American Oil and Gas Reporter - June 2012 - 152

ConventionSection: Virginia Oil & Gas Association

Natural Gas Helps Transform State’s Energy Landscape
By Samantha Sipowicz Special Correspondent In 1977, a gallon of gasoline cost 65 cents, the Trans Alaska Pipeline System opened, newly elected President Jimmy Carter urged Americans to make profound changes in their oil consumption, and the Virginia Oil & Gas Association held its inaugural meeting. Fast forward to 2012 as VOGA hosts its 35th annual convention, June 27-29 at the Cavalier Hotel in Virginia Beach, Va. As members gather this month, reflects President Greg Kozera, they will see that as much as things change, some things stay the same. The landscape of the energy industry in Virginia is evolving from a concentration on coal to an opportunity to broaden the natural gas marketplace. And, similar to 35 years ago, he says, President Barrack Obama is urging Americans to make profound changes in their energy consumption, especially with $4 gasoline at the pump. Natural gas transmission pipelines are now the focus over oil transport. Kozera, who is regional sales manager for Superior Well Services in Elkview, W.V., is concluding the second year of his term as VOGA president. “VOGA members are encouraged to attend the annual meeting to hear updates on issues pertaining to taxes, managing the industry’s reputation and legislative accomplishments, and to coordinate strategy to grow the association’s influence in the future,” he states. “A new slate of board members will be offered for members’ consideration that encompasses familiar faces and some new ones, too,” Kozera continues. He comments, “Despite the market ups and downs, membership totals for VOGA have increased considerably. Membership has grown more than 12 percent as we have promoted involvement from the supply sector of the industry as well as from Virginia’s natural gas utilities and interstate pipeline companies. In order for drilling to be successful, vendors need to be part of the picture.” Kozera says he sees a correlation between increased membership in the association and increased impact within the industry. “With greater vendor and utility company participation, VOGA has a wider footprint as a result, so we have a stronger voice than as just producers,” he affirms. He adds, “Our producers are the lifeblood of our organization. They are the reason VOGA exists. It is important for the public and our elected representatives to know that the jobs and economic benefits of drilling and producing natural gas and oil have a wide footprint. We are encouraged that vendors understand the importance of supporting our producers, especially in these times.” The association takes a progressive stance on membership in its view that all those involved in the numerous aspects of Virginia’s oil and gas industry can benefit from VOGA’s influence. “It’s amazing, the number of various companies it takes to drill a well–from the bulldozers to the surveyors, attorneys, truckers and more,” Kozera observes. “Those side businesses related to drilling have as much at stake as the operators themselves. If bad legislation hits, all are affected.” Legislative Update A stronger voice representing industry is essential when legislative issues may affect natural gas exploration and production, transmission and distribution. Although drilling in Virginia is viable at present solely in the southwest quadrant of the state, bills decided in Richmond have statewide impact. Brent Archer, director of business policy at Columbia Gas of Virginia, chairs VOGA’s Political Action Committee. Referring to Governor Robert F. McDonnell, Archer says, “We are fortunate in Virginia to have a governor who is pro-energy. Previously, Virginia was focused almost exclusively on coal mining, but since the 1990 Gas and Oil Act was created, drilling in the state has benefitted its citizens with $150 million in severance taxes, $630 million in royalties, and more than $2 billion in capital expenditures. When factoring in real estate, and mineral, payroll and sales taxes, it all contributes to a trickle down economic effect. “Natural gas exploration and production have brought more than 3,000 jobs to Virginians,” he adds. “In addition, legislation allowing accelerated replacement of natural gas infrastructure is resulting in tens of millions of dollars in new facility investment and employment for hundreds of workers.” The 2012 Virginia General Assembly, which ran from January through March, was a busy session for VOGA and its member companies, Archer says. “Session results reflect both the support of the McDonnell administration on a wide range of energy issues, and the ongoing debate about the appropriate regulatory and taxation structure for natural gas production,” he says. During the 2012 legislative session, Archer reports, VOGA successfully opposed a package of bills that would have had significant negative impacts on the E&P segment. Those bills included: • A requirement that companies perform separate surveys for every unit to be drilled, including language making the provisions retroactive; • A requirement to obtain a pooling order before applying for a permit to drill; • New penalties (including jail sentences and fines) for permit violations; and • Requirements for onerous new information to be provided to royalty owners. Severance Taxes “State Senator Phillip Puckett, DTazewell, and Delegate Terry G. Kilgore, R-Gate City, also introduced legislation on behalf of gas producing counties that was intended to revive invalid local ordinances establishing severance taxes,” Archer continues. He says the invalidity of the ordinances came to light in connection with a challenge to exorbitant new severance tax assessments, explaining that a new commissioner of revenue in Dickenson County, Va., had taken an aggressive stance in issuing additional severance tax assessments going back to 2008. Other commissioners were following suit, which Archer says conflicted with longstanding practices

152 THE AMERICAN OIL & GAS REPORTER



Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2012

American Oil and Gas Reporter - June 2012
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Natural Gas NSPS Affects a Variety of Equipment
Federal Legislation
SPCC
EPA
Keystone XL
Tech Connections
Washington Watch
Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
Variety of Projects Have Permian Basin Hopping
Infrastructure Bottlenecks Easing in Permian Region
Completion Design Optimizes Yeso-San Andres Oil Wells
Cover Story
Beaver Creek CO2 Flood Boosts Madison Production
Study Evaluates Low-Salinity Waterfloods
Variable Speed Drives Coming of Age
Activity Spurring Artificial Lift Innovations
Project Shows STMZ’s Viability for Lower Tertiary Completions
ICDs, Modeling Improve Horizontal Shelf Well Completion
Intelligent Gas Lift Maximizes Production, Recovery
KOGA
CIPA
TOGA
TAEP
Frac Rules
Marcellus Regs
Conventions
The American Well Servicing Directory, Summer 2012
Industry Focus
Classified Advertising
Advertisers Index
American Oil and Gas Reporter - June 2012 - American Oil and Gas Reporter - June 2012
American Oil and Gas Reporter - June 2012 - Cover2
American Oil and Gas Reporter - June 2012 - Contents
American Oil and Gas Reporter - June 2012 - Reports
American Oil and Gas Reporter - June 2012 - 5
American Oil and Gas Reporter - June 2012 - 6
American Oil and Gas Reporter - June 2012 - 7
American Oil and Gas Reporter - June 2012 - Calendar
American Oil and Gas Reporter - June 2012 - 9
American Oil and Gas Reporter - June 2012 - 10
American Oil and Gas Reporter - June 2012 - 11
American Oil and Gas Reporter - June 2012 - 12
American Oil and Gas Reporter - June 2012 - 13
American Oil and Gas Reporter - June 2012 - Oil & Gas Counts
American Oil and Gas Reporter - June 2012 - 15
American Oil and Gas Reporter - June 2012 - Industry Digest
American Oil and Gas Reporter - June 2012 - 17
American Oil and Gas Reporter - June 2012 - 18
American Oil and Gas Reporter - June 2012 - 19
American Oil and Gas Reporter - June 2012 - 20
American Oil and Gas Reporter - June 2012 - 21
American Oil and Gas Reporter - June 2012 - 22
American Oil and Gas Reporter - June 2012 - 23
American Oil and Gas Reporter - June 2012 - Natural Gas NSPS Affects a Variety of Equipment
American Oil and Gas Reporter - June 2012 - 25
American Oil and Gas Reporter - June 2012 - 26
American Oil and Gas Reporter - June 2012 - 27
American Oil and Gas Reporter - June 2012 - Federal Legislation
American Oil and Gas Reporter - June 2012 - 29
American Oil and Gas Reporter - June 2012 - 30
American Oil and Gas Reporter - June 2012 - 31
American Oil and Gas Reporter - June 2012 - SPCC
American Oil and Gas Reporter - June 2012 - 33
American Oil and Gas Reporter - June 2012 - Keystone XL
American Oil and Gas Reporter - June 2012 - 35
American Oil and Gas Reporter - June 2012 - 36
American Oil and Gas Reporter - June 2012 - Tech Connections
American Oil and Gas Reporter - June 2012 - 38
American Oil and Gas Reporter - June 2012 - Washington Watch
American Oil and Gas Reporter - June 2012 - Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
American Oil and Gas Reporter - June 2012 - 41
American Oil and Gas Reporter - June 2012 - 42
American Oil and Gas Reporter - June 2012 - 43
American Oil and Gas Reporter - June 2012 - 44
American Oil and Gas Reporter - June 2012 - 45
American Oil and Gas Reporter - June 2012 - 46
American Oil and Gas Reporter - June 2012 - 47
American Oil and Gas Reporter - June 2012 - 48
American Oil and Gas Reporter - June 2012 - 49
American Oil and Gas Reporter - June 2012 - Variety of Projects Have Permian Basin Hopping
American Oil and Gas Reporter - June 2012 - 51
American Oil and Gas Reporter - June 2012 - 52
American Oil and Gas Reporter - June 2012 - 53
American Oil and Gas Reporter - June 2012 - 54
American Oil and Gas Reporter - June 2012 - 55
American Oil and Gas Reporter - June 2012 - 56
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American Oil and Gas Reporter - June 2012 - 60
American Oil and Gas Reporter - June 2012 - 61
American Oil and Gas Reporter - June 2012 - 62
American Oil and Gas Reporter - June 2012 - 63
American Oil and Gas Reporter - June 2012 - Infrastructure Bottlenecks Easing in Permian Region
American Oil and Gas Reporter - June 2012 - 65
American Oil and Gas Reporter - June 2012 - 66
American Oil and Gas Reporter - June 2012 - 67
American Oil and Gas Reporter - June 2012 - 68
American Oil and Gas Reporter - June 2012 - 69
American Oil and Gas Reporter - June 2012 - 70
American Oil and Gas Reporter - June 2012 - 71
American Oil and Gas Reporter - June 2012 - Completion Design Optimizes Yeso-San Andres Oil Wells
American Oil and Gas Reporter - June 2012 - 73
American Oil and Gas Reporter - June 2012 - 74
American Oil and Gas Reporter - June 2012 - 75
American Oil and Gas Reporter - June 2012 - 76
American Oil and Gas Reporter - June 2012 - 77
American Oil and Gas Reporter - June 2012 - 78
American Oil and Gas Reporter - June 2012 - 79
American Oil and Gas Reporter - June 2012 - 80
American Oil and Gas Reporter - June 2012 - 81
American Oil and Gas Reporter - June 2012 - Cover Story
American Oil and Gas Reporter - June 2012 - 83
American Oil and Gas Reporter - June 2012 - 84
American Oil and Gas Reporter - June 2012 - 85
American Oil and Gas Reporter - June 2012 - 86
American Oil and Gas Reporter - June 2012 - 87
American Oil and Gas Reporter - June 2012 - 88
American Oil and Gas Reporter - June 2012 - 89
American Oil and Gas Reporter - June 2012 - 90
American Oil and Gas Reporter - June 2012 - 91
American Oil and Gas Reporter - June 2012 - Beaver Creek CO2 Flood Boosts Madison Production
American Oil and Gas Reporter - June 2012 - 93
American Oil and Gas Reporter - June 2012 - 94
American Oil and Gas Reporter - June 2012 - 95
American Oil and Gas Reporter - June 2012 - 96
American Oil and Gas Reporter - June 2012 - 97
American Oil and Gas Reporter - June 2012 - 98
American Oil and Gas Reporter - June 2012 - 99
American Oil and Gas Reporter - June 2012 - Study Evaluates Low-Salinity Waterfloods
American Oil and Gas Reporter - June 2012 - 101
American Oil and Gas Reporter - June 2012 - 102
American Oil and Gas Reporter - June 2012 - 103
American Oil and Gas Reporter - June 2012 - Variable Speed Drives Coming of Age
American Oil and Gas Reporter - June 2012 - 105
American Oil and Gas Reporter - June 2012 - 106
American Oil and Gas Reporter - June 2012 - 107
American Oil and Gas Reporter - June 2012 - Activity Spurring Artificial Lift Innovations
American Oil and Gas Reporter - June 2012 - 109
American Oil and Gas Reporter - June 2012 - 110
American Oil and Gas Reporter - June 2012 - 111
American Oil and Gas Reporter - June 2012 - 112
American Oil and Gas Reporter - June 2012 - 113
American Oil and Gas Reporter - June 2012 - 114
American Oil and Gas Reporter - June 2012 - 115
American Oil and Gas Reporter - June 2012 - 116
American Oil and Gas Reporter - June 2012 - 117
American Oil and Gas Reporter - June 2012 - Project Shows STMZ’s Viability for Lower Tertiary Completions
American Oil and Gas Reporter - June 2012 - 119
American Oil and Gas Reporter - June 2012 - 120
American Oil and Gas Reporter - June 2012 - 121
American Oil and Gas Reporter - June 2012 - 122
American Oil and Gas Reporter - June 2012 - 123
American Oil and Gas Reporter - June 2012 - 124
American Oil and Gas Reporter - June 2012 - 125
American Oil and Gas Reporter - June 2012 - 126
American Oil and Gas Reporter - June 2012 - 127
American Oil and Gas Reporter - June 2012 - 128
American Oil and Gas Reporter - June 2012 - 129
American Oil and Gas Reporter - June 2012 - 130
American Oil and Gas Reporter - June 2012 - ICDs, Modeling Improve Horizontal Shelf Well Completion
American Oil and Gas Reporter - June 2012 - 132
American Oil and Gas Reporter - June 2012 - 133
American Oil and Gas Reporter - June 2012 - 134
American Oil and Gas Reporter - June 2012 - 135
American Oil and Gas Reporter - June 2012 - 136
American Oil and Gas Reporter - June 2012 - 137
American Oil and Gas Reporter - June 2012 - 138
American Oil and Gas Reporter - June 2012 - 139
American Oil and Gas Reporter - June 2012 - 140
American Oil and Gas Reporter - June 2012 - Intelligent Gas Lift Maximizes Production, Recovery
American Oil and Gas Reporter - June 2012 - 142
American Oil and Gas Reporter - June 2012 - 143
American Oil and Gas Reporter - June 2012 - 144
American Oil and Gas Reporter - June 2012 - 145
American Oil and Gas Reporter - June 2012 - 146
American Oil and Gas Reporter - June 2012 - 147
American Oil and Gas Reporter - June 2012 - 148
American Oil and Gas Reporter - June 2012 - KOGA
American Oil and Gas Reporter - June 2012 - 150
American Oil and Gas Reporter - June 2012 - 151
American Oil and Gas Reporter - June 2012 - CIPA
American Oil and Gas Reporter - June 2012 - 153
American Oil and Gas Reporter - June 2012 - 154
American Oil and Gas Reporter - June 2012 - 155
American Oil and Gas Reporter - June 2012 - TOGA
American Oil and Gas Reporter - June 2012 - 157
American Oil and Gas Reporter - June 2012 - 158
American Oil and Gas Reporter - June 2012 - 159
American Oil and Gas Reporter - June 2012 - 160
American Oil and Gas Reporter - June 2012 - 161
American Oil and Gas Reporter - June 2012 - 162
American Oil and Gas Reporter - June 2012 - 163
American Oil and Gas Reporter - June 2012 - TAEP
American Oil and Gas Reporter - June 2012 - 165
American Oil and Gas Reporter - June 2012 - 166
American Oil and Gas Reporter - June 2012 - 167
American Oil and Gas Reporter - June 2012 - 168
American Oil and Gas Reporter - June 2012 - 169
American Oil and Gas Reporter - June 2012 - 170
American Oil and Gas Reporter - June 2012 - Frac Rules
American Oil and Gas Reporter - June 2012 - Marcellus Regs
American Oil and Gas Reporter - June 2012 - 173
American Oil and Gas Reporter - June 2012 - Conventions
American Oil and Gas Reporter - June 2012 - The American Well Servicing Directory, Summer 2012
American Oil and Gas Reporter - June 2012 - 176
American Oil and Gas Reporter - June 2012 - 177
American Oil and Gas Reporter - June 2012 - 178
American Oil and Gas Reporter - June 2012 - 179
American Oil and Gas Reporter - June 2012 - 180
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American Oil and Gas Reporter - June 2012 - 200
American Oil and Gas Reporter - June 2012 - 201
American Oil and Gas Reporter - June 2012 - 202
American Oil and Gas Reporter - June 2012 - Industry Focus
American Oil and Gas Reporter - June 2012 - 204
American Oil and Gas Reporter - June 2012 - 205
American Oil and Gas Reporter - June 2012 - 206
American Oil and Gas Reporter - June 2012 - 207
American Oil and Gas Reporter - June 2012 - 208
American Oil and Gas Reporter - June 2012 - Classified Advertising
American Oil and Gas Reporter - June 2012 - Advertisers Index
American Oil and Gas Reporter - June 2012 - Cover3
American Oil and Gas Reporter - June 2012 - Cover4
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