American Oil and Gas Reporter - November 2018 - 117

ConventionCoverage: Eastern Kansas Oil & Gas Association
seismicity damages.
"We haven't seen the last of those
bills. They are going to be back; there is
no question," he cautioned.
Lawmakers also will be tasked with
passing a two-year budget during the
2019 session, Palace noted. Two key
components of that, he said, will be funding for education and transportation infrastructure. "That isn't a problem," he
allowed. "But you have to pay for it."
He recalled that the legislature increased
education funding by $500 million in
2017 and another $325 million in 2018.
Yet the Kansas Supreme Court has ruled
education funding remains inadequate
and an economist is recommending Kansas
needs to spend an additional $1.2 billion
to raise its graduation rate.
"How do you fund that?" Palace posed.
"Is it property taxes? Is it severance
taxes? Is it income taxes? Last year there
was talk of a surcharge on electric bills.
"The implications are far greater than
just education. It comes back to how you
fund it and how that is going to affect
your business," he reiterated.
For the oil and gas industry, the transportation infrastructure issue is similar,
Palace surmised. He pointed out that

Four longtime Eastern Kansas Oil & Gas Association Board members retired from
those positions at the association's 2018 annual meeting, Oct. 2-4 in Mayetta, Ks.
From left to right are Mike Traylor, Maclaskey Oilfield Services; Don Snavely, Journey
Consulting; Bob Thomas, Thomas Well Service; and Bill Copeland, CVR Refining. New
members elected to EKOGA's board at the meeting were Chad Arnold, CVR Refining;
Brad Leach, Utah Oil; Bryan Miller, D.E. Exploration Inc.; and Lance Town, Town
Oilfield Services.

lawmakers had swept $2 billion from
the Kansas Department of Transportation's account during the past seven
years, and said a task force composed
of road contractors, city and county officials, and others vested in transportation

infrastructure was studying the need to
replenish it.
"Again, who pays for that?" Palace
wondered. "I don't believe motor fuel
taxes will continue to be the sole funding
source for highways."
r

Big Money Backing Anti-Oil Activism
MAYETTA, KS.-Forget price and geology. The greatest risk facing independent
oil and gas producers today, suggested
the keynote speaker at the Eastern Kansas
Oil & Gas Association's annual convention, held Oct. 2-4 at the Prairie Band
Casino Convention Center in Mayetta, is
a multibillion dollar campaign being
waged on multiple levels to put them out
of business.
"We live in a hyper-polarized society,"
observed Mark Mathis, president of Clear
Energy Alliance, which is located in
Delray Beach, Fl.
He described three levels of tension
between the political left and the right.
On the primary level, Mathis posed, liberals and conservatives are divided on
the issues of government size, gun rights,
abortion and immigration. At the second
level, he went on, "identity politics" such
as race, gender and sexual preference
are very important to the left, while the
right is focused on "anything that defines
freedom: individual freedom, freedom
from government, freedom to just do

you own thing."
But at the third level, "Climate change
has become the defining issue for the left
because it encompasses so many (liberal)
priorities," he held.
Mathis described a well-funded and
organized three-part campaign he labeled
crisis, cause and cure that consists of
convincing the public of impending disaster caused by burning fossil fuels, which
can be cured only by eliminating all fossil
fuel industries.
Money Trail
Mathis attributed some of the information he shared with EKOGA to a study
done by Matthew Nesbit at Northeastern
University. Focusing on 19 key foundations, Mathis said, Nesbit found they
spent $557 million over four years in a
coordinated campaign to reshape America's energy sector.
While some groups focused on things
such as stricter regulations and/or banning
hydraulic fracturing, he outlined, others
were dedicated to shutting down the coal

industry and others promoted alternatives
such as wind and solar.
But the money traced by Nesbit "is
only the tip of the iceberg," Mathis warned.
"There are gigantic amounts of money
being spent every year and it is growing
all the time."
He cited one estimate that when all
sources of climate spending were considered-ranging from left-leaning foundations to governments-that climate skeptics were being outspent 3,500-to-one.
"The U.S. government and 18 of its
agencies are spending billions of dollars
every year; the world is spending $1
billion a day on this issue," Mathis imparted.
But it isn't only foundations that are
arrayed against U.S. oil and gas. The
governments of some energy-producing
countries support anti-oil activism, Mathis
alleged.
He said the U.S. government, a former
Central Intelligence Agency agent and
others had traced the flow of money from
Russia's Vladimir Putin through offshore
NOVEMBER 2018 117



American Oil and Gas Reporter - November 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - November 2018

Contents
American Oil and Gas Reporter - November 2018 - Intro
American Oil and Gas Reporter - November 2018 - 1
American Oil and Gas Reporter - November 2018 - 2
American Oil and Gas Reporter - November 2018 - Contents
American Oil and Gas Reporter - November 2018 - 4
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