA East Vice Chair Barry Hill, • Bill Anderson, Anderson • Michael Pisciotte, Murfin KIOGA South-Central Vice Chair Energy, Inc., Wichita, KS Drilling, Wichita, KS Alan Banta, and Treasurer Scott • Lesli Baker, Drill Baby Drill, • Mike Reed, Sunrise Oilfield Fraizer as KIOGA Offi cers. Inc., Louisburg, KS Supply, Inc., Wichita, KS • Jeff Bloomer, Sunrise Oilfi eld • Leon Rodak, Murfi n Drilling, Supply, Inc., Wichita, KS Wichita, KS • Raul Brito, Brito Oil Company, • Daniel Schippers, DaMar Inc., Wichita, KS Resources, Inc., Hays, KS • Jim Byers, Apollo Energies, • Joe Schremmer, University of Inc., Pratt, KS New Mexico School of Law, • Steve Dillard, Pickrell Drilling Albuquerque, NM Co., Inc., Wichita, KS • Trent Sebits, Pickrell Drilling • Michael Dixon, Dixon Energy, Co., Inc., Wichita, KS Inc., Wichita, KS • Paul Simpson, Trilobite • John O. Farmer IV, John O. Testing, Inc., Hays, KS Farmer, Inc., Russell, KS • Kim Miller-Sneath, Tim Miller • John Francis, Corrosion DC, Oilfi eld Sales, Great Bend, KS Inc., Great Bend, KS • Charles B. Wilson, Berexco

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