Energy and Water Our 2003 Town Hall Julie Knutson, President and CEO, The Oklahoma Academy John Feaver, 2003 Town Hall Chairman and President, University of Science and Arts of Oklahoma This document was assembled to allow Town Hall members to educate themselves on the Energy and Water issues prior to our November Town Hall. It will help you become reasonably fluent and able to participate in informed group debate and discussions. And it will serve as a reference source for you. We suspect that ... before August 14th ... some were wondering why we think that energy and water are so important to Oklahoma and the Nation. Then the lights went out in the Northeast. Our Research Chairman was in New York at the time. He reports that the most often uttered four-letter word was ... G-R-I-D ... as in power grid. He also reported that the most important short-term concern was “getting enough water.” He told us that one of the first things that came to mind was that we selected a wonderfully timed topic for our 2003 Town Hall. We have slightly reorganized our Town Hall. This year our Academy Vice-Chairman will be the presiding officer over all Town Hall activities. And we have enlisted two experienced co-chairs; one for Energy and one for Water. They will help keep us on task and in focus as we conduct the Town Hall. We also have done something else differently. We have included the public policy recommendations that are a part of the state’s existing Energy and Water Plans. There are 51 Energy recommendations and 76 Water recommendations. They are listed but not differentiated. That will be your job. We have also included policy recommendations from two New Mexico Town Halls. They are not intended to be pre- drawn conclusions ... they are intended to be a starting point for discussions. We hope you can synthesize them and develop a dynamic direction for Oklahoma. Finally, here are the Cliff Notes for the topics. When considering energy, think of (1) maximizing produc- tion our existing resources and marginal reserves (2) marketing our energy knowledge and (3) alternative energy sources. When considering water, think of (1) water quantity (2) water quality and (3) ownership. Here’s trusting that you will have a great Town Hall experience. We’ll see you at Quartz Mountain. Julie Knutson John Feaver Larry Nichols Howard Barnett, Jr. Michael Lapolla President & CEO Chairman Co-Chairman (Energy) Co-Chairman (Water) Research Chairman Oklahoma Academy 2003 Town Hall 2003 Town Hall 2003 Town Hall 2003 Town Hall Energy & Water © 2003 The Oklahoma Academy Town Hall PERSPECTIVES - 1 Oklahoma Resources Energy and Water OUR TOWN HALL Julie Knutson, President and CEO, The Oklahoma Academy John Feaver, 2003 Town Hall Chairman and President, University of Science and Arts of Oklahoma PERSPECTIVES NEW MEXICO FIRST TOWN HALLS Why New Mexico? .....................................................................................................................................P-1 REVISITING “BUFFALO COMMONS” Deborah E, Popper, Associate Professor of Geography, College of Staten Island/City University of New York, Staten Island, NY; and Frank J. Popper, Professor, Bloustein School of Planning and Public Policy, Rutgers University, New Brunswick, NJ. During the Fall 2003 semester the Poppers will be Visiting Professors in the Civil and Environmental Engineering Department at Princeton University. ..............P-2 FEDERAL GOVERNMENT Carl Michael Smith, Assistant Secretary of Energy for Fossil Fuels, USDOE and Executive Summary, Western Water Policy Review Commission .............................................................P-4 STATE GOVERNMENT Robert J. Sullivan, Jr., Secretary of Energy, Keating Administration; Miles Tolbert, Secretary of the Environment; Kathy Taylor, Secretary of Commerce; and Denise Bode, Chairman, Corporation Commission ...............................................................................................................................................P-8 TRIBAL GOVERNMENTS Office of Tribal Justice, U.S. Department of Justice (DOJ): DOJ Policy on Indian Sovereignty and Government-to-Government Relations with Indian Tribes .....P-13 MUNICIPAL GOVERNMENTS Jess Nelson, Mayor, Guymon and Ken Vanderslice, City Manager, Duncan .........................................P-17 OTHERS Mid-Continent Oil and Gas Association, Dr. Bruce M. Bell, Chairman ................................................P-19 Nature Conservancy of Oklahoma, Tim Grogan, Executive Director ....................................................P-24 Oklahoma Chapter of the Sierra Club, Tom Libby, Executive Director .................................................P-26 2 - PERSPECTIVES © 2003 The Oklahoma Academy Town Hall Energy & Water A PROPOSED STRATEGY FOR ENERGY WHY A TOWN HALL ABOUT ENERGY? Charles Mankin, PhD, Director, Sarkey’s Energy Center and the Oklahoma Geological Survey ...........E-1 A NEW MEXICO TOWN HALL Executive Summary of a 2002 New Mexico First Town Hall: New Mexico’s Energy, Economics, and Environment ...............................................................................E-4 A PROPOSED STRATEGY FOR ENERGY Robert J. Sullivan, Jr., Secretary of Energy, State of Oklahoma Executive Summary ...................................................................................................................................E-8 Introduction .............................................................................................................................................E-13 Overview – Our Nation’s Energy Picture................................................................................................E-13 Oklahoma’s Oil and Gas Sector ..............................................................................................................E-14 Protecting Oklahoma’s Environment ......................................................................................................E-18 Oklahoma’s Coal and Electricity ............................................................................................................E-22 Oklahoma’s Energy Infrastructure – Rebuilding an Aging Network ......................................................E-23 List of All Recommended Strategy Initiatives .........................................................................................E-27 MORE ABOUT ENERGY OUR ENERGY INDUSTRIES We Are An Oil A Natural Gas State Oklahoma Natural Gas: Past Present and Future Dan T. Boyd, Oklahoma Geological Survey ...........................................................................................E-30 The Changing Role of Oil and Gas in Oklahoma Mark C. Snead, Research Economist, Oklahoma State University ........................................................E-40 State Policy and the Private Sector Thomas S. Price Jr., Senior Vice President, Chesapeake Energy ...........................................................E-44 Protecting Critical Infrastructure Denise Bode, Chairman, Oklahoma Corporation Commission .............................................................E-52 Energy & Water © 2003 The Oklahoma Academy Town Hall PERSPECTIVES - 3 MAXIMIZING EXISTING RESOURCES Energy Research and Development Christine Hansen, Executive Director, Interstate Oil and Gas Compact Commission ..........................E-53 MARKETING OUR ENERGY KNOWLEDGE Capitalizing on Oklahoma’s Energy Complex: Robert Langenkamp, University of Tulsa College of Law and Director, National Energy-Environment Law and Policy Institute..................................................E-56 The Energy Weather Project at OU: Institute for Energy Economics and Policy, University of Oklahoma. Students: Emmanuel Cabrera, Alicia Fitts, Reed Timmer and Xiaoyi Mu, Faculty Advisors: Peter Lamb, PhD CIMMS, Dennis O’Brien, PhD IEEP, and Mike Richman, PhD CIMMS ................E-61 LOOKING TO THE FUTURE: ALTERNATIVE ENERGY SOURCES An Oklahoma Perspective Mark Meo, PhD, Professor, Civil Engineering and Environmental Science and Fellow, Science and Public Policy, University of Oklahoma, Norman; and Steve Sadler, PhD, Professor, Department of Geography, Oklahoma State University, Stillwater ................................................................................E-65 Winds of Change: A Utility Perspective on Wind Energy Richard P. Walker, Director, Business Development for AEP Wind Energy, LLC ..................................E-74 Forecast for New Wind Power Installation American Wind Energy Association: Provided by William R. McKamey, AEP-Public Service Company of Oklahoma.........................................................................E-76 Wind Power in Woodward, Oklahoma Russell Ray, World Staff Writer, 08/17/2003, Tulsa World......................................................................E-78 Pricing Wind Generated Electricity in Oklahoma Tom Droege, World Staff Writer, 08/13/2003, Tulsa World.....................................................................E-79 OTHER PLACES New Mexico: State Bets on Hydrogen Future ........................................................................................E-80 Colorado: Business Empire Transforms Life for Colorado Ute Tribe ...................................................E-83 Minnesota/Iowa/Texas: States Invest in Wind Power ............................................................................E-89 4 - PERSPECTIVES © 2003 The Oklahoma Academy Town Hall Energy & Water A PROPOSED STRATEGY FOR WATER WHY AN OKLAHOMA TOWN HALL ABOUT WATER? “Lawmakers see need