2019 September/OctoberJanuary/February

What’s Inside? Chairman Letter...... 4 KIOGA Health Insurance...... 8 Green New Deal...... 12 2019 Annual Convention...... 16 Congress Returns...... 24 Edward Cross Message...... 28 Finding Signal...... 30 EPA Methane Regulations....34 The Voice of the State Fair ...... 40 Kansas Independent Legislative interim...... 42 Petroleum Industry Editorial...... 46

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Kansas Oil & Gas Wichita, we took the opportunity to rec- KIOGA President, recognizes individ- Industry Leaders ognize some KIOGA members for their uals for their dedication, participation, dedication, participation, and commit- and commitment to the Kansas oil and Honored ment to KIOGA and the Kansas oil and natural gas industry over an extended A. Scott Ritchie Receives gas industry. The following award recip- period of time. The award honors Coveted E.B. Shawver Award! ients were honored: Kansas oil and gas industry leaders who have cut new trails into the industry and As KIOGA celebrated our 82nd E.B. Shawver Award – A unique whose accomplishments and character anniversary during the KIOGA Annual award, named after the first elected Convention on August 11-13, 2019 in Continued on Page 10 KIOGA thanks the following KIOGA companies for their support through advertising in our Advertisers newsletter.

Advertiser pg # . Buyers Guide...... 27 CVR Refining...... 27 David Morris, P.A...... 31 Desk and Derrick of Wichita...... 44 Drill Baby Drill...... 29 Duke Drilling Company, Inc...... 15 Evenson Auctioneers...... 33 Foley Power Solutions...... 47 Insurance Planning...... 35 iWell...... 2 Kansas Truck Equip Co...... 37 KIOGA...... 37.45 Lockhart Geophysical Co...... 7 Murfin Drilling Co., Inc...... 31 . Paragon Geophysical Serv. Inc...... 38 SOER...... 9 The Independent Oil & Gas Dir...... 33 Werth Wealth Management...... 12 Wildcat Resources, Inc...... 43

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2 3 members. Ken has agreed to in state legislatures and the Committee Chairs, along with annual meeting will be distributed continue working on this Health in Congress.” For eighty- Ed, Kelly, and the Past Chairmen in October. Please take the time Insurance plan in hopes that it two years, KIOGA has to help develop a sound path to read the survey and respond will soon become reality. He will been a strong voice for and direction for our associa- with your opinions so we can use also serve as KIOGA’s new rep- the Kansas Independent tion in the years ahead. KIOGA these responses to improve the resentative to the KCC Advisory Oil and Gas Industry continues its founders’ legacy annual meeting and its activities Committee and the Kansas and has become a highly because of our strong member- for next year’s convention. Strong Board. We all appreciate respected association ship, great staff, the dedication Again, as Chairman for the Ken’s past work and continued and advocacy group of our Board of Directors, and next two years, I look forward to Message from service to our association. in Topeka, Washington many hard-working members working with the entire KIOGA In addition, I would like to D.C. and across the volunteering their talents. We membership. If you are read- the Chairman thank Jon Callen for his 24 years country. Ed Cross, as are grateful for the willingness of ing this newsletter and are not of service as KIOGA’s repre- our KIOGA President, companies to provide sponsor- a member, I encourage you to David Bleakley sentative to the KCC Advisory has led this charge ships and to allow members time join us and become an active Chairman, KIOGA Committee. As the EKOGA repre- since 2003 and has away from their company duties supporter of the Kansas oil to participate in KIOGA events and gas industry through your Greetings KIOGA Members, sentative, I served alongside Jon been a very effective for 21 of these years and know advocate for KIOGA and to serve on the KIOGA board membership in KIOGA. Please and committees. Each member of contact our Topeka Office (785- I want to express my sincere that Jon did a great job represent- and its members on all this organization has an import- 232-7772), our Wichita Office appreciation to the KIOGA Board ing KIOGA and the industry. On the issues facing the ant part to play, and I thank you (316-263-7297), or me directly if Members for their confidence and behalf of KIOGA, we all appreci- Kansas Independent all for your time and monetary you have any questions or desire www.kioga.org support in electing me as your ate Jon’s many years of service Oil and Gas Industry. commitments. additional information about the [email protected] new Chairman for the next two on this Advisory Committee. Ed has provided some During the next two years, in Association. years. I am honored to serve this I would also like to thank all the very informative white addition to our various advocacy great organization and will do my generous sponsors, the members papers and articles Topeka Office and legislative efforts, it will be Sincerely, best in continuing to promote the who attended, Warren Martin for concerning state and 800 SW Jackson our goal to honor KIOGA’s past ideals and goals of KIOGA for our the informative Kansas Strong federal issues. I encour- Suite 1400 history yet act as stewards of members and the industry. Presentation, the vendors who age you to thoroughly Topeka, KS 66612 KIOGA’s resources and position David P. Bleakley 785-232-7772 On behalf of the association, participated in our trade show, read his articles in this KIOGA to continue as a strong KIOGA Chairman I would like to thank outgoing and the Hospitality Suite Hosts newsletter, his Blog, and voice for the interests of the Wichita Office Chairman Ken White for his for the 2019 Annual Meeting. the KIOGA Express so 229 E William Suite 211 Independent Kansas Oil and Gas excellent leadership and hard Convention Chair Mike Reilly, his you will be informed of Wichita, KS 67202 industry into the future. I wel- work these past two years. He committee members, Ed Cross, all the challenges facing 316-263-7297 come your input and am always worked unselfishly to mentor me and Kelly Rains organized a suc- our industry. available to discuss ideas, con- as Chairman-Elect while tackling cessful meeting! I look forward to cerns, or member’s needs. My cell many industry issues including KIOGA was founded in 1937 working with the phone number is (620)365-9419. his efforts to bring forth a health by a small group of producers to Board, my Executive A short survey concerning the insurance proposal for the KIOGA “make sure their voice was heard Committee Officers, all

4 5 Democratic Presidential KIOGA Mark Candidates Weigh-in on your Calendar Climate Issues Event Name Date Location Kansas Economic Outlook Conf. October 3, 2019 Wichita, KS On September 4th, ten Democratic of the bolder, and much more expensive, by setting unattainable standards that Kansas Renewable Energy Conf. October 3-4, 2019 Manhattan, KS presidential candidates took turns at ideas outlined in the Green New Deal. individual states then have to meet. The seven Democratic ideas for fighting This year, the Trump administration CNN’s climate town hall hashing out AAPG Midcontinent Section Meeting October 3-8, 2019 Wichita, KS their positions on climate issues. We climate change include: replaced it with a much more reason- KBA/WAPL CLE Conf. October 25, 2019 Wichita, KS heard them call for an end to fossil fuel able Affordable Clean Energy rule. Most production and use, ban on hydraulic Rejoin the Paris Climate Accord Democratic contenders have called for IPAA Annual Meeting November 6-8, 2019 Washington D.C. fracturing, end leasing on federal lands, - The Paris climate agreement is a reinstating the Obama standards. 2019 IADC Annual General Meeting November 6-8 2019 Austin, TX and more. These attacks on the oil and non-binding resolution signed by gas industry are not only impractical, but 195 countries to reduce greenhouse Pay Farmers to Reduce Emissions Kansas ’s Water Conf. November 7-8, 2019 Wichita, KS also reckless. They are political theater gas emissions. In 2017, Trump – Most Democratic contenders have Energy Council Energy/Env. Conf. December 5-8, 2019 White Sulpher Springs, WV with real-world implications. Many sci- announced that he would withdraw from suggested paying farmers to change entists, policymakers from both parties, the accord, effective November 2020. farming practices to reduce carbon KIOGA Board Meeting Suppliers Party December 11, 2019 Wichita, KS The Democratic contenders have uni- footprints. and common sense have discredited 28th Annual KIOGA Midyear April 15-17, 2020 Garden City, KS the ideas proposed by the candidates. versally agreed that the U.S. should CNN only averaged 1.1 million viewers rejoin the Paris climate deal. Set a Goal of Net-Zero Emissions 83rd Annual KIOGA Convention August 16-18, 2020 Wichita, KS during the broadcast. As presidential by 2050 - The Trump Administration candidates and policymakers make End Fossil Fuel Tax Provisions – has rolled back many burdensome outrageous claims against our industry, Federal government tax provisions for and overreaching Obama regulations KIOGA will continue to work with our fossil-fuel exploration and production to reduce greenhouse gases. Several partners to set the record straight. (like percentage depletion and intangi- Democratic contenders have proposed Whoever wins the Democratic ble drilling costs) are estimated to be setting a far-reaching goal of net-zero presidential nomination will likely incor- worth about $4.6 billion. While these emissions by 2050 or earlier. porate seven major ideas for fighting provisions are cost-recovery mecha- Do business with other nisms used mostly by small businesses, Boost Spending on Clean Energy climate change that have widespread KIOGA members buy-in among the crowded 2020 field. Democratic candidates largely support Research – President Trump recog- Although they disagree on environmen- scrapping the fossil fuel tax provisions. nized the importance of energy policy If they aren’t, encourage them tal policy in other ways, the contenders as a driver of the American economy to join and help us stand up for Halt New Drilling on Federal Land and national security. The Trump have broad areas of agreement on con- the oil and gas industry in fronting climate change should they - The Trump administration attempted administration’s forward-looking energy retake the White House. unsuccessfully to overturn an Obama policies are market-based and refrain Topeka and Washington The Democratic baseline includes administration moratorium on new coal from picking winners and losers in the restoring Obama-era policies that mining leases on federal land. Most of nation’s future energy profile. Several President has rolled back the Democratic contenders have pro- Democratic contenders want to dramati- and re-orienting federal taxes and spend- posed extending it to new oil and natural cally expand renewable energy subsidies ing toward renewable energy and away gas leases. and mandates. from fossil fuels. The seven proposals represent the Reinstate the Clean Power Plan www.kioga.org common ground among liberals on - Unveiled in 2015, the Obama admin- [email protected] fighting climate change and are easier to istration’s Clean Power Plan sought to defend in a general election than some cut carbon pollution from power plants 8’ Curved Tension Display 6 7

Podium Graphic

email back approval to [email protected] or [email protected] We welcome the following KIOGA members to the KIOGA family. Thank You for your KIOGA Association New Members continued support!

Name Company City & State Health Insurance Plan James T (Jim) Devlin Lincoln Energy Company LLC Corpus Christi, TX The new availability of Association seminar session. insured under the KIOGA program Trey Morton Stanley Filter Co. Tulsa, OK Health Plans (AHP) is one of the most She said KIOGA expected to offer would pay the same rates–depending Brent Wasson M&M Insurance Wichita, KS important developments in Kansas four benefit plans. She described the on plan selected–regardless of age or for small business. Legislation passed first three options as traditional plans demographics. Stan Pence Consoulate General of Canada Denver, CO by the last spring that varied only in the deductible lev- She said coverage was guaranteed to Gary Vonfeldt Flex Drilling Russell, KS changed the definition of “small busi- els. “We have chosen $500, $1,000 and those who enrolled by the plan’s Jan. Hunter Hembree Vess Oil Corporation Wichita, KS ness” to allow associations, like KIOGA, $1,500 deductibles for each insured 1, 2020, start date and during annual Destinie Dyer DXP Wichita, KS and member companies to participate with a family deductible of two times January open enrollment periods. as a single large employer for health that amount,” she reported. After meet- McDonald said there also would be a Josh McCollom Stimulation Pumping Services, LLC Blackwell, OK insurance. Former KIOGA Chairman ing their deductibles, insureds will pay late enrollment period next June for Ken White and Jamie McDonald of 20% of covered expenses up to $1,000, companies that wanted to finish current Hays Companies of Kansas provided a McDonald continued. plans that ran through May, although seminar on this issue at the 2019 KIOGA The fourth option is a high-deductible they would be subject to underwriting. Annual Convention in Wichita on August health plan accompanied by a health “If your risk exceeds 15% of the rest 12th. KIOGA and Hays Companies of savings account under which insureds of the pool, you could be denied,” she Kansas is putting together a health pro- essentially pay the first $3,000 for an advised, although White calculated the gram with the goal of offering KIOGA individual and $6,000 for a family, she likelihood of a single company’s risk members the opportunity to take advan- said. exceeding 15% of the group total was tage of the accompanying reduced costs All the plans will carry a $25,000 minimal. and increased access to more reason- accidental death and dismemberment Organizations that enroll, McDonald ably priced health insurance. benefit, McDonald mentioned, adding, revealed, will be asked to commit for In mid-August, KIOGA gained certi- “We also are looking at an optional den- three years, and companies that leave fication to offer group health insurance tal plan.” the plan may not re-enroll for three under rules adopted this year by the Former KIOGA Chairman Ken White, years. Part of the reason for the three- Kansas Legislature. Working with the who has organized the association health year commitment, McDonald said, is Hays Companies of Kansas, KIOGA plan effort, said employers could offer that KIOGA hoped to negotiate a three- selected Blue Cross and Blue Shield their employees a choice of any plan year fixed premium, although “that piece because of the company’s multistate or choose a single plan to offer com- is up in the air,” she allowed. “We may reach. A resolution on the final plan will panywide. Owners also may apportion end with a rate cap.” be presented to the KIOGA Board of insurance premiums between employees A survey was sent to KIOGA mem- Directors for approval in the near future and the company however they choose. bership in August and September. with the hope of rolling out the program To be eligible, White said, a company Interest in an association health insur- on January 1, 2020. must have a least one employee other ance plan was very good with over 1,900 The KIOGA program will be “a true than the owner and a spouse. “Right employee responses which could result group health plan”, covering all essen- now, we don’t think we can do sole in a pool of 4,000-5,000 folks or more tial health services and including such proprietors, although that still is being participating in the plan. provisions as guaranteed renewability, discussed,” he said. no pre-existing conditions, and depen- Although McDonald was unable to dence coverage to age 26, said Jamie offer any insight into premium levels, McDonald, senior vice president for she emphasized the plan would offer Hays Companies, during the August 12th composite rates, meaning all those

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Some pages failed to load Reload Close From Page 1 The Membership Industry Leaders that Makes a Continued Difference! Most of you probably have a mem- E.B. Shawver Award Independent oil and gas producers are capabilities. Joe prepared and filed an amicus brief bership to Amazon or Sam’s to buy or federal advocacy efforts. The recip- heard in Topeka as well as Washington. • KIOGA Express is an email things for the house or groceries. Many ient of the 2019 KIOGA President’s on behalf of KIOGA in last year in a When addressing the benefits of information service that keeps best represent the highest ideals of the of you may have a membership to an Leadership Award was Tim Hellman, case involving the rule against perpe- KIOGA membership, we can begin members abreast of ongoing Kansas oil and gas industry. The award airline club for travel or one of the online President of Lotus Operating Company, tuities that resulted in a ruling whereby with our motto “ and breaking oil and natural gas symbolizes the spirit, the determina- programs that are out there. You might KIOGA - Voice of LLC in Wichita. Tim has unselfishly vol- the followed the industry news. tion, the leadership, and the integrity of even have a membership to a gym or the Kansas Independent Petroleum unteered many hours and days of time, reasoning applied in the amicus brief Industry”. KIOGA is an everyday, • The American Oil & Gas those who have left their mark on the workout facility to help you stay in effort, insights, and leadership address- – the opinion even cited the brief on a frontline representative of the Kansas Reporter, a fast-paced monthly Kansas oil and gas industry. The stature shape. If you like to play golf or tennis, independent oil and natural gas industry. magazine that covers the industry ing many critical oil and gas issues. Tim couple important points. Joe joins past you may have a membership to a club of the people who from A to Z. often does this work behind the scenes. KIOGA Outstanding Service Award of some kind. awarded the E.B. Membership in KIOGA gives you: • KIOGA President Reports and This award was a small way we can winners Nick Powell, Jon Callen, Tim But do you have a membership in Shawver Award KIOGA Federal & State legislative say thank you to Tim for his amazing Scheck, Klee Watchous, Adam Beren, an organization that is looking out makes this one A United Voice in Topeka and Reports keep members current dedication, commitment, and efforts. Alan DeGood, and Mark Shreve. for your business, your taxes, and of our industry’s Washington with federal and state legislative, Tim joins past KIOGA President’s The history of the Kansas oil and your livelihood? most prestigious • Few independent businesses have regulatory, and policy issues. natural gas industry and KIOGA is Leadership Award winners Dave Murfin, the budget, time, and expertise to A Way to Build Public Understanding awards. The recipi- That is what we do at the Kansas State Senator Rob Olson, Adam Beren, an American story of industrious individually tackle issues at the • Today, public perception contin- ent of the 2019 E.B. Independent Oil & Gas Association Richard Koll, David Nickel, Steve Dillard, entrepreneurs who embody the spirit federal, state, and local levels of ues to be a major challenge facing Shawver Award was A. Scott Ritchie of (KIOGA)! Dave Dayvault, and Andrea Krauss. this country is known for. KIOGA is government as well as regulatory the domestic oil and gas indus- Ritchie Exploration, Inc. in Wichita. Mr. KIOGA represents the interests of delighted to see these well-deserving issues. try. Join our efforts to fight the Ritchie is a risk-taking entrepreneur who the oil and gas industry at the local, KIOGA Outstanding Service leaders honored. The Power of Unity negative public image that has reminds us that the American dream is state, and federal levels of government. Award – A special award to recognize • KIOGA achieves results through made voters and policymakers still very much alive. Success is provid- KIOGA is committed to ensuring that a strong coalition of indepen- unsympathetic to major problems individuals who have made unique con- tomorrow’s economic climate will be ing opportunities for those who follow to dent businesses with a common confronting independent oil and tributions to the success of KIOGA’s one in which our members can grow expand on your progress, because in the purpose and goal optimizing our gas producers. legal and/or public information efforts. Share your newsletter and prosper. Our active presence end, it is not who you were, but whether effectiveness on critical issues. If you are not a member of KIOGA, These individuals or request more copies before the Kansas Legislature, U.S. you made a difference. Mr. Ritchie has Access to Legislative and Business we encourage you to join. Through often subordinate Congress, and state and federal regula- made a positive difference for KIOGA kioga.org Information KIOGA you can play a significant role their personal tory agencies means that the concerns • Whether you need to know how in our efforts to win the political battles and the Kansas oil and gas industry. of independents like you are foremost gain to help to comply with the latest laws in Topeka and Washington and the pub- Ritchie joins past E.B. Shawver award in the minds of legislators and gov- industry as a and regulations or need legisla- lic relations battle in the court of public winners Wayne Woolsey, Ralfe Reber, ernment officials. Our cooperative whole with their tive updates on pending issues, opinion. Be a part of the solution. Join and Carl Sebits. partnerships and networking with tireless efforts KIOGA provides you with timely us today! Your membership does make other state associations, the Domestic and contributions information that can affect your a difference! KIOGA Energy Producers Alliance (DEPA), the to KIOGA’s legal and public informa- company’s profit and growth President’s Independent Petroleum Association of tion efforts. The recipient of the 2019 opportunities. Leadership Award America (IPAA), U.S. Global Leadership • KIOGA Newsletter published 6 KIOGA Outstanding Service Award Coalition (USGLC), National Stripper – A special award to times a year that covers govern- was Joe Schremmer, formerly of the Well Association (NSWA), Interstate Oil recognize individu- ment relations issues and other law firm Depew, Gillen, Rathbun & & Gas Compact Commission (IOGCC), als who have made industry topics important to you. McInteer LC of Wichita but now with www.kioga.org Council for a Secure America (CSA), unique contributions • KIOGA Website at www.kioga. the University of New Mexico Law [email protected] and Energy Education Partnership, Inc. to the success of KIOGA’s state and/ org for industry information School in Albuquerque, New Mexico. (EEPI) means the concerns of Kansas and online communication 10 11 IOGCC Passes Resolution Opposing Green New Deal KBA/WAPL Oil & Gas CLE Pence, key administration officials, and with the IOGCC on this very important The Coming October 25th! • Environmental Permits – Brittany • Anatomy of an ethics complaint Congressional leaders to encourage issue.” Interstate Barrientos and Whitney Cole – John Ambrosio (Morris, Laing, Oil & Gas them to oppose the Green New Deal The IOGCC is a multi-state govern- Mark your calendars for Friday, (Stinson LLP, Kansas City, MO) Evans, Brock & Kennedy Chtd., Compact and any substantially similar legislation ment agency that works to ensure our October 25, 2019 for the KBA/WAPL • Protecting and preserving 3-D Topeka, KS) Commission KIOGA has also expressed opposition nation’s oil and natural gas resources Oil & Gas CLE. The CLE event will be seismic data – Kyle Mendenhall The conference has pending CLE (IOGCC) passed a resolution on August to the Green New Deal saying it would are conserved and maximized while held at the Hotel at Old Town located (Hovey Williams LLP, Overland credit in Kansas and . KIOGA 27th urging the federal government to devastate the independent oil and gas protecting public health, safety, and at 830 E. 1st St N. in Wichita. Park, KS); Ryan Peck (Morris member registration fee is $210. To reg- oppose the Green New Deal in the spirit industry which has increased prosperity the environment. IOGCC was created Advancements throughout the oil and Laing Et-Al, Wichita, KS); Cody of cooperative federalism. The vote and strengthened national security. more than 80 years ago to resolve com- ister online go to https://www.ksbar. gas industry have brought a number of saw 21 states cast votes with 14 states “The U.S. has some of the cleanest mon issues and share best practices for Phillips (Ritchie Exploration, Inc. org/event/2019KBAWAPLOilandGas- changes to legal issues impacting the voting in favor of the resolution (includ- air in the world,” said Edward Cross, industry regulation, minimizing federal Wichita, KS) Conference or call Amanda Kohlman at oil and gas industry. Several topics of ing Kansas), 3 states voting against the KIOGA President. “From 1970-2017, intervention. KCC Chairman Dwight • Uniform Partition of Heirs KBA at 785-861-8815 or email at akohl- resolution (New York, New Mexico, and the six major pollutants monitored by Keen is Kansas’ official IOGCC repre- interest to oil and gas producers will be Property Act – Tyson Eisenhauer [email protected]. ), and 4 states abstaining the EPA have plunged 73%, while the sentative. KCC Oil & Gas Conservation presented at this year’s meeting. Topics (Johnston Eisenhauer Eisenhauer (California, Illinois, Michigan, and Ohio). U.S. economy grew by 262% and its pop- Division Director Ryan Hoffman and include: & Lynch LLC, Pratt, KS); According to the action plan, IOGCC ulation grew by 60%. KIOGA will fight KIOGA President Edward Cross are • Updates in the oil, gas and min- Professor Thomas Mitchell will send copies of the resolution the Green New Deal on behalf of our IOGCC Associate Representatives. eral world – Professor David (Texas A&M School of Law, Fort to President Trump, Vice President 4,000+ members. We are proud to stand Pierce (Washburn University Worth, TX): Ken White (White School of Law, Topeka, KS) Exploration, Wichita, KS)

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12 13 KIOGA Member News

Hellman Wins KEF Raffle, but Kansas Schools are the Winners The KIOGA Educational Foundation (KEF) held a raffle during the KIOGA Annual Meeting on August 12th. A Total of $490 of tickets were sold - Tim Hellman with Lotus Operating Co. won the raffle and half of the money raised. Mr. Hellman generously donated his winnings back to KEF, mak- ing Kansas teachers and students the real winners that night.

The previous day, the KEF held its Annual Meeting. At the meeting, the KEF Board of Directors was elected. Those serving for a 1-year term are: Diana Edmiston Margery Nagel Dick Schremmer Brian Gaudreau Kelly Rains Mark Shreve Jeff Kennedy Gary Reed Ken White

The 2019-2020 elected officers for the KEF are: Mark Shreve, President | Gary Reed, Secretary | Kelly Rains, Treasurer

The Board voted to fund three additional STEM Grants to Bucklin Middle School in Bucklin, KS, Derby Middle School in Derby, KS and Brooks STEM/Arts Magnet in Wichita, KS The KEF has now provided over $6,600 to schools throughout the state in its STEM Grant Program with 10 grants awarded over the past year. If you would like to make a tax deductible gift to the foundation or become involved in the KEF, DUKE please contact Kelly Rains at 316-263-7297, [email protected] or Mark Shreve at 316.264-6333, [email protected] DRILLING Check out the Career COMPANY, Center on INC. KIOGA Website - post a job,

Please consider making KIOGA Educational Foundation as your donation in lieu of flowers. KEF CONTRACT DRILLING post a resume. is dedicated to the education of teachers and students, on the benefits of the oil and gas industry VERTICAL & HORIZONTAL KEF | 229 E William Suite 211 | Wichita, KS 670202 www.kioga.org In Memory Of: 11 RIGS Serving the Mid-Continent Mary Sawyers Shine to Go Grand Prairie, TX Larry M. Jack Gore Oil Company Wichita, KS 100 S. Main, Suite 410 5539 2nd St./P.O. Box 823 Peter George Wilson Berexco Wichita, KS Wichita, Ks., 67202 Great Bend, Ks. 67530 316-267-1331 620-793-8366

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called the U.N.’s May 2019 prediction of association public information program 1 million species extinctions during the activities, and more. Ken White, next several decades “an example of KIOGA Chairman, welcomed the board how they manipulate the scientific pro- and announced that the theme for KIOGA 2019 Annual cess.” Wrightstone explained the U.N. the 2018 KIOGA Annual Convention prediction was based on only five data was “Embracing an Intelligent Energy points cumulating extinctions by cen- Future”. White expressed his disap- Convention tury. “I looked at the same data decade pointment with the astonishing public Leading Oil & Gas Event covered the convention including the from saving mankind, the purveyors of fires, extreme weather events, etc. One by decade and found there was a peak policy attacks menacing the country’s Wichita Eagle, Wichita Business Journal, impending climate disaster are leading by one, Wrightstone demonstrated in the late 1800s when we were popu- oil and gas producers. “The number of in Kansas! NPR, American Oil & Gas Reporter, and a misinformed public on a path toward how such claims lating the Pacific Islands and introducing issues we are monitoring is huge, and The Territorial Magazine. Reviews and government dominance. were based on species that wiped out native species,” as soon as one is under control, two comments from convention attendees Mathis iden- mischaracterized he related. The rate of extinctions has more pop up,” he said. “At both the Nearly 800 were very positive. tified today’s data and faulty been declining since 1870, Wrightstone state and federal level, we work hard to participants The Chairman’s welcome reception climate hyste- science. For exam- attested, and has averaged two a year for bring science, fact, and due process back from oil and honoring Kansas Strong kicked off ria as a form of ple, he said, data the past 40 years. “(The U.N.) is telling into oil field regulations, legislative pro- gas exploration the convention where the group was mass delusion from the National us we are going to have 25,000-30,000 cesses, and energy policy discussions. and production entertained by the music of Billie’s manifested Interagency Fire a year,” he countered. “Does anyone However, virtually every action is met companies, ser- Bounce and heard from Kansas Strong as a false Service show an think that makes sense?” Finally, using with ferocious opposition from anti- vice and supply executive director Warren Martin. moral panic. 80% decline in forest fires since 1926, the temperature assumptions in the oil activists and the media. We have a companies, financial institutions, and The KIOGA Convention Committee, He offered examples of moral panics and the state of California has seen Green New Deal, Wrightstone calculated long and difficult road ahead as we try government agencies converged on led by Mike Reilly, once again devel- ranging from the Salem witch trials of a 50% drop during the past 30 years. that if the United States eliminated all to bring some common sense back to a Wichita for the KIOGA 82nd Annual oped an outstanding program offering the late 17th century to the Y2K panic. The most severe droughts of the 20th CO2 emissions immediately, it would number of critical energy policy, regula- Convention and Expo held August 11-13, excellent speakers, a wide variety Citing sociological studies, Mathis said Century all occurred prior to 1960, the avert 0.07 degrees F of global warming tory, and legislative discussions.” 2019 at the Century II Performing of exhibitors, and entertainment. a moral panic “can give the state cause number and intensity of hurricanes has by 2050 and 0.2 degrees by 2100. If Arts & Convention Center. Also, over Convention Coordinator, Kelly Rains to enact legislation decreased, and extreme weather-re- Kansas alone eliminated CO2 emissions, 70 exhibitors filled the exhibitor hall for and her assistant Amanda Carrillo, did that would seem lated deaths in the United States have it would avert 0.001 degrees F of global a well-attended event. an outstanding job organizing the logis- illegitimate with- declined 98% in the past 80 years. But warming by 2050 and 0.0023 degrees The 2019 tics. A great deal of teamwork made out the perceived even more convicting, Wrightstone by 2100. “How many lost jobs is that KIOGA Annual this year’s convention an overwhelm- threat at the center showed, is that warmer temperatures worth?” he asked. Convention ing success. Convention participants of the moral panic. and rising CO2 actually are beneficial. Kansas Lieutenant focused on were able to share ideas, network with The whole idea of “There is a great correlation between opened the convention with welcom- Embracing peers, participate in thought-provoking a panic is that we the rise and fall of temperature and the ing remarks. Colyer an Intelligent sessions, and hear updates on KIOGA’s have to put the state rise and fall of civilizations,” he stated. thanked oilmen for Energy. Many associational activities. in charge to do things, spend money, we “Great civilizations arose during each their contributions to legislators, gov- otherwise would not do. That is the tac- (historical) warming period. People the state’s economy. ernment officials, Keynote Speakers tic of climate change.” were prosperous; food was bountiful. It “Where we have grown dignitaries and Wrightstone was the intervening cold periods that as a state in many ways business leaders from around the state Keynote Speakers at the KIOGA refuted many were horrible. Food crops failed and rests on your shoul- and nation joined in the convention 82nd Annual Meeting and Convention of the claims there was famine, pestilence and mass ders,” said Rogers. including U.S. Senator , were Mark Mathis and Gregory underpinning depopulation. That is the opposite of U.S. Congressman Dr. Roger Marshall, Wrightstone. Mathis is President disastrous what they are telling us.” The “biggest KIOGA Board of Directors and Kansas Lieutenant Governor Lynn of Clear Energy Alliance, author of global climate (untold) story of the late 20th and early General Membership Meeting Rogers, Jake the book Feeding the Media Beast, and change. The 21st centuries” Wrightstone said, is LaTurner, KDHE Deputy Secretary & producer and director of two docu- justification for data from the National Aeronautics and The KIOGA Board of Directors Environment Division Director Leo mentary films on energy. Wrightstone the Green New Space Administration showing that up and General Membership Meeting Henning, IOGCC Representative is a geologist and author of the book Deal and other climate responses is a to 50% of the earth today is “greening” featured an update on association activ- Cynthia McCollum, along with 12 Inconvenient Facts: The Science that Al belief that human- generated green- (i.e. vegetation is increasing) while only ities including governmental relation state senators, 18 state representatives, Gore Doesn’t Want You to know. Both house gases are the primary agent of 4% is “browning. The earth is thriving activities in Topeka and Washington, 39 state agency officials, and other keynote speakers told the KIOGA 2019 global warming, which is responsible and prospering because of increased federal and state legislative and reg- special guests. Several media outlets Annual Convention audience that far for rising drought, floods, famine, forest CO2 and precipitation,” he insisted. He ulatory update, update of ongoing Continued on page 18

16 17 From Page 17

Annual Convention Co., Inc. lead a panel discussion with Special thanks goes to our members, Will Boone of Wildcat Resources, Inc., sponsors, contributors, supporters, Nick Hess of Cobalt Energy, LLC, and and exhibitors for making the KIOGA Continued Nate Jiwanlal of Trans-Pacific Oil 82nd Annual Meeting and Convention Corporation. The panel discussed the a resounding success. With this year’s Leading Oil and Gas land professional’s role from the genera- convention behind us, we begin plan- event tion of an original prospect, through pre ning for more value-added features to and post drilling operations, and in the make next year’s convention even more Scott Fraizer gave the Treasurers show with music by Jx3. We want to agreement with China “a tough, uphill on deporting childhood arrivals pro- acquisition and divestiture of producing successful! Report. Edward Cross, KIOGA extend a special thanks to our exhibi- battle.” He said, “However bad I gram created by President Obama in and non-producing oil and gas assets. President, reported to membership on tors who made the 2019 KIOGA Annual thought China was treating us,” after a 2014) kids. But we walked away from KIOGA’s federal and state legislative Convention trade show a resounding meeting with President Trump, he came it because both sides wanted 100%. and regulatory activities, advocacy strat- success! away realizing “it is exponentially worse. “That is frustrating,” Marshall expressed. Entertainment egy, and summarized the progress of Every year the Chinese government “Politics and an election that still is a KIOGA’s public information efforts and Technical Sessions gives its wheat farmers $100 billion in year and a half away are keeping us from Convention attendees enjoyed the initiatives. Andrea Krauss reported on World Trade Organization allowances doing anything to solve this problem.” music of Knocknasheega during the new BOTA tax exemption language. Over 200 participants attended each so they keep us blocked out of their Another concurrent morning session the cocktail party following the after- Ken White updated board members on of the breakout technical presentations markets. They pay their own farmers examined best prac- noon seminars. the ongoing KCC abandoned well issue. made during the Conference. One of $10 a bushel for wheat and won’t let us tices for customizing “Reilly’s Irish Jon Callen announced he was stepping the morning technical sessions was a sell it to them for $5. In the meantime, Microsoft Excel envi- Pub” w a s down as a KIOGA representative to the public forum with Kansas Congressman he reflected, the United States allows ronments to manage the theme for KCC Oil & Gas Advisory Committee and Dr. Roger Marshall. The forum titled China unlimited access to its electronic large data sets and the evening nominated Ken White as his replace- “What’s Next for our Nation’s Energy markets. “We just want a fair and free summarizing data. entertainment function. Convention ment. The KIOGA board unanimously Policy” was moderated by KIOGA trade agreement with them,” Marshall The session titled “Data Tricks that attendees enjoyed the food stations with approved Ken White’s nomination. President Edward Cross concluded, adding, “President Trump Delight in Microsoft Excel” was pre- abundant tastes of Irish cuisine. Lots Adam Beren reported on the ongoing and looked at federal did not cause this problem; he inherited sented by Dawn Monroe, a certified of activities kept convention attendees electric rate study issue. Ken White regulatory reform, it. I wish I could say it will be over with Microsoft Office Specialist Master from entertained updated the board on the development tariffs, energy policy, quickly, but I don’t think it will be. I will Monroe Services, LLC. with pool of a KIOGA association health plan. and other issues loom- tell you that President Trump knows this The afternoon technical sessions saw tables, dart Raul Brito and Warren Martin gave ing on the horizon in is a very important issue.” two concurrent sessions with subject throwing, an update on the Kansas Oil & Gas Congress. He said it would be helpful if matter experts discussing the devel- axe throw- Resources Fund report. H.J. Swender Congressman Dr. Marshall spent Congress approved the United States, opment of a KIOGA ing, mechanical surf board rides, and and Ken White were nominated and about 1 ½ hours discussing oil and gas Mexico and Canada (trade) Agreement Association Health more all enjoying the music from The unanimously approved to serve as tax and regulatory issues, providing in the face of worldwide skepticism. Insurance Plan and Sassanachs. KIOGA trustees to the Kansas Oil & Gas insights, and answering questions from “That would give us a domino effect of how professional Resources Board. Nick Powell gave the audience. During the forum: opportunity,” he predicted. Regarding land work can make Golf - Sporting Clays – Gin the Nomination Committee report. Congressman Marshall said the Green the USMCA, Marshall said he “worked a prospect more valuable. Ken White, Rummy - Bingo and Ladies Events Two individuals were recognized New Deal “would be the end of Kansas very hard” to ensure protection for of White Exploration, Inc. and Jamie The Annual KIOGA Golf Tournament for their leadership during the board agriculture and the oil and gas indus- American businesses that invested in McDonald of Hays Companies of hosted over 160 golfers and was held at meeting and the board elected officers, try as we know it. Consequently, he Mexican infrastructure, noting that Kansas discussed the development of Crestview Country Club using both the directors, and Advisory Board Members. said, “We have to take it seriously, and increased natural gas exports to Mexico a KIOGA Association Health Insurance North and South Courses. The KIOGA See articles in this newsletter for more we are. I sit on the House Science and were one solution to low prices. Plan in a presentation titled “KIOGA Sporting Clays Tournament, gin rummy, information. Space Technology Committee and am He called immigration reform “frus- Association Health Insurance Plan”. and Bingo Bash also saw nearly 100 the ranking member on the Environment trating,” commenting that a year ago, A second participants. Trade Show Subcommittee. I try to bring a voice of “we had two pieces of legislation on concurrent The KIOGA ladies events were well science and facts as opposed to emo- the House floor that would have given session titled attended. Ladies events included a For the 20th year, we were excited to tion. I want to get to the solutions, and all Kansans 90% of what they wanted. “Mitigating ladies luncheon at the Kansas Star host our two-day trade show. The 2019 to me the solutions are conservation and It included $25 billion for the border and Managing Casino Woodfire Grille. Ladies KIOGA Convention saw over 70 exhib- innovation.” wall. It had an agricultural guest worker Your Risk events also included a brunch and tour itors participate in the trade show expo. Responding to other questions, visa fix and a skilled labor visa fix. It Through Proper Land Work” saw of the Elderslie Farm and Bramble A cocktail mixer kicked-off the trade Marshall called reaching a trade took care of the DACA (deferred action Michael Pisciotte of Murfin Drilling Café. 18 19

Mike Reilly says 82nd Annual All photos are on the KIOGA website “Thanks to all the sponsors, Convention vendors and guests attending www.kioga.com/memberservices/photos Photos by Fernando Salazar Reilly’s Irish Pub and KIOGA’s 82nd Annual Convention”

Save the Dates KIOGA 28th Annual Midyear Meeting April 15-17, 2020 Garden City, KS

KIOGA 83rd Annual Meeting & Expo August 16-18, 2020 Wichita, KS

20 21 THANK YOU TRADE SHOW VENDORS THANK YOU KIOGA SPONSORS AND HOSPITALITY SUITES BLACK GOLD - $10,000 OR MORE Tim Miller Oilfield Sales Pickrell Drilling Co., Inc. Berexco, LLC Trek AEC, LLC Plains Marketing L.P. TRADE SHOW VENDORS MV Purchasing, LLC Shakespeare Oil Co., Inc. AGH Employer Solutions NodalSeismic, LLC IMA, Inc. Woolsey Operating Co., LLC OERB/SOER Southwind Drilling, Inc. Apergy Unbridled ESP Systems Merit Energy Company Oilfield Distribution Specialists Stelbar Oil Corp., Inc. Badger Meter, Inc. Bettis Companies Palmer Mfg & Tank, Inc. The Dickster PLATINUM - $7,500 OR MORE BRONZE – 1,000 OR MORE Central Power Systems and Services Paragon Geophysical Services CVR Refining Abercrombie Energy, LLC Trans Pacific Oil Corporation Chem Oil Products PetroBase, LLC Mai Oil Operations, Inc. Apollo Energies, Inc. Travelers Insurance Crawford Supply Company Petroleum Electric Company ARM Energy Vincent Oil Corporation Darrah Oil Company, LLC Pioneer Energy Services | Enhanced Energetics Werth Wealth Management Davis Moore Auto Group Pipeline Testing Consortium, Inc. GOLD - $5,000 OR MORE BHGE / Upstream Chemicals Bitco White Exploration, Inc. Dawson Geophysical Co. Rep Com International Colt Energy, Inc. BKD, CPA’s & Advisors Desk and Derrick Club of Wichita Revelant Hartman Oil Co., Inc. GENERAL - $500 OR MORE Buckeye Supply Diamond Testing Risk Reduction Technologies Anderson Energy, Inc. Russell County Eco Devo Mud-Co|Service Mud, Inc. Chem Oil Products Domestic Energy Producers Alliance - DEPA Beauchamp Oil & Royalty Company E.B. Archbald & Associates / SSI S&G Associates, Inc. Mull Drilling Co., Inc. CHS, Inc. Claflin Pump & Supply, Inc. ELI Wireline Services Seal Tite Lining Systems Murfin Drilling Co., Inc. Cobalt Energy, LLC Commerce Bank Enviro Clean Sensorfield, LLC Trilobite Testing Inc & Crawford Supply Co., Inc. Corrosion DC, Inc. Extract Production Services/HOSS Pumps SherWare, Inc. Monster Pump Operations, Inc. Depew Gillen Rathbun & DaMar Resources, Inc. Edmiston Oil Co., Inc. Foley Equipment Stanley Filter Co. McInteer LC Express Well Service and Supply, Inc. Future Maker Mobile Learning Lab TORP - Tertiary Oil Recovery Program SILVER - $2,500 OR MORE ELI Wireline Services F.G. Holl Company, LLC Go Create TRC Rod Services Central Power Systems & Service Evenson Auctioneers, Inc. J. Fred Hambright, Inc. Gore Nitrogen Pumping Service, LLC Trilobite Testing, Inc. Darrah Oil Company Fidelity Bank Jeter Turner Sook Baxter LLP Gressel Oil Field Service, LLC & Bear Tire, Inc. TXAM Pumps Daystar Petroleum, Inc. Foley Equipment John O. Farmer Inc. Hampel Oil Distributors US Fleet Tracking Gore Nitrogen Pumping Knighton Oil Company, Inc. Harbison-Fischer Vulcan Labs Discovery Drilling Co., Inc. Lario Oil & Gas Company Service, LLC Hurricane Services, Inc. Waterflood Equipment, LLC Duke Drilling Co., Inc. McDonald Tank Co. IACX Energy LLC Werth Wealth Management Gore Oil Company MCEE Grand Mesa Operating Co. ICI Insurance Wichita Assoc. of Petroleum Landmen ICI Insurance Norris Rods - Apergy Hays Companies of Kansas IMA, Inc. WolfePak Software Insurance Planning, Inc. Oil Producers Inc. of Kansas Intrust Bank Insurance Planning, Inc. WW Drilling a Murfin Company J&D Pump & Supply, LLC Orecat Energy Inc. Jayhawk Oilfield Supply Range Oil Company, Inc. JACAM Chemicals K&N Petroleum, Inc. Kansas Corporation Commission Maclaskey Oilfield Services, Inc. S.R. Weilert Oil, LLC Kansas Natural Gas Operating, Inc. T&C MFG & Operating, Inc. Kansas Geological Survey HOSPITALITY SUITES Maxidize Production Services, LLC Law Offices of Morris Laing Territorial Magazine Kansas Oil Museum Central Power Systems & Services, Inc. McCoy Petroleum Corp. Lotus Operating Co., LLC US Fleet Tracking Kansas Strong Dead Rabbits Raymond Oil Co., Inc. Midwestern Pipeworks, Inc. VAL Energy, Inc. Kansas Submersible Pumps Maclaskey Oilfield Services, Inc. Ritchie Exploration, Inc. MTM Petroleum, Inc. KIOGA M&M Equipment | Wellhead Systems FRIENDS - $100 OR KIOGA Educational Foundation Tim Miller Oilfield Sales Scheck Oil Operations MV Purchasing, LLC MORE Knapheide Truck Equipment Co. Sunrise Oilfield Supply, LLC Nalco Champion an Ecolab Co. BOKF Energy Services TREK AEC, LLC Palomino Petroleum, Inc. Martin Pringle Attorneys at Law Lockhart Geophysical Company Swift Services, Inc. The Trees Oil Co. LORENTZ Paragon Geophysical Services, Inc. M&M Equipment Mid Continent Energy Exchange

22 23 Cross shared with each of the poli- concerns posed by policymakers and cymakers the importance of critical tax staffers. The meetings were very pro- provisions, namely percentage deple- ductive in terms of learning where the tion and IDCs, on the small businesses JCT committee stand on oil and gas tax Congress Returns to that make up the independent oil and provisions and what we (KIOGA) need gas industry in Kansas and across the to be doing to prepare. nation. KIOGA has prepared for these Washington The bottom-line message provided battles and have built significant pos- 2020 Election Year District Republican primary. The U.S. Federal Oil & Gas Tax Discussions Michael Enzi (R-WY), Ron Wyden to each of the policymakers was clear. itive relationships with several key Senate race currently has the follow- (D-OR), and Debbie Stabenow Congress should reject unwarranted Republican and Democrat policymakers ing announced Republican candidates: Federal oil (D-MI). Cross also met with Kansas proposals that would significantly harm in Congress. KIOGA continually meets Dr. Roger Marshall (current Kansas 1st and gas tax Senator Jerry Moran (R-KS) to share the competitiveness of American natu- with key federal policymakers. Face-to- District Congressman), discussions information learned from the JCT ral resources industries by eliminating face meetings are crucial to keep our Congress (former Kansas Secretary of State), have recently meeting. or reducing the present-law percent- interests protected. returned to (current emerged in age depletion and IDCs tax provisions. KIOGA will be working hard with Washington President), Dave Lindstrom (former Washington. Cross provided and discussed with Republicans and Democrats to make o n football player), With each of the policymakers the following sure there is no doubt about the depth September and Gabriel Mark Robles of Topeka. Democratic presidential candidates information: of industry opposition to eliminating 9th to begin Announced Democrat candidates and advocates for the Green New Deal • The IHS study The Economic critical oil and gas tax provisions like session. Policymakers face several include Usha Reddi (Manhattan school calling for the end to oil and gas tax pro- Impact of Eliminating the percentage depletion and IDCs. Two items of unfinished business and loom- teacher), Barry Grissom (former U.S. visions, critical oil and gas tax provisions Percentage Depletion Allowance members of the Kansas Congressional ing deadlines. Congress must address Attorney), Nancy Boyda (former U.S. like percentage depletion are under • KIOGA written comments sub- delegation serve on critical tax com- government spending, gun issues, trade Representative), (Kansas scrutiny. KIOGA has been engaged mitted to the U.S. House Ways & mittees. Senator pact, and prescription drug issues. The State Senator), and Robert Tillman of early-on to provide a foundation and Means Committee (R-KS) serves on the Senate Finance next few months probably represent the Wichita. Also, Republicans Amanda resource for credible information • KIOGA white paper explaining Committee and Congressman Ron 116th Congress’s last chance to major Adkins (former chair of the Kansas regarding oil and gas tax provisions to percentage depletion and IDCs Estes (R-KS) serves on the House Ways legislation until 2021. Lawmakers in Republican party) and Sarah Hart Weir a number of key federal policymakers. • KIOGA white paper on the origin & Means Committee. KIOGA stays in both parties agree the partisan politics have opened campaigns for the 3rd On September 24th and 25th, KIOGA and evolution of the depletion continual contact with all members of of the 2020 election will kick into high District U.S. House seat to challenge President Edward Cross joined other allowance and IDCs our congressional delegation and will gear as soon as January, making any Democrat U.S. Representative Sharice members of the National Stripper Well • KIOGA report on the economic be keeping them informed and alerted dealmaking and compromise all the Davids. With Congressman Dr. Roger Association (NSWA) in meeting with the impact of the oil and gas industry to the importance of critical oil and gas more difficult. In addition, Congress Marshall announcing he would run for Congressional Joint Committee on Tax in Kansas and the impact per- tax provisions. doesn’t have much time. The U.S. the U.S. Senate, the Kansas 1st District to educate key federal policymakers on centage depletion and IDCs have House only has 13 legislative days in U.S. House seat has seen several candi- the importance of critical tax provisions, on the industry in Kansas September before leaving for another dates announce including Republicans namely percentage depletion and intan- • KIOGA white paper on why per- two-week recess and only 45 legislative (former Kansas Lieutenant gible drilling costs (IDCs) on the small centage depletion and IDCs are days left in the year. The U.S. Senate, Governor from Salina), Bill Clifford businesses that make up the indepen- not subsidies meanwhile, have 53 legislative days left (a Garden City ophthalmologist) and dent oil and gas industry in Kansas and • KIOGA comparison of tax in the year. Democrat Kali Barnett (a Garden City across the nation. provisions for majors and school teacher). There are sure to be In September, KIOGA President independents 2020 Election Year more candidates for the Kansas 1st con- Edward Cross met with Congressional • KIOGA White Paper State of the The battles are far from over and gressional district in what is likely to be a members of the Joint Committee Oil & Gas Industry KIOGA will continue to take the posi- Next year (2020) is an import- fast-growing field of Republicans. There on Tax (JCT) including JCT Chair tions of small independent oil and gas ant election year. Kansan’s will elect may also be additional candidates in Representative Richard Neal (D-MA), Going forward - Going forward, we producers directly to those in Congress. an open U.S. Senate seat and 4 U.S. other Kansas U.S. House races announce JCT Vice Chair Senator Chuck will likely have to fight to justify per- KIOGA has established a forward-look- Representatives. Republican State in the coming months. Also, every seat Grassley (R-IA). He also met with JCT centage depletion, which is arguably the ing presence with key federal Republican Treasurer Jake LaTurner has dropped in the Kansas House of Representatives committee members Representatives most important federal tax provision we and Democrat policymakers. We are in his bid for the U.S. Senate seat of retir- and Kansas Senate will have an election. John Lewis (D-GA), Lloyd Doggett have. JCT members asked for informa- a good position to defend on tax pro- ing Senator Pat Roberts and will instead (D-TX), Kevin Brady (R-TX), Devin tion and Cross followed up the meetings visions going forward. We have been challenge U.S. Representative Steve Nuns (R-CA) as well as JCT committee with written correspondence providing engaged in every stage of the process Watkins in the 2nd Congressional members Senators Mike Crapo (R-ID), additional information on questions and Continued on page 26

24 25 From Page 25 Congress Returns Continued Going Forward, Continued

and are recognized in Washington as Republican Whip Steve Scalisi (R-LA), U.S. House Passes Three an advocate for the small onshore inde- and Natural Resources Ranking Bills Banning Access to Natural pendent oil and gas industry. Many Republican Rob Bishop (R-UT) to intro- Resources on Federal Lands key policymakers look to us for credi- duce the American Energy First Act, ble information on tax reform. We will an all-of-the-above American energy On September 12th, U.S. House continue to provide credible information reform bill. The legislation will expand Democratic Members, with support and not decrease our efforts just because domestic energy production on federal from some Republicans in coastal states, there is not a strong chance that tax lands, streamline the federal permit- passed through three bills permanently reform will pass this year. ting process, create well-paying jobs banning American energy production in for American citizens, and lead to lower significant U.S. waters and federal lands. Tax Foundation – KIOGA President energy prices for consumers, all while One measure would permanently extend Edward Cross was contacted by the Tax generating billions of dollars for federal, the eastern Gulf of Mexico moratorium Foundation, a Washington, DC think state and local governments. on oil and natural gas activities. The tank that “Costly government barriers and exces- Congressional Budget Office conser- focuses on sive permitting delays have impeded the vatively estimates that this could cost tax policy, efficient production of energy for too long,” taxpayers $400 million in revenue over in early said Rep. Cheney. “While Democrats are the next 10 years. Similarly, another September. being driven by their radical base to outlaw measure would block offshore energy The Tax forms of affordable energy that families rely development in the Pacific and Atlantic Foundation had read KIOGA’s report on, I was pleased to work with Reps. Scalise planning areas, and yet another measure titled Kansas Oil & Gas Industry and Bishop on this bill which will end would lock up energy resources in the Strategic Analysis and KIOGA’s white unnecessary overreach from Washington Alaskan Coastal Plain. The bills will now paper titled State of the Oil & Gas bureaucrats, and enable states to manage be sent to the Senate where they are not Industry – Dynamic Challenges Facing energy production on lands within their expected to receive any consideration. Kansas Oil and Natural Gas Industry. borders. They were very interested in the anal- KIOGA commends Representative ysis of the impact of state and federal Scalise, Ranking Member Bishop, and taxes on the small businesses that make Conference Chair Cheney for intro- up the Kansas oil and gas industry. ducing thoughtful legislation reforming Cross met with the Tax Foundation in management of oil and gas development September to further discuss Kansas oil and production on Federal Lands. This Get your breaking news and gas industry tax analyses metrics. bill recognizes the unique characteristics of each state by empowering state-led on KIOGA Express U.S. House Republicans Introduce regulatory structures and ensuring Sign up now to be All-of-the-above American Energy energy producing states receive their fair Reform Bill share of the royalties collected on public on the list. lands. KIOGA applauds this balanced [email protected] On September 11th, U.S. House approach to responsible energy develop- Republican Conference Chair Liz ment for federal lands and waters. Cheney (R-WY) joined U.S. House

26 27 at the expense of the state’s the state and national levels. stunning beauty, delicate eco- There is a very real opportu- We are Part of the systems, and other natural nity to create a stronger, more resources. effective connection with the I think lawmakers and regula- American public that recog- Solution! tors in Washington could learn nizes their values and concerns much from how Kansas’ oil and and allows them to understand A message from natural gas industry, state regu- better the critical role that oil your KIOGA President, development sector is being The energy and goals. lators, and Kansans from every and gas play in America’s Edward Cross transformed by a decarboniza- environment con- I would offer that our indus- part of the state work together everyday lives. This type of tion agenda that is defining the versation seems to try can share an energy future to create energy policies that connection is more than an We stand at a critical juncture future of global energy. For oil always be about cli- vision. The public expects encourage safe and responsible opportunity. Earning the trust in the life of our nation and our and gas, this trend began first mate and the future leadership from the oil and gas energy development, protect of the American public will state. We are witnessing dra- in Western Europe, moved of energy. The public industry, the dominant energy the environment, and provide become an absolute necessity matic changes in our energy into Canadian oil and gas, and is largely agnostic on industry, in reducing the envi- economic growth. to protect and enhance the landscape and economy. Such is now making its way into the the subject of fossil ronmental footprint of energy I strongly believe the many key elements of business developments have a profound U.S. fuels and the future of services. We can lead the way American people need and success – from recruiting and impact on the independent oil The oil and gas industry has energy. The largely to that energy future. want moral, intellectual, and retention of talent to access to and natural gas industry and done such a good job of cre- neutral public wants The oil and natural gas indus- strategic clarity and courage capital, regulatory stability, tax underscore our need to stay ating abundant, affordable, to see industry and try can be part of the solution from our policymakers at both fairness, and more. ever-vigilant in defense of the always-available energy that fossil fuel opponents to our nation’s energy policy independent oil and natural gas the world takes it for granted. understand oppos- challenges. There is a real con- industry. We all expect our heat to run, ing viewpoints and nection between global energy Due to political agendas gas stations to have fuel, and engage respectfully. expectations and the oil and targeting oil and natural gas lights to never flicker all at Overwhelmingly, gas industry. The EPA reports production, federal and state an affordable price. Around the industry does that total U.S. CO2 emissions debate over taxes, regulatory the world, billions of people have facts on our side. decreased nearly 14%, while issues, and energy policy often are expecting a middle-class However, technical methane emissions were puts the oil and gas industry quality of life and its requisite answers alone often reduced by more than 4% since in the crosshairs. Also, small available, affordable, reliable are lost on the public 2005. Meanwhile U.S. oil and vocal groups of activists across energy. None of this demand and come across to gas production increased more Kansas and the nation continue is going away soon. Because many as out-of-touch. than 80% and 51% respec- to work to obstruct responsi- energy is so reliable and avail- We have to be very tively. The U.S. oil and gas ble energy development under able, the public believes they careful that our efforts industry has proven that over a false belief that oil and gas no longer require it. to expose activists’ the long-term, we can lead the production and use are incom- We all encounter this par- motives and actions world in production and envi- patible with environmental adox anytime we engage in are not perceived ronmental stewardship. progress. Mischaracterizing a conversation about energy by the climate-con- For decades Kansas has been oil and gas activity has been and the environment. In many cerned public as an at the forefront of all aspects and continues to be a common instances, the public assumes attack on them. The of the American energy sec- practice and strategy for these we don’t need fossil fuels climate-concerned tor and continues to be a groups. anymore. A stark example is public is greatly influ- leader. The men and women While we all have our heads anyone who wants to end oil enced by observing of Kansas have long demon- down trying to figure out and gas production while still how we engage activ- strated that developing energy how to operate our projects benefitting from oil and gas ists for clues about resources that promote eco- effectively, the international based materials and fuels. our true character and nomic growth need not come

28 29 Finding Signal Through the Noise by December. KIOGA participated in Federal Regulatory Reforms LPC does not meet the ESA’s definitions be inhabited by the species to be Task Force is also working on updates of either a threatened or endangered considered as such; to the Recommended Practice govern- EPA hearings and a U.S. Small Business Progressing species. KIOGA President Edward Cross 3. Modify treatment of listed spe- ing the end-points of production and Administration forum on the proposal met with U.S. Department of Interior cies to treat only endangered gathering. last February. KIOGA also submitted (DOI) Secretary David Bernhardt on species under Section 9 restric- comments to the EPA expressing sup- The Trump June 19th following the June 12th filing tions (threatened species may Texas Railroad Commission port for EPA’s efforts to narrow and Administration of activists’ lawsuit and told Secretary have special treatment under a Considering Far-reaching Rules for clarify WOTUS. has proposed Bernhardt that the LPC has rebounded Section 4d Rule but will no longer Gathering Lines – The Texas Railroad

a number of from historic lows, and through a com- require a special rule; and Commission has put forward a draft pro- revised regula- bination of public and private efforts, 4. Modify the requirements for the posal for regulating all gathering lines in tions that favors an energy dominance the LPC is now better protected than at de-listing process to be more in Texas, regardless of size or pressure. TITLE WORK DRILLING & DIVISION ORDER OPINIONS agenda over duplicative and punishing any previous time. line with those for listing a spe- This draft proposal goes far beyond what KANSAS & NEBRASKA regulations. This rhetoric has under- A listing a threat- cies as threatened or endangered. is being considered at the federal level DAVID A. MORRIS, PA pinned a set of policies designed to ened or endangered by PHMSA. deregulate and encourage oil and gas will not provide any Gathering Line Regulatory ATTORNEY AT LAW activity. The Administration said that additional conserva- Over-Reach EPA Repeals 2015 Waters of the 8100 E 22nd N Bldg 600 Suite M in order to achieve energy dominance tion benefits above U.S. (WOTUS) Rule WICHITA, KANSAS 67226 through responsible energy production, what already exists. The U.S. EMAIL ADDRESS: [email protected] we need smart regulations, not punitive Cross encouraged Department of On September TELEPHONE: 316.686.9998 FAX: 316.681.0153 regulations. Secretary Bernhardt to collaborate with Transportation 12th, the EPA stakeholders on positive solutions that Pipeline and announced that they Lesser Prairie Chicken (LPC) protect the species without causing Hazardous were repealing a 2015 Status Must be Decided by May unnecessary harm to the livelihoods of Materials rule that impermis- 2021 the people of our states. Safety Administration (PHMSA) con- sibly expanded the tinues developing a gas gathering line definition of “waters On September 12th, the U.S. District Endangered Species Act Reform regulatory proposal. On June 27th, the of the United States” Court for the District of Columbia PHMSA advisory group recommended (WOTUS) under the issued a stipu- DOI Secretary Bernhardt said the regulating gathering lines 8 5/8” or Clean water Act. EPA is also recodifying lated settlement U.S. Department of Interior (DOI) was greater. KIOGA President Edward the longstanding and familiar regulatory agreement working to change the way they list spe- Cross is a member of the IPAA Pipeline text that existed prior to the 2015 rule. requiring the cies and had three rules under review Safety Task Force organized to voice “Today, EPA finalized a rule to repeal U.S. Fish & that address habitat determination, the concerns of independent producers. the previous administration’s over- Wildlife Service species listing priorities, and the listing KIOGA pushed back on efforts to bring reach in the federal regulation of U.S. (USFWS) to publish a 12-month finding species recovery process. On August small gas gathering lines under PHMSA waters,” said EPA Administrator Andrew by May 26, 2021 in the Federal Register 12th, Secretary Bernhardt unveiled the regulation working within the group to Wheeler. “Today’s Step 1 action ful- that determines if listing the Lesser improvements to the implementing reg- achieve an outcome that results in safe fills a key promise of President Trump Prairie Chicken (LPC) is warranted ulations of the Endangered Species Act operations without unduly burdensome and sets the stage for Step 2 – a new under the ESA. (ESA). These changes: and costly operating requirements. We WOTUS definition that will provide CONTRACTORS AND PRODUCERS On June 12th, environmental activist 1. Allow the consideration of continue to fight this effort. PHMSA has greater regulatory certainty for farmers, 250 N. Water, Suite 300, Wichita, KS 67202 groups sued DOI over the status of the economics in making listing indicated they really don’t want to reg- landowners, home builders, and devel- LPC. KIOGA has long advocated that determinations; ulate lines less than 12 ¾”, but has to opers nationwide.” 316-267-3241 the best scientific and commercial infor- 2. Revise the habitat determination build a strong case for not adopting the EPA aims to have Step 2 of the Serving the Oil and Gas Industry Since 1926 mation available demonstrates that the by requiring that habitat actually advisory group recommendation. The repeal-and-replace process completed

30 31 Making an Impact

Basic Kansas Oil & Gas Operations The Energy natural gas enriches gas industry KIOGA continues vigou- and Career Opportunities

Edward P. Cross, P.G., M.B.A. Education life experiences and and KIOGA. President rous Public Information Kansas Independent Oil & Gas Association Partnership, Inc. enhances our quality KIOGA will be

Efforts KIOGA (EEPI), a non-profit of life. We work hard conducting a corporate organi- to communicate and series of radio These are critical times for the oil and zation consisting of representatives illustrate how responsi- interviews gas industry, economically and polit- appointed to serve on the Interstate Oil bility is an integral part with the Kansas Farm & Ranch Radio ically. An informed public has never & gas Compact Commission (IOGCC) is of industry’s consider- Network over the next several weeks been more necessary. Leading the working to develop programs for state ations and decisions. KIOGA President and months to raise awareness about way for the Kansas oil and gas indus- regulatory field inspector education Edward Cross published an article in the challenges and opportunities facing try in Kansas, Topeka, Washington, the and training. KIOGA President Edward the American Oil & Gas Reporter about the small businesses that make up the media, and the public, KIOGA continues Cross serves as Vice Chair of the EEPI. KIOGA’s public information strategy to Kansas oil and gas industry. The news to serve as the primary source of infor- KIOGA has been sharing several papers communicate how responsibility is an and information will be broadcast on 39 mation on issues ranging from oil and and presentations on basic oil and gas integral part of industry’s considerations radio stations throughout Kansas. gas taxation, environmental/regulatory operations with the EEPI group to and decisions. As the debate around oil and natural issues, economic impact, energy policy, help develop a field inspector training On September gas production continues to resonate and more. program. 27th, KIOGA around the country, KIOGA continues KIOGA President Edward Cross President Edward our vigorous campaign to provide fact- wrote two editorials that have appeared Cross joined based scientific information to inform in media across Kansas and elsewhere industry profes- policymakers and the public about the in September including the Hays Post, sionals from Texas and Oklahoma in economic, environmental, and social KIOGA continues to provide fact- Coffeyville Journal, Topeka Capital- a discussion of industry image issues benefits of safe and responsible oil and based, scientific information and inform Journal, Gyp Hill Premier, Great Bend and what our industry is doing to natural gas development. policymakers and the public about the Tribune, St. Louis Post-Dispatch, address public perception challenges economic and environmental benefits of Arkansas Democrat-Gazette and more. at an energy symposium during the safe and responsible oil and natural gas The editorials were titled: Association of Desk & Derrick Clubs development. Former KIOGA Chairman • Opportunities for Energy (ADDC) Annual Convention in Kansas Ken White provided a live radio inter- Expectation Connections and City. Get on Board the KIOGA Express view on the Mid-America Ag Network • We Need a New Understanding Contact the Wichita office and from the KIOGA booth at the Kansas of Energy. State Fair in Hutchinson, Kansas on get your office signed up today to September 11th. Ken did an outstanding start receiving job talking about the Kansas oil and gas The Center for Economic up to date information. industry and KIOGA. Development and Business Research KIOGA member Dan Schippers pro- at Wichita State University has asked vided an excellent presentation on the KIOGA President Edward Cross to write economic impact of the Kansas oil and an article summarizing Kansas oil and gas industry to Ellis gas industry economic impact and fore- County and the state cast going forward for their 2020 Kansas of Kansas at the Economic Outlook publication. www.kioga.org Grow Hays quarterly Since 2013, KIOGA has been aug- The Kansas Farm & Ranch Radio [email protected] luncheon in Hays, menting our public information efforts to Network has reached out to KIOGA for Kansas on September 10th. include messages that relay how oil and information about the Kansas oil and

32 33 our comments, EPA will not revise the The methane emissions survey being proposal. That is why the work that conducted by GSI Environmental, Inc. is we do (the methane emission survey, progressing. GSI has completed a desk- EPA Proposes Policy Amendments for KIOGA comments, methane coalition top review of 75,000 wells from 40,000 comments, and the DOE study) is crit- sites across the U.S. including many ical going forward. KIOGA submitted here in Kansas. The next step is field Methane Regulations a comprehensive white paper on the investigations. GSI plans to conduct impact of methane regulations on mar- field investigations at 100-200 sites in 3 continue to be regulated pursuant to the changes during the comment period. Performance Standards (NSPS, 40 CFR Marginal Oil & Gas Well ginal oil and gas producers in Kansas regions across the U.S. GSI will be com- EPA’s 2012 Subpart OOOO regulations. KIOGA is preparing comments support- Part 60, Subpart OOOOa) methane that includes compliance cost estimates, ing to field sites to measure methane Methane Survey Set to Prior to the August 29th EPA announce- ing the proposal and will submit those emissions rules. project economics, documentation bur- emissions from wells and tank batteries Begin in October ment, methane emissions from existing comments to the EPA at the appro- We supported this study by providing: den, and more. The KIOGA white paper from operators who have voluntarily oil and gas facilities (a vast majority of priate time. KIOGA has met several • well site data on marginal well(s) The EPA included defensible data and supporting offered site access. The operator of any which are small business-owned low times this year and last year with EPA, in Michigan and announced information to help build a solid posi- site selected for measurements will be production wells) would have com- Department of Energy, Small Business Kansas; on August tion for reinstituting a low-production contacted in advance of any field inves- pelled small marginal well facilities to Administration, and White House staff • in-kind cost 29th well exemption. KIOGA also join the tigation. Currently, GSI anticipates use technologies designed for new facil- to explain the rules’ impact on the small share by way of site access to changes industry methane litigation coalition field investigations will begin in early ities rather than requirements designed businesses that make up the U.S. inde- marginal well(s) in Michigan and from the comments to EPA. October. GSI hopes to have the final for older, existing operations. The pendent oil and gas industry. Kansas; and Obama- study published in mid-2020. August 29th announcement makes it • in-kind cost share in the form of era methane regulations including the appropriate to revise methane emission Methane Emission Survey Set supplemental funding to support change of the regulated emission from regulations (Subpart OOOOa) for small to begin on October - Researchers field investigations from Kansas, methane to volatile organic compounds marginal wells. invited participation from Kansas oil and Michigan, Illinois, and Indiana. (VOC). Controls to reduce VOC emis- This new EPA proposal will be pub- gas producers in a confidential survey sions also reduce methane at the same lished in the assessing emissions from marginal oil GSI Environmental, Inc. is the EPA/ time, so separate methane limitations Federal Register and natural gas wells. Specifically, data DOE approved contractor employed for production and processing segments which will trig- was sought on methane emissions from to conduct the study. GSI agreed to of the industry are redundant. This is ger the comment America’s marginal wells in order to include a survey of methane emissions the action KIOGA has been advocating. period. KIOGA address critical knowledge gaps and sup- from marginal wells of the type found in KIOGA communicated our support for President Edward ply valuable information used to develop Michigan, Kansas, Illinois, and Indiana the changes to Administrator Wheeler Cross met with industry regulations. This project is in the study. in early September. EPA Administrator being funded by the U.S. Department of While the EPA is currently reconsid- One of KIOGA’s top federal priori- last June when Energy’s (DOE) Office of Fossil Energy ering segments of the NSPS for the oil ties is EPA’s ongoing efforts to rewrite Administrator and in-kind contributions. and natural gas sector, including pro- methane emissions regulations released Wheeler said these changes would be The Kansas oil and gas industry visions relating to low production well by the Obama administration in 2016. coming. Cross discussed several issues joined the Michigan oil and gas industry, sites, more comprehensive data on The August 29th EPA announcement is of importance to Kansas producers Illinois oil and gas industry, and Indiana marginal oil and gas production sites supported by KIOGA because it would regarding EPA’s proposed revisions to oil and gas industry to participate in the across the U.S. is needed to improve the be far more cost effective with regard the Obama-era methane rule. Cross U.S. Department of Energy (DOE) study understanding of emissions from mar- to the breadth of emission sources. followed-up these meetings with writ- [Quantification of Methane Emissions ginal wells and could help shape rules KIOGA submitted comments to EPA ten correspondence to key EPA staff from Marginal (Small Producing) Oil and promulgated by the in December 2018 that, among other reiterating issues where the EPA’s pro- Gas Wells (DE-FE0031702)] to quantify government in the things, recommended that a VOC-based posed Reconsideration Rulemaking and compare methane emissions at future. program was the appropriate pathway adversely affect oil and natural gas pro- marginal and non-marginal wells. We The EPA made for regulating oil and natural gas produc- duction. Cross focused his comments believe that unbiased, representative it very clear that if tion emissions. specifically on the treatment of low and appropriate results are necessary to we do not provide Under the EPA’s proposed revi- production wells. Wheeler encouraged respond to recent and future proposed data and specific sion, new and modified sources would KIOGA to submit comments supporting amendments to EPA’s New Source examples to support

34 35 Share your newsletter David Bleakley Elected 2019-2021 or request more copies KIOGA chairman kioga.org

Twenty-seven Directors were elected • Dana Wreath, Berexco, LLC, Wichita, New Officers and to fill the vacancies from expired terms KS Directors Elected on the KIOGA Board of Directors. In • Earl M. “Mac” Knighton, Knighton addition, three new Directors were Oil Company, Inc., Wichita, KS David Bleakley, elected. KIOGA welcomes David • Kurt Mai, Mai Oil Operations, Inc., Executive Vice Exstrum of Lario Oil & Gas Company Dallas, TX President of Colt in Wichita, Kansas, Jay Prudhomme of • Brock McPherson, McPherson & Service Bodies * Service Cranes * Dump Merit Energy in Dallas, Texas, and Dana McVey Law offices, Great Bend, KS Energy, Inc. in Bodies * Lift Gates * Storage & Cargo Mission, Kansas Wreath of Berexco, LLC in Wichita, • Michael E. Montgomery, Trek AEC, www.kioga.org Kansas as new KIOGA Board Directors. LLC, Dallas, TX was elected the [email protected] 2019-2021 KIOGA The Thirty Directors elected join the • Marjorie Nagel, F.G. Holl Company, Chairman at the remaining 34 Directors on the KIOGA LLC, Wichita, KS KIOGA Board Meeting held during the Board. The following 27 Directors were • David Powell, Colt Energy, Inc., 82nd KIOGA Annual Convention on elected at the August 11th KIOGA Board Mission, KS August 11th Meeting: • William S. Raymond, Raymond Oil in Wichita. • Steven C. Anderson, Mull Drilling Company, Inc., Wichita, KS Visit Us Online at KansasTruck.net Bleakley has Company, Inc., Wichita, KS • Michael J. Reilly, Grand Mesa served as a • Keith Befort, Allied Oil & Gas Operating Company, Wichita, KS KIOGA Board Services, LLC, Wichita, KS • Scott Ritchie III, Ritchie Exploration, of Director • Adam E. Beren, Berexco LLC, Inc., Wichita, KS and most Wichita, KS • Ryan J. Schweizer, McCoy Petroleum recently as Incoming KIOGA • Thomas E. Blair, Tomco Oil, Inc., Corporation, Wichita, KS Chairman David Bleakley Atlanta, KS • Darrel G. Walters, Berentz Drilling KIOGA East Congratulated by Outgoing Membership in KIOGA KIOGA Chairman Ken • Andrew Clark, Vincent Oil Company, Inc., Wichita, KS Vice Chairman. White gives you: Bleakley brings Corporation, Wichita, KS • Wayne Woolsey, Woolsey Energy a unique • Will Darrah, Darrah Oil Company, Corporation, Wichita, KS • A united Voice in Topeka & set of LLC, Wichita, KS The Directors unanimously elected Washington skills and • Kent Duetsch, Duetsch Oil Company, the following officers: • Access to legislative & business Wichita, KS • Chairman – David Bleakley, Colt information leader- • A Way to build public understanding • David Exstrum, Lario Oil & Gas Energy, Inc., Mission, KS ship at • A stronger industry voice Company, Wichita, KS • Southwest Vice Chairman – Ed Outgoing KIOGA Chairman a time • Access to industry publications Ken White Congratulated for his when the • Mark Evenson, Evenson Auctioneers, Nemnich, K&N Petroleum, Inc., Outstanding Service as 2017-2019 Inc., Wichita, KS Great Bend, KS KIOGA Chairman by KIOGA challenges President Edward Cross facing the • Kraig L. Gross, Kansas Natural Gas, • East Vice Chairman – Barry Hill, Become a member today oil and gas Inc., Hays, KS Vess Oil Corporation, Wichita, KS Pass the newsletter to non-members industry are equally unique. Bleakley • Jay Prudhomme, Merit Energy, • South Central Vice Chairman Dallas, TX – Alan Banta, Trans Pacific Oil Help us grow our network in the replaces outgoing Chairman Ken White oil and gas industry of Wichita, Kansas who completed • David Jervis, Range Oil Company, Corporation, Wichita, KS his two-year term at KIOGA’s Annual Inc., Wichita, KS • Treasurer – Scott Frazier, Convention in Wichita on August 13th. • Pat Kane, Palomino Petroleum, Inc., Woolsey Operating Company, Newton, KS LLC, Wichita, KS Member • Jeff Kennedy, Martin Pringle Oliver Wallace & Bauer LLP, Wichita, KS

36 37 Good News! Kansas Supreme Court Sides with KIOGA Amicus Brief in Defeasible Term Mineral Interest Case

On August 16th, the Kansas Supreme Company, LLC v. Littler, et al. case to the grantees’ interest. If the Kansas Court issued its ruling in the rule against threatened to overturn this assumption, Supreme Court were to overrule the perpetuities case (Jason Oil, LLC v. which could have thrown title to thou- district judge’s ruling and find that the Littler, et al). The court declined to sands of acres of land and countless oil grantees’ interest is void under the rule apply the rule against perpetuities to and gas leases into chaos. against perpetuities, Jason Oil would void the future interest of a grantee The district judge ruled in the case find itself without a valid oil and gas following a grantor’s reservation of a to uphold the validity of the grantees’ lease and possibly liable for paying roy- defeasible term mineral interest. future interests in the minerals under alties to the wrong people. The defeasible term mineral interest these deeds. This was a very good The August 16th Kansas Supreme case (Jason Oil, LLC v. Littler, et al) from result for the Kansas oil and gas indus- Court ruling was good news for the The Kansas Independent Oil and Gas Association (“KIOGA”) has announced that Rush County involved a consequential try. However, the district court ruling Kansas oil and gas industry. The court the exclusive KIOGA Buyers’ Guide (the “Guide”) — the premier resource of relevant issue of mineral title law: Is a defeasible was appealed and the case was trans- recognized the chaos that would fol- products and services for oil and gas professionals — is now available at the KIOGA term mineral interest created by reserva- ferred directly to the Kansas Supreme low in mineral title across the state if it website at www.kioga.org. tion in a deed by the grantor effective? Court. were to invalidate the common form of Attorneys, landowners, and oil and gas This case had some potential neg- mineral ownership involved in the case. KIOGA partnered with Overland Park, Kan.-based Strategic Value Media, a leading lessees have always operated under the ative consequences for the Kansas oil Joe Schremmer (formerly with Depew, nationwide provider of print and digital media solutions for national, state and local assumption that a reserved defeasible and gas industry. Jason Oil had argued Gillen, Rathbun, trade and membership associations, to produce the Guide. KIOGA is proud to provide term mineral interest is valid. Countless to the court that the future interest cre- & McInteer LC its members with this useful and easily accessible year-round resource. oil and gas leases and real estate trans- ated in the grantees is valid and should in Wichita and actions have been done on the basis be upheld because it took the oil and now with the “This comprehensive Guide offers access to a vast network of industry suppliers,” of this assumption. The Jason Oil gas leases at issue from the successors University of said Kelly Rains. “We are very pleased with the fine work SVM has done with this New Mexico Guide, which we anticipate will now greatly assist industry professionals in making Law School) educated purchasing decisions throughout the year. The response to this Guide by filed an amicus the industry has been nothing short of outstanding.” curiae brief with the Kansas The 2019 version of the Guide features updated and expanded company and Supreme Court on behalf of KIOGA on product listings, in addition to other valuable information relating to the oil and gas January 16th. The Kansas Supreme industry. The Guide provides KIOGA members and other industry professionals with Court followed the very reasoning applied in the KIOGA amicus brief and an efficient way to browse for goods and services. The Guide also offers oil and the opinion even cites the KIOGA brief gas suppliers and companies exceptional visibility by showcasing their products and Providing Quality Seismic Since 1993 on a couple of important points. This services to a targeted, industry-specific buyer group. is great news and an excellent result! We owe a great deal of gratitude to Joe If your company or business has not yet taken advantage of this exceptional Schremmer for preparing an outstanding opportunity to highlight your products and services in the Guide, it is not too late! amicus brief. To learn more about advertising your products or services in this exclusive Guide, please email [email protected].

3500 N ROCK RD. BLDG. 800 • Wichita, KS 67226 Phone: (316) 636-5552 • Fax: (316) 636-5572 E-mail: [email protected] www.paragongeo.com

38 39 Kansas State Fair KIOGA Educates at Kansas State Fair the Kansas economy.” Mark Ballard, Murfin Drilling Spotlighting Oil & Gas Interactive exhibits and models drew Role in Improving Quality the interest of numerous passer-bys. David & Kay Bleakley, Colt Energy of Life The exhibit and interactive models Amanda Carrillo, KIOGA allowed fair-goers the opportunity to Cynthia Clugston, Kansas Strong For the 20th consecutive year, KIOGA gain a better understanding of how Candace Davis, Kansas Strong participated in the Kansas State Fair oil and gas is formed, discovered, and Alan & Dianne DeGood with a booth exhibit. KIOGA was joined produced in Kansas and why it is so Krista Dahlinger, Murfin Drilling again this year by Kansas Strong to make important to our economy and standard Steve Dillard, Pickrell Drilling the booth exhibit a Kansas oil and gas of living. Energy education material industry display. KIOGA’s long-stand- and data provided facts, statistics, and Susan Downing, White Exploration ing presence at the Kansas State Fair has information about the Kansas oil and gas Diana Edmiston, Edmiston Law proven to be very effective for building industry. Brian Gaudreau, Vess Oil good will and providing opportunity to KIOGA relies on an extensive volun- Allison Igo, MV Purchasing communicate with the public. teer network for staffing the fair exhibit. David Jervis, Range Oil The KIOGA/Kansas Strong exhibit Several KIOGA members stepped up Pat Kane, Murfin Drilling provided fair-goers with fact-based and volunteered their time to interact information to highlight how oil and with fair-goers. Special thanks go to the Jeff Kennedy, Martin Pringle natural gas enriches life experiences and following volunteers and the compa- Randy Koudele, RWK Oil enhances the quality of life for people nies that allowed them time to staff the Robert Krehbiel, Attorney around Kansas and the world. Treating KIOGA booth: Doug Louis, GSI fair-goers from across Kansas with infor- The KIOGA Educational Foundation Warren Martin, Kansas Strong mational material explaining the truth and Kansas Strong sponsored the educa- Jerry Mason, Duke Drilling about the oil and gas industry, volunteer tional booth at the Kansas State Fair for Robert McGrath, Stelbar KIOGA members presented the Kansas the 20th consecutive year. If you would oil and gas industry in a positive light. like to make a donation to the founda- Tom Melland, Murfin Drilling The 2019 Kansas State Fair provided a tion or find more information about our James Melland, Melland Eng. unique opportunity to spotlight Kansas’ energy education programs, please con- Todd Morgenstern, Southwind role as a leader in the development of tact Kelly Rains at the KIOGA Wichita Margery Nagel, FG Holl energy. More than 340,000 visitors office at 316-263-7297 or Mark Shreve Mike & Jan Novy, Novy Oil attended this year’s Kansas State Fair at 316-264-6366. Rich Pancake, Murfin Drilling that ran September 6th – 15th. “The KIOGA/Kansas Strong oil Leon Rodak, Murfin Drilling and gas educational exhibit is a wor- Phil & Traci Pierpoint, Bear Pet. thy investment of time and resources Gary Reed, Arkan Pet. especially when speaking to crowds Larry Richardson, Pickrell Drilling of curious people,” said Kelly Rains, Dick & Janice Schremmer, Bear Pet. KIOGA’s fair exhibit coordinator. Carol Schuetze, Territorial “Interactive exhibits and informational Mark Shreve, Mull Drilling material provided an opportunity for KIOGA receiving people of all ages to learn about the Jill Suchy, Southwind 20 year Longevity value of the Kansas oil and gas industry Darrel Walters, Berentz Drilling Award and its importance to our daily lives and Ken White, White Exploration

40 41 commissioners on July 3rd to dis- Water Well Permitting Issues cuss industry concerns. Sheridan County commissioners agreed that the Several Issues Emerge in Kansas A group NWLEPG had over-stepped its jurisdic- called the tion and voted to remove themselves Northwest Local from the group. Farr also spoke with Legislative Interim Environmental Tim Hansen, NWLEPG executive direc- Protection tor, on July 1st and again on July 3rd. I well injection rates had declined in Meeting with Kansas Department with KIOGA members Dave Dayvault, KIOGA Engaged During Group (NWLEPG) based in Colby, Hansen said the NWLEPG decided to recent years. The facts revealed that of Commerce Emma Richmond, Eric Flax, and Kansas sent notices to water well drillers table the permit and asked that industry Legislative Interim Class I injection rates had declined by KIOGA President Edward Cross met last July saying they would be requiring puts attention to making sure the water 0.45% over the last year and the Class I KIOGA recently noticed that the with Kansas Department of Revenue a local permit for drilling water supply supply wells are either transferred within injection wells were putting an order of Kansas Department of Commerce web- Property Valuation Division (PVD) wells for oilfield use. The NWLEPG the allotted time frame or plugged. magnitude or more fluid into the ground site did not list the Kansas oil and gas Director David Harper, PVD Oil & Gas proposed charging oil operators $500 KIOGA President Edward Cross met than nearby Class II injection wells industry as one of Kansas’ key indus- Personal Property Section Manager to permit a well for drilling purposes with Leo Henning, KDHE Deputy (wells used to inject fluids associated tries. KIOGA President Edward Cross Lynn Kent, PVD Assistant Dustin in addition to the fees and permit- Secretary and Director of Environment with oil and natural gas production). contacted Kansas Commerce Secretary Barnes, and 30+ county appraisers. ting requirements already imposed by Division on July 8th. KIOGA encouraged Representative on September 3rd and We discussed pending litigation, guide The summer off-season for the Kansas the Kansas Department of Health & The NWLEPG met again on Probst to make sure he gathers all provided him data and information expenses, rendition issues, and BOTA Legislature has been short. Things are Environment (KDHE). The NWLEPG September 12th and decided to move data and information before coming about the Kansas oil and gas industry tax exemption language. starting to take shape leading up to also asked that the new permit be forward with setting a fee for oil field to conclusions. Representative Probst and specifically requested he consider the 2020 Kansas Legislative Session. approved and paid prior to the start of water supply wells. The NWLEPG said was very receptive of the information. adding the oil and gas industry to the BOTA Tax Exemption Language KIOGA has been and continues to be any water well drilling. The NWLEPG there were about 95-100 unplugged oil Also, KIOGA has several members (Ken Kansas Department of Commerce list of vigilant and engaged during the legisla- consists of the counties of Cheyenne, field water supply wells in northwest White, Dana Wreath, Dylan Klaus) who Kansas’ key industries. Secretary Toland In the past, oil and gas property tax tive interim period. Decatur, Gove, Greeley, Lane, Logan, Kansas with no responsible party and are actively engaged in an “Arbuckle responded by saying the Commerce filings made in the first quarter of the Scott, Sheridan, Sherman, Thomas, the NWLEPG needed to raise revenue to Working Group” that has had ongo- Department’s website was a work in year were often based on previous year’s Seismic Activity Trego, Rawlins, and Wallace. plug the wells. The NWLEPG reduced ing discussions with the KCC, KDHE, progress and he would absolutely make production. Later in the year, when cur- Lance Shepard of Woofter Pump the fee from the original proposal of Kansas Geological Survey, and others the change requested to add the Kansas rent year production was better defined, A 4.2 magnitude earthquake occurred & Well, Inc. and Bo Farr of Murfin $500 per oil field water supply well to regarding Arbuckle injection and seis- oil and gas industry as one of Kansas’ some operators may find their properties near Hutchinson, Kansas on August Drilling Company, Inc. engaged in the $200 per oil field water supply well. mic activity. key industries. Toland said the infor- should have been exempt from the tax 16th followed by several smaller seis- issue meeting with Sheridan County mic events. This is roughly the same mation provided by KIOGA was very and would file for property tax refunds. area where seismic activity was cen- KCC Launches Investigation helpful for updating their website. He The new BOTA language is intended – On tered in the Spring of 2018. KIOGA Into Hutchinson Earthquakes also said he would have his marketing to push the effective date of exemp- August 21st, the Kansas Corporation President Edward Cross met with team do a spotlight on the oil and gas tion requests to the date when property Commission (KCC) announced that it Kansas State Representative Jason industry in Kansas on the Department’s taxes were assessed (January 1st each would collect data and analyze recent Probst (D-Hutchinson) on September social media and on his blog. He year). The purpose of the change in the injection activity in Reno County in an 3rd and provided facts and informational concluded his response by saying: “I language is to try to eliminate refund effort to uncover the cause of a series material about seismic activity around appreciate the work you and your mem- requests later in the year. This could of earthquakes in the Hutchinson area. Hutchinson and other areas of the state. bers do to support the state’s economy!” result in operators overpaying their ad The KCC said it is conducting the inves- Cross also provided important facts and valorem taxes. KIOGA State & Federal tigation to evaluate whether additional data about Class I and Class II injection KIOGA Meets with Kansas Tax Committee Chair Andrea Krauss action is needed to safeguard Kansans. activity. Probst has been led to believe Department of Revenue to Discuss reported on this issue at the KIOGA The area under investigation in Reno that Class I injection wells (wells used 2020 Oil & Gas Appraisal Guide August Board Meeting. Andrea said County focuses primarily on Arbuckle to inject hazardous and non-hazardous “BOTA’s only function is to confirm that formation depth wells and involves both industrial and municipal wastewater) On September 5th, KIOGA Ad the lease does, in fact, qualify for the Class II injection wells and Class I wells in the area were not likely contributors Valorem Tax Committee Chair Richard exemption. By attempting to adjudicate regulated by the KDHE. to the seismic events because Class Koll, KIOGA State & Federal Tax the issue of tax refunds, BOTA is step- Committee Chair Andrea Krauss, along ping outside its authority.”

42 43 KDHE Proposes New Air Emission Fees • Require Class II emitters to begin EPA would likely take primacy away for paying emissions fees at $53/ton. emission regulations. • Class II (smaller emission KIOGA Voices Concerns to Clean sources) New Class II per ton Air Act Advisory Group (CAAAG) – emission fee would generate On September 13th, KIOGA President The Kansas Department of Health $400,000 in revenue for the Edward Cross voiced Kansas oil and gas & Environment (KDHE) Bureau of Air KDHE industry concerns to the KDHE CAAAG. Quality announced in July a proposal • Class II (smaller emission KIOGA asked the KDHE to consider effi- to increase fees on Kansas industry. sources) New Class II Annual ciency improvements and State General As a result of reduced air emissions Permit Fee Based on Complexity Fund requests prior to asking businesses from the regulated community (and projected at $500-$800 per facil- to pay new and higher fees. the reduced fee revenue to the Bureau ity would generate $600,000 in because of those decreased emissions), revenue for the KDHE revenues into the Air Quality Fee Fund KIOGA Meets with KDHE Deputy are projected to not cover the Bureau’s Secretary – On July 18th, KIOGA expenses by next year. The entire fund President Edward Cross met with Leo JOIN! is projected to be depleted by 2020. Henning, KDHE Deputy Secretary and KDHE Proposal – The KDHE is Director of Environment Division, to pursuing a 71% increase in fees. KDHE discuss industry concerns. The most currently collects about $3.5 million in prominent emissions source in the oil fees and wants to increase that amount and gas production industry would be The Wichita Desk and Derrick is a dynamic to about $6 million. The proposal vents from ethylene glycol dehydra- organization that promotes the education of increases fees as follows: tors. Cross expressed our concern that the petroleum, energy and allied industries and advances the professional the KDHE proposal appears to punish • Assess a new emissions fee on development of its members. emitters of hazardous air pollut- Kansas industries for good environmen- ants (HAP) at $150/ton. tal stewardship (reducing emissions). Member Benefits: • Class I (large emission sources) Henning said that if KDHE did not raise • Learn from energy industry experts. • Network with energy industry leaders increase in HAP fee would gen- additional revenue to regulate emis- and colleagues. erate $300,000 in revenue for the sions, the EPA could take the program • Attend regional and national meetings. over and Kansas would become an EPA • Receive critical updates and information KDHE about the energy industry. direct-implementation state with regard • Increase emissions fees on Class I • Enhance communication and leadership permittees to $53/ton – currently to emission regulation. skills. $48/ton. • Make friends for life! • Class I (large emission sources) KDHE Meeting on August 13th increase in per ton fee would gen- – The KDHE Clean Air Act Advisory For more information about the Wichita and to learn about erate $100,000 in revenue for the Group met on August 13th to discuss Desk and Derrick member eligibility, visit our Wichita Desk KDHE this issue further. The KDHE made it and Derrick facebook page, or contact • Class I (large emission sources) clear that they are targeting January 1, Shannon Wiseman New Annual Permit Fee Based on 2020 for an implementation date for the [email protected]| 316.267.4214 Complexity projected at $1,500 proposed increased/new fees. KDHE The Wichita Desk and Derrick is a proud was adamant in stating that if they affiliate of the Association of Desk And Derrick per facility would generate $1.4 Clubs, www.addc.org million in revenue for the KDHE could not obtain enough funding, the

44 45 More People Should have Access to % FINANCING* Safe Energy ON MACHINE & Opinion Editorial industrial heat and fertilizers. All require share a common desire to create pros- oil and gas. perity globally. ENGINE PARTS written by KIOGA The oil and gas industry has done There is a very real opportunity to President Edward Cross such a good job of creating abundant, create a stronger, more effective connec- 0 affordable, always-available energy that tion between oil and gas development that appeared in media the world takes it for granted. Energy and the public that allows us to work outlets across Kansas and is so woven into our daily lives that few together on a common goal to create elsewhere in September question whether it will be there, or prosperity for people around the world. where it comes from. Americans deserve the facts. And the 2019 Oil-based products are likely the first fact is, history has disproved the false thing you touch at the beginning and premise that economic growth and sig- Energy matters – a lot. Throughout end of each day, whether it is your alarm nificant increases in energy production most of human history, global life expec- clock, television remote, cellphone, or must, necessarily, come at the expense tancy was 30-35 years. In the last 200 even the toothpaste and toothbrush of environmental improvement. years, global life expectancy has dou- you use to brush your teeth. Those While the oil and gas industry con- bled. Extreme poverty has dropped who wear makeup or synthetic fibers, tinues to address public concerns about from 90% of humanity to 10% and fall- such as polyester or nylon, are using important economic and environmental ing. The growth in human liberty and or touching petroleum nearly 24 hours issues with accurate, fact-based, scien- the dramatic increase in available energy a day. As a key component in heart tific information, we also recognize it is are likely the two main catalysts for this valves, seat belts, helmets, life vests, and just as important to address big-issue tremendous progress. even Kevlar, petroleum is saving tens of visceral concerns with information that Few doubt that energy has improved thousands of lives daily. Furthermore, demonstrates how industry and com- lives and enabled human progress. Yet oil and gas are key components in many panies care about people’s needs and Foley understands your business depends on your equipment. We’re here to make one of the biggest challenges facing the medicines and antibiotics such as anti- concerns. Companies in the Kansas oil maintaining your engines and equipment affordable. world is the polarized debate over the septics, antihistamines, aspirin, and sulfa and gas industry understand responsibil- future of energy. Facts and economics drugs. ity comes through what we do and how Our Commercial Account is a line of credit that lets you pay for parts, service, are too often replaced with assertions We all expect our heat to run, gas we do it. For companies in the Kansas attachments, and rentals now, or later. you can use it any Cat® dealer, Cat Rental and emotions. Discussions about fos- stations to have fuel, and lights to oil and gas industry, responsibility is Store or participating dealers in the U.S., Canada, and Japan. sil fuels and alternative energy sources never flicker - all at an affordable price. an integral part of considerations and often degenerate into a battle to delegit- Rental Power is also a phone call Around the world, billions of people are decisions. No matter where your job takes you, let Commercial Account give you the peace of imize the other side. This is a recipe for away. Portable power generation, expecting a middle-class quality of life The U.S. has a unique opportunity to mind that you're covered for what you need, no matter where you go. air compressors and environment inaction. And it keeps billions of people and its requisite available, affordable, show the world how energy abundance and process temperature control trapped in energy poverty. DON’T HAVE A CAT COMMERCIAL ACCOUNT? reliable energy. None of this demand is can be used as a positive force to lift … just what you need, when and Energy at scale provides a critical going away soon. Because energy is so people up. More than a billion people Apply at: www.CatFinancial.com/CommercialAccount. where you need. foundation for economic development. reliable and available, the public believes around the world face challenges for It’s easy and only takes about 10 minutes. A recent report from Wood Mackenzie, they no longer require it. adequate food and education, clean a reliable energy research and con- We all encounter this paradox any- water and protection from heat and sultancy group, said fossil fuels will time we engage in a conversation about cold due to a lack of access to energy. contribute about 85% of the world’s energy and the environment. Some folks To rise out of poverty and enjoy health *Terms subject to change, offer valid through December 31, 2018. Subject to credit energy supply by 2040 and forecasts approval. Certain restrictions apply, see your Cat dealer representative for details. assume that we don’t need fossil fuels and safety, people need more energy, Dealer service not required but can be included if the parts represent at least 50% of about 15% of global energy will come anymore. A stark example is anyone not less. We should all work together invoice. A $1,000 minimum purchase per invoice is required. from carbon-free sources by then. In who wants to end oil and gas produc- to ensure more people have access to © 2018, Foley Industries All rights reserved. CAT, CATERPILLAR, their respective logos, addition, nearly 100% of new energy “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity tion while still benefitting from oil and safe, affordable, and reliable energy, no used herein, are trademarks of Caterpillar and may not be used without permission. demand is coming from emerging FoleyEQ.com gas based materials and fuels. matter which state, nation, or continent www.cat.com www.caterpillar.com economies. Emerging economies need The oil and gas industry and general they reside. reliable affordable power, transportation public have common ground. We both fuels, and economic building blocks like FoleyEq-375.indd 1 2/22/18 11:17 AM 46 47 PRSRT STD US Postage The Voice of the PAID Kansas Independent Wichita, KS Petroleum Industry Permit No. 84

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