American Oil and Gas Reporter - September 2018 - 109

ConventionSection: Eastern Kansas Oil & Gas Association
without much knowledge of upstream matters. "Getting into this was kind of like a
banker becoming a carpenter: It took a
little time to learn how to hammer the
nails into the wood," he quips. "I have
taken a crash course in oil and gas wells,
and all sorts of issues within the industry."
What Palace says he brings to EKOGA
is contacts. "I will be going into my 24th
legislative session next year," he reflects.
"I have made a lot of contacts."
"Tom is very well respected among
legislators and people within the state
organizations," agrees Eberhart.
Palace says he quickly teamed with
Kansas Independent Oil & Gas Association
President Edward Cross and Kansas Petroleum Council Executive Director Kent
Eckles to form a one-two-three punch
for the oil and gas industry.
EKOGA Director and Regulatory
Chairman David Bleakley, who served
as president of the association in 199496, remarks that in the past, Kansas' oil
and gas industry occasionally found itself
outnumbered by organizations that
brought in multiple lobbyists. But now,
he says, "At least during my years being
involved in the legislative process for
the oil and gas industry, I don't think we
ever have had three better representatives
than we do with Tom, Ed and Kent. It is
great to see."
Echoes Eberhart, "I am very proud of
our ability to communicate effectively in
Topeka. It has increased exponentially."
2018 Legislature
Palace assumed his role with EKOGA
on Jan. 1 and, he says, "started the year
running." Before the session even started,
he says, EKOGA was faced with landowners in Douglas County attempting to resurrect legislation from prior years that
would have restricted drilling, completion
and production operations.
Eberhart says Palace arranged meetings
with House Water and Environment Chairman Tom Sloan, R-Lawrence, as well as
new state Representative Eileen Horn, DLawrence, at which association members
were able to clarify industry practices.
A surface rights bill that originated in
the Water and Environment Committee
died there, while Horn introduced HB
2727, which would have required title
companies and realtors to more effectively
inform clients about their mineral rights.
While EKOGA was officially neutral on
the bill, Eberhart says, "We were able to
influence some of the language to make

it work for everyone. I assume it will be
back next year."
EKOGA also helped defeat a number
of bills relating to injection wells that,
Palace says, ranged from studying them
to volume restrictions and imposing a
variety of reporting requirements, fees
and taxes. "I expect we will meet that
again next year," he allows.
Eberhart notes that much of the antiinjection-well legislation is driven by
largely unfounded fears that disposal
wells cause earthquakes. But he points
out, "For the most part, eastern Kansas
operators don't have disposal wells because
we recycle that water. We use it to repressure the formation to produce oil. It
is a resource for us."
That is an important distinction, he
emphasizes. "One of the things I have
tried to drive home to all our members
is that we produce saltwater, not wastewater," he impels. "It's not wastewater
to us, it is a resource because without
that water going back into that same
formation, we wouldn't be able to move
that oil to produce it."
One more legislative issue likely to
be on EKOGA's plate next year, Palace
continues, is a proposed increase in county
registers of deeds filing fees. The Kansas
Register of Deeds Association in June
voted to go forward with what it styles
the Predictable Fees for the State of
Kansas plan, which Palace says may include raising filing fees from $21 for the
first page and $17 for each additional
page to a flat $75 filing fee.
Know Your Legislator
The key to winning on any of those
issues, Eberhart and Palace agree, is ed-

ucation. That is especially important in
an election year. Palace says he anticipates
probably 35 new House members will
arrive in Topeka next January, as well as
potentially, a new administration.
"We started the education process last
year by meeting with people early," he
reflects.
The next step, he indicates, is EKOGA's
legislative barbecue, Aug. 30 in Ottawa,
Ks., at which he says the association will
distribute some definitional information
about what the oil and gas industry means
to Kansas by way of jobs and financial
impact. But more important, he insists,
is interaction of association members
with candidates.
"We are trying to get EKOGA members
more acclimated to meeting with their
legislators, or at least going to a coffee
and knowing who these people are,"
Palace articulates. "It is a lot easier to
make a phone call during the session to a
legislator who says, 'Oh yes, I remember
you. You came to this or you donated to
the campaign, or you put out a sign or
what have you," as opposed to coming in
cold and saying, 'My name is Tom and I
need your help.'
"Legislators do remember," he goes
on. "As a lobbyist, I am a hired hand.
Legislators see me every day. They want
to hear from their constituents."
He says he tells members, "Get their
phone numbers and e-mail addresses.
Have them come into your office, have a
cup of coffee and tell them what our
business does, how many people you employ and what kind of taxes you pay to
the state.
"We know the anti-oil groups are
knocking on their doors."
r

Ascent Agrees To Buy Acreage In Utica Shale
OKLAHOMA CITY-Ascent Resources
LLC has entered into a definitive agreement
to acquire certain oil and natural gas properties from Hess Corporation, CNX Resources, Utica Minerals Development, and
a fourth, undisclosed, seller for a combined
purchase price of $1.5 billion. Ascent says
it expects the transaction to close in the
third quarter of 2018.
The acquisition includes 113,400 net
leasehold acres, and royalty interests on
69,400 fee mineral acres spanning all
three hydrocarbon windows in the overpressured core of the Utica Shale, as well
as 93 operated wells and net production
of 216 million cubic feet of gas equivalent

a day, the company reports.
Included in the transaction are more
than 380 gross incremental horizontal
well locations, and an increased working
interest in more than 900 gross horizontal locations, Ascent reports, with
proved and total reserves of 1.1 trillion
cubic feet of gas equivalent and 5.6
Tcfe, respectively.
"The combination of these accretive
bolt-on acquisitions is a milestone for
the company, and has been made possible
by our outstanding operational success
in the Utica Shale," says Jeff Fisher, Ascent's chairman and chief executive officer.
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American Oil and Gas Reporter - September 2018

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