American Oil and Gas Reporter - December 2017 - 88

ConventionCoverage: Oklahoma Independent Petroleum Association

Oklahoma Industry Fighting
For Public Approval
By Bill Campbell
RIDGEDALE, MO.-The heart of
America's oil patch is engaged in a battle
for public approval, and President Tim
Wigley implored members of the Oklahoma Independent Petroleum Association
not to lose it, during their fall conference,
Nov. 5-7 at the Big Cedar Lodge, south
of Branson, Mo.
While Wigley spoke, Oklahoma lawmakers were debating whether to increase
the state's two-tiered gross production
tax system to help plug a state budget
shortfall, and he suggested it was not
mere coincidence they were doing so.
But worse, he said, regardless how the
current debate ended, there is a very real
chance the Oklahoma industry may face
a ballot initiative in November 2018 to
raise the gross production tax to 7 percent
on all wells.
Minutes later, OIPA luncheon keynoter,
Dr. Everett Piper, president of Oklahoma
Wesleyan University in Bartlesville, Ok.,
explained how he turned around a failing
liberal arts college by clearly defining its
mission, and encouraged the oil and gas
industry to do likewise.
Wigley joined OIPA in December
2016 after spending six years with the
Western Energy Alliance in Denver, where
he said he faced numerous local moratoria
or bans on hydraulic fracturing, as well
as a statewide referendum.
"This was not by accident," he stated,
explaining that the "keep it in the ground"
movement led by groups such as 350.org,
Sierra Club and the Natural Resources
Defense Council "have had a master plan
on the books for years." That plan was to
start in Colorado, where Wigley said "the
politics were perfect," and then move on
to New Mexico and other Western states.
But it doesn't stop there, he warned.
"This was in writing six or seven years
ago. They were going to come to Texas
and Oklahoma."
While many once may not have believed
fossil-fuel foes ever could prevail in the
heart of the Texas and Oklahoma oil fields,
Wigley observed that voters in Denton,
Tx., approved a fracture ban in November
88 THE AMERICAN OIL & GAS REPORTER

2014. And he said OIPA was aware of
anti-development forces grooming candidates in several Oklahoma communities.
"The other side understands something
very important," he reflected. "The way
you eat an elephant is one bite at a time."
Legislative Losses
Further proof may be found at the
Oklahoma Legislature, where Wigley attested, "We don't have the kinds of friends
we thought we had."
During their regular session earlier
this year, Oklahoma lawmakers raised
the state's temporary 1 percent gross production tax rate for wells drilled between
2011 and 2015 to 4 percent, and also
eliminated a suite of gross production
tax rebates and credits put in place in the
late 1990s to encourage development in
Oklahoma's oil and natural gas fields
(AOGR, July 2017, pg. 110).
At the time of OIPA's meeting, the
Oklahoma Legislature was in a special
session to deal with a $215 million budget
shortfall (see story page 31). Among the
measures being contemplated was increasing the state's gross production tax
on new wells from 2 to 4 percent for the
first 36 months of production.

The industry is facing an organized assault by anti-development organizations
that have brought their keep-it-in-theground mantra to Oklahoma, OIPA President Tim Wigley advises members during
the Oklahoma Independent Petroleum
Association's fall conference in early
November.

Wigley blamed a number of factors.
Term limits have caused rapid turnover,
resulting in 41 freshmen legislators this
year who "don't know anything about
anything." He said industry infighting
over spacing regulations to accommodate
long-lateral drilling had hurt OIPA's credibility in the state Capitol. Add a budget
shortfall and, "It has created kind of the
perfect witches' brew for the fights we
are facing," Wigley surmised.
Oil Patch Proud
Regardless of the outcome of this
year's GPT debate, Wigley said a group
called Restore Oklahoma Now was poised
to file a statewide ballot initiative to tax
all wells at the full 7 percent GPT rate.
While a poll OIPA conducted in August
shows the oil and gas industry has a 60
percent approval rating among Oklahoma
voters, Wigley said, other polls indicate
about 65 percent have bought the notion
that the industry isn't paying its fair share
of taxes.
Expressing confidence in the association's ability ultimately to succeed, Wigley
announced its new "Oil Patch Proud"
public relations campaign. Although many
details have not been finalized, he said it
would start with industry employees. He
said, "We learned in Colorado that once
engaged, our employees were way more
credible spokespeople" than lobbyists or
even association leaders.
"We have to reshape and reframe the
debate," Wigley continued, indicating additional polling and focus groups were
needed. "We have to figure out how to
move voters from A to B in the quickest,
most direct line," he said.
And observing that people today relied
less on traditional media, he said, "We
have to go where they are getting their
information. If we know who our targets
are, which we learn from polling and research, then we know where they get
their information. That is where we have
to be, using technology to talk directly
to voters.
"We used this tactic very successfully
the past five or six years in Colorado and
it totally changed the narrative," Wigley

http://www.350.org

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