American Oil & Gas Reporter - December 2011 - 37

mations, he indicated. The public comment period on the proposal had ended, he said, and the regulatory agencies were processing the multitude of comments received. “Whether they listen to any of those comments remains to be seen, but it is doubtful,” he held. Ohio also is moving ahead on new rules for well construction, said W. Jonathan Airey, with Vorys, Sater, Seymour and Pease LLP and counsel for the Ohio Oil & Gas Association. “We are about 95 percent in agreement with the Division of Oil and Gas on a final set of rules that have been posted in a premature draft by our division on its website,” he reported. “It probably needs about six weeks more of refinement in getting the language straightened out, but its goal is to have a proposed rule making on well completion and construction by year’s end.” New Tactics Burd warned a new tactic used by anti-development groups in West Virginia was flooding regulatory agencies with Freedom of Information Act requests for information on well permits. “In West Virginia in 2010, there were eight FOIA requests on permits. In 2011, there have been 115 FOIA requests,” he said. “That just takes somebody away who would be approving permits or assessing permits to work on FOIAs. It is the next step, to be able to slow the ability to get permits approved or rigs on site.” West Virginia also now must deal with new legislation that gives the WVDEP secretary an option of calling for public hearings on permits, Burd added, pointing out it is not a requirement, but rather an opportunity for delay. “You know how that works: When you get enough people clamoring that they want a public hearing, you just can’t imagine too many chiefs of a regulatory body not succumbing,” he predicted. Cross recommended the associations also look carefully at indications the Environmental Protection Agency might redefine diesel fuel’s chemical constituency so broadly that the prohibition against using it in fracturing could cover many other fluids. The IPAA’s Kirchoff seconded that warning, saying EPA was trying to expand the definition of what compounds possess chemical similarities or properties to diesel fuel, with the aim of broadening its ability to regulate hydraulic fracturing under the slim authority Congress granted the agency related to diesel fuel.

Endangered Species Kirchoff pointed out the U.S. Fish & Wildlife Service expressed to some members of Congress that a major hurdle for those seeking to avoid having a species listed as endangered was by convincing landowners to allow researchers on their lands to accurately measure the affected populations. “Private property owners are very reluctant to grant that right because of fears the government will find the species and then impose use restrictions on that acreage,” she said. “We have to be aware that in order to compel the agency to adhere to the science, we are going to have to overcome these hurdles, and you are not going to be able to get any better data unless researchers can go on people’s lands and do surveys,” Kirchoff asserted. There are plenty of West Texas ranchers and landowners willing to allow that access, Shepperd reported, explaining they know the prairie chicken is present on that property and by allowing surveys can help prevent restrictions. The main problem he cited for counting the prairie chickens is their inactivity for most of the year, when they nest in burrows. In California, wildlife protection is becoming a revenue generator for strapped county governments, former California Independent Petroleum Association Chairman Rod Eson warned. Environmentalists have tried and failed to get an ESA listing for the red garter snake across northern California, he said. Their next step was to go to county officials and propose new wildlife permits, he said. “They went to the counties in the area and said here was a way for you to make some money,” Eson said. “Then, every drilling site had to have a biology review. California well sites typically are 200 feet by 100 feet. The requirement is a five-acre review, done by a certified biologist. The operator has to get a permit from the county for $1,200 to have that survey done, which he has to pay for, at about $5,000. And the environmental group is notified when the survey is being done so it can go watch.” Left unsaid is the fact that the snakes spend part of their lives underground in nests a foot or two below the surface, Eson said. “Every one of those drilling locations is on agricultural land, and it’s tilled to four feet three times a year,” he said. “So how are you going to have snakes surviving in that?” On top of the additional fees, Eson reported the process added a six-week delay for securing the permit and another six week wait while the county reviewed

the survey and the site. Taxes Hydraulic fracturing and endangered species are not the only federal issues of concern, Cross reported, saying the independent associations had been working with IPAA and others to head off any new oil or gas tax provisions that might hurt producers. The expectation is that Congress will not seek to directly tax drilling operations, but the industry could be impacted if broader tax reform measures are implemented, he said. “We are trying to educate legislators on the differences between the majors and the independents, and how eliminating provisions such as intangible drilling costs in exchange for lower corporate tax rates does not make us whole,” Cross asserted. “Those proposals hurt not only the oil and gas industry, but hurt Americans in general: the economy as well as national security.” Simmons reported that federal legislators had told him Congress was on a mission to find new sources of revenue, and that the oil and gas industry remained a prime target. Democrats in the Senate and House continued to target tax provisions favorable to majors, including manufacturing tax credits, he warned. Tax plans being offered by Republican presidential candidates don’t offer much comfort to oil and gas producers, pointed out Alex Mills, president and chief executive officer of the Texas Alliance of Energy producers. “Overall, we would not be in favor of Herman Cain’s 9-9-9 plan,” he said. “Texas Governor Rick Perry’s tax plan has an option where you could pay taxes in the current manner, or you could do it on a little card with a 20 percent flat rate. On Mitt Romney’s tax proposal, we are not there with him. Perry is number one, Newt Gingrich is two, either Cain or Romney last.” Taxes may not be the major factor in the near term, Mills predicted, pointing out neither the House nor Senate was likely to make any moves in advance of the November 2012 elections, and new legislators would need time to orient themselves in the post-election period. r

Coming In January
Outlook 2012, featuring AOGR’s annual Survey of Independent Operators, which reveals the drilling plans of the nation’s independent oil and gas producers.
DECEMBER 2011 37



Table of Contents for the Digital Edition of American Oil & Gas Reporter - December 2011

American Oil and Gas Reporter 12/11
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Tech Connections
Washington Watch
Keystone XL
Liaison Committee
Shale Gas Subcommittee
Endangered Species
Midstream Startups Emerging to Meet Booming Demand
Liquids Resource Plays Have Oil Production Rising Again
Organizers Anticipating Big Things for 2012 PBIOS
Cover Story
R&D Areas Key to Improving Fracturing
Natural Gas Offers Solutions as Transportation Fuel
Completion Design, Frac Modeling Optimize Eagle Ford Wells
Novel Drill-In Fluid Excels in Horizontal ERD Wells
Technologies Optimize Sand Control
Operators Must Manage Risk Before, During and After Drilling
OCS Access: BOEM Offers Business-as-Usual OCS Leasing Plan
Court Finds for Insurers in Gulf Spill Ruling
OIPA
Clean Air Act
IOGA NY
COGA
IPAA Annual
Louisiana
West Virginia
Pennsylvania
Texas
The American Well Servicing Directory, Winter 2011
Industry Focus
Classified Advertising
Advertisers Index
American Oil & Gas Reporter - December 2011 - American Oil and Gas Reporter 12/11
American Oil & Gas Reporter - December 2011 - Cover2
American Oil & Gas Reporter - December 2011 - Contents
American Oil & Gas Reporter - December 2011 - Reports
American Oil & Gas Reporter - December 2011 - 5
American Oil & Gas Reporter - December 2011 - 6
American Oil & Gas Reporter - December 2011 - 7
American Oil & Gas Reporter - December 2011 - Calendar
American Oil & Gas Reporter - December 2011 - 9
American Oil & Gas Reporter - December 2011 - 10
American Oil & Gas Reporter - December 2011 - 11
American Oil & Gas Reporter - December 2011 - Oil & Gas Counts
American Oil & Gas Reporter - December 2011 - 13
American Oil & Gas Reporter - December 2011 - Industry Digest
American Oil & Gas Reporter - December 2011 - 15
American Oil & Gas Reporter - December 2011 - 16
American Oil & Gas Reporter - December 2011 - 17
American Oil & Gas Reporter - December 2011 - 18
American Oil & Gas Reporter - December 2011 - 19
American Oil & Gas Reporter - December 2011 - 20
American Oil & Gas Reporter - December 2011 - 21
American Oil & Gas Reporter - December 2011 - 22
American Oil & Gas Reporter - December 2011 - 23
American Oil & Gas Reporter - December 2011 - 24
American Oil & Gas Reporter - December 2011 - 25
American Oil & Gas Reporter - December 2011 - 26
American Oil & Gas Reporter - December 2011 - 27
American Oil & Gas Reporter - December 2011 - 28
American Oil & Gas Reporter - December 2011 - Tech Connections
American Oil & Gas Reporter - December 2011 - 30
American Oil & Gas Reporter - December 2011 - Washington Watch
American Oil & Gas Reporter - December 2011 - Keystone XL
American Oil & Gas Reporter - December 2011 - 33
American Oil & Gas Reporter - December 2011 - Liaison Committee
American Oil & Gas Reporter - December 2011 - 35
American Oil & Gas Reporter - December 2011 - 36
American Oil & Gas Reporter - December 2011 - 37
American Oil & Gas Reporter - December 2011 - Shale Gas Subcommittee
American Oil & Gas Reporter - December 2011 - 39
American Oil & Gas Reporter - December 2011 - Endangered Species
American Oil & Gas Reporter - December 2011 - 41
American Oil & Gas Reporter - December 2011 - Midstream Startups Emerging to Meet Booming Demand
American Oil & Gas Reporter - December 2011 - 43
American Oil & Gas Reporter - December 2011 - 44
American Oil & Gas Reporter - December 2011 - 45
American Oil & Gas Reporter - December 2011 - 46
American Oil & Gas Reporter - December 2011 - 47
American Oil & Gas Reporter - December 2011 - 48
American Oil & Gas Reporter - December 2011 - 49
American Oil & Gas Reporter - December 2011 - 50
American Oil & Gas Reporter - December 2011 - 51
American Oil & Gas Reporter - December 2011 - 52
American Oil & Gas Reporter - December 2011 - 53
American Oil & Gas Reporter - December 2011 - 54
American Oil & Gas Reporter - December 2011 - 55
American Oil & Gas Reporter - December 2011 - 56
American Oil & Gas Reporter - December 2011 - 57
American Oil & Gas Reporter - December 2011 - Liquids Resource Plays Have Oil Production Rising Again
American Oil & Gas Reporter - December 2011 - 59
American Oil & Gas Reporter - December 2011 - 60
American Oil & Gas Reporter - December 2011 - 61
American Oil & Gas Reporter - December 2011 - 62
American Oil & Gas Reporter - December 2011 - 63
American Oil & Gas Reporter - December 2011 - 64
American Oil & Gas Reporter - December 2011 - 65
American Oil & Gas Reporter - December 2011 - 66
American Oil & Gas Reporter - December 2011 - 67
American Oil & Gas Reporter - December 2011 - 68
American Oil & Gas Reporter - December 2011 - 69
American Oil & Gas Reporter - December 2011 - 70
American Oil & Gas Reporter - December 2011 - 71
American Oil & Gas Reporter - December 2011 - 72
American Oil & Gas Reporter - December 2011 - Organizers Anticipating Big Things for 2012 PBIOS
American Oil & Gas Reporter - December 2011 - Cover Story
American Oil & Gas Reporter - December 2011 - 75
American Oil & Gas Reporter - December 2011 - 76
American Oil & Gas Reporter - December 2011 - 77
American Oil & Gas Reporter - December 2011 - 78
American Oil & Gas Reporter - December 2011 - 79
American Oil & Gas Reporter - December 2011 - 80
American Oil & Gas Reporter - December 2011 - 81
American Oil & Gas Reporter - December 2011 - 82
American Oil & Gas Reporter - December 2011 - R&D Areas Key to Improving Fracturing
American Oil & Gas Reporter - December 2011 - 84
American Oil & Gas Reporter - December 2011 - 85
American Oil & Gas Reporter - December 2011 - 86
American Oil & Gas Reporter - December 2011 - 87
American Oil & Gas Reporter - December 2011 - 88
American Oil & Gas Reporter - December 2011 - 89
American Oil & Gas Reporter - December 2011 - 90
American Oil & Gas Reporter - December 2011 - Natural Gas Offers Solutions as Transportation Fuel
American Oil & Gas Reporter - December 2011 - 92
American Oil & Gas Reporter - December 2011 - 93
American Oil & Gas Reporter - December 2011 - 94
American Oil & Gas Reporter - December 2011 - 95
American Oil & Gas Reporter - December 2011 - Completion Design, Frac Modeling Optimize Eagle Ford Wells
American Oil & Gas Reporter - December 2011 - 97
American Oil & Gas Reporter - December 2011 - 98
American Oil & Gas Reporter - December 2011 - 99
American Oil & Gas Reporter - December 2011 - 100
American Oil & Gas Reporter - December 2011 - 101
American Oil & Gas Reporter - December 2011 - 102
American Oil & Gas Reporter - December 2011 - 103
American Oil & Gas Reporter - December 2011 - 104
American Oil & Gas Reporter - December 2011 - 105
American Oil & Gas Reporter - December 2011 - 106
American Oil & Gas Reporter - December 2011 - 107
American Oil & Gas Reporter - December 2011 - 108
American Oil & Gas Reporter - December 2011 - 109
American Oil & Gas Reporter - December 2011 - 110
American Oil & Gas Reporter - December 2011 - Novel Drill-In Fluid Excels in Horizontal ERD Wells
American Oil & Gas Reporter - December 2011 - 112
American Oil & Gas Reporter - December 2011 - 113
American Oil & Gas Reporter - December 2011 - 114
American Oil & Gas Reporter - December 2011 - 115
American Oil & Gas Reporter - December 2011 - 116
American Oil & Gas Reporter - December 2011 - Technologies Optimize Sand Control
American Oil & Gas Reporter - December 2011 - 118
American Oil & Gas Reporter - December 2011 - 119
American Oil & Gas Reporter - December 2011 - 120
American Oil & Gas Reporter - December 2011 - 121
American Oil & Gas Reporter - December 2011 - Operators Must Manage Risk Before, During and After Drilling
American Oil & Gas Reporter - December 2011 - 123
American Oil & Gas Reporter - December 2011 - 124
American Oil & Gas Reporter - December 2011 - 125
American Oil & Gas Reporter - December 2011 - 126
American Oil & Gas Reporter - December 2011 - 127
American Oil & Gas Reporter - December 2011 - 128
American Oil & Gas Reporter - December 2011 - OCS Access: BOEM Offers Business-as-Usual OCS Leasing Plan
American Oil & Gas Reporter - December 2011 - Court Finds for Insurers in Gulf Spill Ruling
American Oil & Gas Reporter - December 2011 - 131
American Oil & Gas Reporter - December 2011 - 132
American Oil & Gas Reporter - December 2011 - OIPA
American Oil & Gas Reporter - December 2011 - 134
American Oil & Gas Reporter - December 2011 - 135
American Oil & Gas Reporter - December 2011 - Clean Air Act
American Oil & Gas Reporter - December 2011 - 137
American Oil & Gas Reporter - December 2011 - IOGA NY
American Oil & Gas Reporter - December 2011 - 139
American Oil & Gas Reporter - December 2011 - 140
American Oil & Gas Reporter - December 2011 - 141
American Oil & Gas Reporter - December 2011 - 142
American Oil & Gas Reporter - December 2011 - 143
American Oil & Gas Reporter - December 2011 - COGA
American Oil & Gas Reporter - December 2011 - 145
American Oil & Gas Reporter - December 2011 - 146
American Oil & Gas Reporter - December 2011 - IPAA Annual
American Oil & Gas Reporter - December 2011 - 148
American Oil & Gas Reporter - December 2011 - 149
American Oil & Gas Reporter - December 2011 - 150
American Oil & Gas Reporter - December 2011 - 151
American Oil & Gas Reporter - December 2011 - Louisiana
American Oil & Gas Reporter - December 2011 - 153
American Oil & Gas Reporter - December 2011 - 154
American Oil & Gas Reporter - December 2011 - 155
American Oil & Gas Reporter - December 2011 - West Virginia
American Oil & Gas Reporter - December 2011 - 157
American Oil & Gas Reporter - December 2011 - Pennsylvania
American Oil & Gas Reporter - December 2011 - Texas
American Oil & Gas Reporter - December 2011 - 160
American Oil & Gas Reporter - December 2011 - The American Well Servicing Directory, Winter 2011
American Oil & Gas Reporter - December 2011 - 162
American Oil & Gas Reporter - December 2011 - 163
American Oil & Gas Reporter - December 2011 - 164
American Oil & Gas Reporter - December 2011 - 165
American Oil & Gas Reporter - December 2011 - 166
American Oil & Gas Reporter - December 2011 - 167
American Oil & Gas Reporter - December 2011 - 168
American Oil & Gas Reporter - December 2011 - 169
American Oil & Gas Reporter - December 2011 - 170
American Oil & Gas Reporter - December 2011 - 171
American Oil & Gas Reporter - December 2011 - 172
American Oil & Gas Reporter - December 2011 - 173
American Oil & Gas Reporter - December 2011 - 174
American Oil & Gas Reporter - December 2011 - 175
American Oil & Gas Reporter - December 2011 - 176
American Oil & Gas Reporter - December 2011 - 177
American Oil & Gas Reporter - December 2011 - 178
American Oil & Gas Reporter - December 2011 - 179
American Oil & Gas Reporter - December 2011 - 180
American Oil & Gas Reporter - December 2011 - 181
American Oil & Gas Reporter - December 2011 - 182
American Oil & Gas Reporter - December 2011 - 183
American Oil & Gas Reporter - December 2011 - 184
American Oil & Gas Reporter - December 2011 - 185
American Oil & Gas Reporter - December 2011 - Industry Focus
American Oil & Gas Reporter - December 2011 - 187
American Oil & Gas Reporter - December 2011 - 188
American Oil & Gas Reporter - December 2011 - 189
American Oil & Gas Reporter - December 2011 - 190
American Oil & Gas Reporter - December 2011 - 191
American Oil & Gas Reporter - December 2011 - Classified Advertising
American Oil & Gas Reporter - December 2011 - 193
American Oil & Gas Reporter - December 2011 - Advertisers Index
American Oil & Gas Reporter - December 2011 - Cover3
American Oil & Gas Reporter - December 2011 - Cover4
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