American Oil and Gas Reporter - December 2016 - 89

ConventionCoverage: Oklahoma Independent Petroleum Association

OIPA Starts Transition
Into A New Era
By Del Torkelson
RIDGEDALE, MO.-A new era is beginning for the Oklahoma Independent
Petroleum Association, indicated Chairman
Jeffrey McDougall, but the group is working to make sure it continues its history
of success.
"The OIPA Board of Directors has
approved hiring Tim Wigley, president
of the Western Energy Alliance, to succeed
our current president, Mike Terry," reported
McDougall, president of Oklahoma City's
JMA Energy Company LLC. "Tim will
come to work for OIPA on Dec. 1 and
assume the role of president at our June
2017 meeting in Las Colinas, Tx."
OIPA's 2016 fall conference, held
Oct. 23-25 at the Big Cedar Lodge outside
Branson, Mo., also featured Western Alliance Vice President of Government and
Public Affairs Kathleen Sgamma, who
discussed federal regulatory challenges,
especially on federal lands. Sgamma
later participated in a panel discussion
Terry moderated regarding oil and gas
associations' work in other states that
included Kansas Independent Oil & Gas
Association President Edward Cross and
Texas Alliance of Energy Producers President Alex Mills.
Smooth Transition
McDougall offered his remarks during
the convention's luncheon and touted
Terry's decade-long tenure as OIPA president. "I don't think you can find a finer
gentleman," McDougall stated. "He was
the right man at the right time for OIPA."
He also is the right man to ensure a
smooth transition, McDougall continued.
"In most organizations, succession sometimes comes abruptly," he held. "My hat
is off to Mike. It is unique in the process
of finding a successor that the person
who is being replaced actively participates
and shows a sincere care that the company
or association he is leaving is left in good
hands."
McDougall then considered some of
OIPA's achievements under Terry's leadership, a list that included the association's
financial health despite the industry down-

turn and OIPA's investment in a newly
built headquarters. "Today, we reside in
a brand-new, $7 million building that is
paid for, there is no debt," McDougall
marveled. "We are 2,500 members strong,
and I think we really owe a debt of gratitude to Mike."
Another OIPA development McDougall
mentioned was the group's move to bolster
its legislative budget and hire a lobbying
group to increase the number of people
working on its behalf at the state capital.
He also reported that the group was on
the verge of hiring a new vice president
of legislative affairs.
Industry Association Panel
During the panel Terry moderated earlier that day, he asked his colleagues
about the outlook for various federal oil
and gas issues and many of the issues
confronting oil and gas producers in other
states, which included concerns about
water, induced seismicity, and local efforts

OIPA's accomplishments during Mike
Terry's presidency include building a
new headquarters without incurring any
debt, OIPA Chairman Jeff McDougall
notes during the membership luncheon
at the group's 2016 fall conference, held
Oct. 23-25 at the Big Cedar Lodge near
Branson, Mo. McDougall told OIPA that
Terry helped with the process that went
into hiring OIPA's incoming president,
Tim Wigley.

to regulate or ban oil and gas. Terry also
inquired about the respective groups' experiences during the industry's slump.
Mills indicated he had endured the
industry's downturns in 1986, 1998-99,
2000 and 2008, but said this one was different. "All those were tough, both on
our industry and our associations," he
acknowledged. "For some reason, this
one seems more painful."
He discussed how the Texas Alliance
had balanced its budget to survive lower
revenues without emptying its rainy day
account, and acknowledged how difficult
those decisions had been. As for the oil
and gas prices at which he expected the
group's members to resume drilling, Mills
said there was no single figure. "Texas is
a big, diverse state," he observed. "People
are telling me $50 oil is pretty good in
the Permian Basin. That has not caught
on in the Eagle Ford yet. Meanwhile,
North Texas is a very shallow play. It is
probably going to turn on (what happens
with) gas."
Cross cited a number of ways in which
the industry slump had hit KIOGA. However, he said, KIOGA has a tradition of
frugality that he heartily endorses. "I am
a geologist who got out of school and
went to work for an independent producer
in January 1986," he recalled. "I went
through those lean years and learned that
when times were good, it was important
to keep your finances in order. We are
not bringing in as much money as we
have in the past, but we are still a strong
association, and we are working at keeping
everything lean and mean as we continue
forward."
As for Sunflower State activity, Cross
said he was noticing encouraging signs.
"A lot of our members are smaller producers. Many of them tell me they are
tired of sitting around and want to get
back to work," he said. "'The Red Top
Report,' which counts any rig that drills
an oil well . . . even if it is an air rig and
would not be counted in the Baker Hughes
report, shows counts are starting to go
back up in Kansas."
Sgamma acknowledged that the WestDECEMBER 2016 89
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