American Oil and Gas Reporter - July 2017 - 111

ConventionCoverage: Oklahoma Independent Petroleum Association
anything. The industry developed the
technology to be able to do this, and we
are giving the Oklahoma Corporation
Commission the ability to have oversight
on this, not us. We are not giving industry
anything. It found ways to develop and
make wells economical," Marlatt said.

OIPA Vice President of Legislative Affairs
Hollye Hunt asks state legislators a question while serving as moderator for the
legislative panel discussion, part of the
association's annual convention, held
June 2-5 at the Four Seasons Resort in
Las Colinas, Tx.

Long Laterals
The industry saw success in the passage
of SB 867, sponsored by Senate President
Pro Tempore Mike Schulz, R-Altus, Hunt
said. SB 867, the Oklahoma Energy Jobs
Act of 2017, lifts the state prohibition on
drilling horizontal wells in nonshale formations, the legislative website describes.
She pointed out it took more than six
years to pass that legislation, adding Marlatt shepherded the bill through the Senate,
with McBride and Martinez instrumental
in getting it through the House.
Martinez described how several legislators saw the GPT and the long lateral
bills as a package deal, with the oil and
gas industry losing on one but gaining
on the other. He suggested that rather
than complaining about the perceived
impacts of the GPT bill, Oklahomans
should applaud the laterals legislation
that is likely to add $20 million to the
state budget.
The legislative fight to pass the long
laterals bill was the session's most politically charged vote, McCortney described.
"The entire thing was framed as 'You either are going to pick teachers or you are
going to pick oil and gas.' I think of it as
having something the industry wanted
and needed to get done, at the same time
as having something the industry did not
want; just putting those two together in a
package made it less painful when we
went back home," he said.
Marlatt recalled anger over arguments
SB 867 gave too many concessions to
the oil and gas industry.
"I said, we are not giving the industry

Recognizing Accomplishments
During the oil field services fundraising auction that closed out the meeting
agenda on Saturday, June 3, the association
raised $573,000 for its operating fund.
OIPA marked the turnover of its highest
positions by celebrating their accomplishments: construction of the association's
headquarters building, and passage of legislation expanding the use of long laterals.
The president's luncheon on Saturday observed Mike Terry's turning over the role
of president to Tim Wigley, while the
Sunday chairman's luncheon feted Jeff
McDougall before Berry Mullennix donned
the yellow chairman's jacket. Mullennix
is president and chief executive officer at
Panther Energy Co. II in Tulsa.
McDougall served as keynote speaker
at Terry's luncheon, recalling how the
native of Seminole, Ok., was appointed
executive director of the Oklahoma Commission on Marginal Wells in 1992, and
then executive director of the Oklahoma
Energy Resources Board. Before becoming
OIPA president in February 2007, Terry
worked as executive vice president at Diamondback Energy in 2006, he related.
Terry recalled he had a hard time recognizing the significance of OIPA's new
downtown building.
"I doubt that many of you really know
what goes on in that building every day,"
he said. "You know OIPA, one of the

largest oil and gas advocacy groups in
the country, is there, but Oklahoma also
has the largest energy education program
in the world. It has the largest environmental oil field cleanup program in the
country. There is a technology group,
SOER, that is doing great work. I cannot
tell you how proud I am to have been
part of that, and to still be part of that."
McDougall, president of JMA Energy
Company LLC in Oklahoma City, praised
Terry's 10 years as OIPA president,
noting that his tenure was bookended by
historic highs and lows. He pointed out
that in 2008, Terry's first full year as
OIPA president, oil prices averaged $99.07
a barrel, natural gas was around $9.00 an
Mcf, and the U.S. rig count stood at
1,901. Eight years later, in 2016, his last
full year, oil prices dropped to $43.22,
the average gas price was at $2.46, and
the rig count fell 79 percent, to 404 rigs.
"However, here are two key metrics:
OIPA membership was up 30 percent, and
its budget increased 67 percent. And Oklahoma's industry had been gifted a debtfree, new OIPA headquarters. That is an
outstanding and incredible performance in
anybody's book," McDougall applauded.
At the chairman's luncheon, Terry described McDougal as a warrior, pointing
out he assumed the chairmanship when
oil prices had fallen to $26 a barrel and
the developing shale plays had effectively
squeezed western Oklahoma natural gas
out of the market.
"Jeff McDougall trudged forward,
thwarting every challenge that came his
way. Why? He loved OIPA and he loved
the industry. He was even more determined
than ever to set the foundation for industry
growth and a stronger OIPA for years to

Jeff McDougall (left) marks the end of
his term as chairman of the Oklahoma
Independent Petroleum Association by
a handshake with Berry Mullennix, who
donned the yellow chairman's jacket at
the OIPA annual meeting, held June 2-5
in Las Colinas, Tx.

JULY 2017 111

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