American Oil and Gas Reporter - February 2016 - 85

will not content itself with merely fighting
harmful proposals. "We are going to
swing for the fences on a few items," he
declares.
Chief among them, he says, will be
an effort to restore an exemption that the
state used to offer for sales taxes on oil
field equipment. According to Richards,
the exemption, which was enacted during
a previous oil price slump, was swept
away during the initial session of former
Governor Rod Blagojevich's administration amid a push to raise revenue by
eliminating "corporate loopholes."
With oil prices back in the doldrums,
Dicus deduces, even a minor tax adjustment can help on the margins and improve
a company's balance sheet. "That is one
way to get back some of our revenue,"
he reflects.
"It is going to be a tall order, since the
legislature still is dominated by the same
folks who took away the exemption,"
Richards admits. "At the very least, we
would like to introduce the concept and
push for something similar. Illinois has a
mining and manufacturer's equipment
sales tax exemption. Maybe we can make
some inroads toward getting at least some
of our equipment eligible for that. If
nothing else, it sends the right message
to help policymakers understand this is a
very difficult time. Thousands of southern
Illinois jobs are at risk, and we need to
promote policy that protects them."
Among the other items on IOGA's
2016 legislative to-do list, Richards mentions, will be efforts to improve wellspacing regulations that he describes as
archaic. "Horizontal wells never were
contemplated when the original well structure was created," he relates. "First, we
have to figure it out internally within the
industry. We still are working with people
in mineral law, the state bar association
and other stakeholders to try to figure out
what we want to push, but we want to
improve and streamline the ability to drill
all wells, especially a horizontal well."
Dicus says he is optimistic IOGA can
achieve that. "We have a very good chance
over the next year or so to put together a
positive spacing package that is equitable
to the state, royalty owners and operators,"
he predicts.
The session's primary wild card,
Richards indicates, stems from differences
that divide the legislative majority and
Rauner's administration, such as workers'
compensation reform, term-limits and
right-to-work measures. Although the
session customarily begins in mid-January
and adjourns on May 31, Richards notes
that Illinois has been operating since the
middle of 2015 without a budget, which
raises questions about the normal leg-

islative calendar.
"It is a stalemate," he assesses.
Annual Convention
Richards emphasizes that IOGA's annual meeting and trade show constitutes
an event that should survive any savvy
company's cuts. "There is no doubt in
my mind this is the one event anyone
working in the Illinois Basin industry
should attend, both folks trying to sell
their services and also the people who
are in the market for them," he says.
According to Richards, the convention
format has not changed markedly from
recent years. Wednesday, March 2, features
a Petroleum Technology Transfer Council-sponsored preconvention workshop
on wellbore integrity throughout a well's
life cycle by consulting petroleum engineer
Talib Syed.
The IOGA convention gets under way
the following day when registration opens
at 8:30 a.m. The exhibit hall opens at 9
a.m., and the morning's itinerary includes
IOGA's annual meeting and Board of
Directors meeting. The afternoon schedule
includes a general interest session as well
as sessions put on by IOGA's Engineering
and Geologic committees. The evening
concludes with a social hour, dinner and
entertainment.

The exhibition reopens at 9 a.m. on
Friday, March 4, and the technical program
starts shortly thereafter. The conference
concludes with the annual Wildcatter
Luncheon, which features the annual
awards program and an address from
keynote speaker Bill O'Grady, a market
analyst with Confluence Investment Management.
According to Richards, O'Grady has
addressed IOGA a couple times, and his
presentations have helped companies gain
a better view of what was coming. "Anyone who looks at what O'Grady has said
will see he was spot-on," Richards mentions. "I don't know what he will say this
time, but he has called it pretty close in
the past."
According to Dicus, the convention's
registration numbers have been encouraging. "We are excited about that," he
acknowledges.
"For a small association that represents
a small industry, we have a very large
convention and annual meeting," Richards
characterizes. "Last year's trade show
had 120 booths, and more than 900 people
attended-after we had more than 1,000
the year before. We don't expect this
year's numbers to be as high, but they
are still going to be strong, I can tell you
that."
❒

IOGA Annual Convention - Evansville, In.
Thursday, March 3
8:30 a.m. Registration, Old National Events
Plaza, Exhibit Hall Foyer
9 a.m.-5 p.m. Trade Show Open, Exhibit
Hall
10 a.m. Tri-State Professional Landman's
Association Meeting, Walnut A & D
American Association of Professional
Landmen President Marc Strahn, The
Wolf Haven Corp.
10 a.m. IOGA General Business Session
and Board of Directors Meetings, Locust
Rooms
Presiding: IOGA President Bryan Dicus
11:30 a.m. Exhibit Hall Deli Buffet Lunch
1-4:45 p.m. Technical Program, Locust
Rooms
"AAPL President Address," AAPL President Marc Strahn, The Wolf Haven Corp.
"Safety in the Illinois Basin," Rick L. Ingram, BP America Production Co.
"Wellbore Integrity," Talib Syed, Consulting
Petroleum Engineer
"LiDAR And its Use in Identifying Faults,
Fractures and Subsurface Structures in
Drift Covered Areas," Chuck Knox, Knox
Geological LLC
"The Shale Revolution-It's All About the
Rock," Rich Snyder, Chesapeake Energy
5-6 p.m. Social Hour, Exhibit Hall
Hosted Bar, Compliments of Meeting
Sponsors

6 p.m. IOGA Banquet and Entertainment,
Ballroom
Hosted Bar, Compliments of Meeting
Sponsors

Friday, March 4
7:30 a.m. Coffee and Doughnut Bar, Exhibit
Hall
Compliments of IOGA
9 a.m.-Noon Trade Show Open, Exhibit
Hall
9:30-11 a.m. Legal & Legislative Committee
Session, Locust Rooms
"Developing and Operating in Hard Times:
Issues to Consider and Address During
Sustained Periods of Low Oil Prices,"
Craig R. Hedin, Gesell's Pump Sales &
Service Inc.; Matthew L. McArthy, The
Law Offices of Matthew McArthy LLC;
Jarred R. Tynes, Black, Hedin, Ballard,
Mcdonald PC; C. Michael Witters, Attorney at Law
Noon Wildcatter Luncheon, Ballroom
Presiding: IOGA President Bryan Dicus
Speaker: Bill O'Grady, Confluence Investment Management
Annual Awards Program: Petroleum Professional of the Year, Petroleum Professional Woman of the Year, Service Person
of the Year, Lifetime Achievement, Wildcatter of the Year
FEBRUARY 2016 85

American Oil and Gas Reporter - February 2016

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