American Oil and Gas Reporter - October 2017 - 95

ConventionSection: Oklahoma Independent Petroleum Association
of ongoing policy squabbles about teacher
pay and education-related funding, Mullennix recalls. Nevertheless, he says,
OIPA will continue to make its case to
the public.
"Oklahomans need to look at where
the money is spent and not see the industry
as an ATM machine to fix things such as
teacher pay and infrastructure," Mullennix
suggests. "Those issues have been here
long before this year. Raising taxes on
the oil and gas industry is not going to
help teachers' pay. It's not that simple.
The state is going to decide what happens
with the money that goes into the general
fund, and it is very naïve to think . . . that
raising taxes on the energy industry will
fix any given issue, because it will not. It
is sad that the state has turned to our industry and told us we need to step up and
do more rather than looking inside and
asking why we spend so much money on
education without getting the level of results as other states, and asking why
Medicare and Medicaid have quadrupled
in 10 years in Oklahoma."
The public also must consider how

much capital the industry spends in order
to qualify for any tax incentives, he urges.
"In many cases, we have to spend $8 million-$12 million for a STACK/SCOOP
well to get that 2 percent rate," Mullennix
points out. "We have to hire the people,
spend the money, drill that well, and get
the well into production before we get
that rate. We already have contributed millions of dollars into the Oklahoma economy
and account for roughly one-third of our
state's gross domestic product."
OCC Task Force
In the meantime, OIPA will monitor
the work of the Second Century Corporation Commission Task Force, which
held its first meeting in early September,
to assess the Oklahoma Corporation Commission's performance, funding, staffing
and structure, Wigley reports.
Following reported complaints from
regulated industries about OCC delays,
Fallin established the task force in August
with an executive order after lawmakers
contemplated legislation to do so during
the regular session.

Recommendations are required by
Nov. 15, 2018, according to a news release
from Fallin's office. The task force will
be chaired by Oklahoma Secretary of
Energy and Environment Michael Teague.
Others will include the attorney general,
a member each from the state's House
and Senate, and an OCC commissioner,
the governor's office says.
The assessment is not designed to reexamine previous or future OCC decisions,
Fallin said, and the assessment and recommendations will be released after the
analysis is complete.
"The OCC does a good job," Mullennix
comments. "This is one of the country's
best states in which to operate, and I
think it's because of our spacing and
pooling rules and the addition of longlateral drilling. There are always issues
that arise as the face of the industry
changes, and the OCC does a really good
job of addressing those. And trust me,
the face of our industry is changing a
great deal, not just in Oklahoma but
throughout the country."
"It's all about ensuring good government

OCTOBER 2017 95


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American Oil and Gas Reporter - October 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2017

Contents
American Oil and Gas Reporter - October 2017 - 1
American Oil and Gas Reporter - October 2017 - 2
American Oil and Gas Reporter - October 2017 - 3
American Oil and Gas Reporter - October 2017 - Contents
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