American Oil and Gas Reporter - May 2019 - 116

ConventionCoverage: Louisiana Oil & Gas Association
State Updates
During LOGA's afternoon sessions,
John Adams with the state Office of
Conservation talked about proposed revisions to the financial security needed
to ensure plugging of orphaned wells.
One proposal calls for allowing operators
to set aside 3.5 percent of their annual
premium in a fund overseen by a private,
nonprofit organization directed by the
state office to collect funds for well
plugging, he said.
Stephen Lee, director of the Injection
and Mining Division of the Department
of Natural Resources, discussed ways in
which the division was working to speed
disposal permits. However, the office
faces a manpower shortage and is unable
to hire staff, which is complicating the
situation, he said.
Jamie Manuel, assistant secretary at
the Office of Mineral Resources, discussed
how the office was working to revise the
lease form utilized by operators wanting
to explore on state lands. The state Mineral
and Energy Board, working with Manuel,
has been meeting monthly to discuss potential changes, and Manuel said he hoped
the process would be complete by the
end of the year. One issue being discussed
is no-deduction royalties paid to the state,
he mentioned.
LOGA General Counsel Randy Songy,
an attorney with the Onebane law firm in
Lafayette, La., updated the status of the

legal test case to determine what price
for oil should be used to calculate severance taxes. In the case between Avanti
Exploration and the state Department of
Revenue, the Louisiana Board of Tax
Appeals sided with Avanti in holding that
severance taxes should be based on the
transaction price at the time of severance,
instead of a higher index or market price.
The Department of Revenue subsequently
appealed the board's decision to the
Louisiana Court of Appeals.
(Editor's Note: Following LOGA's
meeting, Songy reports, the Court of Appeals
rendered a decision "strongly in favor of
the producer." (See story, page 20))
The Department of Revenue also lost
another, very similar, case in the Court
of Appeals, Songy pointed out. In that
case, the Louisiana Supreme Court denied
a writ application filed by the DOR, he
said, explaining the state's writ application
was based on factors other than the merits
of the case.
"LOGA Champions"
During its dinner, LOGA recognized
Louisiana House Speaker Taylor Barras,
R-New Iberia, state Senator Norby
Chabert, R-Houma, and state Representatives Neil Abramson, D-New Orleans,
and Jim Morris, R-Oil City, as "LOGA
Heavyweight Champions" for their work
to protect the oil and gas industry.
LOGA President Gifford Briggs lauded
each of the lawmakers for his work in the

Recognized as "LOGA Heavyweight Champions" by President Gifford Briggs (right) at
the Louisiana Oil & Gas Association's annual convention, March 20-22 in Lake Charles,
La., were Louisiana House Speaker Taylor Barras (left), R-New Iberia, and state Senator
Norby Chabert, R-Houma. Two LOGA Champions who were unable to attend were state
Representatives Neil Abramson, D-New Orleans, and Jim Morris, R-Oil City.

116 THE AMERICAN OIL & GAS REPORTER

face of criticism from anti-industry lawmakers and media, and for understanding
the contribution LOGA members and
others in the oil and gas industry made to
state coffers and their communities.
At the conclusion of dinner, Robert
Douglas, retired engineering manager
from ExxonMobil, encouraged LOGA
members to maintain the proper attitude,
belief and commitment to achieving their
goals and contributing to their cause.
He said maintaining a good attitude
was essential for getting to where one
wanted to be in life, that beliefs formulated
dreams, and commitment-even when times
were tough-was crucial to achieving goals.
"Always have eyes that see the best in
people," Douglas urged.
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BIOTECHNOLOGY. . .
FROM PAGE 106
temperatures and pressures, and they can
do such things as disperse paraffin and
asphaltenes, break down certain biopolymers, desludge storage tanks, reduce
crude oil viscosity, leave a reservoir in a
water-wet state, reduce interfacial tension
and capillary pressure within the reservoir,
and attempt to repair skin damage in the
near-wellbore region. Often, the result of
all those things is a production increase."
He estimated 90% of wells experienced
an average production increase close to
40%. "The production increases tend to
accumulate with an increased number of
consistent treatments, and production increases as great as 400% have been observed when well stimulation applications
are added," he added.
The case histories Shumway discussed
included some dual completion Clinton/Medina sandstone wells in Morgan County,
Oh., which he said experienced significant
incremental production. "The cost on that
project was about $8,800, and the net
revenue to the operator was about $34,000,"
he detailed.
Shumway also shared results from
a program in which Locus Bio-Energy
helped a Pennsylvania operator for
three years with 70 upper-Devonian
sandstone wells, including some with
horizontal laterals.
"We believe the average production
increase over this entire program is 37%
and incremental oil for each well ranges
between 15 and more than 1,000 barrels,
which represents a significant net revenue
increase, after treatment expenses, for
this operator," he stated.
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American Oil and Gas Reporter - May 2019

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