American Oil and Gas Reporter - April 2017 - 108

ConventionSection: Tennessee Oil & Gas Association
An environmental group that questioned
how the state's well plugging program
should be funded called for an increase in
well bonds, according to a televised report.
"Because of all that, we were expecting
a bonding increase bill," Reiley said in
March. "So far, that has not happened."
What she says TOGA would like to
see is legislation to protect the plugging
fund. "During the recession, the state
raided the plugging fund to fill holes in
the budget. There is nothing to stop them
from doing it again," Reiley says.
Revenue for the fund comes from the
bonds operators are required to post with
permit applications, according to state
regulations.
In June 2013, as part of a rule making
that updated its oil and gas regulations
under Chapter 0400-51, Sec. 01-12, the
state enacted revised well bonding rules,
which raised the plugging bond to $2,000
for each well up to 2,500 feet deep, and
$3,000 each for wells 2,501 to 5,000 feet
deep. For deeper wells, the bond is set at
$3,000 plus $1 for each foot deeper than
5,000 feet.
Blanket bonds of $20,000 can be issued
for up to 10 wells not deeper than 5,000
feet, according to Chapter 0400-52-01.
Bonds of $30,000 are needed for up to
10 wells drilled to between 5,000 and
10,000 feet. Wells drilled deeper than
10,000 feet must be bonded individually,
the rule states.
Tennessee also requires operators to
secure a reclamation bond of $1,500 per
well site. The state holds two-thirds of
the reclamation bond for up to two years
after a well is plugged and the site reclaimed.
Transportation Infrastructure
From the opening of this year's legislative session, Governor Bill Haslam
has said that generating new revenue for
transportation infrastructure projects is a
priority. Published reports indicate the
administration and allies in the legislature
have identified $10 billion in transportation
projects that would benefit the state if
they were undertaken.
Senate Majority Leader Mark Norris,
R-Collierville, was reported to have offered
an amendment to SB 230, a bill described
in published reports as differing from
one offered by the governor. It would increase the retail fuel tax over three years
while reducing the sales tax on groceries.
Published reports indicate the sales tax
cut would result in a greater reduction in

state revenue than the fuel tax would
bring in, providing some overall tax relief
for residents.
The fuel tax bill in the House, HB 910,
differed from the Senate version by increasing the sales tax rate, reports indicate.
Reiley says that as the bills continued
through the committee process in both
chambers, legislators were expected to
close the gap in the different proposals
before they reached a final vote. In the
absence of an agreement, she says, a
conference committee would iron out the
differences.
Convention Preview
Laine says TOGA's convention will
feature important presentations by regulatory officials and industry leaders.
Among the topics to be addressed, he indicates, are gas line rights of way, Tennessee Department of Environment and
Conservation bonding requirements, an

examination of pre-Chattanooga structures
in Central Tennessee, and advances in
geographic information system software.
The association also will present its
annual Muddy Boots Award in recognition
of an operator or service provider who
represents the best of those who spend
many hours in the field.
"The Muddy Boots Award is one of
our most popular events," Laine notes.
Adds Bible, "Our convention is always
is a highlight of our year. It is an important
step in our comeback, and helps us build
a stronger association for the future."
He says convention activities get under
way on Monday, May 15, with drinks
and dinner at the Loco Burro restaurant
in downtown Gatlinburg. Tuesday's agenda, May 16, includes morning and afternoon technical sessions wrapped around
the awards luncheon, and concludes with
TOGA's Board of Directors and annual
membership meeting.
r

Annual Meeting Demonstrates
TOGA's Support For Gatlinburg
KNOXVILLE, TN.-The Tennessee
Oil & Gas Association's decision to hold
its annual convention in Gatlinburg, Tn.,
is meant to clearly show its support for
the town and its citizens following a disastrous fire there late last year, association
leaders say.
Less than six months after a wildfire
nearly engulfed the town, the damage it
caused still is evident just a few blocks
from the Park Vista Hotel, site of this
year's TOGA convention. Houses and
businesses along Cherokee Orchard Road
near the hotel "are just blackened foundations and ash," reported a local paper
one month after the fire.
"We were forced to cancel TOGA's
holiday event for members," reports President Chuck Laine. "It was scheduled for
the first Tuesday in December, just days
after the fire. The event was to be held at
the Lodge at Buckberry Creek, but the
entire lodge was burned to the ground."
News photos show a concrete foundation is all that remains of the lodge,
said to be popular with tourists for its
panoramic views of Mount LaConte in
Smoky Mountains National Park.
Although the fire caused minor damage
at the Park Vista Hotel, repairs are complete and the hotel offers "Standing

108 THE AMERICAN OIL & GAS REPORTER

Strong" room discounts to visitors, according to its website.
Gatlinburg Mayor Mike Werner has
been quoted often in reports describing
townspeople as "mountain strong," and
expressing optimism that their resilience
will help Gatlinburg recover quickly.
The town council is considering a
deadline of Sept. 30 for property owners
to remove debris left from the fire, a
local television station reported in March.
In March, both houses of the Tennessee
Legislature approved bills to allow county
governments to prorate property tax bills
for those whose property was damaged
by the fire. The bills, SB 114 and HB 52,
were sent to conference committee, and
published reports indicate final passage
and approval by the governor was likely.
Close Calls
Reports of close calls and narrow escapes were common across the area.
Twelve people were reported to have
died in the fire, and two more deaths
were reported from related causes. But
the town is expected to recover and again
host tourists from around the world this
year, say published reports.
"We are looking forward to seeing the
Tennessee volunteer spirit in action," says

American Oil and Gas Reporter - April 2017

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