LOGA Industry Report - Fall 2008 - (Page 7)

CHAIRMAN’S CORNER What a year! This year has been ﬁlled with excitement for our state, our industry and our Association. There has never been a more exciting time in Louisiana. We started the year off with a new governor and a mostly new legislature; oil and gas prices are setting records daily; there has been an explosion of activity in North Louisiana; and energy has become the topic of conversation across the globe. Let’s take a moment to look back at what has happened during the ﬁrst half of 2008. We started the year off with the introduction of our new governor, Bobby Jindal. We also saw the ﬁrst effects of term limits, and 59 new legislators took their seats at the capital. Following special sessions focused on ethics, spending the surplus and removing utility taxes, the 2008 Regular Session began on March 30 – and it was a good one for LOGA and industry. A quick look reveals increased opportunities in underground storage and the increasing of the non-consent risk penalty. Most importantly, we successfully defeated the bills we opposed, especially the drilling ban placed on wells close to interstates. Maybe the biggest news of 2008 started back in 2006, with the passing of ACT 312. Legacy battles have been at the forefront for LOGA since the Corbella lawsuit was ﬁrst lost. In 2006 we were able to pass landmark legislation that we really believed would put an end to frivolous lawsuits. Unfortunately, our opposition took ACT 312 to task and claimed it to be unconstitutional. Finally, the Supreme Court heard the MJ Farms case and ruled on the constitutionality of ACT 312 - and we won. The court ruled that it not only is constitutional, but that the intent was to apply Act 312 retrospectively. This is a tremendous victory for industry and something that we can all be proud of. Up North, Louisiana has seen signiﬁcant increases in activity. The Haynesville Shale has become the talk not only of the state, but the country. It is believed that the Haynesville Shale Play covers most of the Northwest corner of Louisiana and that it is one of the largest natural gas discoveries in the world. A few companies had been slowly and quietly trying to acquire acreage, but the word ﬁnally got out and it has been wild ever since. The wells that have been drilled are producing incredible results, and everything points to this being bigger than the Barnett Shale. Only time will tell. But with gas prices continuing to rise, this will surely be a big ﬁnancial boost to the state and the residents in North Louisiana. Proponents of the oil and gas industry have long pushed for the opening of ANWR and the offshore areas off our coast. Now that gasoline prices have reached record highs, Floridians and people around the USA are pushing for Congress to lift the ban on drilling in the Easter OCS. What does that mean for LOGA? Our service companies, pipelines and reﬁneries will be key to the exploration and operation of the Eastern OCS. Florida, Alabama and Mississippi are not prepared to provide the necessary support for the level of activity that will likely be taking place off the coast of Florida. We must begin our preparations and plan for an incredible amount of activity as soon as the ban is ﬁnally lifted. LOUISIANA IS THE ENERGY STATE! The ﬁrst six months of 2008 have been a whirlwind, and the next six months will not disappoint. We have just ﬁnished a successful LAGCOE Golf Tournament; GCPE and LEGC are just around the corner; and the biggest Oilﬁeld Service Auction we have ever hosted will be going live in November. We are blessed with a pro-energy governor who sees the need for a complete energy policy for the state and the country. LOGA is working hard on a presentation for Governor Jindal and his administration that will lay out the foundation for a successful energy plan. LOGA has become an integral part of Louisiana energy efforts and critical to the success of our industry. I am so excited about what is going on, and I look forward to our continued success. Raymond J. Lasseigne Chairman, LOGA OUR service companies, pipelines and refineries will be key to the exploration and operation of the Eastern OCS…We must begin our preparations and plan for an incredible amount of activity as soon as the ban is finally lifted. www.loga.la | 7 http://www.loga.la

Table of Contents Feed for the Digital Edition of LOGA Industry Report - Fall 2008

LOGA Industry Report - Fall 2008 Contents Chairman's Corner President's Perspective Commissioner's Comments From the Pipeline... Supreme Court Upholds Act 312 LOGA Challenges Commission's Ad Valorem Tax Rules The Haynesville Shale - Waiting for the Gas to Come In 2008 Legislative Recap Gulf Coast Prospect Expo 2008 2nd Annual LAGCOE Open Golf Tournament Conservationist by Trade Katrina Relief Fund Update DNR Intent Natural Gas Production Surges: A Free Market At Work IPAA Washington Report Legal Updates New Members Index to Advertisers

LOGA Industry Report - Fall 2008

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