American Oil and Gas Reporter - February 2019 - 98

ConventionSection: Illinois Oil & Gas Association

IOGA Faces Political Challenges In '19
SPRINGFIELD, IL-The political balance in Illinois has shifted more to the Democrats, and the state's oil and gas operators
must adjust to life under a new Democratic
governor and a legislature with more "Ds"
in its makeup, advises Illinois Oil & Gas
Association lobbyist Dan Reitz.
In addition to incoming Democratic
Governor J.B Pritzker, Illinois will see
seven new Democrats in the House and
four in the Senate, Reitz says. "There
now is a veto-proof majority in the House
and the Senate," he describes. "A lot of
the new people are from up north and are
more progressive. We will have to see
what the legislature's temperament is. It
looks like it is moving left, and that presents some challenges IOGA will have to
deal with. Plus, the governor received
some endorsements early from some of
the progressive groups."
Reitz adds that one of IOGA's priorities
in this new legislative environment will
be impressing on legislators the importance
of the oil and gas industry in Illinois, but
he points out the association continues
to face the problem that the number of
legislators with oil fields in their districts
is small.
IOGA President Craig Hedin reports
the new gubernatorial team has appointed
an energy transition team that, as currently
configured, contains no representatives
from the state's fossil fuels industries. "The
governor is trying to focus on renewable
type energy sources, so he is not necessarily
anti-fossil-at least we hope so-just more
pro-renewables," Hedin reasons.
Reitz says most of those on the energy
transition team come from renewable or
environmental interests, or represent labor
unions. He points out there are a number
of union workers in all the governor's
transition teams. "They were really instrumental in supporting him throughout
the election process. I would say the governor's focus is on the clean fuel portfolio
and trying to expand it," he says.
The state's geography remains a political problem for oil and gas producers,
continues Hedin, vice president and
general counsel at Gesell's Pump Sales
and Service Inc. in Whittington, Il.
"Interstate-80 in Illinois lies in the
northern part of the state, and we talk
about being north or south of I-80," Hedin
says. "We are about 300 miles south of I80. The anti-industry bills were sponsored
98 THE AMERICAN OIL & GAS REPORTER

by legislators north of I-80. Our goal is
to stop bad bills in committee; if one
gets to the floor with the veto-proof Democratic House and Senate, we do not
have much of a chance. We think we
have the people who can help us not get
onto the floor, but our mantra this session
will be, 'Please, just leave this industry
alone. We are not hurting anybody.'"
2019 Legislation
IOGA will continue its mission of educating new state legislators, Reitz says,
adding the association must emphasize
that the oil and gas industry has operated
in Illinois for more than a century and is
not a cause of environmental concerns.
"Current regulations are working, but
we have a lot of groups up north that are
opposed to fossil fuels in general," he
comments. "They do not like high-volume
hydraulic fracturing, and they are trying
to drag Illinois' industry into the national
argument. They do not understand that
Illinois is a conventional state, and doesn't
have high-volume operators. That is where
most of our educational efforts must be
concentrated: teaching legislators that
this industry is important to southern Illinois and provides a lot of jobs in our
area. The industry does not have the environmental problems that legislators
need to address."
Reitz predicts the 2019 legislative session
will not include many significant issues

initiated for oil and gas producers. IOGA
could push for returning manufacturing
sales tax exemptions the oil and gas industry
previously received, but overall, he says,
the association's major efforts will be protecting jobs and blocking initiatives from
the anti-development community.
Reitz reports that he expects a version
of a hydraulic fracturing ban defeated
during the 2018 session to re-emerge.
"The northern groups, which were playing
on the national stage more than anything
else, probably will come back with this
proposal, and probably a couple we have
not seen before," he predicts.
According to Illinois' legislative website, HB 5743, introduced by Representative Scott Drury, D-Highwood, in February 2018, failed to advance out of committee. The measure would have amended
the Illinois Oil and Gas Act to prohibit
any state agency from issuing hydraulic
fracturing permits.
HB 282, introduced by Representative
Emanuel Welch, D-Hillside, already has
been filed in the 2019 session, Hedin
says. The bill sets forth numerous reporting
requirements for horizontal and directional
wells. He notes the requirements pertain
to conventional as well as high-volume
wells. In addition, HB 1562 has been
filed requiring the written consent of all
mineral and surface owners as to oil and
gas development. The state representative
filing the bill is from Chicago.
r

IOGA, IPRB Mount Joint Efforts
To Boost Social Media Presence
MT. VERNON, IL.-The Illinois Petroleum Resources Board has a new leader
but the same commitment to working
with the Illinois Oil & Gas Association,
reports IOGA President Craig Hedin.
IPRB, which helps restore oil field
sites and runs public awareness/education
programs about the state's oil and gas industry, hired Seth Whitehead as executive
director in December. He is replacing
Charles Williams, who retired after serving
in that position since 2003. Whitehead
comes to IPRB after serving as Illinois
team lead of Energy in Depth, a national
organization that educates the public about
the benefits of oil and gas production.

According to Hedin, vice president
and general counsel at Gesell's Pump
Sales and Service Inc. in Whittington, he
and IPRB Chairman Dale Helpingstine
have met regularly to set priorities for
both groups.
"I think we are seeing tangible results
from the cooperation already," Hedin
says. "IOGA just created a Facebook
page, and it is updating the association's
website. Seth is going to do the same
thing for IPRB. Coming off working with
Energy in Depth the past few years, Seth
is very adept at communications and
social media. He has all kinds of ideas
on what to do."



American Oil and Gas Reporter - February 2019

Table of Contents for the Digital Edition of American Oil and Gas Reporter - February 2019

Contents
American Oil and Gas Reporter - February 2019 - Intro
American Oil and Gas Reporter - February 2019 - 1
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American Oil and Gas Reporter - February 2019 - Contents
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