In total, IPAMS met with nearly 200 Congressional offices, three agencies including the Department of Interior, and every major media outlet in our nation’s capital. This year, IPAMS Call-Up coincided with IPAA’s, so the impact of independent producers blanketing Capitol Hill was greater than ever before.

IPAMS members did an outstanding job raising awareness about regulatory policies that would make development more difficult and costly, disproportionally impacting Western communities the most.

We are especially grateful to local officials from throughout the region who joined IPAMS in Washington DC.  These leaders are the best advocates to help Congress understand how local communities benefit from a healthy energy industry. A special thank you to Mark Raymond, Uinta County Commissioner; Tim Kaumo, Mayor of Rock Springs, WY, Paul Kauchich, Director of Engineering, Rock Springs, and Mike Hynek, Mayor of Stanley, ND for being a voice on behalf of their communities.  Commissioner Raymond hand delivered a petition to Secretary Salazar signed by ninety county commissioners, mayors and other elected officials from across Colorado, Montana, New Mexico, Utah and Wyoming, expressing concern about the negative effect Interior policies will have on local economies and jobs.

Highlights from the Trip

Briefings provide an insider’s view of Washington

This year’s Call-up included briefings and remarks from renowned Washington journalist, political pundit and Pulitzer Prize winner George Will, Wyoming Senator John Barrasso, Utah Congressman Rob Bishop, IPAA Chairman Bruce Vincent, WorldWatch Institute President Chris Flavin, and ANGA CEO Regina Hopper.

Meetings with Congress and the Obama Administration

In addition to meeting with more congressional offices than ever before during an IPAMS Call-Up, IPAMS also met with the Obama Administration to discuss our members’ concerns and explore ways in which we can work together. A team of ten IPAMS members and staff met with Secretary Salazar, Deputy Secretary David Hayes, Assistant Secretary for Fish, Wildlife and Parks Tom Strickland, Counselor to the Secretary Steve Black, Assistant Secretary for Land & Minerals Wilma Lewis, Deputy Assistant Secretary for Land & Minerals Ned Farquhar, and BLM Deputy Director of Programs and Policy Marcilynn Burke. We had a meaningful dialogue on how to move forward in a constructive manner. IPAMS members also met with the White House Council on Environmental Quality (CEQ) and the Office of Fossil Energy at the Department of Energy.

A Go-to Source for Washington Media

IPAMS also met with nearly every major Washington-based media outlet, including those from the Wall Street Journal, Washington Post, New York Times, National Journal, Salt Lake Tribune, Denver Post, Oil & Gas Journal, Platts Gas Daily, E&E News, and Public Lands News. IPAMS President George Solich filmed an interview on the widely respected E&E TV’s “OnPoint.”  Special thanks to George for his effective representation of our industry in the DC media. Click here to watch George’s interview.

See some of the media coverage from our trip:

“America’s independent natural gas and oil producers take to Capitol Hill” (E&P Magazine)

“Independents converge on Washington as natural gas advocates” (Oil & Gas Journal)

IPAMS-IPAA Hill Reception Draws Hundreds of attendees!

In 2009, IPAMS for the first time held a reception on Capitol Hill, drawing over 300 attendees and raising IPAMS name recognition among policy makers and Congressional staff.  This year, we co-hosted the reception with IPAA, and had nearly 500 congressional staff and Members of Congress in attendance.  Special thanks to IPAA for all of their hard work on this event!

IPAMS Briefing Materials

For those not able to attend the trip this year, we want to make the materials available for your own use.  Below is a list of materials we’d like for you to have.

Click here for a copy of IPAMS Call-Up brochure (a public document intended as a ‘leave behind’ for Congressional staff)

Click here for a copy of IPAMS briefing book (a more in-depth analysis booklet with great statistics and charts about natural gas and oil production in the Intermountain West.)

IPAMS Heads To Washington D.C. Next Week

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

IPAMS will be in Washington D.C. next week to promote western natural gas and oil industry as the solution to many of America’s most pressing economic, environmental and energy challenges.  We will be available by email and cell if you need to reach us.

This year’s trip will include over 200 meetings with Members of Congress and their staffs, the Obama Administration, the media and affiliate trade associations.

If you are unable to attend this year’s Call-Up, please consider reaching out to your contacts on Capitol Hill and pass along our reception invitation co-hosted by IPAMS and the Independent Petroleum Association of America (IPAA).  Click here for a copy of the invitation.

IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:

Banko Petroleum
Mercator Energy, LLC
Mesa Energy Partners, LLC
Tracker Resource Development, LLC

Potential National Monument Designations

Last week an Interior memorandum on potential National Monument designations was leaked. It appears the Administration is considering the use of the Antiquities Act to designate large portions of the West as monuments, similar to the designation of Grand Staircase-Escalante National Monument by President Clinton without Congressional and public support. Senator Bennet and Congressmen Hastings and Bishop immediately expressed their concern with the potential designations in letters which are available on our Public Lands Access page along with the memo. Governor Herbert met with Secretary Salazar soon after the memo was leaked and expressed his concern. According to media reports, Salazar assured the Governor that the President would not take action before consulting the states. However, Senators Bennett and Hatch and Congressman Bishop of Utah, were not convinced. They have introduced legislation that would require Congressional action before a monument designation can be made in Utah. Congressional action is required in Wyoming. Natural gas and oil areas under consideration include the Lesser Prairie Chicken Preserve and Otero Mesa in New Mexico, Vermillion Basin in Colorado, San Rafael Swell in Utah, and Montana’s Northern Prairie. The Red Desert in Wyoming is also under consideration for special BLM protection, but cannot be designated a monument by executive order. Please let Kathleen Sgamma know if you have particular concerns with any of these areas and information to share with the House Natural Resources committee.

IPAMS Vote From Home Program

As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone, this voter drive program was able to register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, IPAMS has decided to expand the program to include the entire state of Colorado for the 2010 elections. With critically important state and federal races to be decided next year, it is more crucial than ever that industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from several Colorado producers, but we need more support in order to get working on the program as soon as possible. For more information, contact Jon Bargas.

IPAMS in the News

Environmental group challenges oil and gas industry view of leases on public land

published in: Houston Chronicle on: 02/23/2010 by: Tom Fowler

The report is based on a position paper released in November by the Independent Petroleum Association of Mountain States, which said the Interior Department under Ken Salazar has implemented policies that make it “increasingly difficult for producers to supply the natural gas necessary to reduce greenhouse gas emissions and increase energy security.”

Enviros return industry fire over access to public lands

published in: E&E News/New York Times on: 02/23/2010 by: Mike Soraghan

IPAMS says the environmental group has missed the point of the 2009 report — that policies enacted now will hurt the West in years to come as it tries to recover.

“Drilling is down because of the economy. I don’t think anyone denies that,” Kathleen Sgamma, IPAMS’s director of government affairs said today. “As the economy recovers, these policies will affect companies two or three years out and slow the recovery of the West.”

Much at stake as grouse endangered finding nears

published in: Associated Press on: 02/21/2010 by: Mead Gruver

The oil and gas industry has been fearing the opposite. For years it has been working with state and local agencies and funding studies to determine how to protect the birds and prevent listing, said Kathleen Sgamma, director of government affairs for the Independent Petroleum Association of Mountain States.

“We’re hoping the Fish and Wildlife Service will recognize all the local efforts of communities, ranchers, industry to protect sage grouse,” she said.

IPAMS Membership Update

IPAMS would like to thank our broad membership for supporting our organization 2010 dues. Your financial support ensures that we have the resources to continue to defend and promote your investment in the Intermountain West. We would like to recognize the following organizations that have recently joined IPAMS and/or upgraded their membership:

IPAMS Welcomes Its Newest Members:

Behm Energy
Gunlikson Petroleum, Inc.
Morgan Stanley Smith Barney
Peak Energy Services
Retamco Operating
San Marco Petroleum, Inc.
Sands Oil Company

IPAMS Upgraded Members

Albrecht and Associates
BENTEK Energy, LLC
Bill Barrett Corporation
Cordillera Energy Partners III, LLC
Denver Mineral and Royalty Company
Jonah Gas Company LLC
LiTMus EPO LLC
Macquarie Tristone
Mesa Energy Partners
Noble Energy, Inc
NVI—Non-Destructive and Visual Inspection
Petros Environmental Group
Pioneer Natural Resources
Pure Energy Services (USA)
Tall Grass Energy Company, Prospector

To refer an organization or to discuss a new or upgraded membership, please contact Susan Fakharzadeh, Director of Membership and Events.

Other Upcoming Meetings

• New Mexico Advisors Network – March 9th 9:00 a.m.

• Utah Basin Advisors Network – March 9th, 10:00 a.m.

• Wyoming Basin Advisors Network – March 11th, 10:30 a.m.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Governors Talk Jobs

published in: KULR News on: 02/22/2010 by: Sarah Gravlee

The annual winter meeting of the National Governors Association wrapped up Monday in Washington, D.C. Topics of discussion included everything from health care reform to balancing budgets. Montana and Wyoming’s governors said the group also talked about ways to create jobs.  “From Montana’s perspective we think the best jobs will be new clean energy jobs,” said Mont. Gov. Brian Schweitzer, a democrat. “We think building new systems and transmission lines so we can deliver energy from energy states to the coast. Breaking our addiction to foreign oil is the best way to make jobs.”

Colorado

Roan drilling foes bring ozone rule into fight

published in: Grand Junction Daily Sentinel on: 02/21/2010 by: Dennis Webb

A federal proposal to tighten restrictions on ozone pollution bolsters the contention of environmental groups that the Bureau of Land Management violated the law in leasing the Roan Plateau for natural gas development in 2008, they say in new court documents.  Attorneys for environmental groups, which sued the BLM over the leasing in 2008, note in a court filing that the Environmental Protection Agency has proposed reducing the national standard for ozone from 0.075 parts per million to somewhere between 0.06 and 0.07 parts per million because of concerns about its effect on respiratory function.

GarCo backs off well-spacing concerns in two areas

published in: Grand Junction Daily Sentinel on: 02/21/2010 by: Dennis Webb

Garfield County has backed off plans to raise concerns with the state this month regarding natural gas well-spacing proposals in Battlement Mesa and the Garfield Creek State Wildlife Area near New Castle.  County commissioners initially sought to intervene with the Colorado Oil and Gas Conservation Commission on applications by Antero Resources at Battlement Mesa and Dejour Energy (USA) Corp. at Garfield Creek. The county contends that even with the use of directional drilling of multiple wells from one pad, the proposed 10-acre underground well spacing results in cumulative above-ground impacts that need to be considered.

Garfield County reconsiders ‘intervention’ in drilling plans

published in: Glenwood Springs Post Independent on: 02/21/2010 by: John Colson

Garfield County this week opted to not interfere with an application by the Berry Petroleum Co. to drill for natural gas at a site that officials believed to be near the controversial Prather Springs location, in between Parachute and DeBeque in western Garfield County.  As it turned out, this particular application to drill involved a site that was “several drainages over” from the Prather Springs, according to one official, which erased any need for county involvement.

Montana

Montana gas storage, pipeline project planned

published in: Oil & Gas Journal on: 02/16/2010 by: Staff

Williston Basin Interstate Pipeline Co. has launched a $100-130 million project to boost delivery capacity from its Baker natural gas storage field in eastern Montana by April 2012.  Part of the project is an expansion of the company’s gas pipeline system that connects Baker, the largest gas storage field in the US, with Northern Border Pipeline north of Dickinson, ND.

Well Control Training Opportunity

February 26-28, 2010 in Butte, MT

Montana Tech and the School of Mines and Engineering is pleased to announce a special Well Control training class that will be held on the Montana Tech campus in Butte, Montana. This IADC/API certified course is designed for engineers and company representatives. Click here to learn more.

New Mexico

New Mexico delegation gets top grades from environmental groups

published in: New Mexico Independent on: 02/23/2010 by: Matthew Reichbach

New Mexico was among the states with the highest grades on the 2009 National Environmental Scorecard from the League of Conservation Voters. Four of the five members of the delegation received 100 percent scores; Teague was the lone holdout, with an 86 percent score from LCV.  The Senate scores were the result of 11 votes examined by the LCV while the House scores came from 14 votes that were held in 2009.

North Dakota

Wind Potential Grows in ND

published in: KXnet.com on: 02/23/2010 by: Shaun Sipma

It’s really not surprising to many of us in North Dakota, but a new report from the American Wind Energy Association says there’s more wind energy potential in the Dakotas than previously estimated.  The report lists North Dakota number six in the nation in wind energy potential.  However several companies are arguing that the state is number one and is planning a multi-billion dollar project to harness the wind and ship the energy from it across the country.

American Indian Reservation Reaping Oil Benefits

published in: Associated Press on: 02/24/2010 by: Staff

An oil boom on American Indian land has brought jobs, millions of dollars and hope to long-impoverished tribal members who have struggled for more than a century on the million-acre Fort Berthold Indian Reservation.  In little more than a year, oil companies have put dozens of money-producing rigs on remote rolling prairie and sprawling badlands that are home to small cattle ranches and scattered settlements of modular housing. Although other tribes around

ND counties vie for $3.9M in oil impact money

published in: Associated Press on: 02/22/2010 by: James MacPherson

Record funds are available this year under a North Dakota program that provides grants to counties adversely affected by oil development.  The money, mostly used to fix roads torn up by heavy truck traffic, comes from part of the state’s 5 percent oil and gas production tax. The Legislature last year raised the cap from $6 million to $8 million during the 2009-2011 budget cycle.

the nation have oil interests, industry officials said none has likely experienced a recent windfall of this scale.

North Dakota Petroleum Council Social in Denver

March 16, 2010

Denver-based Petroleum Council members will host a social at the Brown Palace on March 16 from 5-7 p.m. Industry members with an interest in North Dakota are invited to attend. RSVP to Kristy Bennett.

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

Utah regulators OK higher concentration of drilling pads in areas of Uintah Basin oil patch

published in: Associated Press on: 02/24/2010 by: Staff

Utah regulators have agreed to allow a higher density of wells for some expanding areas of the Uintah Basin oil patch.  The decision by the Utah Board of Oil, Gas and Mining came Wednesday at the request of Bill Barrett Corp.

Bennett blames Obama for poor oil auction

published in: Deseret News on: 02/24/2010 by: Lee Davidson

After the U.S. Bureau of Land Management sold just one oil lease in Utah during its quarterly auction on Tuesday, Sen. Bob Bennett, R-Utah, howled that isn’t because of a bad economy but because of “recklessness” by the Obama administration.  “(Tuesday’s) record low sale is not the result of a slow economy. It is a result of the Obama administration’s reckless path of more disruption and uncertainty of the already Byzantine oil and gas (lease) process,” Bennett said.

Utah Legislature: Bills seeks to reclaim certain federal lands, provides funding for legal battle

published in: Deseret News on: 02/23/2010 by: Amy Joi O’Donoghue

A legislative committee added three arrows to its quiver in the fight against the federal government by advancing a trio of bills on Tuesday morning.  The bills propose to give the state eminent domain authority over certain federal lands, provide another strategy in the battle and fund the anticipated legal fight.

Utah wary over national monument candidate list

published in: Associated Press on: 02/23/2010 by: Brock Vergakis

The possibility of a federal land grab throughout the West is stoking fears and generating resentment for the federal government in energy-rich states that could see millions of acres of land made off-limits to development if the president designates the sites as national monuments.b  An internal U.S. Department of the Interior document lists 17 sites in 11 states that could be designated as national monuments through the federal Antiquities Act, which gives presidents the authority to designate monuments without congressional approval. The Interior Department insists the document is a product of brainstorming and nothing more.

Herbert told that feds won’t do land grab in Utah

published in: Salt Lake Tribune on: 02/21/2010 by: Thomas Burr

Gov. Gary Herbert said Sunday he is assured for now that the Obama administration is not moving forward on any plans to designate national monuments in Utah or the West.  Herbert met Sunday with Interior Secretary Ken Salazar in Washington, D.C. and pressed him on a document that leaked out last week identifying 14 areas in the West, including two in Utah, where the administration could potentially bypass Congress and name national monuments.

Natural Gas STAR Tech Transfer Workshop

March 23-24, 2010 in Vernal, UT

EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.

Wyoming

Wyo. bill to hike workplace safety fines advances

published in: BusinessWeek on: 02/24/2010 by: Ben Neary

A bill to increase penalties for workplace safety violations in Wyoming for the first time in more than 25 years is moving through the state Legislature.  Gov. Dave Freudenthal and other supporters say passing the bill is essential to reducing the state’s workplace fatality rate.

Western Wyoming’s once-booming gas industry approaches economic and regulatory crossroads

published in: Associated Press on: 02/22/2010 by: Mead Gruver

Drilling rigs on the horizon underscore that cattle ranching and tourism no longer drive the economy in this picturesque town at the foot of the Wind River Range.  But the future of the natural gas industry in the Pinedale, Wyo., area — scene of a decade of intense drilling into two of the nation’s richest gas fields — has become less certain because of the recession and the Obama administration’s intention to make some unspecified changes to Bush-era drilling policies.

‘Tiger by the tail’?

published in: Casper Star-Tribune on: 02/21/2010 by: Dustin Bleizeffer

Presented with declining revenue, Wyoming lawmakers are determined to hold the line on spending during this budget session. But the state’s own energy ambitions force legislators to contemplate something that goes against their current fiscal instincts: increasing regulatory budgets.  The quandary resurfaced last week when a bill possibly requiring one additional staff position to help oversee new wind energy regulatory duties within a division of the Wyoming Department of Environmental Quality received lukewarm support in committee, along with much hand-wringing.

In Wyoming, Debate Swirls on Taxing Wind Industry

published in: New York Times on: 02/20/2010 by: Dan Frosch

With currents of powerful wind gusts whipping across its plains and plateaus, Wyoming has become a new frontier for the wind industry — the latest energy development for a state that only recently experienced a natural gas boom.  But in a place that is both cautious about such growth and interested in the potential benefits, some believe that those behind the wave of wind farms and turbines need to pay their fair share.

University of Wyoming Energy Resources and Produced Waters Conference

May 25-26 2010 in Laramie, WY

Final call for Presentations and Registration is still open. The Energy Resources Produced Water Conference, convened by the University of Wyoming’s Ruckelshaus Institute and the School of Energy Resources, is intended to advance the understanding of current research and monitoring projects related to the management, treatment, protection, and use of water associated with energy development in Wyoming and the West. The conference will cover produced water issues from various types of energy development, including, oil, gas, coalbed natural gas, coal mining, uranium, and carbon sequestration.

The format for the two-day conference will consist of oral presentations in concurrent sessions as well as a display of posters.

Click here to learn more.

Washington Watch

17 House Democrats write to Budget Committee Chairman John Spratt to voice their opposition to the President’s proposed tax hikes on Oil & Gas

“Unfortunately, the tax repeals proposed in President Obama’s budget would disproportionately penalize America’s independent producers and will serve only to discourage companies from investing in additional projects and jobs, such as the new shale gas plays across the nation.”

Click here to read the full letter.

Energy secretary jet-sets to the Middle East to “discuss a range of energy issues, including energy security.”

IER asks: Could as much, if not more, have been accomplished by walking 15 blocks to the Interior Dept.?

Energy Secretary Steven Chu traveled overseas on a four-day, three-country tour through the Middle East “to strengthen and expand U.S. relationships across the region” and to “discuss a range of energy issues, including energy security and the importance of investing in a broad portfolio of energy technologies as part of the global economic recovery.”

Environmental Protection Agency takes heat on climate rule

published in: Politico on: 02/24/2010 by: Lisa Lerer

Republicans, major business groups and a handful of coal-state Democrats are launching a barrage of attacks against the Environmental Protection Agency, hoping to stop new rules that would regulate greenhouse gas emissions across the economy.  In December, EPA officially declared greenhouse gases a danger to public health and welfare under the Clean Air Act. The action was mandated by a 2007 Supreme Court ruling.

E.P.A. Plans to Phase in Regulation of Emissions

published in: New York Times on: 02/22/2010 by: John M. Broder

Facing wide criticism over their recent finding that greenhouse gases endanger the public welfare, top Environmental Protection Agency officials said Monday that any regulation of such gases would be phased in gradually and would not impose expensive new rules on most American businesses.  The E.P.A.’s administrator, Lisa P. Jackson, wrote in a letter to eight coal-state Democrats who have sought a moratorium on regulation that only the biggest sources of greenhouse gases would be subjected to limits before 2013. Smaller ones would not be regulated before 2016, she said.

Bingaman opposes Graham’s push to alter renewables mandate

published in: The Hill on: 02/22/2010 by: Ben Geman

Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.) isn’t backing away from his opposition to turning a proposed renewable electricity mandate into a broader “clean energy standard” that gives credit to nuclear power and low-emissions coal.  Sen. Lindsey Graham (R-S.C.) has authored a draft “clean energy standard” plan, and has provided his proposal to Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) as the trio tries to craft a compromise climate and energy bill.

Obama Mounts a Last-Ditch Attempt to Pass a ‘Hybrid’ Climate and Energy Bill

published in: E&E News/New York Times on: 02/22/2010 by: Joel Kirkland

The White House is mounting a last-ditch effort to piece together an energy and climate change bill that has enough incentives for nuclear power, natural gas and the coal industry to muster the votes needed to pass it this year.  As Democrats enter a turbulent and high-stakes political season, President Obama is striving for consensus on a path forward that can deliver substantial greenhouse gas emissions reductions and satisfy concerns in the Senate about energy security.

Markey mum on natural gas ‘fracking’ legislation

published in: The Hill on: 02/22/2010 by: Ben Geman

Rep. Ed Markey (D-Mass.) on Tuesday declined to say if he will push to bring a controversial natural gas drilling method under federal environmental regulation, noting that his inquiry with Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) has just begun.  “We are just at the beginning of the process right now, so we are not reaching conclusions, we are initiating an inquiry,” he told reporters.

Energy in Depth: Chairman Waxman Wants to Learn More about Hydraulic Fracturing – Here’s a List of Folks He Can Talk To…

Energy Industry Reps Greet House Fracking Probe With Shrug

published in: E&E News (Subscription Required)  on: 02/22/2010 by: Katie Howell

Energy industry insiders say a new House probe of hydraulic fracturing is unlikely to hinder development of new domestic shale gas plays or stall a massive merger between Exxon Mobil Corp. and a large independent gas producer.  The House Energy and Commerce Committee’s two top Democrats asked eight oil-field service firms last week for details about chemicals they use during hydraulic fracturing, a decades-old drilling technique that blasts sand, chemicals and water into a wellbore to break apart compact rock and release hydrocarbons. The lawmakers also publicized for the first time details of a similar investigation that revealed that two drillers used diesel in their fracturing fluids in violation of a voluntary agreement with U.S. EPA.

Budget debate could turn into global warming fight at Senate hearing

published in: The Hill on: 02/22/2010 by: Jim Snyder

A Senate hearing this week ostensibly to review the Environmental Protection Agency’s (EPA) budget request is likely to turn into a broader debate on global warming, with Republicans seizing a chance to challenge the administration’s push to regulate greenhouse gas emissions in an open forum.  EPA Administrator Lisa Jackson is scheduled to testify before the Senate Environment and Public Works Committee on Tuesday.

Media Watch

Editorial: EPA’s global-warming power grab

published in: Washington Times on: 02/25/2010 by: Editorial Staff

Scientific scandals and record snowfalls have begun to melt away the congressional appetite for more global-warming regulations. On Sunday, to take the latest example, a major scientific journal admitted that “oversights” compelled the retraction of its conclusion that sea levels were rising as a result of increased worldwide temperatures. Reports of this sort make it increasingly difficult for members of Congress to enter iced-over districts to ask their constituents to make economic sacrifices in an attempt to appease Mother Earth into favoring us with colder weather.  This does not mean, however, that the left has given up on global warming as a means of exerting more government control over the economy.

Editorial: Gas pains: Probe, study target fracturing technique

published in: The Oklahoman on: 02/23/2010 by: Editorial Staff

The tag team that tried to bring you cap and trade is targeting hydraulic fracturing, a vital technology for ensuring a reliable supply of natural gas.  U.S. Reps. Henry Waxman, D-Calif., and Edward Markey, D-Mass., are investigating fracturing for its alleged environmental effects. Both support greater use of energy other than imported oil; both realize the environmental benefits of natural gas relative to coal. Yet they seem to have bought into the fear-mongering extant over fracturing.  The technique involves injecting water, sand and chemicals into shale formations. This cracks open the shale and facilitates natural gas production.

Utah monuments

published in: Salt Lake Tribune on: 02/22/2010 by: Editorial Staff

We Utahns can relax, for now. The feds say they aren’t sneaking around behind our backs, plotting a land grab of epic proportions.  However, the Interior Department is considering two areas in Utah as future national monuments. Since they are already mostly public lands, managed by the federal government, that’s hardly a land grab. But setting aside these starkly beautiful areas as national monuments would have a huge impact on Utahns.

Editorial: Advice for advisory board

published in: Grand Junction Daily Sentinel on: 02/22/2010 by: Editorial Staff

In a place such as Garfield County, where there is currently more natural gas drilling than any other county in the state, it makes a great deal of sense to have an organization such as the Energy Advisory Board, which can bring different sides together to discuss issues affecting the energy industry and local citizens.  The advisory board serves little purpose, however, if its meetings have become events where opponents of the industry can rant unceasingly and next to nothing is accomplished.  That is roughly the picture that energy firms paint of the Energy Advisory Board these days.

Op-ed: Green Energy Jobs? Not From Obama’s Big Government Meddling

published in: U.S. News & World Report on: 02/22/2010 by: Kenneth P. Green

The Obama administration and its congressional allies have been promising to usher in a green economy that will create millions of new green jobs that “can’t be outsourced.” Many of those jobs, we’re told, will come from wind and solar energy development, but other areas are supposed to benefit as well, including the automobile, construction, and ill-defined “green technology” sectors. These claims are nothing new, though they have grown more Orwellian over time.

Environment and Wildlife

United States the heartland of climate-change skepticism

published in: Reuters on: 02/23/2010 by: Ed Stoddard

Many Americans are skeptical about global warming and that makes it harder to get a bill through Congress.  “My personal leanings are that it’s more cyclical than a permanent trend,” said Jimmy Pritchard, a Southern Baptist pastor in a Dallas suburb.  “And I think It’s a little presumptuous to put so many resources and energy into something that may change direction in the next few years.”

Ruling on sage grouse delayed one week by unexpected death

published in: Las Vegas Sun on: 02/23/2010 by: Staff

A key decision on whether sage grouse will be placed on the endangered species list will be delayed one week due to the death of the head of the U.S. Fish and Wildlife Service.  The bird lives in 11 states, including Nevada, where the sagebrush that the bird needs has lost ground to invasive cheatgrass, which is susceptible to frequent burning.

Technology, Alternative & Renewables

Energy storage – It’s not all about batteries

published in: Clean Tech on: 02/24/2010 by: Lisa Sibley

Cheap, utility scale energy storage is viewed as the holy grail for the cleantech sector, providing a balancing force to the intermittency of many renewable energies. Some say we are nearly there and that utility scale energy storage will be having its coming out party this year.  While the current focus is on battery technologies, it is expensive to size it up to utility scale. What other energy storage mechanisms are in the pipeline?

Tech-Driven Natgas Boom Shifts Energy Balance of Power to U.S.

published in: Invester.com on: 02/23/2010 by: Mark J. Perry

A new technique being used to drill through a type of rock known as shale has led to a surge in domestic natural gas production over the last three years and enabled the United States to overtake Russia recently as the world’s No. 1 producer of natural gas.  As a result, we are seeing a remarkable turnabout in energy geopolitics: as U.S. natural gas reserves have soared thanks to advanced drilling methods, Russia’s goal of establishing a world gas cartel patterned on OPEC has collapsed.  How big of a development is this?

Group pushes Fort Worth as natural gas vehicle hub

published in: Fort Worth Business Press on: 02/22/2010 by: John-Laurent Tronche

Put your money where your mouth is – that’s what a group of natural gas advocates are doing in hopes of spurring acceptance of natural gas vehicles as an alternative to traditional petroleum-based vehicles.  The Metroplex Natural Gas Vehicle Consortium, formed about five months ago, is a group of natural gas proponents – the Texas Christian University Energy Institute, the Barnett Shale Energy Education Council, Clean Energy Fuels and some area gas operators, to name a few – who are “pursuing different directions with the same goal,” as one group member put it.

Markets

US Natural-Gas Prices Seen Staying At Current Levels For Awhile

published in: Dow Jones News Service on: 02/22/2010 by: Myra P. Saefong

The U.S. may be experiencing its coldest winter in a quarter century–and while that’s bad news for producers, consumers have reason to celebrate.  True, futures prices for natural gas have more than doubled in the last five months to trade above $5 per million British thermal units in New York, but prices are nowhere near the high above $13 seen in 2008 and they’re likely to sit tight at current levels for awhile because of ample supplies and forecasts for growing production.

Industry News and Events

Energy expert: Increased natural gas use good, but there are obstacles

published in: Forth Worth Business-Press on: 02/24/2010 by: John-Laurent Tronche

Despite an increased push to get more natural gas vehicles on highways, there is a significant barrier blocking the access roads: cost.  Natural gas is being touted as a good fuel for fleet vehicle operators, most notably by natural gas vehicle proponent T. Boone Pickens, but The Brookings Institution’s Charles Ebinger, a senior fellow, said “serious infrastructure limitations” will hamper NGV growth.

Behind Schlumberger’s Smith Deal: A Big Gas Bet

published in: New York Times on: 02/22/2010 by: Cyrus Sanati

Schlumberger’s $11 billion takover of a smaller rival, Smith Industries, seems to be a big bet on unconventional natural gas production in the United States.  In making the deal, Schlumberger is apparently hoping that Smith’s reputation and extensive domestic network will help position it as the top player in an increasingly hot sector of the oil patch, fending off the likes of Baker Hughes.

Wildlife Habitat Council’s Western Summit

March 17, 2010

Please join the Wildlife Habitat Council for the first-annual Western Summit on March 17th in Missoula, Montana to recognize the outstanding job corporate sites in the western US have done to enhance wildlife habitat and promote conservation education in their communities. Learn about the challenges Council members have overcome to implement successful habitat and outreach projects and discuss strategies to improve your own programs. Opening remarks will be delivered by Ms Melissa Simpson, the Vice President for Policy and Regulatory Affairs at the Pac/West. Ms. Simpson is the former Deputy Under Secretary for Forestry at the U.S. Department of Agriculture (USDA) under the Bush Administration.  Register by March 1 at: www.wildlifehc.org.

Click here for more information or contact Kristin Salamack, Intermountain West Region Biologist, at 303.376.7549.

Oil & Gas Stormwater Certification Course

March 25, 2010 in Littleton, CO

Location: Buys & Associates, Inc. Littleton Office

300 E Mineral Avenue, Suite 7, Littleton, Colorado 80122, (303) 781-8211

Event Description: Buys & Associates will be hosting the Oil & Gas Stormwater Certification Course covering how to minimize sediment run-off from production sites, the changing regulations to the oil & gas industry, consequences of not controlling Stormwater runoff, and ultimately will assist in minimizing operators’ violations & liability.

The cost of the course is $149/person and includes a lunch and course certification. Group rates are available for parties of four or more. To register please contact Nikki Niekerk @ (303) 781-8211 or click here.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

The IPAMS 2010 Washington Call-Up is almost here!

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

Space is filling up fast for IPAMS 10th Annual Washington, D.C. Call-Up.

The western natural gas and oil industry has answers for many of America’s most pressing economic, environmental and energy challenges. Unfortunately, not everyone in Congress is aware of the solutions our industry provides. Please consider joining the 50+ IPAMS members already committed to attending so you too can speak directly to the policymakers who are shaping the future of our industry. No matter what position you hold in your company, IPAMS can use you in Washington D.C.

This year’s trip will include meetings with over 100 Members of Congress and their staffs, the media and affiliate trade associations. We also have plenty of social events planned, including a joint reception for Congress with IPAA at the new Capitol Visitor’s Center. Click here for the 2010 Washington DC Call-Up draft agenda. (Please note that this year’s Call-Up will begin with a Board Meeting and Member Briefing at 4:00 p.m. on Monday, March 1, so please make your travel arrangements accordingly.)

IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:

Banko Petroleum
Mercator Energy, LLC
Mesa Energy Partners, LLC
Tracker Resource Development, LLC

If you would like to help sponsor the Call-Up, please contact Becca Ness.

Click here to register for IPAMS 10th Annual Washington, D.C. Call-Up March 1-3, 2010.

Already registered? Don’t forget about the pre-trip briefing… Due to the popularity of this trip, IPAMS has added a third Denver briefing prior to the Call-Up to ensure you are fully prepared to speak on behalf of industry.  If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served).  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.nd holds a BA in English and Philosophy.

Natural Gas: More Solutions to the Biggest Challenges Facing Our Country

In the past month, two more important institutions have recognized the solutions that natural gas can provide to help create jobs, lower greenhouse gas emissions and reduce our dependence on foreign energy.

Click here to read the Weekly Message from Marc W. Smith

IPAMS Ozone Meeting

February 24th, 10:00 a.m.

Ozone is a big issue for natural gas and oil producers across the West, as industry has often been blamed for elevated levels, despite often providing only a small fraction of ozone in an area. For example, although flash emissions in the D-J basin account for about 22% of volatile organic compound (VOC) emissions in the Denver early action compact region, the low photoreactivity of natural gas and oil sources mean that less than 1% of actual ozone is actually caused by industry. In rural areas across the West, high levels of background ozone may be attributable to stratospheric transport from Asia.

Air quality expert Doug Blewitt will give a forty-five minute presentation about the different types of ozone events we are seeing in the West and lead a discussion on how to address them. We will then discuss commenting on EPA’s proposed lowering of the ozone standard to between 60 and 70 ppb. The comment period ends March 22nd. All interested IPAMS members are encourage to attend at the IPAMS office or call in. Please contact Kathleen Sgamma for more information, the teleconference number, and the slides.

IPAMS Vote From Home Program

As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone, this voter drive program was able to register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, IPAMS has decided to expand the program to include the entire state of Colorado for the 2010 elections. With critically important state and federal races to be decided next year, it is more crucial than ever that industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from several Colorado producers, but we need more support in order to get working on the program as soon as possible. For more information, contact Jon Bargas.

IPAMS in the News

Protection decision near for sage grouse

published in: Grand Junction Daily Sentinel on: 02/17/2010 by: Dennis Webb
Wes McStay remembers the greater sage grouse being so common when he grew up that he’d see their leks, or mating grounds, right on county roads on the way to school.  Cars had to swerve to avoid the birds, known for the males’ strutting courtship dance.  Now, the Moffat County rancher fears the bird soon could become extinct.

“We work very hard to ensure sage grouse are protected while still enabling economic activity and jobs, so we’ll have to see what happens later this month,” she said. -Kathleen Sgamma, IPAMS Director of Government Affairs

Other Upcoming Meetings

• IPAMS Washington DC Call-Up Briefings - February 22^nd and 25^th, 11:30 a.m. If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served.)  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

• Dept. of the Interior Advocacy – February 23rd, 1:30 p.m.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Intermountain West loosens its embrace of Democrats

published in: Denver Post on: 02/18/2010 by: Michael Riley

When Barack Obama accepted his party’s presidential nomination 18 months ago in a floodlighted football stadium in Denver, he pinned the hopes of a new Democratic ascendancy on the Intermountain West.  Helped along by demographic shifts in the region, Democrats looked as if they had done everything right over several election cycles, catching a wave of new voters and showcasing a bevy of bright-light politicians who included Colorado Gov. Bill Ritter.

Congressional Western Caucus: The West is Proof the Stimulus Failed

February 17, 2010

Today, on the one-year anniversary of the signing of the Stimulus Bill, Congressional Western Caucus Chairman Rep. Rob Bishop (R-UT), expressed disappointment that, during his remarks yesterday before a crowd in Lanham, Maryland, President Obama only recognized clean energy as a source of job creation, selectively leaving out the overwhelming number of opportunities for job creation made possible by the development of all domestic natural energy resources.

Colorado

Gas operators decry ‘toxic atmosphere’ of Energy Advisory Board

published in: Glenwood Springs Post Independent on: 02/18/2010 by: John Colson

A letter from seven different gas drilling companies, all of them operating in Garfield County, expressed “sincere concern and frustration” concerning “several serious issues we have struggled with for some time” about how the county interacts with the industry.  The letter, to county manager Ed Green, included dissatisfaction with what the letter terms a “toxic atmosphere” of the county’s Energy Advisory Board, and with the performance of the county’s Oil and Gas Liaison official, Judy Jordan.

Weld oil discovery has officials bracing for drilling-lease rush

published in: Associated Press on: 02/18/2010 by: Staff

High-quality sweet crude oil has been found in a formation in northern Weld County that until now has had little activity, sparking interest from oil companies and causing officials to brace for a rush of drilling leases.  Ed Holloway, chief executive of Synergy Resource, described a new production well in an area known as the Niobrara Formation as a gusher. During a 24-hour test, the well produced 1,770 barrels of oil with 367,875 cubic feet of gas. A typical well in the area produces 100 to 150 barrels a day.

Slowdown allows time for infrastructure construction

published in: Grand Junction Daily Sentinel on: 02/17/2010 by: Staff

Western Colorado has a long boom and bust history, with uranium and oil shale creating both booms and busts. The natural gas activity generated a boom a few years ago, with high real estate prices and appreciation, low unemployment, and government agencies in a panic, wondering how to catch up with growth. Now, falling home prices and rising unemployment may cause some people to consider this period another bust.  “To characterize it as a bust is not accurate,” says John Harpole, president of Mercatur Energy, a natural gas brokerage company. “There is too much infrastructure, too many processing plants; drilling still makes money. There are still a lot of people working here.”

Commissioner Craig Meis blames industry decline on local politicians

published in: Grand Junction Daily Sentinel on: 02/16/2010 by: Bill Grant

In the famous words of Walt Kelly’s Pogo, “We have met the enemy and he is us.” Or at least so says Mesa County Commissioner Craig Meis, who blames the natural gas drilling bust in Mesa County on “counties that asked Denver to intercede when they had difficulty with some drillers,” according to a recent Daily Sentinel story.  “And they are now suffering because of it,” Meis told the Sentinel.

Colorado Energy Jobs Summit

February 19, 2010 from 8:30 a.m. – 3:00 p.m. at Anschutz Medical Campus, Aurora, CO

U.S. Senator Mark Udall, the Keystone Center, Third Way and the University of Colorado will host an Energy Jobs Summitt. Energy Secretary Steven Chu is confirmed to deliver the Keynote address for the summit. Official invitation with specific registration information coming shortly. Registration is based on limited seating; please make sure to register early.

Due to limited availability, registration will be nontransferable, and the RSVP deadline is February 10th.  Please complete the registration form and email to: ColoradoEnergyJobsSummit@gmail.com.

Exhibitors will have an opportunity for an educational exhibit of technology/organization to present to event attendees for a fee. Availability is very limited. For more information, please complete form and email to Jeremy Kranowitz.

BLM’s Northwest Resource Advisory Council

February 25, 2010 in Silt, CO

The Bureau of Land Management’s Northwest Colorado Resource Advisory Council will meet Feb. 25 from 8 a.m. to 3 p.m. at the BLM office in Silt, Colo., which is located at 2300 River Frontage Road. The meeting is open to the public, with public comment periods scheduled for 10 a.m. and 2 p.m. Agenda topics include:

• White River Field Office Oil and Gas Amendment
• Wild Horse and Burro update
• Updates from local offices

The Northwest Colorado RAC is one of three advisory councils to the BLM in Colorado. RACs are composed of 15 citizens appointed by the Secretary of the Interior. Individuals serving in each RAC represent a broad range of public land interests, including environmental, local government, and commercial activity. The Northwest RAC advises the Grand Junction, White River, Little Snake, Kremmling and Colorado River Valley BLM field offices.

For more information on Colorado RACs, go to www.blm.gov/co and select Resources, then Resource Advisory Councils.

Montana

MT: Study shows state would suffer from cap-and-trade

published in: Sidney Herald on: 02/16/2010 by: Louisa Barber

Montana’s future looks grim if federal climate change legislation is enacted. On Thursday, the Bozeman-based think tank Montana Policy Institute and the American Council for Capital Formation released a study that revealed Montana could lose between 4,964 and 6,761 jobs by 2030.  Carl Graham, president of the institute, told the Herald earlier this week the economy would falter sharply due to the state’s heavy dependence on manufacturing plants and energy development, a couple prime targets of cap-and-trade.

Well Control Training Opportunity

February 26-28, 2010 in Butte, MT

Montana Tech and the School of Mines and Engineering is pleased to announce a special Well Control training class that will be held on the Montana Tech campus in Butte, Montana. This IADC/API certified course is designed for engineers and company representatives. Click here to learn more.

New Mexico

House passes bill to fund projects around NM

published in: New Mexico Independent on: 02/18/2010 by: Trip Jennings

A bill to authorize $40 million for projects around the state cleared the House early Thursday morning. Lawmakers voted 37 to 31 to fund everything from a Hewlett Packard center in Rio Rancho to a technical support center at Mesa Del Sol in Albuquerque. The proposal now goes to the Senate.  The projects were in SB 112, which authorizes projects funded by severance tax bonds. The bonds are sold based on future tax proceeds based on the taking of minerals, such as natural gas, from New Mexico land.

North Dakota

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

SUWA now part of oil lease lawsuit

published in: Salt Lake Tribune on: 02/17/2010 by: Patty Henetz

A federal judge has decided the Southern Utah Wilderness Alliance will be allowed to defend its own interests in a lawsuit filed by three oil companies and three Utah counties over a hotly disputed 2008 oil and gas lease sale in Salt Lake City.  U.S. District Judge Dee Benson ruled Wednesday that SUWA may intervene as a defendant in lawsuits, now consolidated, which the companies and Uintah, Carbon and Duchesne counties filed in May against Interior Secretary Ken Salazar and the Utah office of the U.S. Bureau of Land Management.

Bogus bidder’s trial pushed back

published in: Salt Lake Tribune on: 02/17/2010 by: Patty Henetz

A trial scheduled for Tim DeChristopher, accused of defrauding the government during a federal oil and gas lease sale, has been delayed indefinitely while a judge considers whether the government’s prosecution is unfair.  DeChristopher, 28, acknowledged he made bogus bids Dec. 19, 2008, as an act of civil disobedience to protest Bush administration policies he said worsened the global climate crisis and threatened the health of everyone on the planet. He was indicted April 1, 2009, on two felony counts and later pleaded not guilty.

Natural Gas STAR Tech Transfer Workshop

March 23-24, 2010 in Vernal, UT

EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.

Wyoming

St. Mary Land sells off Wyoming oil properties for $119M

published in: Denver Business Journal on: 02/18/2010 by: Staff

St. Mary Land & Exploration Co. said Thursday it has sold off oil properties in Wyoming for $118.7 million to help pay down debt.  The divestiture of the “non-core properties” by the Denver-based oil and gas company (NYSE: SM) was to Legacy Reserves Operating LP, a unit of Legacy Reserves LP (NASDAQ: LGCY).

University of Wyoming Energy Resources and Produced Waters Conference

May 25-26 2010 in Laramie, WY

Final call for Presentations and Registration is still open. The Energy Resources Produced Water Conference, convened by the University of Wyoming’s Ruckelshaus Institute and the School of Energy Resources, is intended to advance the understanding of current research and monitoring projects related to the management, treatment, protection, and use of water associated with energy development in Wyoming and the West. The conference will cover produced water issues from various types of energy development, including, oil, gas, coalbed natural gas, coal mining, uranium, and carbon sequestration.

The format for the two-day conference will consist of oral presentations in concurrent sessions as well as a display of posters.

Click here to learn more.

Washington Watch

Hastings, Bishop Send Letter to President Over Potential Plans to Lock-Up Millions of Acres of Western Land

Internal Document Reveals Administration Looking to Designate over a Dozen New National Monuments in the West

February 18, 2009

A recently obtained internal document from the U.S. Department of the Interior shows the Obama Administration is covertly considering designating up to 17 new National Monuments under the Antiquities Act. In addition, it shows that the Administration is also targeting thousands of acres of private land for potential acquisition by the federal government.

US House committee investigates drilling practice

published in: Reuters on: 02/18/2010 by: Ayesha Rascoe

The U.S. House Energy and Commerce Committee said on Thursday it was investigating the potential impact of hydraulic fracturing on the environment and human health.  Some members of Congress want to pass legislation giving the Environmental Protection Agency authority to regulate fracking.  “As we use this technology in more parts of the country on a much larger scale, we must ensure that we are not creating new environmental and public health problems,” said committee chairman, Representative Henry Waxman.

Click here to read the response from Energy In Depth.

U.S. to boost royalty audits of energy companies

published in: Reuters on: 02/17/2010 by: Tom Doggett

The U.S. Interior Department said on Wednesday it will add more staff this year to ensure energy companies are properly paying royalties owed on the oil and natural gas drilled on federal and Native American lands.  The department’s Minerals Management Service will add about 19 auditors and continue “to target companies that have been identified as high risk,” said MMS Director Liz Birnbaum. She did not name the companies.

Environmental Advocates Are Cooling on Obama

published in: New York Times on: 02/17/2010 by: John M. Broder

There has been no more reliable cheerleader for President Obama’s energy and climate change policies than Daniel J. Weiss of the left-leaning Center for American Progress.  But Mr. Obama’s recent enthusiasm for nuclear power, including his budget proposal to triple federal loan guarantees for new nuclear reactors to $54 billion, was too much for Mr. Weiss.

ConocoPhillips, BP and Caterpillar quit USCAP

published in: Washington Post on: 02/17/2010 by: Steven Mufson

ConocoPhillips, BP and Caterpillar have dropped out of the U.S. Climate Action Partnership (USCAP), the coalition of corporations and environmental groups that has been most prominent in pushing Congress to pass cap-and-trade legislation.  The loss of three major companies has dealt a blow to the now 28-member group and further dims prospects for the cap-and-trade bill that passed the House last summer and is awaiting action in the Senate.

EPA Official: Sate Regulators Doing Fine On Hydrofracking

published in: Fox News/Dow Jones Newswires on: 02/15/2010 by: Ian Talley

State regulators are doing a good job overseeing a key natural gas production technique called hydrofracking and there’s no evidence the process causes water contamination, a senior federal environment official said Monday.  Environmentalists and some lawmakers are pressing to give the Environmental Protection Agency federal oversight of the process, concerned that the drilling technique is contaminating water suppliers.

Lack of Direction on Climate Change Hobbles Carbon Trading

published in: New York Times on: 02/15/2010 by: Beth Gardiner

Touted by its supporters as the best and cheapest way to fight global warming, carbon trading is losing momentum amid the uncertainty created by the failure of the Copenhagen summit meeting and President Barack Obama’s political troubles in the United States.  Investors are steering clear of energy-saving projects meant to generate carbon credits, and traders in Europe are hunkering down through a period of consolidation that is disappointing to those who had hoped carbon markets would grow quickly into a $2 trillion-a-year business.

Media Watch

Editorial: Cap-and-Tax Escape

published in: Wall Street Journal (Subscription Required) on: 02/17/2010 by: Editorial Staff

Yesterday’s corporate defections from the U.S. Climate Action Partnership (USCAP) won’t be greeted with the same hosannas as last year’s departures of Nike and Apple from the Chamber of Commerce over its global warming stance, but they’re undoubtedly more important. This scales-from-eyes moment shows that some big American businesses are putting shareholders and consumers ahead of politics.

Littwin: It’s Obama vs. a hated Congress

published in: Denver Post on: 02/17/2010 by: Mike Littwin

When Barack Obama comes to town Thursday for the Michael Bennet fundraisathon, you’ll get the chance — if you have the dough — to see the new Obama.  Don’t worry, though, if you can’t make it. My guess is that the new Obama will look a lot like the old Obama, which, strangely, seems to be the point.  Here’s the bet Obama and the Democrats are making: Although Americans officially dislike virtually everyone in Washington — Scott Brown not having been there long enough to qualify — they seem to dislike Obama somewhat less.

Op-ed: Stop the war on oil and gas

published in: New York Daily News on: 02/17/2010 by: Mackubin T. Owens

With the release of its budget for the next fiscal year, the Obama administration is continuing its assault on the U.S. domestic oil and gas industry.  Under cover of beginning to transition America to a cleaner, greener, more sustainable energy future, the administration in fact is hitting our top domestic energy producers hard – a hit that will hurt American consumers at the worst possible time.

Editorial: Drilling Ban To Cost Trillions

published in: Investors.com on: 02/16/2010 by: Editorial Staff

A new study shows that our reluctance to develop domestic energy will cost the beleaguered U.S. economy trillions in opportunity costs, reduce our gross domestic product and increase our trade deficit.  From trying to stimulate jobs in nonexistent ZIP codes at great expense to worshiping the false gods of climate change, our biggest deficit these days may be in the area of common sense. A new study shows that many of our wounds are self-inflicted as we forgo the wealth and jobs to be found in our waters and under our feet.

Editorial: The Continuing Climate Meltdown

published in: Wall Street Journal on: 02/16/2010 by: Editorial Board

It has been a bad—make that dreadful—few weeks for what used to be called the “settled science” of global warming, and especially for the U.N. Intergovernmental Panel on Climate Change that is supposed to be its gold standard.  First it turns out that the Himalayan glaciers are not going to melt anytime soon, notwithstanding dire U.N. predictions. Next came news that an IPCC claim that global warming could destroy 40% of the Amazon was based on a report by an environmental pressure group. Other IPCC sources of scholarly note have included a mountaineering magazine and a student paper.

Environment and Wildlife

16 ‘Endangerment’ Lawsuits Filed Against EPA Before Deadline

published in: E&E News/New York Times on: 02/18/2010 by: Robin Bravender

Industry groups, conservative think tanks, lawmakers and three states filed 16 court challenges to U.S. EPA’s “endangerment” finding for greenhouse gases before yesterday’s deadline, setting the stage for a legal battle over federal climate policies.  Filing petitions yesterday were the Ohio Coal Association, the Utility Air Regulatory Group, the Portland Cement Association, the state of Texas and the Competitive Enterprise Institute. Another was filed by a coalition that includes the National Association of Manufacturers (NAM), the American Petroleum Institute, the Corn Refiners Association, the National Association of Home Builders, the National Oilseed Processors Association, the National Petrochemical and Refiners Association, and the Western States Petroleum Association.

U.S. Fish and Wildlife Service T&E Species Training Opportunities

March 2010

The U.S. Fish and Wildlife Service is holding free training for those involved with Threatened and Endangered wildlife surveys in Utah.  Click here for more information, registration, contacts and deadlines.

Technology, Alternative & Renewables

Wind tax passes first test

published in: Casper Star-Tribune on: 02/17/2010 by: Jeremy Pelzer

A proposed tax on wind energy cleared another legislative hurdle Tuesday afternoon, though not before several Wyoming House members urged more time to study how best to tax the state’s growing wind industry.  The legislation, which would impose a $1-per-megawatt-hour tax on wind-powered electricity generated in the state, passed the House on first reading. Under the legislation, House Bill 101, the tax wouldn’t take effect until 2012; wind turbines would also be exempt from taxation during their first three years of production.

Natural gas vehicles cut dependence on foreign oil

published in: Grand Junction Daily Sentinel on: 02/17/2010 by: Staff

There’s a common misconception that improving the energy efficiency of homes or adding a solar panel to commercial buildings will help curb the nation’s dependence on foreign oil.  It’s a misconception because homes here aren’t heated or cooled with foreign oil, nor is electricity generated by foreign oil in Colorado. While improving energy efficiency will improve the bottom line and may decrease pollution, it won’t do much to change the balance of trade with the Middle East.

Markets

EIA may underestimate gas demand

published in: Oil & Gas Journal on: 02/15/2010 by: Sam Fletcher

The US Department of Energy’s Energy Information Administration may be underestimating natural gas demand with much of the US South and Northeast enveloped in yet another round of cold weather that boosted gas and electricity demand in January through early February, said Adam Sieminski, chief energy economist, Deutsche Bank, Washington, DC.

Drillers cautiously optimistic about climbing oil prices

published in: Oil & Gas Journal on: 02/15/2010 by: Paula Dittrick

Drilling contractors expressed cautious optimism early this year upon strengthening oil prices while many exploration and drilling companies announced 2010 budgets calling for more exploration and development than in 2009.  At least a few independent natural gas producers said they are leaning toward putting more rigs to work drilling for oil because of the gap between oil and gas prices in late 2009 and early 2010.

Industry News and Events

Energy Company Mergers Are Expected to Rise

published in: New York Times on: 02/17/2010 by: Jad Mouawad

After a two-year slowdown in mergers and acquisitions in the industry, companies are once again looking for ways to use their checkbooks to expand their reserves, buy new technology or snap up promising oil and gas fields.   Unlike the round of mergers that created today’s behemoths in the late 1990s, the current round is not expected to form new giant companies like Exxon Mobil or ConocoPhillips. This time, companies are focused on buying fast-growing small companies, or on acquisitions that expand their reserves in an era when it is hard for them to find new places to drill.

Exxon Adds Two Billion Barrels to Reserves

published in: Wall Street Journal (Subscription Required) on: 02/17/2010 by: Angel Gonzalez

Exxon Mobil Corp., led by natural-gas projects, added two billion barrels of oil equivalent to its proved reserves in 2009, replacing 133% of its production that year. The oil giant, however, found fewer new oil deposits than it depleted last year.  The Irving, Texas-based company said Tuesday that its reserve additions last year were the highest in the decade. About one billion barrels came from two giant liquefied natural gas projects in Australia and Papua New Guinea, Exxon said in a statement, helping the company replace 192% of the natural gas it produced in 2009.

Drilling Bans to Cost U.S. $2.36 Trillion, Industry Study Says

published in: Bloomberg on: 02/15/2010 by: Dan Whitten

Restrictions on oil and gas drilling will cost the U.S. economy $2.36 trillion through 2029, according to a study requested by state utility regulators and paid for in part by industry-sponsored groups.  Drilling restrictions in Alaska’s Arctic National Wildlife Refuge and off the U.S. coastline are blocking access to about nine years’ worth of U.S. oil and gas consumption, according to the report. Among sponsors are the National Association of Regulatory Utility Commissioners and the industry-funded Gas Technology Institute, of Des Plaines, Illinois.

Wildlife Habitat Council’s Western Summit – March 17

Please join the Wildlife Habitat Council for the first-annual Western Summit on March 17th in Missoula, Montana to recognize the outstanding job corporate sites in the western US have done to enhance wildlife habitat and promote conservation education in their communities. Learn about the challenges Council members have overcome to implement successful habitat and outreach projects and discuss strategies to improve your own programs. Opening remarks will be delivered by Ms Melissa Simpson, the Vice President for Policy and Regulatory Affairs at the Pac/West. Ms. Simpson is the former Deputy Under Secretary for Forestry at the U.S. Department of Agriculture (USDA) under the Bush Administration.  Register by March 1 at: www.wildlifehc.org.

Click here for more information or contact Kristin Salamack, Intermountain West Region Biologist, at 303.376.7549.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

In the past month, two more important institutions have recognized the solutions that natural gas can provide to help create jobs, lower greenhouse gas emissions and reduce our dependence on foreign energy.

Yesterday, the Western Governors Association issued a strong endorsement for natural gas vehicles.  In a letter to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, the Governors urged Congress to “include provisions to incentivize the use and development of natural gas vehicles (NGVs) and NGV infrastructure in legislation to be considered by Congress this session.

The letter, signed by WGA Chairman Governor Brian Schweitzer (D-Montana) and WGA Vice Chairman Governor C.L. Butch Otter (R-Idaho) is concise and well-written, with a clear rationale for using more natural gas to fuel U.S. vehicles:

“The use of natural gas as a transportation fuel is a domestic solution to a variety of critical issues. Ninety-eight percent of the natural gas we consume is produced right here in North America. Additionally, natural gas is a cleaner, more affordable fuel for Americans. Natural gas produces approximately 25 percent fewer greenhouse gas emissions and significantly fewer criteria air pollutants, and fueling NGVs costs a third less than traditional gasoline. Incentivizing the further build-out of NGV technologies will stop billions of dollars in overseas oil payments, create thousands of jobs, reduce harmful greenhouse gas and criteria air pollutant emissions, and improve the overall health of the United States’ economy.”

On January 19^th, the Congressional Research Service (CRS) published a report entitled, “Displacing Coal with Generation from Existing Natural Gas-Fired Power Plants.” The CRS, for anyone not familiar with the entity, provides non-partisan policy support to the U.S. Congress.  When members of Congress need help understanding complex policy issues, they turn to the CRS for its expertise and diverse analytical skills.

The CRS report highlights the immediate and significant emissions reductions that could occur through greater utilization of existing natural gas combined cycle power plants. While the CRS analysis is far from complete, it points to a tangible and cost-effective option for Members of Congress who are focused on reducing energy emissions.

With all the threats our industry is facing, it’s important to also recognize the positive developments occurring on the public policy front.

The IPAMS 2010 Washington Call-Up is almost here!

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

Space is filling up fast for IPAMS 10th Annual Washington, D.C. Call-Up.

The western natural gas and oil industry has answers for many of America’s most pressing economic, environmental and energy challenges. Unfortunately, not everyone in Congress is aware of the solutions our industry provides. Please consider joining the 50+ IPAMS members already committed to attending so you too can speak directly to the policymakers who are shaping the future of our industry. No matter what position you hold in your company, IPAMS can use you in Washington D.C.

This year’s trip will include meetings with over 100 Members of Congress and their staffs, the media and affiliate trade associations. We also have plenty of social events planned, including a joint reception for Congress with IPAA at the new Capitol Visitor’s Center. Click here for the 2010 Washington DC Call-Up draft agenda. (Please note that this year’s Call-Up will begin with a Board Meeting and Member Briefing at 4:00 p.m. on Monday, March 1, so please make your travel arrangements accordingly.)

IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:

Banko Petroleum
Mercator Energy, LLC
Mesa Energy Partners, LLC

If you would like to help sponsor the Call-Up, please contact Becca Ness.

Click here to register for IPAMS 10th Annual Washington, D.C. Call-Up March 1-3, 2010.

Already registered? Don’t forget about the pre-trip briefing… Due to the popularity of this trip, IPAMS has added a third Denver briefing prior to the Call-Up to ensure you are fully prepared to speak on behalf of industry.  If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served).  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.nd holds a BA in English and Philosophy.

Click here to take action!

IPAMS Vote From Home Program

As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone, this voter drive program was able to register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, IPAMS has decided to expand the program to include the entire state of Colorado for the 2010 elections. With critically important state and federal races to be decided next year, it is more crucial than ever that industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from several Colorado producers, but we need more support in order to get working on the program as soon as possible. For more information, contact Jon Bargas.

IPAMS in the News

Oil and Gas Taxes in Federal Draft Budget Not Sitting Well with Western Energy Producers

published in: KUNC Radio on: 02/09/2010 by: Erin O’toole
Representatives from the oil and natural gas industry are critical of President Obama’s proposed budget for next year – saying the tax increases and fees he’s calling for on traditional energy producers will hurt Colorado’s economic recovery.

US Interior budget request contains cost increases

published in: Oil & Gas Journal on: 02/08/2010 by: Nick Snow
US Interior Secretary Ken Salazar said the nation’s oil and gas industry will remain an important contributor to resource management as he presented the Department of the Interior’s proposed fiscal 2011 budget on Feb. 1. He also said industry would have to pay more to produce those resources.

“The proposed inspection fees, nonproducing acreage fee, and royalty rate increases would be in addition to $36.5 billion of tax increases in the proposed federal budget which would reduce capital investment in domestic oil and gas by 30-50%,” said Marc W. Smith, IPAMS executive director.

“Every day, I hear concerns from our members about whether they will be able to continue developing energy in the West,” Smith said, adding, “I have to wonder if shutting down all energy production on public lands is the ultimate goal of this administration. They are forgetting that these are vital energy resources that belong to all Americans.”

Pattern of Delay Continues

published in: Energy Tomorrow on: 01/27/2010 by: Jane Van Ryan

Every credible projection of future U.S. energy demand through 2030 predicts that this nation will need more energy in the coming years, including more oil and natural gas. How is the administration addressing this need?

The Independent Petroleum Association of Mountain States (IPAMS) says DOI is slowing investment in oil and natural projects by not providing clear guidance on the new regulations.

In a letter to Salazar, IPAMS wrote:

“The administration has repeatedly recognized the vital role of natural gas to increase energy security, enable renewable energy, and reduce greenhouse gas emissions. How does intentionally delaying the development of American natural gas address the urgency of these administration goals?”

Other Upcoming Meetings

• IPAMS Washington DC Call-Up Briefings - February 18^th, 22^nd, and 25^th, 11:30 a.m. If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served.)  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

• Annual Meeting Committee – February 17th, 9:00 a.m.

• Dept. of the Interior Advocacy – February 23rd, 1:30 p.m.

• Air Quality Committee Ozone Meeting – February 24th, 10:00 a.m.  … will include a presentation by Doug Blewitt on the different types of ozone events we are seeing in the West. We will also discuss coordinating comments for the EPA’s proposed lowering of the ozone standard, which are due March 22nd. This air quality presentation will be held at IPAMS, with slides distributed to those attending via phone. Contact Kathleen Sgamma for the slides.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Can natural gas replace coal?

published in: Penn Energy on: 02/11/2010 by: David Wagman

A recent report from the Congressional Research Service looks at some of the issues involved in displacing coal-fired generation with natural gas-fired generation as a way to reduce carbon emissions.  The report follows a hearing last October by the Senate Energy and Natural Resources Committee. At that time, Dennis McConaghy, executive vice president with TransCanada Pipelines, told Senators that natural gas can provide “meaningful, immediate and verifiable” carbon dioxide emission reductions.

Click here to read the CRS report, “Displacing Coal with Generation from Existing Natural Gas-Fired Power Plants.”

Colorado

Garfield County may penalize gas drillers that violate code

published in: Glenwood Springs Post Independent on: 02/09/2010 by: John Colson

Under pressure from a citizens group, the Garfield County commissioners this week agreed to look into ways to penalize oil and gas drillers that fail to follow county regulations.  The Board of County Commissioners did not, however, agree that new regulations are needed, and Commissioner John Martin indicated a belief that the county’s new zoning code provides for the possibility that a company might find itself in court over violations of zoning regulations.

Battlement Mesa Health Studies Moving Ahead

published in: 7 News on: 02/07/2010 by: Staff

Garfield County officials are moving ahead with plans for health studies in Battlement Mesa to evaluate the effects of oil and gas drilling on residents.  County environmental health director Jim Rada said he has been talking with researchers, state agencies, industry representatives and others to launch the studies.  Hundreds of residents in the community of about 5,000 had requested health studies amid plans by Antero Resources to drill up to 200 wells near Parachute.

Colorado Energy Jobs Summit

February 19, 2010 from 8:30 a.m. – 3:00 p.m. at Anschutz Medical Campus, Aurora, CO

U.S. Senator Mark Udall, the Keystone Center, Third Way and the University of Colorado will host an Energy Jobs Summitt. Energy Secretary Steven Chu is confirmed to deliver the Keynote address for the summit. Official invitation with specific registration information coming shortly. Registration is based on limited seating; please make sure to register early.

Due to limited availability, registration will be nontransferable, and the RSVP deadline is February 10th.  Please complete the registration form and email to: ColoradoEnergyJobsSummit@gmail.com.

Exhibitors will have an opportunity for an educational exhibit of technology/organization to present to event attendees for a fee. Availability is very limited. For more information, please complete form and email to Jeremy Kranowitz.

Montana

Montana Gov. Brian Schweitzer Talks About His Ambitious Plans for Wind Power

published in: Government Technology on: 02/09/2010 by: Chad Vander Veen
What’s the biggest problem with alternative energy?  The simplest explanation is that burning coal and oil for electricity generation is supported by existing infrastructure, while clean energy sources like wind and solar aren’t. Specifically alternative energy has a built-in hurdle — how do you store solar power when the sun isn’t shining and how do you transmit wind energy when the wind isn’t blowing?

Financing for power plant ‘just around the corner’

published in: Billings Gazette on: 02/08/2010 by: Linda Halstead-Acharya
Financing for the first stage of the proposed Highwood Generation Station is drawing ever closer, says Southern Montana Electric’s CEO Tim Gregori.  Though the statement echoes earlier assessments, Gregori now says he expects to seal the deal in the “near future.”  “We’re doing everything we possibly can to keep the project advancing,” he said. “It’s one of those things, when it’s done, it’s done.”  Managers of several of Southern’s member cooperatives agree.

Well Control Training Opportunity

February 26-28, 2010 in Butte, MT

Montana Tech and the School of Mines and Engineering is pleased to announce a special Well Control training class that will be held on the Montana Tech campus in Butte, Montana. This IADC/API certified course is designed for engineers and company representatives. Click here to learn more.

New Mexico

NM critics: Emissions bill would hurt businesses

published in: Associated Press on: 02/05/2010 by: Susan Montoya Bryan

The debate over global warming heated up in a House committee Friday as critics of legislation that would lay the groundwork for New Mexico’s participation in a future regional or federal cap-and-trade program pleaded with state lawmakers not to pass the measure.  More than two dozens people — from small business owners to New Mexico’s largest public utility — contend the legislation could lead to the crippling of businesses, the shuttering of the coal-fired power plants that supply most of the state’s electricity and more expensive utility bills for residents.

North Dakota

GE unit, partners pay $202 million for oil, gas reserves in Texas, North Dakota

published in: Associated Press on: 02/10/2010 by: Staff

GE Energy Financial Services said Wednesday it has formed separate partnerships with two companies to acquire oil and natural gas reserves in Texas and North Dakota for $202 million.  The General Electric Co. unit and Marlin Energy LLC, which is based in Lafayette, La., formed a partnership which acquired natural gas reserves near Midland, Texas, from an undisclosed seller for $65 million. Marlin Energy will operate the assets.

North Dakota Production Surprises

published in: Investopedia on: 02/10/2010 by: Staff

An examination of recent developments in North Dakota indicates that the application of new technology renders this claim suspect. Oil production in North Dakota had been declining for years, peaking in the mid 1980s at close to 150,000 barrels per day, and then beginning a 20 year decline to approximately 80,000 barrels per day by 2003.

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

County decides against partnering with SUWA

published in: Emery County Progress on: 02/09/2010 by: Staff

Emery County Commission Chairman Gary Kofford says a decision has been made not to accept an offer by Southern Utah Wilderness Alliance to help finance a public lands planning facilitator position. At the Emery County Public Lands Council meeting on Feb. 2, the concept of co-funding the planning position was discussed, with strong opposition to the concept being expressed.

Paving the Seep Ridge Road

published in: Vernal Express on: 02/07/2010 by: Mary Barnard

The Seep Ridge Road has been called everything from a main collector road to a “road to nowhere.”  At the height of the energy boom, the Seep Ridge Road was a primary artery for oil and gas extraction vehicles.  In fact, Seep Ridge Road is a historic route that connects Ute Tribal lands from Ouray to the Book Cliffs and south to the Colorado and Green River corridors.  Seep Ridge Road has been used for exploration by drillers, ranchers, sportsmen, and backcountry recreators.

Matheson has new challenger

published in: Salt Lake Tribune on: 02/08/2010 by: Kristen Moulten

A grassroots group of progressives bent on unseating Rep. Jim Matheson, D-Utah, has a new candidate: retired teacher Claudia Wright  Wright accepted the mantle Friday after the candidate chosen by the group last week withdrew unexpectedly.  John Weis, a pathology professor at the University of Utah, said he realized he couldn’t campaign across the farflung 2nd Congressional District while keeping up with his job.

Rural Business Conference

February 18, 2010 in Price, UT

Senator Bennett is again hosting a Rural Business Conference  and is seeking sponsors. Please consider sponsoring this event. More information, registration and sponsorship event is available at http://www.ruralutah.com/.

Natural Gas STAR Tech Transfer Workshop

March 23-24, 2010 in Vernal, UT

EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.

Wyoming

New wrinkle in eminent domain?

published in: Casper Star-Tribune on: 02/08/2010 by: Dustin Bleizeffer

Platte County rancher Bob Whitton likens the power of eminent domain to brandishing a gun in an argument. The person with the gun doesn’t have to use it in order to persuade the person without a gun.  “The threat is there without having to use it,” said Whitton, chairman of the Renewable Energy Alliance of Landowners, or REAL.  Wyoming leaders are once again rethinking the power of eminent domain in the midst of a modest boom in wind energy.

WY Governor finds agreement on power lines

published in: Billings Gazette/Casper Star-Tribune on: 02/06/2010 by: Jeremy Pelzer

Gov. Dave Freudenthal said the Obama administration agrees with him in principle that federal lands should no longer be prioritized over private lands during the routing of electrical transmission lines.  Under federal law, power companies seeking to build transmission lines on public land must first examine alternative routes on private land.

University of Wyoming Energy Resources and Produced Waters Conference

May 25-26 2010 in Laramie, WY

Final call for Presentations and Registration is still open. The Energy Resources Produced Water Conference, convened by the University of Wyoming’s Ruckelshaus Institute and the School of Energy Resources, is intended to advance the understanding of current research and monitoring projects related to the management, treatment, protection, and use of water associated with energy development in Wyoming and the West. The conference will cover produced water issues from various types of energy development, including, oil, gas, coalbed natural gas, coal mining, uranium, and carbon sequestration.

The format for the two-day conference will consist of oral presentations in concurrent sessions as well as a display of posters.

Click here to learn more.

Washington Watch

Cold Shoulder: Salazar Freezes API Out of Oil CEO Pow-Wow

published in: Wall Street Journal (Subscription Required) on: 02/10/2010 by: Stephen Power

The atmosphere in Washington is chilly – and we’re not talking about the weather.  This storm involves Interior Secretary Ken Salazar and the American Petroleum Institute, the oil industry’s main trade group in D.C. The latest gust: A week ago, with only a few days’ notice, Salazar quietly asked top executives from API member companies to come to Washington for a meeting. At the session, he told them API’s attacks on the administration are “not helpful,” according to a person familiar with the matter.  The meeting came shortly after Salazar and API President Jack Gerard traded shots in the press for several days over Salazar’s decisions reversing certain industry-friendly policies on drilling.

Gore’s group woos Senate centrists in climate bill ad push

published in: The Hill on: 02/10/2010 by: Ben Geman

Al Gore’s climate advocacy group is launching new TV ads that pressure Senate centrists from Indiana, Missouri, Maine and Arkansas to support comprehensive energy and climate change legislation.  The ads by Repower America – which is part of Gore’s Alliance for Climate Protection – show residents from the states touting the benefits of “clean energy” and calling on their senators to get on board.

Udall, Salazar seek harsher penalties for public-land damage

published in: Denver Post on: 02/10/2010 by: Howard Pankratz
The destruction of public lands by off-road vehicles and fires caused by carelessness has prompted legislation that could result in stronger penalties for those responsible.  U.S. Sen. Mark Udall and U.S. Rep. John Salazar, both Colorado Democrats, have introduced legislation designed to deter damage to public lands caused by illegal or reckless activities.

Climate and Energy Issues Send Hordes to K Street

published in: E&E ClimateWire/New York Times on: 02/10/2010 by: Christa Marshall
The number of companies and organizations hiring energy lobbyists reached record levels last year as major climate legislation worked its way through Congress.  More than 1,700 groups and businesses turned to K Street in 2009 for help on energy, climate and nuclear issues, a jump from 1,331 in 2008, according to new data compiled by the Center for Responsive Politics.  The numbers constitute a more than 70 percent increase from three years ago and include companies ranging from information technology giants to steel manufacturers.

Climate-change legislation buried under record snowfall in capital

published in: The Hill on: 02/09/2010 by: Alexander Bolton
Record snowfall has buried Washington — and along with it, buried the chances of passing global warming legislation this year.  Cars are stranded in banks of snow along the streets of the federal capital, and in the corridors of Congress, climate legislation also has been put on ice.

Enviro groups target moderate senators ahead of vote on EPA regs

published in: E&E News (Subscription Required) on: 02/09/2010 by: Anne C. Mulkern

Environmental and faith-based activists will launch radio advertisements today targeting eight senators seen as key in a Senate vote on whether to block U.S. EPA from regulating greenhouse gases, legislation the spots describe as the “Dirty Air Act.”  Funded by American Values Network and Environment Maine, the ads attempt to motivate calls to oppose the resolution from Sen. Lisa Murkowski (R-Alaska) that is expected next month.  The ads target Sens. Evan Bayh (D-Ind.), Mark Pryor (D-Ark.), Mark Begich (D-Alaska), Claire McCaskill (D-Mo.), Byron Dorgan (D-N.D.), Kent Conrad (D-N.D.), Olympia Snowe (R-Maine) and Susan Collins (R-Maine). The ads will run statewide in all but Maine, where they will air in major markets.

A Federal Climate Service Is Created to Provide Data

published in: New York Times on: 02/09/2010 by: John Broder

The National Oceanic and Atmospheric Administration will create a new climate change office to gather and provide data to governments, industry and academia as part of a broad federal effort to prepare for long-term changes to the planet, officials said Monday.  The new unit, to be known as the NOAA Climate Service, will assemble the roughly 550 scientists and analysts already working on the issue at the agency into a cohesive group under a single leader.

Barrasso: President Obama’s budget will hurt job creation in West

published in: Politico on: 02/08/2010 by: Sen. John Barrasso (R-WY)

During his State of the Union address, President Barack Obama promised that jobs would be his No. 1 priority.  He didn’t say “some” jobs — he said jobs.  Obama and his administration have immediately made it clear that they will continue to pick winners and losers in our economy. The president’s recent fiscal year 2011 budget proposal opened up the administration’s latest front in the war on jobs in the Western United States.

Lamborn: Energy Key to Economic Recovery

published in: Roll Call on: 02/08/2010 by: Rep. Doug Lamborn (R-CO)

Last month, President Barack Obama spoke to Republicans at our annual retreat and asked for our ideas on how to strengthen our ailing economy. I appreciate that offer to work constructively together to help put Americans back to work. Mr. President, because you asked, the following is one Republican’s sincere suggestions on a vital part of reviving our economy. I believe that our nation’s vast energy reserves are key to our economic recovery.

Coal ad blitz launches new spot as industry sees political gains

published in: E&E News/New York Times on: 02/08/2010 by: Anne C. Mukkern
An advertising campaign that previously pushed the phrase “clean coal” launches new spots this week focused on jobs and low-cost power, the latest offering in a three-year, nearly $120 million effort to sell Congress and the White House on coal’s future. Increasingly, there are signs that it is working.  Coal companies and utilities that use coal in the past year have won a number of gains. They now have top policymakers, including President Obama, echoing one of the key messages pushed in the ads, that technology in the future could reduce coal’s carbon pollution and keep coal a part of the energy mix.

Utah’s Bishop emerges as a player, though still in the minority

published in: Salt Lake Tribune on: 02/07/2010 by: Thomas Burr

Only a few years ago, a press release from the office of Rep. Rob Bishop was something to frame.  They were as rare as the Utahn carrying the Republican standard on a national issue or championing a cause outside the West.  Not anymore.  Entering his eighth year in Congress, Bishop is more vocal, more critical and more in the spotlight than ever.

Media Watch

Weinstein: Obama’s energy policy could use a dose of reality

published in: Ft. Worth Star-Telegram on: 02/10/2010 by: Bernard L. Weinstein

With healthcare reform apparently on the back burner for the time being, the Obama administration has again turned its attention to energy policy. Unfortunately, rather than looking at the energy sector as a vehicle for reinvigorating the American economy, the president has instead proposed hiking the tax burden on oil and gas companies by $45 billion.

Editorial: Senate offers some hope for legislation to combat climate change

published in: Washington Post on: 02/10/2010 by: Editorial Staff

Climate change legislation, according to conventional wisdom, is all but dead for the year. It fell victim to Senate gridlock, yawning gaps between lawmakers over how and even whether to tackle the issue and President Obama’s decision last year to place it third on his list of priorities, after the stimulus and health care. The president himself seemed to admit at least temporary defeat last week; at a town hall meeting in New Hampshire, Mr. Obama cited speculations that the Senate might pass only a modest energy bill. Such a bill inevitably would contain expensive subsidies and research programs, but it would not place a price on carbon.

Op-ed: Energy strategy is balanced

published in: Bismarck Tribune on: 02/09/2010 by: Brian Kalk

Jim Kambeitz’s attack on John Hoeven and the energy industry in North Dakota last week deserves a response. He extolled Denmark and the Czech Republic as “green” economies that we should emulate. The facts tell a different story.  He failed to mention that Denmark, a nation of only 5 million residents and less than a fourth the size of North Dakota, is a huge oil and natural gas producer. This year, Denmark expects to produce more than 100 million barrels of oil. Its economy depends on oil and gas for more than 73 percent of its total energy needs.

Op-ed: Don’t Follow The Yellow Brick Road

published in: National Journal on: 02/09/2010 by: William O’Keefe, CEO, George C. Marshall Institute

The current promise of renewables is founded in fantasy: a glittering yellow brick road that leads to nowhere. This is a harsh indictment but also an accurate one. Unless we adopt a different energy strategy for renewables, their potential will continue to be delayed. And tax dollars will continue to be wasted on rent-seekers.  Over the past few decades, advocates of renewables — primarily wind and solar — have predicted they could soon provide 20% or more of our energy needs if only the government (ie taxpayers) gave them a helping hand. Washington has acquiesced.

Editorial: Obama’s message

published in: Oil & Gas Journal on: 02/08/2010 by: Editorial Staff

President Barack Obama to the US oil and gas industry: Get out of town. That’s the message in the president’s budget proposal for fiscal 2011.  Obama doesn’t like fossil energy. He thinks anything that encourages production of fossil energy impedes development of what his budget narrative hails as the “clean energy economy.” So he wants to tax away oil and gas.

Op-ed: Cap-and-Trade Hinders Job Growth

published in: Roll Call on: 02/08/2010 by: Rep. Steve Scalise (R-LA)

At a time when people are asking, “Where are the jobs?” thousands of high-paying jobs are waiting to be created in America’s energy industry. Jobs can be created today by further developing America’s natural resources, such as oil and natural gas, and expanding on new technologies such as hydraulic fracturing, a critical tool in tapping the huge potential of our country’s natural gas supply.

Drillgate: Secretary Salazar’s Cover-Up

published in: Investors.com on: 02/08/2010 by: Editorial Staff

The administration asked for public comments on a plan to expand offshore drilling. When they came in 2-to-1 in favor, the Interior Department sat on the news. Time for a “Texas tea” party?  When you ask for public comment on a major policy issue, at some point you should make the results public, not hide them until you can figure out a way to spin the public reaction to support a conclusion you’ve already drawn.

Editorial: More energy from renewables

published in: Denver Post on: 02/08/2010 by: Editorial Staff

A bill that would boost the proportion of energy that Colorado gets from renewable sources heavily emphasizes the development of rooftop solar energy for homes and businesses.  We think that’s good for Colorado’s economy, as it would stimulate the solar industry, and also good for the environment. The idea, however, leans heavily on market conditions and tax incentives that are currently favorable, but could change.

Environment and Wildlife

Gazprom says shale gas poses environmental risks

published in: Reuters on: 02/09/2010 by: Tom Bergin

Russian gas export monopoly Gazprom warned of environmental risks from shale gas drilling in the United States and Europe on Tuesday, but said it expected its gas to be able to compete with shale gas prices even if production expands.  Last week, Gazprom said it was delaying development of the Shtokman field, one of the world’s largest, which it hoped would supply liquefied natural gas to the United States, citing expansion of U.S. shale gas production and the subsequent fall in U.S. gas prices.

Environmentalist should take heart in shale

published in: Houston Chronicle on: 02/09/2010 by: Tom Fowler

The last few months may have been disheartening to the environmental movement — a weak outcome from Copenhagen, broader attention to “climategate” and then the addition of “Himalayagate.”  But all this clamor may have some forgetting the better environmental story of late, notes Michael Economides at Energy (Geo)-Politics:  This is the triumphant second coming of the supply of clean, far less polluting and far lower-emitting natural gas, especially in the biggest market of all, the United States.

Obama Admin Denies Endangered Species Listing for American Pika

published in: E&E News/New York Times on: 02/05/2010 by: Patrick Reis

The Fish and Wildlife Service has rejected a bid to extend endangered species protection to a rabbit-like creature that environmentalists say could be pushed to extinction by rising temperatures.  The warming of the American pika’s mountain habitat in California’s Sierra Nevada and in parts of nine other Western states has shrunk the tiny mammal’s population and could eliminate part of its range, but federal biologists say new studies suggest the pika will adjust to warmer homes or migrate to cooler areas upslope.

Technology, Alternative & Renewables

New Wind Farms in the U.S. Do Not Bring Jobs

published in: ABC News on: 02/09/2010 by: Jonathan Karl

Despite all the talk of green jobs, the overwhelming majority of stimulus money spent on wind power has gone to foreign companies, according to a new report by the Investigative Reporting Workshop at the American University’s School of Communication in Washington, D.C.  Nearly $2 billion in money from the American Recovery and Reinvestment Act has been spent on wind power, funding the creation of enough new wind farms to power 2.4 million homes over the past year. But the study found that nearly 80 percent of that money has gone to foreign manufacturers of wind turbines.

Examining the caveats of CNG

published in: Tulsa World on: 02/08/2010 by: Rod Walton

No. 1, they cost less to operate; 2, they are more environmentally friendly and safer to drive; and 3, CNG is a bountiful domestic fuel now stored at historic levels and will keep money at home that otherwise goes for oil often imported from hostile nations.  And yet CNG does have its detractors.

Markets

Oil prices rally on hopeful indicators

published in: Oil & Gas Journal on: 02/11/2010 by: Sam Fletcher

Energy prices continued to rally Feb. 9 in the New York market as the US dollar weakened against the euro and European Union officials mulled a possible rescue of financially troubled Greece and other countries with large sovereign debt.  “Crude rose 3% yesterday after the dollar’s largest drop against the euro since November, as expectations heightened that the EU is willing to bailout beleaguered Greece. The rumors out of Brussels also took the broader market and energy stocks along for the ride, with the Dow Jones Industrial Average and the Oil Service Index each up 2%,” said analysts in the Houston office of Raymond James & Associates Inc.

EIA sees US natgas production down 2.6 pct in 2010

published in: Reuters on: 02/10/2010 by: Joe Silha

The U.S. Energy Information Administration on Wednesday slightly raised its estimate for domestic natural gas production in 2010, but still expects output this year to be down 2.6 percent from 2009 levels.  In its February Short-Term Energy Outlook, EIA said it expected marketed natural gas production to be down 1.57 billion cubic feet (bcf) per day, or 2.6 percent, this year primarily due to the impact of lower drilling activity.

Gas market goes global

published in: Calgary Herald on: 02/09/2010 by: Deborah Yedlin

Within the past week, Russia’s energy giant OAO Gazprom has announced it is delaying the development of the Shtokman natural gas field, while at the same time trotting through major investment centres saying the company is poised for growth. Is it another sign of the rapidly changing nature of the world’s natural gas markets or a fresh instance of Russia looking to flex its muscles using its natural resources?  One of the reasons given for the decision was the shale gas phenomenon in North America that has effectively decimated the need for imports of liquefi ed natural gas.

Now there’s too much oil: analysts

published in: Calgary Herald on: 02/06/2010 by: Jay Bryan

Gosh, what a difference a recession makes.  It’s been less than 19 months since oil rocketed to an all-time high above $147 US a barrel amid fears that it might soon be all gone. But Wednesday, economist Dina Cover at the TD Bank declared that the world’s oil market faces “a massive glut.”  She’s not alone.

Industry News and Events

IHS adds Emerging Energy Research to long acquisition list

published in: Denver Business Journal on: 02/10/2010 by: Staff

IHS Inc. said Wednesday it has acquired international consulting firm Emerging Energy Research for $18 million — the latest in string of takeovers by the Colorado information and analysis company in recent years.  Arapahoe County-based IHS (NYSE: IHS) said Emerging Energy Research advises clients on emerging technologies in global energy markets, including wind, solar, geothermal, biomass, ocean energy, nuclear, carbon capture and storage, and hydrogen.

Newfield Exploration Names Lee K. Boothby Chairman

published in: City Biz List Houston on: 02/08/2010 by: Staff

Newfield Exploration Company’s (NYSE:NFX) Board of Directors has named Lee K. Boothby, 48, to the additional role of Chairman of the Board, effective upon his re-election at the Company’s annual stockholders’ meeting on May 7, 2010. Boothby will add the additional responsibilities of Chairman to his current position as President and Chief Executive Officer. Boothby succeeds David A. Trice, current Chairman and past President and CEO, who had previously agreed to serve a one-year term as non-executive Chairman until the Company’s 2010 annual meeting of stockholders.

Anadarko donates $150,000 to Weld Food Bank Kitchen Project

published in: Greeley Tribune on: 01/30/2010 by: Staff

Anadarko Petroleum Corporation, one of the leading oil and gas drilling companies in Weld County, has pledged to donate $150,000 to the Weld Food Bank’s Kitchen Campaign. The donation will help advance the project to its next step in construction.

Students at George Washington and Sheridan high schools learn about energy careers

Sixty-three students received hands-on experience at Anadarko Petroleum Corporation’s Denver offices during the Junior Achievement – Rocky Mountain Inc. Job Shadow Program. The students from George Washington High School and Sheridan High School gain an inside look at a broad range of careers in oil and natural gas, such as geologists, landmen, geophysicist, engineers and information technology.

16th Annual Great Balls of Fire 9-Ball Billiards Challenge

February 16, 2009 in Denver, CO

The Great Balls of Fire 9-Ball Billiards Challenge is all about the goodness in people who want to make a difference in the lives of children and their families. Hosted by the Colorado Professional Firefighters, Denver Firefighters Local 858 and Wynkoop Brewing Company.

Several IPAMS members have chosen to sponsor this worthy charity event.

Click here to learn more and how to become a sponsor.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

The IPAMS 2010 Washington Call-Up is almost here!

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

Space is filling up fast for IPAMS 10th Annual Washington, D.C. Call-Up.

The western natural gas and oil industry has answers for many of America’s most pressing economic, environmental and energy challenges. Unfortunately, not everyone in Congress is aware of the solutions our industry provides. Please consider joining the 50+ IPAMS members already committed to attending so you too can speak directly to the policymakers who are shaping the future of our industry. No matter what position you hold in your company, IPAMS can use you in Washington D.C.

This year’s trip will include meetings with over 100 Members of Congress and their staffs, the media and affiliate trade associations. We also have plenty of social events planned, including a joint reception for Congress with IPAA at the new Capitol Visitor’s Center. Click here for the 2010 Washington DC Call-Up draft agenda. (Please note that this year’s Call-Up will begin with a Board Meeting and Member Briefing at 4:00 p.m. on Monday, March 1, so please make your travel arrangements accordingly.)

IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:

Banko Petroleum
Mercator Energy, LLC
Mesa Energy Partners, LLC

If you would like to help sponsor the Call-Up, please contact Becca Ness.

Click here to register for IPAMS 10th Annual Washington, D.C. Call-Up March 1-3, 2010.

Already registered? Don’t forget about the pre-trip briefing… Due to the popularity of this trip, IPAMS has added a third Denver briefing prior to the Call-Up to ensure you are fully prepared to speak on behalf of industry.  If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served).  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

IPAMS Welcomes Its Newest Team Member

IPAMS today welcomed its newest team member, Director of Membership and Events,  Susan Fakharzadeh, who will bring years of experience in sales and marketing to help expand IPAMS membership base, strategic business plan, marketing, and enhancing existing and new events.

Susan spent seven years working in the electronic distribution industry, with roles spanning from strategic marketing to business development. Her diverse background also includes working as a consultant for colleges and universities creating on-line degree programs as well as writing and business development in high-tech. A native of the Rocky Mountain west, Susan grew up in Idaho and attended the University of Colorado at Boulder, and holds a BA in English and Philosophy.

Click here to contact Susan Fakharzadeh.

Action Alert: Ask Congress to Oppose Tax Increases

As Congress and the Obama administration look for ways to pay for health care reform and other programs, America’s independent natural gas and oil producers are once again in the crosshairs. Congress is considering proposals by the Obama administration to significantly increase our industry’s tax burden, which would threaten jobs and delay our economic recovery. Please take a moment to contact your congressional representatives and ask them to oppose these punitive tax proposals that will make the development of clean, domestic natural gas even more costly and difficult, and endanger many of the 260,000 jobs and billions of dollars in revenue to local and state governments that western producers provide.  Click here for a detailed explanation of each of the tax provisions under consideration.

Click here to take action!

IPAMS Vote From Home Program Informational Meeting and Reception

February 11, 2010 at 4:00 p.m.

As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone, this voter drive program was able to register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, IPAMS has decided to expand the program to include the entire state of Colorado for the 2010 elections.With critically important state and federal races to be decided next year, it is more crucial than ever that industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from several Colorado producers, but we need more support in order to get working on the program as soon as possible. Please make plans to join us as we explain the results of the 2008 Vote from Home program and let you know about the plans for 2010. Click here to view the invitation. For more information, contact Jon Bargas.

IPAMS in the News

Wilderness: The Great Debate

From The Salt Lake Tribune: Whether it’s between riders of off-highway vehicles and hikers, preservationists and oil drillers or ranchers and wolf lovers, the debate over how best to manage Utah’s wilderness is always intense.  Filmmaker John Howe shows the passion on both sides of this contentious issue in “Wilderness: The Great Debate.”  The hour-long documentary aired Wednesday evening in Salt Lake City.

The oil and gas segment begins at minute 28:00, and includes IPAMS Director of Government Affairs, Kathleen Sgamma.

Ken Salazar’s reforms bring mixed reviews

published in: Snowmass Sun on: 02/03/2010 by: David Frey

When Interior Secretary Ken Salazar took over a year ago, his department was reeling from scandal and plagued by criticism that it was too cozy with the oil and gas industry.

“Oil and gas drilling occupies less than .07 percent of public lands in the West, they [IPAMS] say.”

US Interior budget request contains cost increases

published in: Oil & Gas Journal on: 02/03/2010 by: Nick Snow

US Interior Secretary Ken Salazar said the nation’s oil and gas industry will remain an important contributor to resource management as he presented the Department of the Interior’s proposed fiscal 2011 budget on Feb. 1.

“The IPAMS position paper noted that the industry “already more than pays for the administration of the federal onshore gas and oil program by return $46 for every dollar spent. When income and other taxes are factored in, companies return $123 for every dollar spent administering the program.” The proposed inspection fees, nonproducing acreage fee, and royalty rate increases would be in addition to $36.5 billion of tax increases in the proposed federal budget which would reduce capital investment in domestic oil and gas by 30-50%, said Marc W. Smith, IPAMS executive director.”

NGSA, IPAMS urge Obama not to overlook natural gas

published in: Oil & Gas Journal on: 02/01/2010 by: Nick Snow

As OGJ went to press last week, two oil and gas association officials said they hoped US President Barack Obama’s Jan. 27 State of the Union message would reflect policies that encourage—instead of discourage—the nation’s natural gas development.

Marc W. Smith, executive director for the Independent Petroleum Association of Mountain States, expressed concern that the White House might respond to a $1.35 trillion deficit with the same $80 billion in tax hikes it proposed last year. “These punitive policy proposals are contrary to the president’s goals of rebuilding our economy, increasing energy security, and lowering greenhouse gas emissions,” Smith said.

IPAMS Welcomes Its Newest Members

Behm Energy, Inc.
Morgan Stanley Smith Barney
Peak Energy Services U.S.A. Inc.
Retamco Operating Inc.
Sands Oil Company

Other Upcoming Meetings

• Utah Basin Advisors Network – February 9th, 10:00 a.m.
• IPAMS Washington DC Call-Up Briefings - February 18^th, 22^nd, and 25^th, 11:30 a.m. If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served.)  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.
• Dept. of the Interior Advocacy – February 23^rd, 1:30 p.m.
• Air Quality Committee Ozone Meeting – February 24^th, 10:00 a.m.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Former MT lawmaker tapped as Salazar adviser

published in: Associated Press on: 02/01/2010 by: Staff
A former Montana state senator and wildlife commissioner has been tapped as Secretary of Interior Ken Salazar’s senior adviser for the Northwest.  Missoula attorney Steve Doherty served 12 years in the Montana Senate and chaired the Fish, Wildlife and Parks Commission from 2005 to 2009.

Colorado

Colorado oil, gas output rises

published in: Denver Post on: 02/04/2010 by: Mark Jaffe

Colorado oil and gas production — despite the recession and new state drilling rules — rose about 4 percent in 2009, according to Colorado Oil and Gas Conservation Commission estimates.  Natural-gas production rose by 4.4 percent to 1.6 trillion cubic feet, and oil production was up 1.6 percent to 28.9 million barrels.

New Colo. oil and gas leader wants “seat at the table”

published in: Denver Post on: 02/03/2010 by: Mark Jaffe

Tisha Conoly Schuller, the new president of the Colorado Oil and Gas Association, says she is looking to “change the discussion” on oil and gas development in the state.  That “discussion” has often been more like a shouting match.  Industry leaders, led by the oil and gas association, predicted dire impacts from new, Ritter administration drilling rules, and environmentalists charged the industry with a string of pollution incidences — some documented and some not.

Energy markets position for comeback in metro Denver

published in: 9news on: 02/03/2010 by: Jennifer Ryan

Saying goodbye to 2009 was not too difficult for those working in the energy sector. Thanks to a decline in oil prices from 2008 highs, the energy sector was arguably one of those most battered by the recession.  But the tides may be turning in 2010. Analysts predict energy trends will strengthen, according to data compiled by the Metro Denver Economic Development Corporation.

Grand Junction Tops For Lost Jobs Last Year

published in: Associated Press on: 02/03/2010 by: Staff

Grand Junction has a national title it doesn’t want. The town led the nation with job losses last year according to federal labor officials.  The U.S. Department of Labor reported Tuesday that Grand Junction had the largest percentage drop in jobs for any metropolitan area. The number of jobs in and around Grand Junction went down 7.7 percent last year, from 67,100 at the end of 2008 to 61,900 in December of last year.

Garfield County set for gas-well ‘intervention’

published in: Glenwood Springs Post Independent on: 02/02/2010 by: John Colson

Garfield County may end up intervening in a proposal by Antero Resources, a gas drilling company that wants to drill wells in and around the Battlement Mesa community in the western end of the county.  But the “intervention,” as it is formally called, would strictly be aimed at Antero’s request to be allowed to drill wells at a higher density than currently is permitted, in an area that apparently is outside the boundaries of Battlement Mesa.

Colorado Energy Jobs Summit

February 19, 2010 from 8:30 a.m. – 3:00 p.m. at Anschutz Medical Campus, Aurora, CO

U.S. Senator Mark Udall, the Keystone Center, Third Way and the University of Colorado will host an Energy Jobs Summitt. Energy Secretary Steven Chu is confirmed to deliver the Keynote address for the summit. Official invitation with specific registration information coming shortly. Registration is based on limited seating; please make sure to register early.

Due to limited availability, registration will be nontransferable, and the RSVP deadline is February 10th.  Please complete the registration form and email to: ColoradoEnergyJobsSummit@gmail.com.

Exhibitors will have an opportunity for an educational exhibit of technology/organization to present to event attendees for a fee. Availability is very limited. For more information, please complete form and email to Jeremy Kranowitz.

Montana

Growth will be scant in 2010, economists say

published in: Billings Gazette on: 02/03/2010 by: Jan Falstad

The good news is that the recession sweeping through Montana and Yellowstone County will be ending this year.  Still, after two years of declines in labor income, 2010’s positive growth rate will seem weak, said Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana.

Well Control Training Opportunity

February 26-28, 2010 in Butte, MT

Montana Tech and the School of Mines and Engineering is pleased to announce a special Well Control training class that will be held on the Montana Tech campus in Butte, Montana. This IADC/API certified course is designed for engineers and company representatives. Click here to learn more.

New Mexico

NM Governor blogs again

published in: New Mexico Independent on: 02/03/2010 by: Matthew Reichbach

After getting pushed by a reporter on Twitter, Governor Bill Richardson’s blog is once again active. After blogging multiple times during the contentious special session in October, the Guv. had so far been dark in the 2010 legislative session.  The newest post is a guest blog from John Bartlit and Don Neeper from New Mexico Citizens for Clean Air & Water on the pit rules that many conservative legislators have blamed for driving oil and gas producers out of the state.

Farmington could testify against emissions cap

published in: Farmington Daily Times on: 02/01/2010 by: Steve Lynn

City officials said they would fight a proposed cap on greenhouse gas emissions though they wouldn’t join a lawsuit to challenge the state’s authority to regulate emissions levels.  The city will aid the lawsuit with “moral support,” but if the lawsuit fails, city officials will appear at hearings to testify and provide evidence on how the emissions cap would affect the city, City Attorney Jay Burnham said.

New Mexico oil and gas group fires president

published in: Associated Press on: 02/01/2010 by: Susan Montoya Bryan

Bob Gallagher doesn’t work for the state of New Mexico. He isn’t on any of Gov. Bill Richardson’s task forces. And his days as a university regent have been over for more than a year.  Still, the outspoken president of the New Mexico Oil and Gas Association got crossways with the Richardson administration for standing up for the state’s oil and natural gas producers and now he’s out of a job.

Massive N.M. potash operation could disrupt drilling, grazing, OHV trails

published in: E&E News (Subscription Required) on: 02/01/2010 by: April Reese

An in-situ potash mine slated for southeastern New Mexico could conflict with oil and gas production, grazing and other activities in the area, according to a preliminary assessment by the Bureau of Land Management.  HB Potash LLC, a subsidiary of Intrepid Potash Inc., wants to construct a solution-based potash mine about 20 miles northeast of Carlsbad, N.M., near the New Mexico-Texas state line.

Industry: Blame state’s budget woes on regs

published in: New Mexico Business Weekly on: 01/29/2010 by: Dennis Domrzalski

As state legislators in Santa Fe try to close a $500 million budget deficit, the state’s oil and gas industry has a message for them: Stop trying to kill the industry that has kept the state’s budget afloat.  Industry officials and some lawmakers are angry about regulations they say have made it more expensive to drill for oil and natural gas in New Mexico and that are driving the industry from the state.

North Dakota

Drilling for oil under Lake Sakakawea

published in: Bismarck Tribune on: 02/03/2010 by: Lauren Donovan

With the best crude oil two miles underground, what’s on top doesn’t interfere much, even massive Lake Sakakawea.  Most of the oil and gas minerals “under the lake” — kind of an inept description because it’s more than 10,000 feet down to get to the Bakken Formation — are now leased  in a climate of vigorous oil production.  Producers are itching to get it.

N.D. loses, gains in Obama’s budget

published in: Bismarck Tribune on: 02/01/2010 by: Rebecca Beitsch

Some of North Dakota’s programs could be losing funding over the next fiscal year in President Obama’s $4 trillion proposed budget, but the state gets a significant amount of new money as well.  The proposal could have serious significance to North Dakota’s energy community. Obama’s version scraps tax cuts for oil, coal and gas companies, which the administration says will save $40 billion over 10 years.

Editorial: Marathon is serious about North Dakota

published in: IN Forum on: 02/02/2010 by: Editorial Board

A few days ago executives of Marathon Oil Corp. of Houston and representatives of the North Dakota oil industry spent a couple of days in Fargo talking about the industry. In addition to making the rounds of radio programs and a visit with The Forum’s Editorial Board, the delegation conducted an extraordinary, free-wheeling discussion with community leaders at a private dinner.  We say “extraordinary” because it’s rare (if it’s ever happened at all in Fargo) for execs of a major worldwide oil company that is doing business in North Dakota to sit down and discuss candidly the status of their company and the oil industry in general.

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

Instructor running for Congress

published in: St. George Spectrum on: 02/03/2010 by: David Demille

After four years of telling his students at Dixie State College about how the federal government might better help the economy, St. George native Neil Walter is vying to take action.  A managing director of a local brokerage firm and instructor at DSC, Walter announced Tuesday he would challenge former state lawmaker Morgan Philpot for the Republican nomination in the race for Utah’s 2nd Congressional district – and a chance to face Democratic incumbent Jim Matheson in November’s election.

Rural Business Conference

February 18, 2010 in Price, UT

Senator Bennett is again hosting a Rural Business Conference  and is seeking sponsors. Please consider sponsoring this event. More information, registration and sponsorship event is available at http://www.ruralutah.com/.

Natural Gas STAR Tech Transfer Workshop

March 23-24, 2010 in Vernal, UT

EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.

Wyoming

Conservationists, sportsmen agree with plan

published in: Jackson Hole News & Guide on: 02/03/2010 by: Cory Jackson

A proposal to prohibit energy development on more than 44,000 acres in the Wyoming Range is drawing praise from conservation groups and sportsmen, who say the area is too important to drill.  Bridger-Teton National Forest announced the plan in a draft environmental impact statement last week.

Industrial park gets new rig

published in: Sublette Examiner on: 02/01/2010 by: Derek Farr

Last summer the Bureau of Land Management (BLM) investigated the effect of a natural gas drilling rig on Pinedale’s viewshed. The agency conducted detailed studies and held public tours at the Stewart Point drill pad located 2.3 miles southwest of town.  How then, did a drill rig pop up one mile from Pinedale in the industrial park without BLM fanfare?  Pinedale BLM Field Office Manager Brian Davis had a simple answer.

University of Wyoming Energy Resources and Produced Waters Conference

May 25-26 2010 in Laramie, WY

Final call for Presentations and Registration is still open. The Energy Resources Produced Water Conference, convened by the University of Wyoming’s Ruckelshaus Institute and the School of Energy Resources, is intended to advance the understanding of current research and monitoring projects related to the management, treatment, protection, and use of water associated with energy development in Wyoming and the West. The conference will cover produced water issues from various types of energy development, including, oil, gas, coalbed natural gas, coal mining, uranium, and carbon sequestration.

The format for the two-day conference will consist of oral presentations in concurrent sessions as well as a display of posters.

Click here to learn more.

Washington Watch

How the Democrats Could Lose the Senate

published in: Time on: 02/04/2010 by: Jay Newton-Small

Most of the Democratic fretting thus far in the election season — and with nine months to go, it’s still early on — has been focused on potentially losing their 39-seat majority in the House. After all, Democrats control the Senate, where incumbency rules, by a comfortable 10 votes, and only 37 seats are up for grabs this year. However, recent retirements, worrisome poll numbers for several incumbents and the entrance of some strong GOP challengers have prompted a wave of concern for Senate Dems. While still unlikely, if a perfect political storm were to occur, there is a chance that Democrats could lose the Senate.

Barton’s stake in gas wells raises questions

published in: Dallas Morning News on: 02/03/2010 by: Dave Michaels
Rep. Joe Barton has earned nearly $100,000 from an interest in natural gas wells that he purchased from a longtime campaign donor who also advised the congressman on energy policy, according to interviews and records.  At a hearing last month of the House Energy and Commerce Committee, Barton said he was “a small, small partner in a natural gas well in Johnson County in the Barnett Shale that is probably my 4-year-old son’s college education.” He later told a reporter that he couldn’t remember precisely how he obtained the interest.

Sen. Graham slams push for a ‘half-assed energy bill’

published in: E&E News/New York Times on: 02/03/2010 by: Darren Samuelsohn

A key Senate Republican came out swinging today against the idea of passing just an energy bill and ignoring President Obama’s call to also cap greenhouse gas emissions.  “It’s the ‘kick the can down the road’ approach,” said Sen. Lindsey Graham of South Carolina. “It’s putting off to another Congress what really needs to be done comprehensively. I don’t think you’ll ever have energy independence the way I want until you start dealing with carbon pollution and pricing carbon. The two are interconnected.”

U.S. Chamber and Obama agree to cooperate on job creation

published in: E&E News (Subscription Required) on: 02/03/2010 by: Anne C. Mulkern

President Obama and the U.S. Chamber of Commerce have agreed to come together on the need to create jobs, a partnership that could extend to some energy issues.  In letters exchanged after the State of the Union speech, Obama and Tom Donohue, president and CEO of the chamber, indicated an intention to work together on several issues including expanding nuclear power and increased drilling for offshore oil.

Obama says Senate may drop cap and trade, pass energy-only bill

published in: E&E News/New York Times on: 02/03/2010 by: Darren Samuelsohn

President Obama acknowledged yesterday that the Senate may pass an energy bill this year without the cap-and-trade component he has long put at the center of his environmental agenda.  Speaking at a town hall meeting in Nashua, N.H., Obama repeated his call for a price on greenhouse gas emissions but said he recognized that such an approach may not have the votes to make it into law.

Democrats push to peg energy to jobs

published in: Politico on: 02/03/2010 by: Lisa Lerer

A draft of legislation circulated on Capitol Hill last week included $12.5 billion for jobs that “improve energy efficiency,” including retrofits for residential, commercial and affordable housing properties — and for manufacturing plants.   In the House, Maryland Democrat Chris Van Hollen has called for a jobs bill to include a “green bank” that would boost financing for renewable energy projects. His proposal would create an independent federal company, capitalized with a one-time sum of $20 billion, to offer loans and other types of financial backing for clean energy projects.

Anadarko CEO: Meeting with Obama Favorable for Gas Producers

published in: Rigzone/Dow Jones Newswires on: 02/02/2010 by: Isabel Ordonez

Anadarko Petroleum Corp.’s (APC) Chief Executive said Tuesday that a meeting last week with President Barack Obama was “productive” for U.S. natural gas producers, and that a budget proposal that includes cuts in tax benefits for the oil industry is unlikely to pass in its current form.  “There is some practicality with regard to what [the President] just came out with,” said Jim Hackett in a conference call with analysts.  Hackett added that the administration’s budget proposal is designed to appeal to the Democratic constituency, but he added that he is “pretty sure it won’t come out the way it has been proposed.”

Salazar cites ‘record profits’ in effort to increase fees

published in: E&E News (Subscription Required) on: 02/02/2010 by: Noelle Straub

Interior Secretary Ken Salazar today defended several Obama administration proposals to increase fees and repeal subsidies for the oil and gas industry.  The White House proposed eliminating 12 tax breaks for oil, gas and coal companies to raise an estimated $39 billion over the next decade. Other proposals at Interior include fees for nonproducing leases, inspections and drilling applications and a proposal to repeal some incentives.

Budget fighting begins with oil lobby assault

published in: The Hill on: 02/01/2010 by: Jim Snyder and Silla Brush

The administration’s 2011 budget recommendations drew a rebuke from the oil-and-gas industry and others targeted for cuts as the annual fight over spending officially kicked off Monday.  Oil and coal industries have done well in beating back climate change legislation, which has stalled in the Senate.

Lisa Jackson: The Eco-Warrior

published in: Rolling Stone Magazine on: 02/01/2010 by: Tim Dickinson

When it comes to passing major legislation — reforming health care, reining in Wall Street, curbing climate change — the Obama administration is under fire from all sides for bowing to special interests and conducting government business behind closed doors. But there’s one agency where the hope and hype of the campaign trail have transitioned seamlessly into effective governance: the Environmental Protection Agency.  With a minimum of fanfare, new EPA administrator Lisa Jackson has established herself as the agency’s most progressive chief ever — and one of the most powerful members of Obama’s Cabinet.

Obama Likely to Rebrand Climate Bill

published in: CQ Today on: 01/27/2010 by: Staff

Despite the obituaries being written for Senate passage of a cap-and-trade bill this year, President Obama is expected to reiterate his call for comprehensive clean energy and climate change legislation and to rebrand it as part of his job-creation agenda.  White House officials and senators leading efforts to write a bipartisan climate bill signaled Wednesday that they will keep pushing hard for legislation that would curb emissions of greenhouse gases and boost development of alternative energy.

Media Watch

Op-ed: LNG v. Unconventional Gas Sources In North America

published in: Energy Policy on: 02/04/2010 by: Sophia Ruester, Dresden University of Technology

Nothing has altered the North American natural gas market and its appetite for LNG as severe as the discovery and development of significant unconventional gas sources. Within a couple of years, the supply-demand balance has changed from one of continuous production declines to one of an upcoming surplus.  Rising natural gas prices since 2001, easy financing and technological innovations (i.e., horizontal drilling and hydraulic fracturing) encouraged companies to invest in wells. Amongst others, large deposits were explored with the Barnett Shale and Eagle Ford plays (both in Texas) and the Haynesville Shale (Louisiana).

Op-ed: Greener natural gas takes on coal

published in: Financial Post on: 02/03/2010 by: Christopher Swann

Call it the battle of the fossils. Natural gas, long a second-class citizen in U.S. energy circles, is on a roll now that technology has added dramatically to the quantities available. On the numbers, gas has a case for getting a lot more attention. Old biases and coal’s political clout stand in the way.  In terms of reserves, coal’s advantage has shrunk sharply. The United States still has more than 200 years’ supply. Its 800 billion tons is equivalent to three times the oil reserves of Saudi Arabia in terms of energy value. But new drilling techniques for gas have sharply narrowed the gap by unlocking huge shale deposits.

Op-ed: Natural gas is solution to our economic woes

published in: San Angelo Standard-Times on: 02/03/2010 by: James Badgett

Excuse me, Mr. President, but you’re sitting on it.  By “it,” I mean a partial solution to the main problem with our economy — jobs, or the lack of them, which the president referred to in his State of the Union address as the No. 1 priority for his administration this year.  “It” is already a $53 billion a year industry even in today’s terrible economic environment. “It” is the natural gas industry.

Column: ‘Chasing votes on the back of clean and green’

published in: Houston Chronicle on: 02/02/2010 by: Loren Steffy

Let’s pay for what doesn’t work by cutting what does.  That’s the message for the energy industry that springs from the Obama administration’s $3.8 trillion budget proposal.  The massive list of outlays includes hefty subsidies for feel-good energy programs like wind and solar power, which account for a sliver of our energy needs, while slashing subsidies for conventional oil and gas drilling, which meet more than 85 percent of current demand.

Op-Ed: Money is reason for decreased drilling, not Salazar

published in: Durango Herald on: 02/01/2010 by: Thomas Power, Contributor to Writers on the Range

As an economist, it startles me when representatives of the business community ignore basic economic relationships such as supply and demand. Yet oil and gas interests have recently been doing exactly that.  It is hard to believe there is anyone in the country who does not know we are in a deep recession. It has dramatically cut the demand for and, therefore, the price of most basic raw materials, especially energy. But the oil and gas industry keeps pretending this has not happened, and instead has been blaming Interior Secretary Ken Salazar for the decline in the leasing of and drilling on federally owned lands and the resulting job losses.

Environment and Wildlife

Thompson Divide water quality study under way

published in: Aspen Times on: 02/04/2010 by: John Stroud

A water quality monitoring study that’s currently about half completed will provide baseline data in case of contamination from future natural gas drilling activity in the Thompson Divide area west of Carbondale.  The Thompson Divide Coalition (TDC), in cooperation with the Roaring Fork Conservancy, will take a second water sample this week from locations in both the Thompson Creek and Fourmile Creek watersheds. Two more samples will be taken later this year, said Lisa Moreno, TDC campaign director.

Rep. Rehberg (R-MT) Posts Wilderness Comments In His Online “Transparency Center”

Montana’s Congressman, Denny Rehberg, posted a list of verbal and written comments he heard from Montanans during the 22 public meetings he held regarding Sen. Jon Tester’s Wilderness bill. Last week, Rehberg promised to take this action in a letter to Senator Tester and asked the Senator to join him in doing so in order to maximize transparency in the legislative process. Click here to view the comments.

Technology, Alternative & Renewables

Wyoming governor proposes wind energy excise tax

published in: Associated Press/Business Week on: 02/02/2010 by: Matt Joyce

Gov. Dave Freudenthal proposed a Wyoming excise tax on wind energy production, arguing the industry should help pay for the consequences of building wind farms in the state.  With the Legislature convening next week, Freudenthal on Monday also laid out his legislative goals to review condemnation of private lands for the construction of wind energy collector lines, establish statewide minimum county standards for wind projects and expand the Industrial Siting Act to cover more wind farm concerns.

Wind energy job growth isn’t blowing anyone away

published in: Los Angeles Times on: 02/02/2010 by: Jim Tankersley

America’s wind energy industry enjoyed a banner year in 2009, thanks largely to tax credits and other incentives packed into the $787-billion economic stimulus bill.  But even though a record 10,000 megawatts of new generating capacity came on line, few jobs were created overall and wind power manufacturing employment, in particular, fell — a setback for President Obama’s pledge to create millions of green jobs.

Special Report: Unconventional basins require new rig types

published in: Oil & Gas Journal on: 02/01/2010 by: Guntis Moritis

Even though more than 1,000 rigs are inactive in the US, drilling contractors are building new land rigs to satisfy operator demand for improved technology.  In the case of Nabors Drilling USA LP, Ronnie Witherspoon, senior vice-president marketing and business development, said that for newbuilds operators are requesting Nabors new AC rigs for their drilling programs, especially for drilling in unconventional basins.

Markets

The Century for Natural Gas: What This Means for Investors

published in: Seeking Alpha on: 02/02/2010 by: Elliot Gue

In the 19th century, coal overcame wood as the world’s most important fuel. The 20th century was the age of petroleum, thanks to the popularity and prevalence of the automobile.  Coal and oil will remain key energy commodities well into the 21st century, but I expect natural gas to increase its share of the global energy mix substantially. The long-term drivers of demand for natural gas are twofold: relative abundance and environmental friendliness.

Shale boom leaves industry considering US gas exports

published in: Financial Times on: 02/01/2010 by: Sheila McNulty

When the US independents (oil and gas producers without refining operations) began growing US natural gas production, nobody thought they would flood the market. But in recent years, new technology and expertise has grown production to the extent that the industry has worried in recent months that there would be no more room to store it in the US. Indeed, companies have started to contemplate exporting natural gas from the US.

Industry News and Events

Industries sue to void California’s low-carbon fuel regulations

published in: Los Angeles Times on: 02/03/2010 by: Margot Roosevelt

Trade associations for the oil, chemical and trucking industries filed suit in federal court in Fresno on Tuesday to void California’s http:// first-in-the-nation low-carbon fuel initiative. The regulations, which took effect last month, are aimed at slashing greenhouse gas emissions from gasoline and diesel sold in the nation’s largest transportation market by 10%, and spurring the development of alternative fuels and technology.

Exxon Grew as Oil Industry Contracted

published in: New York Times on: 02/01/2010 by: Jad Mouawad

While much of the oil industry contracted last year, Exxon Mobil expanded its oil and gas operations in the United States and around the world.  Exxon, the top Western oil company, took advantage of the weak climate to bolster its operations, buying smaller rivals and attractive assets as it sought to lay the foundation for growth once the economy rebounds.

16th Annual Great Balls of Fire 9-Ball Billiards Challenge

February 16, 2009 in Denver, CO

The Great Balls of Fire 9-Ball Billiards Challenge is all about the goodness in people who want to make a difference in the lives of children and their families. Hosted by the Colorado Professional Firefighters, Denver Firefighters Local 858 and Wynkoop Brewing Company.

Several IPAMS members have chosen to sponsor this worthy charity event.

Click here to learn more and how to become a sponsor.

DOE Office of Fossil Energy Appointment Announcement

U.S. Department of Energy’s (DOE) Office of Fossil Energy is now soliciting applications from persons interested in appointment as members of one of two Federal advisory committees chartered under the Energy Policy Act of 2005 (EPACT), Subtitle J, Section 999D. These advisory committees advise the Secretary of Energy on research programs related to ultra-deepwater and unconventional petroleum resources technology. The objectives of these programs are to develop and implement research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production.  Applications for either of these committees must be received by March 1, 2010.

For more information about these committees, their duties, past activities, current members and how to apply online or via fax, please visit the committee websites: http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UltraDeepwater.html

and

http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UnconventionalResources.html.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

The IPAMS 2010 Washington Call-Up is just four weeks away!

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

Space is filling up fast for IPAMS 10th Annual Washington, D.C. Call-Up.

The western natural gas and oil industry has answers for many of America’s most pressing economic, environmental and energy challenges. Unfortunately, not everyone in Congress is aware of the solutions our industry provides. Please consider joining the 45 IPAMS members already committed to attending so you too can speak directly to the policymakers who are shaping the future of our industry. No matter what position you hold in your company, IPAMS can use you in Washington D.C.

This year’s trip will include meetings with over 100 Members of Congress and their staffs, the media and affiliate trade associations. We also have plenty of social events planned, including a joint reception for Congress with IPAA at the new Capitol Visitor’s Center. Click here for the 2010 Washington DC Call-Up draft agenda. (Please note that this year’s Call-Up will begin with a Board Meeting and Member Briefing at 4:00 p.m. on Monday, March 1, so please make your travel arrangements accordingly.)

IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:

Banko Petroleum

Mercator Energy, LLC

If you would like to help sponsor the Call-Up, please contact Becca Ness.

Click here to register for IPAMS 10th Annual Washington, D.C. Call-Up March 1-3, 2010.

Already registered? Don’t forget about the pre-trip briefing… Due to the popularity of this trip, IPAMS has added a third Denver briefing prior to the Call-Up to ensure you are fully prepared to speak on behalf of industry.  If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served).  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

IPAMS Issue Alert: Ask Congress to Oppose Tax Increases

As Congress and the Obama administration look for ways to pay for health care reform and other programs, America’s independent natural gas and oil producers are once again in the crosshairs. Congress is considering proposals by the Obama administration to significantly increase our industry’s tax burden, which would threaten jobs and delay our economic recovery. Please take a moment to contact your congressional representatives and ask them to oppose these punitive tax proposals that will make the development of clean, domestic natural gas even more costly and difficult, and endanger many of the 260,000 jobs and billions of dollars in revenue to local and state governments that western producers provide.  Click here for a detailed explanation of each of the tax provisions under consideration.

Click here to take action!

Lack of Policy Guidance at Interior Leaves Western Producers in the Dark

IPAMS sent a letter to Interior Secretary Ken Salazar outlining the concerns of Western energy producers over the uncertainty that has resulted from Department of Interior’s (DOI) recently announced changes to the onshore natural gas and oil program. Although DOI announced new policies for energy development on public lands, it has not formalized the changes in guidance documents. In a capital-intensive industry that relies on certainty to attract investors, DOI’s actions are endangering jobs and economic growth in the West.  Click here to read the news release.

Banking and Finance Committee Luncheon

February 3, 2010 at 11:30 a.m., the Onyx Room at the Brown Palace

Hein and Associates will be presenting “Oil and Gas Reserve Disclosures – Are You Prepared for the Changes?”

Please join IPAMS for a Banking and Finance Committee Luncheon to discuss the new oil and gas reserve disclosures that will directly affect the process of accounting in the energy industry.

Advance registration is $45 for members and $55 for non-members. Registration at the door is $50 for members and $60 for non-members. Registrations and cancellations must be received on Monday, February 1, 2010 at noon.  Click here to register.

Get More Value From Your IPAMS Membership

Each year, professional trade organizations like IPAMS ask you for financial support. This year, we also encourage you to get more value from your membership.

IPAMS volunteer leaders and professional staff were able to save the natural gas and oil industry here in the Intermountain West over $9 billion during 2009. Even so, we know we could do more if we were able to better leverage the voices of the 260,000 natural gas and oil employees in our region. Our future success depends on an actively involved and deeply informed membership. Likewise, the greatest challenge we face is effectively communicating with our members’ employees across our region.

Click here to learn how you and your employees can best maximize the value of IPAMS.

Other Upcoming Meetings

• Uinta Basin Air Quality Meeting – January 29th, 9:00 a.m.
• Natural Gas Committee Meeting – February 2nd, 11:30 a.m.
• Air Quality Committee Bi-Weekly Call – February 2nd, 3:00 p.m.
• Utah Basin Advisors Network – February 9th, 10:00 a.m.
• Montana Basin Advisors Network – February 17th, 1:00 p.m.
• IPAMS Washington DC Call-Up Briefing – If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th, February 22nd, or February 25th at 11:30 a.m. (lunch will be served.)  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Public lands really do belong to all Americans

published in: St. George Spectrum on: 01/25/2010 by: Mike Small

A few things need to be clarified about local public lands. First, federal public lands in Utah belong to all Americans. The present population of the United States is slightly more than 300 million, and each and every one of us technically owns an equal share of the public lands, regardless of where we reside. A person who lives in Dayton, Ohio, has no less ownership than a person who lives in Ivins, Utah.

Sprague’s Pipit ESA Listing Determination

The U.S. Fish and Wildlife Service has issued a positive 90-day finding that the Sprague’s Pipit, a small bird native to Great Plains grasslands with breeding habitat in Montana and North Dakota, warrants further consideration for listing as threatened or endangered under the Endangered Species Act. States that would be impacted by a listing include Montana, North and South Dakota, Nebraska, Kansas, Oklahoma and Texas. The petition, submitted by WildEarth Guardians, claims that oil and gas development has resulted in habitat losses and disturbed the species throughout its range. Public Lands Advocacy (PLA) has contracted with a wildlife consulting firm to review and provide comments and is seeking funding from companies with activities in the affected areas to cover costs associated with this project. Contact Spencer Kimball at 303-623-0987 for more information or if you would like to contribute. Click here to view the listing petition and click here to view the Federal Register Notice.

Colorado

Millions of dollars amassed in Colorado campaign donations

published in: Denver Post on: 01/26/2010 by: Burt Hubbard

State candidates, stealth political groups and special-interest political committees in Colorado have amassed millions of dollars in campaign donations to kick off the 2010 elections.  At stake are the governorship, control of the state legislature, and the redistricting of state and federal legislative districts.  “This is that one election in a decade with redistricting,” said Colorado State University political science professor John Straayer.

Colorado oil, gas group sees slow recovery ahead

published in: Associated Press on: 01/23/2010 by: Judith Kohler

Regulatory certainty and “a welcoming social and economic environment” will be crucial as Colorado’s oil and gas industry emerges from the recession and faces competition from big gas fields back East, said the new president of a state trade group.  Tisha Conoly Schuller, named president of the Colorado Oil and Gas Association in December, is taking over as the state’s natural

Montana

Well Control Training Opportunity

February 26-28, 2010 in Butte, MT

Montana Tech and the School of Mines and Engineering is pleased to announce a special Well Control training class that will be held on the Montana Tech campus in Butte, Montana. This IADC/API certified course is designed for engineers and company representatives. Click here to learn more.

New Mexico

Carlsbad Sues New Mexico Company Over Brine Well

published in: Associated Press on: 01/22/2010 by: Susan Montoya Bryan

The state of New Mexico and city of Carlsbad are legally pursuing an oilfield services company they said is responsible for a giant cavern that has formed a few hundred feet underground. The city filed a lawsuit in state district court against I&W Inc. on Thursday, alleging that the company’s operation of a brine well at the site and its failure to mitigate a potential collapse of the well constitute a public nuisance that could result in irreparable harm.

North Dakota

ND officials: New oil pipeline would expand market

published in: Associated Press/BusinessWeek on: 01/27/2010 by: Staff

North Dakota regulators say a proposed new oil pipeline will expand market access for crude oil and cut down on truck traffic.  Bridger Pipeline LLC wants to build the 85-mile crude oil pipeline through McKenzie, Dunn and Billings counties in western North Dakota.

ND research money to explore waste gas for power

published in: Associated Press on: 01/27/2010 by: Staff
Part of a North Dakota research fund will be used to explore whether wasted natural gas can generate electricity for oil producers.  Many oil wells also produce natural gas. In some areas of western North Dakota there’s no way to transport the gas to market, so it’s burned at the well head in a process called flaring.

ND: Company gets funds for flare project

published in: Bismarck Tribune on: 01/27/2010 by: Rebecca Beitsch

A company in search of a more sustainable use for the byproducts of drilling for oil will be getting funding from the state government.  Blaise Energy will receive $375,000 in state research funds for its work into how to better use excess gas that surfaces during the drilling process. The Industrial Commission, which consists of the governor, attorney general, and agriculture commissioner, Monday approved the measure unanimously.

North Dakota Raises Oil Forecast on Advances by Shale Explorers

published in: BusinessWeek/Bloomberg on: 01/22/2010 by: Jim Polson
North Dakota raised its forecast for oil output on growth in and around the Bakken Shale formation, portending further gains nationwide after the largest U.S. increase since Dwight D. Eisenhower’s first term as president.  Output may reach 300,000 to 400,000 barrels a day by mid- 2011 and stay at that level for 10 to 15 years, said Lynn Helms, director of the North Dakota Mineral Resources Department. The state’s previous estimate was 220,000 to 280,000.

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

Rural Business Conference

February 18, 2010 in Price, UT

Senator Bennett is again hosting a Rural Business Conference  and is seeking sponsors. Please consider sponsoring this event. More information, registration and sponsorship event is available at http://www.ruralutah.com/.

Natural Gas STAR Tech Transfer Workshop

March 23-24, 2010 in Vernal, UT

EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.

Wyoming

Get to know Rep. Cynthia Lummis

published in: Politico on: 01/26/2010 by: Anne Schroeder Mullins

Rep. Cynthia Lummis (R-Wyo.) has the unusual honor of being congresswoman-at-large: the entire state of Wyoming is her district, which makes her a little like a senator. But a little more fun.

Draft EIS made for gas plant

published in: Billings Gazette/Casper Star-Tribune on: 01/26/2010 by: Jeff Gearino

Federal officials on Monday released their draft environmental study for a pioneering carbon sequestration project proposed for western Wyoming.  The project could boost the state’s burgeoning underground CO2 storage industry.  Cimarex Energy Co. of Denver is proposing to construct the large-scale carbon sequestration project as part of its Rand Butte Project along the Wyoming Range in southwest Wyoming.

Coalition opposes 2-D seismic study

published in: Billings Gazette/Casper Star-Tribune on: 01/25/2010 by: Jeff Geraino

A coalition seeking to protect scenic Little Mountain from full-scale oil and gas development is opposing a two-dimensional seismic study proposed for next fall in the area.  Greater Little Mountain Coalition officials said last week that the proposed 2-D seismic project by an independent Colorado energy company would disturb a unique high-desert area that supports native Colorado River cutthroat trout.

Powder River Basin really is the energy capital of the world

published in: Gillette News-Record on: 01/23/2010 by: Steve McManamen

It is a common local saying that the Powder River Basin is the Saudi Arabia of coal. But to be technically correct, the Powder River Basin has almost eight and one-half times the energy resources found in Saudi Arabia.  That fact comes from a recently published report on the economic impact of Powder River Basin coal by a University of Wyoming School of Energy Resources professor of energy economics.

Washington Watch

22 Western Members of Congress pen letter to Sec. Salazar voicing concerns about Department of Interior’s oil and gas leasing reforms

January 27, 2010

“We are deeply concerned that these misguided policy changes will have a negative impact on job growth and economic recovery in our States and across the West.  This is unacceptable at a time when American families are facing ten percent unemployment and rising energy costs.”  Click here to read the entire letter.

For Salazar, a Year of Interior Re-Design IPAMS Quoted

published in: New West on: 01/27/2010 by: David Frey

When Interior Secretary Ken Salazar took over a year ago, his department was reeling from scandal and plagued by criticism that it was too cozy with the oil and gas industry. Employees were found to be sharing cocaine and bedrooms with industry representatives—a symbol of just how close they had become under the Bush administration.

NGSA, IPAMS officials urge Obama not to overlook natural gas IPAMS Quoted

published in: Oil & Gas Journal on: 01/27/2010 by: Nick Snow

Two more oil and gas association officials said they hoped President Barack Obama’s Jan. 27 State of the Union message reflects policies that encourage—instead of discourage—US natural gas development.  “We urge the president to remember that natural gas is not only an environmental solution, it is an economic solution for our country,” Natural Gas Supply Association Pres. R. Skip Horvath said in a statement.

Natural Gas More Costly With Regulation IPAMS Quoted

published in: National Journal on: 01/27/2010 by: Amy Harder

Kathleen Sgamma, Director of Government Affairs for the Independent Petroleum Association of Mountain States (IPAMS), submitted the following response:  No, the EPA should not regulate greenhouse gas emissions under the Clean Air Act (CAA). Regulation under CAA would be be intrusive, inefficient, and excessively costly.

Obama pushes Senate on climate bill, signals compromises on drilling

published in: The Hill on: 01/27/2010 by: Ben Geman

President Barack Obama pressed in his State of the Union address for Senate action on “comprehensive” energy and climate change legislation this year and appealed to skeptics of global warming to back the plan on economic grounds.  The substantial mention of climate legislaton – while omitting any specific discussion of caps on greenhouse gas emissions – will likely allay fears among some climate change activists that the White House will not spend political capital on the issue in 2010.

Advocates of Climate Bill Scale Down Their Goals

published in: New York Times on: 01/27/2010 by: John M. Broder and Clifford Krauss

As they watch President Obama’s ambitious health care plan crumble, the advocates of a comprehensive bill to combat global warming are turning their sights to a more modest package of climate and energy measures that they believe has a better chance of clearing Congress this year.  Their preferred approach, a cap-and-trade system to curb emissions of climate-changing gases, already faced a difficult road in a bruised and divided Senate. Its prospects grew dimmer after the special election in Massachusetts last week was won by Scott Brown, a Republican who repudiated the federal cap-and-trade proposal in his campaign.

If polls say ‘yes,’ why do lawmakers say ‘maybe’?

published in: E&E News/New York Times on: 01/26/2010 by: Alex Kaplun
If one were to judge the fate of climate legislation based solely on public polling, it would appear that it is only a matter of time before the bill easily cruises through Congress and arrives on the president’s desk.  Hardly a week seems to go by without a new poll showing strong support for climate change legislation. And even though advocates on both sides have spent millions of dollars for or against the bill, those polling numbers have stayed fairly steady.

Saved by Stimulus in 2009, Wind Industry Pushes for RES

published in: E&E News/New York Times on: 01/26/2010 by: Mike Soraghan

The federal stimulus package turned what could have been a disastrous 2009 for the wind industry into its best year ever.  The federal stimulus package turned what could have been a disastrous 2009 for the wind industry into its best year ever.  “We thought we were going to lose half our industry,” said Denise Bode, CEO of the American Wind Energy Association. “Then the Recovery Act came along, and we were able to create jobs.”

Click here to read the Institute for Energy Research’s news release “Whither the Wind.”

Omnibus natural resource bill likely this year

published in: E&E News (Subscription Required) on: 01/26/2010 by: Noelle Straub

Key lawmakers say they are likely to package numerous wilderness, parks and other natural resources bills into one broad package with the goal of enacting it by the end of this year.  House Natural Resources Chairman Nick Rahall (D-W.Va.) said his panel will continue to look at individual pieces of legislation and move them expeditiously to the floor and through the House. But he added that in the end he expects to craft an omnibus public lands bill this year, just as Congress did last year.

Exxon-Xto Deal Forces Congress to Reconsider Natural Gas

published in: E&E News/New York Times on: 01/25/2010 by: Joel Kirkland

With a $31 billion swipe of its virtual debit card, Exxon Mobil Corp. has started changing decades-old conventional wisdom in Congress that accessing the ocean of natural gas trapped under U.S. soil is merely a pipe dream.  Natural gas is the cleanest of the fossil fuels, and electric utilities that burn it to generate electricity belch out half the amount of carbon dioxide emissions they produce when when they burn coal. Exxon’s decision in December to purchase Fort Worth, Texas-based XTO Energy, one of the nation’s largest gas producers, could mark a dramatic shift in the way Washington understands domestic energy supply.

Click here to read IPAA’s Open Letter to Congress regarding Rep. Diana DeGette’s (D-CO) comments

Congress Went to Denmark, You Got the Bill

published in: CBS on: 01/25/2010 by: Sharyl Attkisson

Thanks to  recently filed Congressional expense reports there’s new light shed on the Copenhagen Climate Summit in Denmark and how much it cost taxpayers.  CBS News Investigative correspondent Sharyl Attkisson reports official filings and our own investigation show at least 106 people from the House and Senate attended – spouses, a doctor, a protocol expert and even a photographer.

Public lands are no more ‘candy store’ for oil and gas companies IPAMS Quoted

published in: ABH News on: 01/07/2010 by: Pranika Jain

Drilling in public lands, which seemed to be easy and smooth for oil and gas companies during the Bush administrations, will have to undergo harder new regulatory hurdles and environment scrutiny. Interior Secretary Ken Salazar announced the new changes on Wednesday.  Under this new policy, the Bureau of Land Management was directed to do on-site assessment and gather extended public input on proposed oil and gas leases. Currently the BIM oversees more than 260 million acres of federal land.

DOE Office of Fossil Energy Appointment Announcement

U.S. Department of Energy’s (DOE) Office of Fossil Energy is now soliciting applications from persons interested in appointment as members of one of two Federal advisory committees chartered under the Energy Policy Act of 2005 (EPACT), Subtitle J, Section 999D. These advisory committees advise the Secretary of Energy on research programs related to ultra-deepwater and unconventional petroleum resources technology. The objectives of these programs are to develop and implement research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production.  Applications for either of these committees must be received by March 1, 2010.

For more information about these committees, their duties, past activities, current members and how to apply online or via fax, please visit the committee websites: http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UltraDeepwater.html

and

http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UnconventionalResources.html.

Media Watch

Op-ed: No-energy policies hurting Colorado

published in: Denver Post on: 01/28/2010 by: Rep. Doug Lamborn (R-CO)

President Obama’s misguided energy policies must be reversed because they are hurting the economy. Even though no binding agreement came out of the climate summit in Copenhagen, and the cap and trade bill is stalled in the Senate, both have injected uncertainty into a fragile economy.  The EPA is making noises about imposing draconian carbon dioxide emission standards on an arbitrarily constructed list of businesses, creating further doubt. Business owners are unsure if they should expand or sit tight while they try to determine how the proposed regulations and restrictions will impact their bottom line.

Op-ed: Salazar’s proposals a good step

published in: Casper Star-Tribune on: 01/27/2010 by: Brad Powell, Director, Trout Unlimited

The recent announcement from Secretary of the Interior Ken Salazar was just what the doctor ordered when it comes to the public land energy debate currently raging in the West. It was a relief to see some balance restored to the oil and gas leasing process that, over the past decade, prioritized energy extraction at the expense of virtually every other use of land belonging to all Americans.  It’s no wonder, with the bounty it’s enjoyed in recent years, the industry is pushing back and crying foul over Salazar’s reforms — which include allowing more public input and site-specific reviews of leasing applications.

Editorial: Energy plan (Utah)

published in: Salt Lake Tribune on: 01/26/2010 by: Editorial Board

Utah should have a long-term energy plan, so we welcome Gov. Gary Herbert’s announcement that he will assemble a panel of experts to create one. We agree with the governor that Utah is blessed with diverse energy resources, from fossil fuels to renewables, that should be weighed in any strategic plan. We only wish that he had mentioned climate change when he sketched his idea Tuesday night as part of his State of the State address.  The governor proposes a 10-year-strategic plan he calls the Utah Energy Initiative.

Editorial: The Case for a Climate Bill

published in: New York Times on: 01/23/2010 by: Editorial Board

The conventional wisdom is that the chances of Congress passing a bill that puts both a cap and a price on greenhouse gases are somewhere between terrible and nil. President Obama can start to prove the conventional wisdom wrong by making a full-throated case for a climate bill in his State of the Union speech this week.  Washington has been forecasting the likely death of a climate bill with renewed certainty since Massachusetts elected a Republican senator who promised to block pretty much anything Mr. Obama wants. But even before then we were hearing two reasons why a bill could not pass: The Senate won’t have any strength left when it finishes with health care, and the nation cannot afford a bill that implies an increase in energy prices.

Environment and Wildlife

Michael Brune takes root at Sierra Club

published in: Politico on: 01/27/2010 by: Lisa Lerer
The country’s oldest and largest grass-roots environmental group is getting an infusion of new blood as the climate bill lingers on life support in Congress.  The Sierra Club announced last week that it was replacing longtime Executive Director Carl Pope with Michael Brune, a 38-year-old environmental activist known for his confrontational style and tough negotiating tactics. Pope, who’s been with the club 37 years, will remain as executive chairman.

Ranchers, enviros brace for sage grouse ruling

published in: Idaho Statesman/The Times-News on: 01/26/2010 by: Matt Poppino

Mountain Home rancher Steve Damele is the kind of cattleman who doesn’t mince words when talking about threatened species on his land.  But he only had one answer when asked if his property was habitat for the Greater sage grouse.  “I’d rather not say,” he said.  Such worries are commonplace as the federal government completes a lengthy review of whether to list the bird under the Endangered Species Act. The birds’ numbers have dropped for a decade, some believe to half its historic habitat. Southern Idaho is one region where numbers are on the decline.

Green machine’ recycles wastewater used in hydraulic drilling process for natural gas

published in: Environmental Leader on: 01/22/2010 by: Staff

The practice of hydraulic drilling – which has caused PR tremors for ExxonMobil and XTO Energy – contaminates close to 4 billion gallons of water during drilling per day industrywide, says HBC Systems. This practice, also known as fracturing or “fracking” to access gas shale deposits, drove HBC to develop an environmentally-friendly water reclamation process that uses osmosis technology to recycle wastewater in the oil and gas industry.

Technology, Alternative & Renewables

Wyoming group studies tying wind farms to grid

published in: Associated Press on: 01/26/2010 by: Matt Joyce

Transmission developers with plans to send Wyoming wind power to western states hungry for renewable energy are trying to figure out how to connect scattered wind farms with proposed export power lines.  The Wyoming Infrastructure Authority formed the Wind Collector and Transmission Task Force last summer to develop a coordinated system for gathering power from dispersed wind farms.

Icy crystals heat up

published in: Houston Chronicle on: 01/23/2010 by: Brett Clanton

Vast deposits of methane, trapped in icelike crystals under Alaska’s frozen tundra and beneath ocean floors worldwide, could play an important role in the nation’s energy future.  But after more than two decades of study, major oil companies and governments are still trying to crack the code to large-scale extraction of these energy rich substances called gas hydrates.

Request for Emissions Reduction Credits

If your company has emissions reduction credits for volatile organic compounds (VOCs) or nitrogen oxides (NOx) available to sell, please contact Jennifer Biever, Hogan & Hartson LP, 303-454-2410. Your company may be eligible to claim and sell emissions reduction credits if you voluntarily install controls on air pollution sources.

Markets

Pros Say: How to Make Money on Oil & Nat. Gas

published in: CNBC on: 01/26/2010 by: Staff

Rising inventories and China’s clampdown on credit-could conditions be turning bearish for the short-term in the oil markets? Tom Petrie, vice chairman at Bank of America Merrill Lynch, shared his views.  Petrie said he expects the disconnect between natural gas and crude oil to continue.

Gazprom frets about surge in US gas production: report

published in: AFP on: 01/26/2010 by: Staff

Russian energy giant Gazprom is concerned about losing markets due to a surprise surge in US gas production driven by new extraction techniques, the Kommersant daily reported Tuesday.  The state-controlled firm is reconsidering its strategy in light of the US “revolution” in shale gas extraction, Kommersant said, citing a company document due to be presented at a board meeting on Tuesday.

Industry News and Events

Many senior energy executives optimistic about 2010

published in: Houston Chronicle on: 01/27/2010 by: Sharon Hong

Despite the toll 2009’s tumultuous economic climate took on many oil and gas companies, more top industry executives are bullish in their outlook for 2010, according to Grant Thornton’s eighth annual Survey of Upstream U.S. Energy Companies.  The survey of more than 100 senior executives of independent oil and gas companies found that half expect their companies to add jobs this year and 67 percent anticipate increases in domestic capital expenditures in 2010, up from 32 percent in 2009.

US sets up hotline for natgas drilling complaints

published in: Reuters on: 01/26/2010 by: Ayesha Rascoe

The U.S. Environmental Protection Agency has set up a hotline to address public concerns that water supplies may be endangered by a drilling practice used to extract natural gas from rock formations, the agency said on Tuesday.  The use of hydraulic fracturing, or fracking, for shale gas production has drawn fire from environmentalists and neighbors of drilling operations who complain the method has contaminated well water and made people sick.

Energy 101: Hydraulic Fracturing

published in: Red State on: 01/23/2010 by: Vladimire

This week, several news stories converged on an odd topic: hydraulic fracturing.  Fracking Schematic. Note: Vertical scale grossly underrepresents the depth of the producing formation.  Hydraulic fracturing, or “fracking”, has been used since the 1950s to stimulate oil and gas wells. The process involves pumping a sand-laden slurry into a well and subjecting it to enough pressure that the rocks in the productive formation fracture, or break. The purpose of the sand is to prop open the fracture, so it stays in place. The carrying fluid can then flow back out of the well, along with oil and gas if it’s been a successful frac.

2010 Colorado Business Hall of Fame inducts Merle Chambers and James Wallace

February 4, 2010 at the Hyatt Convention Center (650 15th Street, Denver, CO)

Join Junior Achievement and the Denver Metro Chamber of Commerce will induct five new Laureates at Colorado’s premier business black-tie gala event, the 21st Annual Colorado Business Hall of Fame.  Over the past 21 years more than 100 of Colorado’s more prominent business leaders have been inducted into the Hall of Fame and this year is no different as Hank Bosco, Merle Chambers, The Gart Brothers, Fred Hamilton and James Wallace join this group. Proceeds from the event support the programs of Junior Achievement and the Denver Metro Chamber of Commerce.  A reception for the event begins at 6:00 p.m. with program to follow.

Tables for this event start at $2,750 with individual tickets for $275. For more information or to purchase tables contact Shawna Robbins, at Junior Achievement, at 303-260-6286 or srobbins@jacolorado.org.

For more information visit: http://www.jacolorado.org/content/view/78/90/

16th Annual Great Balls of Fire 9-Ball Billiards Challenge

February 16, 2009 in Denver, CO

The Great Balls of Fire 9-Ball Billiards Challenge is all about the goodness in people who want to make a difference in the lives of children and their families. Hosted by the Colorado Professional Firefighters, Denver Firefighters Local 858 and Wynkoop Brewing Company.

Several IPAMS members have chosen to sponsor this worthy charity event.

Click here to learn more and how to become a sponsor.

Colorado Energy Jobs Summit

February 19, 2010 at Anschutz Medical Campus, Aurora, CO

U.S. Senator Mark Udall, the Keystone Center, Third Way and the University of Colorado will host an Energy Jobs Summitt. Energy Secretary Steven Chu is confirmed to deliver the Keynote address for the summit. Official invitation with specific registration information coming shortly. Registration is based on limited seating; please make sure to register early.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

President Obama will make his second State of the Union address tonight, and I encourage every member of our industry to listen closely to what he has to say.  There are some things we can undoubtedly expect – a series of ovations by some, grumblings from others, and a focus on health care, clean energy, and the need to create more jobs.

While you probably won’t hear the term “tax increases,” that too will be an underlying theme as the President and Congress look for ways to fund their initiatives.  And guess who’s in the crosshairs yet again?  That’s right—  us.  The very folks who have a solution to the energy, economic, and environmental challenges American is currently facing.

Last year I warned of a “Toxic Tax Cocktail” that would hit our industry and the 260,000 jobs we provide in the Intermountain West.  Well, Congress is again considering proposals by the Obama administration to significantly increase our industry’s tax burden, which would discourage investment and job growth, while prolonging our economic recovery.  The President’s targets are:

• Expensing of Intangible Drilling Costs (IDC)
• Percentage Depletion
• Passive Loss Exception for Working Interests
• Credit for Enhanced Oil Recovery Projects
• Manufacturing Deduction
• Credit for Production From Marginal Wells
• Deduction for Tertiary Injectants

For a detailed explanation of each of the provisions above, click here to view IPAMS position paper.

Last year entitlement programs — like Social Security, Medicare, and Medicaid — consumed all the revenue brought into the Treasury from taxes (specifically, revenues were $2.1 trillion and mandatory spending was $2.094 trillion), which means every dollar spent on discretionary spending, which funds national security, education, energy initiatives, and all our federal agencies and their programs, had to be borrowed from the public or from foreign countries.  Under the current budget, the only thing we can actually pay for are these mandatory government social programs. Our total spending last year was almost 25 percent of our GDP, and the annual budget deficit was equal to almost 10 percent of our GDP, levels not seen since World War II.

History has taught us that nothing is as devastating to economic recovery as raising taxes on energy.  Increasing the tax burden on the independent producers who supply 82% of our nation’s natural gas and 68% of our oil will add inflationary pressures throughout all segments of the economy.  Consumer spending accounts for two-thirds of our economy.  When consumers are forced to spend more on driving to work and heating their homes, they have less money to for discretionary spending.  Raising taxes on American energy producers is the same as raising taxes on Americans– it’s that simple.

Many of you have asked recently what you can do to make a difference.  Believe it or not, contacting your congressional representatives is the single most effective thing you can do to promote good public policy.

Please click here and take just a moment to complete our Action Alert and tell Congress that raising taxes on energy will be counterproductive to their goals of creating economic opportunity, increasing energy security, and reducing carbon emissions.

If you are proud of the hard work you do to develop clean, domestic energy, consider sharing your views on the tax increases with your friends and neighbors who rely on the energy we produce.  You might find that they appreciate knowing how this tax increase will impact their lives.

Click here to read IPAMS news release:  “Western Producers to Obama:  Tax Hikes Will Cost Jobs and Limit Economic Growth”

Make Your Voice Heard at IPAMS 2010 Washington Call-up

March 1-3, 2010 (beginning at 4:00 pm on March 1st)

The IPAMS 2010 Washington Call-Up is less than six weeks away!

If you have not yet registered to attend IPAMS 10^th Annual Washington, DC Call-Up, please consider doing so.  It’s a great way to ensure that your voice is heard in our nation’s capital.   This year’s Call-Up is only a few weeks away, and more than 40 representatives of our industry are already planning to attend.  No matter what position you hold in your company, IPAMS can use you in DC. This year’s trip is expected to have meetings with over 100 Members of Congress and their staffs, we also have plenty of social events planned, including a joint reception with IPAA at the new Capitol Visitor’s Center. Click here for the draft agenda.

If you have any questions about the 2010 Call-Up, please contact IPAMS Director of Public Affairs Jon Bargas. If you would like to help sponsor the Call-Up, please contact Becca Ness.

Click here to register for IPAMS 10th Annual Washington, D.C. Call-Up March 1-3, 2010.

If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th or February 22nd, 1:30 p.m.  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

Get More Value From Your IPAMS Membership

Each year, professional trade organizations like IPAMS ask you for financial support. This year, we also encourage you to get more value from your membership.

IPAMS volunteer leaders and professional staff were able to save the natural gas and oil industry here in the Intermountain West over $9 billion during 2009. Even so, we know we could do more if we were able to better leverage the voices of the 260,000 natural gas and oil employees in our region. Our future success depends on an actively involved and deeply informed membership. Likewise, the greatest challenge we face is effectively communicating with our members’ employees across our region.

Click here to learn how you and your employees can best maximize the value of IPAMS.

IPAMS Vote From Home/Voter Education Program

As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone we were able register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, we have decided to expand it to include the entire state of Colorado for the 2010 elections. With critically important state and federal races to be decided next year, it is more crucial than ever that our industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from many of the major Colorado producers, but we need more support in order to get working on the program as soon as possible. If your company would like to be part of this important effort, please contact IPAMS Director of Public Affairs Jon Bargas.

2010 Wildcatter of the Year Nominations

The 29th Annual IPAMS Wildcatter of the Year Gala will take place on May 15, 2010 at the Seawell Ballroom at the Denver Center for the Performing Arts, in Denver, Colorado. The IPAMS Wildcatter of the Year is a lifetime achievement award for distinguished service to our industry and the community. Members of the natural gas and oil industry in the Intermountain West are encouraged to nominate deserving colleagues for this prestigious award.

Nominations should be made according to the unique contributions and accomplishments of the individual, particularly regarding: 1) successful longtime Rocky Mountain exploration and production, 2) community service and philanthropy and 3) support of oil and natural gas industry activities and organizations. Invitations to this black tie cocktail reception and award dinner will be mailed closer to the event, but please mark your calendars now. Last year there were over 700 attendees at this festive event. We hope you’ll make plans to join us this year.

The IPAMS Wildcatter of the Year Award is a valuable, limited edition bronze sculpture by renowned wildlife sculptor Veryl Goodnight. Generous sponsors of this year’s award include U.S. Bank, Wells Fargo Bank, Bank of Oklahoma and American National Bank. Sponsors of this event include Black Hills Exploration and Production, Inc.,EnCap Investments, M.J. England & Associates, Saga Petroleum, Samson Resources, Shell E & P Company, St. Mary Land & Exploration Company and Whiting Petroleum Corporation.

Click here to access the nomination form. The deadline for nominations is February 19, 2010.

Nomination forms maybe submitted by mail or fax to:

IPAMS
410 17th Street, Ste 700
Denver, CO 80202
(303) 893-0709 -fax

Please contact Becca Ness or call (303) 623-097 for more information.

Stepping Up!

Special thanks to IPAMS members who have recently upgraded their membership!

• Pure Energy Services (USA), Inc.
• Pioneer Natural Resources
• Jonah Gas Company, LLC
• Mesa Energy Partners
• BENTEK Energy LLC
• Tall Grass Energy Company
• Macquarie Tristone
• Denver Mineral & Royalty Company
• Petros Environmental Group, Inc.
• NVI-Nondestructive & Visual Inspection
• Albrecht & Associates

Other Upcoming Meetings

• Department of Interior Advocacy – January 28th, 10:00 a.m.
• Uinta Basin Air Quality Meeting – January 29th, 9:00 a.m.
• Montana Basin Advisors Network – February 17th, 1:00 p.m.
• IPAMS Washington DC Call-Up Briefing – If you are registered to attend this year’s Call-Up, please plan on attending one of the following briefings: February 18th or February 22nd, 1:30 p.m.  Please RSVP to Becca Ness and  indicate which briefing you plan on attending.

Agendas are available for upcoming meetings at http://www.ipams.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.

Visit ipams.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.

The West

Federal policy, tax proposals create worries IPAMS Quoted

published in: Denver Post on: 01/18/2010 by: Mark Jaffe

Three Questions for IPAMS Executive Director Marc Smith:  Interior Secretary Ken Salazar recently announced a change in federal oil and gas leasing policy, putting the emphasis on government oversight and planning. What impact will that have?

Dems’ glory fading in West

published in: Chicago Tribune on: 01/17/2010 by: Nicholas Riccardi

It was less than 18 months ago that the Democratic Party declared this region its new base.  Barack Obama claimed the party’s presidential nomination at a football stadium here, in a state where Democrats had won the governorship and both houses of the state Legislature, and were about to pick up both U.S. Senate seats.  Now Obama and his party’s approval ratings in the West are lower than elsewhere in the country. Colorado Gov. Bill Ritter Jr. abruptly announced recently that he would not seek re-election. The state’s junior senator is trailing badly in the polls. Analysts think Democrats could even lose their majorities in the Legislature.

Sprague’s Pipit ESA Listing Determination

The U.S. Fish and Wildlife Service has issued a positive 90-day finding that the Sprague’s Pipit, a small bird native to Great Plains grasslands with breeding habitat in Montana and North Dakota, warrants further consideration for listing as threatened or endangered under the Endangered Species Act. States that would be impacted by a listing include Montana, North and South Dakota, Nebraska, Kansas, Oklahoma and Texas. The petition, submitted by WildEarth Guardians, claims that oil and gas development has resulted in habitat losses and disturbed the species throughout its range. Public Lands Advocacy (PLA) has contracted with a wildlife consulting firm to review and provide comments and is seeking funding from companies with activities in the affected areas to cover costs associated with this project. Contact Spencer Kimball at 303-623-0987 for more information or if you would like to contribute. Click here to view the listing petition and click here to view the Federal Register Notice.

Colorado

Veteran BLM employee to lead Colorado office

published in: Denver Business Journal on: 01/19/2010 by: Staff

Helen Hankins has been named Colorado state director of the Bureau of Land Management, which administers 8.3 million acres of federal lands in the state and some of its richest energy resources.  Hankins, 58, a career BLM employee, is currently the associate state director for the BLM in Arizona. She assumes her new role Feb. 1.

Production holds up, but revenue hit by low prices

published in: Grand Junction Daily Sentinel on: 01/19/2010 by: Dennis Webb

A big drop in natural gas drilling in Colorado last year shouldn’t mean a decrease in production levels, state regulators say.  But the same factor driving that drilling drop — lower natural gas prices — will mean reduced revenues to the state and local governments. That’s because of taxes that are based on production value.

Denver mayor: Gas rules flawed

published in: Durango Herald on: 01/18/2010 by: Joe Hanel

The newly minted Democratic candidate for governor thinks Gov. Bill Ritter’s environmental rules for the natural-gas industry are “excessive.”  Denver Mayor John Hickenlooper told reporters Friday he doesn’t support all of the rules adopted in 2008 by the Colorado Oil and Gas Conservation Commission.  “I think the biggest problem wasn’t necessarily where we ended up with the rules. It was how we got there,” said Hickenlooper, who announced Thursday he is running to replace Ritter.  He would have preferred a less adversarial process, he said.

Garfield to industry: Remote fracking regs to be left to state

published in: Grand Junction Daily Sentinel on: 01/18/2010 by: Dennis Webb

Garfield County commissioners on Monday reassured natural gas developers Monday that they don’t plan to regulate the growing practices of remote and centralized well fracturing.  Hydraulic fracturing, or fracking, involves sending fluids at high pressure down wells to crack open formations and promote flow of natural gas. With remote fracturing, the operations are conducted via pipelines from a site away from a well pad. Centralized fracking entails doing fracturing on multiple well pads from one remote location.

Talks yield no resolution in Roan Plateau lawsuit

published in: Associated Press on: 01/17/2010 by: Judith Kohler

Western Colorado’s Roan Plateau is the kind of place that should be declared off-limits under new federal energy leasing policies, said an attorney for environmental groups suing to limit drilling on the landmark.  A coalition of groups is suing the federal government, claiming a 2007 plan by the Bureau of Land Management for natural gas development on the plateau’s public land didn’t adequately analyze the potential impact. Mike Freeman, an attorney for Earthjustice, said Bill Barrett Corp.’s recent statements that there are a potential of up to 3,200 drilling sites on the plateau makes the situation even more dire.

Montana

Return of Mont. leases could end 28-year dispute over Badger-Two Medicine

published in: E&E Land Letter (Subscription Required) on: 01/21/2010 by: Daniel Cusick

Last week’s decision by five oil and gas firms to relinquish drilling leases on nearly 29,000 acres of northern Rocky Mountain wildlands could be the last gasp for what was once considered a potentially lucrative development site for domestic fossil fuels.

Industry, unions work to backfill exodus of aging ‘boomer’ workers

published in: Great Falls Tribune on: 01/17/2010 by: Peter Johnson

Montana industry and labor unions are bracing for an exodus of skilled workers as members of the baby-boom generation begin to retire.  Concerned about the graying of its work force, three Billings area oil refineries persuaded MSU-Billings College of Technology to create a two-year program in process-plant technology. Almost 50 students are starting the concentrated, two-year program this semester, hoping to take advantage of median Montana wages of $51,200 in the industry.

Governor wants TransCanada oil pipeline to include “on-ramp” for Montana fuel

published in: Associated Press on: 01/20/2010 by: Staff

Gov. Brian Schweitzer wants Montana oil producers to be able to tap into TransCanada’s proposed US$5-billion pipeline that would run from Alberta to the Gulf Coast.  The 3,200-kilometre Keystone XL pipeline would include a 450-kilometre section through eastern Montana, where most of the state’s oil is produced.

New Mexico

NM: Local legislators see budget deficit as top priority

published in: Farmington Daily Times on: 01/19/2010 by: James Monteleone
Elected legislators from San Juan County agree that a looming state budget shortfall might allow little else to be accomplished during the 2010 legislative session beginning today in Santa Fe.  The January session traditionally is reserved to finalize the budget for the state’s fiscal year beginning each July. This year, however, legislators have added to the agenda resolving the $500 million shortfall unresolved from last year.

Farmington to consider joining lawsuit

published in: Farmington Daily Times on: 01/18/2010 by: Steve Lynn

City councilors could discuss privately Tuesday whether the city should join a lawsuit filed last week that challenges state regulators’ authority to cap greenhouse gas emissions.  City Attorney Jay Burnham said he scheduled the closed meeting between city officials and councilors to discuss a lawsuit aimed at stopping a proposal by New Energy Economy to limit the emissions.  New Energy Economy, a Santa Fe environmental group, has petitioned the New Mexico Environmental Improvement Board to cap greenhouse gas emissions 25 percent below 1990 levels by the year 2020 to limit global warming pollution.

Pete Domenici Jr. running for NM governor

published in: Associated Press on: 01/18/2010 by: Staff

A well-known name in New Mexico politics has joined the race for governor. Pete Domenici Jr., a lawyer and the son of longtime U.S. Sen. Pete Domenici, announced his candidacy Sunday, adding his name to an already crowded GOP field. The younger Domenici, who was flanked by his parents, called himself an ordinary citizen who has developed his own roots “in common sense conservatism.”

North Dakota

Bakken and Beyond!

May 2 – 4, 2010 in Bismarck, North Dakota

The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas.  Click here to learn more.

Utah

Gary Herbert-Peter Corroon contest shaping up to be a good one

published in: Deseret News on: 01/17/2010 by: Pignanelli & Webb

It’s not often that Utah has a competitive gubernatorial race, but the matchup between Gov. Gary Herbert and Peter Corroon is shaping up as a pretty good contest. Here are some questions swirling around the race:  ?It has been 30 years since a Democrat was elected governor of Utah. Is 2010 the year a Democrat might win?

The County Seat

The County Seat is a half hour television program about relevant issues facing Utah’s counties. The program will address two important issues facing Utah’s counties per half hour program. The County Seat is designed to educate the public about important issues as well as foster debate and dialogue so that the public, legislators, state and federal regulators can better understand the depth of issues and the impacts of those issues facing Utah’s county level government. Click here to view the pilot.

Uintah County Commissioner Mike McKee approached IPAMS about the program, since he would like to see an oil and gas show. The rates for commercials spots are extremely reasonable, and translate into a good opportunity to educate the public about our industry. Please contact Chad Booth for more information.

Wyoming

Wyoming gas, oil drilling permits decline

published in: Associated Press on: 01/15/2010 by: Mead Gruver

The U.S. Bureau of Land Management processed fewer oil and gas drilling permits in Wyoming last year than in any year since 2003, the agency’s Wyoming office reports.  The BLM’s Wyoming office says it processed 2,162 oil and gas drilling permits last year, down from 3,681 in 2008.

Washington Watch

Hydraulic fracing dominates ExxonMobil-XTO merger hearing

published in: Oil & Gas Journal on: 01/21/2010 by: Nick Snow

A congressional hearing that ostensibly was supposed to consider a proposed merger’s market impacts quickly became a forum for debating whether to federally regulate hydraulic fracturing. Chairman Edward J. Markey (D-Mass.) convened the Jan. 20 hearing of the House Energy and Commerce Committee’s Energy and Environment Subcommittee to examine energy market impacts of ExxonMobil Corp.’s proposed $41 billion purchase of XTO Energy Corp. “This merger heralds a fundamental long-term shift in US energy markets, and one that deserves our close attention,” he said in his opening statement.

Court decision opens floodgates for corporate political spending

published in: Politico on: 01/21/2010 by: Kenneth P. Vogel

The Supreme Court on Thursday opened wide new avenues for big-moneyed interests to pour money into politics in a decision that could have a major influence on the 2010 midterm elections and President Barack Obama’s 2012 reelection campaign.  The long-awaited decision overruled all or parts of two prior rulings by the court that allowed governments to restrict corporations and unions from spending their general funds on ads expressly urging a candidate’s election or defeat. But the decision upheld disclosure requirements for groups like the one that brought the case.

Industry feels chill from a new administration in Washington IPAMS Quoted

published in: The Barrel/Platts on: 01/20/2010 by: Gerald Karey

The Bush administration had to be a golden age for the oil and gas industry. The president, although a scion of New England Brahmins and a Yale-man, spoke like a Texan and once ran an oil company, albeit with only middling success.  President Bush’s administration was sprinkled with officials with ties to the industry. Next door to the White House, in the Eisenhower Executive Office Building, Vice President Dick Cheney, who headed Halliburton between government jobs, invited oil and gas and other energy company executives to secret meetings to help formulate US energy policies.

DeGette says her natural gas bill won’t block production

published in: The Hill on: 01/20/2010 by: Ben Geman

Rep. Diana DeGette (D-Colo.) said Wednesday that her legislation to bring a controversial natural gas drilling technique under EPA regulation would not halt the practice.  She spoke at an Energy and Commerce Committee hearing on the proposed the $41 billion merger of Exxon Mobil Corp. and XTO Energy Inc.

Sen.-Elect Brown’s win adds more question marks to Senate cap-and-trade debate

published in: E&E News/New York Times on: 01/20/2010 by: Darren Samuelsohn

An already tough climb to pass comprehensive climate and energy legislation in the Senate just got a bit tougher with Republican Scott Brown’s upset victory yesterday in Massachusetts.  Brown’s win takes a guaranteed “yes” vote off the board for advocates of setting up a mandatory cap on greenhouse gas emissions. It also could serve as a warning shot for moderate senators nervous about voting for a sweeping new government program headed into their own tough re-election campaigns.

Green Jobs Success Will Take Major, Long-Term Commitment

published in: CNBC on: 01/19/2010 by: Trevor Curwin

The Obama administration may be tempted to wage a two-front war on climate change and joblessness by pushing for green jobs in the renewable energy sector, but such a strategy will mean committing to a long campaign.  Looking for the green equivalent of an atomic bomb to obliterate ten percent unemployment, energy price volatility and carbon emissions all at once may not be the right approach, says Jesse Jenkins, director of energy and climate policy at The Breakthrough Institute, a clean energy research group.

Who is Harris Sherman?

published in: AllGov on: 01/18/2010 by: Noel Brinkerhoff

Having had his first pick (Homer Wilkes) back out as Under Secretary for Natural Resources and Environment at the U.S. Department of Agriculture, President Barack Obama turned to Harris Sherman, Colorado’s longtime natural resources chief. Sherman was confirmed by the Senate October 9, 2010. Although some environmentalists expressed concern about Sherman over the state’s industry-friendly “roadless rule,” the new overseer of the U.S. Forest Service and the Natural Resources Conservation Service would be hard pressed to provoke the kind of controversy that came with Mark Rey, a former timber industry lobbyist, who held the post during the Bush administration.

Chu steps into gas drilling debate

published in: The Hill on: 01/15/2010 by: Ben Geman

Energy Secretary Steven Chu on Friday said a controversial natural gas drilling technique called hydraulic fracturing, which energy companies are increasingly using to access abundant U.S. shale gas reserves, can be performed safely.  The comments come amid a major lobbying effort by oil-and-gas companies to prevent Congress from increasing regulation of the practice. Environmentalists fear that “fracking” will pollute water supplies while industry contends the practice is safe.

OTC Derivatives

IPAMS has signed-on to a letter asking the Senate to preserve access to OTC derivatives as a risk management tool.  A similar letter sent by the Coalition for Derivatives End Users in September 2009 included about 200 associations and companies and was a very effective tool in our lobbying effort to preserve access to affordable OTC derivatives for end-users in the House.  Please feel free to forward this email to any other company or association that has an interest in this issue.  To read the letter and electronically add your company name to the letter, click here.

DOE Office of Fossil Energy Appointment Announcement

U.S. Department of Energy’s (DOE) Office of Fossil Energy is now soliciting applications from persons interested in appointment as members of one of two Federal advisory committees chartered under the Energy Policy Act of 2005 (EPACT), Subtitle J, Section 999D. These advisory committees advise the Secretary of Energy on research programs related to ultra-deepwater and unconventional petroleum resources technology. The objectives of these programs are to develop and implement research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production.  Applications for either of these committees must be received by March 1, 2010.

For more information about these committees, their duties, past activities, current members and how to apply online or via fax, please visit the committee websites: http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UltraDeepwater.html

and

http://www.fe.doe.gov/programs/oilgas/advisorycommittees/UnconventionalResources.html.

Media Watch

Guest Commentary: Producing clean energy and providing good jobs

published in: Denver Post on: 01/19/2010 by: Phyllis Cuttino and Mark Chen

A sun that shines more than 300 days a year and breezes humming from the peaks to the plains hallmark Colorado’s seasons — and thanks to new technologies they now signal job growth in our state. But Colorado’s leaders, at the state and federal level, must push for smart energy policies if we’re to maintain our edge.  In September, Colorado’s unemployment rate stood at 7 percent, better than the national average of more than 10 percent but still a difficult job market. The recession’s pain didn’t spread evenly to all industries, though — because one sector has and continues to promise a bright future for people across Colorado.

Carroll: Is Hickenlooper really pro-business?

published in: Denver Post on: 01/17/2010 by: Vincent Carroll

Denver Mayor John Hickenlooper is a “pro-business Democrat,” pundits keep telling us since the news that he’s running for governor. Yet what exactly does that mean? That he’s popular at the local chamber of commerce? That he made a fortune selling beer?  Here’s what it should mean: That he’d work as governor to defend and strengthen free enterprise in this state. But whether he actually would remains an open question.  Nearly all politicians claim to be pro-business, even when they’re saddling it with regulations that undermine its health.

Op-ed: When it comes to cap-and-trade, give federalism a chance

published in: The DC on: 01/15/2010 by: Rep. Rob Bishop (R-UT)

Supporters of cap-and-trade often make bold claims about climate change legislation.  Rapturous-sounding rhetoric such as “this legislation will create jobs by the millions, save money by the billions and unleash investment in clean energy by the trillions,” is common in the cap-and-trade debate.  Indeed, proponents typically describe cap-and-trade as the equivalent of a giant magic job Pez dispenser.  I am convinced they are wrong.  Cap-and-trade legislation will only cap our economy and trade American jobs overseas.  There are many devastating analyses of the costs and effectiveness of cap-and-trade legislation.  Let me share just one.

Environment and Wildlife

Report says drilling threatens Colo. wildlife IPAMS Quoted

published in: Associated Press on: 01/20/2010 by: Judith Kohler

The leasing of public land for oil and gas drilling on large tracts of wildlife-rich northwest Colorado is a growing threat to the state’s heritage and an important part of the economy, the Colorado Wildlife Federation said in a report released this week. The data show that 41 percent of the 4.9 million-acre Piceance Basin has been leased. The report was compiled from state oil and gas records, information from the state Division of Wildlife and peer-reviewed research.

Judge upholds oil, gas waste rules

published in: Grand Junction Daily Sentinel on: 01/20/2010 by: Dennis Webb

A Denver District Court judge has rejected a legal challenge to new state rules for disposal of oil and gas brine waste at commercial sites.  Judge William W. Hood III issued the ruling Tuesday in the case brought by Fourmile Recycling Facility Inc. of Moffat County, and a second operation there.

Study links Asia to smog component in Western US

published in: Washington Post on: 01/20/2010 by: Jeff Barnard

Ozone blowing over from Asia is raising background levels of a major ingredient of smog in the skies over California, Oregon, Washington and other Western states, according to a new study appearing in Thursday’s edition of the journal Nature.  The amounts are small and, so far, only found in a region of the atmosphere known as the free troposphere, at an altitude of two to five miles, but the development could complicate U.S. efforts to control air pollution.

Report asserts ‘fracking’ contaminates water supplies

published in: Deseret News on: 01/20/2010 by: Amy Joi O’Donoghue

A new report by an environmental watchdog organization highlights problems posed to drinking water supplies by hydraulic fracturing, a technique used by the oil and gas industry to extract resources from deep below the earth’s surface.  Called “Drilling Around the Law,” the report tracked six months worth of chemical disclosure records filed by several of the largest drilling corporations and includes information provided by some state or federal regulators, who concede they do not track fluids used in the process.

Think shale drilling uses the most water? Guess again.

published in: Houston Chronicle on: 01/19/2010 by: Tom Fowler

The boom in natural gas drilling in recent years has been both praised and pilloried; lauded for the surge in production for the cleaner-than-coal-or-oil fuel and denigrated for the massive amounts of water required and the potential for drinking water contamination.  The folks at the newly launched GreeningOfOil.com took a closer look at the water use issue, however, and found natural gas shale actually uses less water per unit of energy produced.

Wyoming’s environmental Hobson’s choice: Killing wind energy or endangering birds?

published in: Scientific American on: 01/19/2010 by: John Platt

Which is more important, an endangered bird or sustainable energy? That has become the question in Wyoming, where a recent ruling by the state’s governor has blocked future wind-turbine development in about 20 percent of the state in a move to protect the greater sage grouse.

Technology, Alternative & Renewables

Using high efficiency to get down deep

published in: Glenwood Springs Post Independent on: 01/18/2010 by: John Colson

The gas drilling rig is right off Interstate 70 to the west of the Rulison exit, near enough to the highway for the workers to hear the hum of passing cars and trucks if the noise from the drilling equipment itself were ever to stop.  But it doesn’t — at least, not at what are known as “high-efficiency” rigs, the most technologically advanced set-up in use in this area.

Request for Emissions Reduction Credits

If your company has emissions reduction credits for volatile organic compounds (VOCs) or nitrogen oxides (NOx) available to sell, please contact Jennifer Biever, Hogan & Hartson LP, 303-454-2410. Your company may be eligible to claim and sell emissions reduction credits if you voluntarily install controls on air pollution sources.

Markets

Williams combines affiliates to create large player in natural gas sector

published in: Associated Press on: 01/19/2010 by: Staff

Williams Cos. said Tuesday it will create one of the largest natural gas partnerships in the nation by combining its pipeline and processing units.  The deal provides Williams with more money to explore for natural gas. Many energy companies are manuevering to get a bigger portion of the huge natural gas reserves in the U.S. that have been discovered due to advances in drilling technology.

Fossil Fuel Use in 2034? Not Much Different.

published in: New Your Times Green Inc. on: 01/15/2010 by: Tom Woody

A quarter century from now the United States’ reliance on fossil fuels will have declined only marginally, according to a projection from Black & Veatch, the engineering and energy consulting firm.  In 2034, a mix of coal, natural gas and other fossil fuels will supply 68 percent of the nation’s energy needs, compared to 76 percent today. The share of energy production from renewable sources, including solar and wind, in 2034 will rise to 13 percent from 5 percent. Nuclear power will supply only 2 percent more electricity than it does in 2010, the firm said.

API: US oil demand showed signs of recovery late in 2009

published in: Oil & Gas Journal on: 01/15/2010 by: Nick Snow

US oil demand fell during 2009 but began to recover as the year concluded, the American Petroleum Institute said. Gasoline, kerosene, and all other oils were strongest, but distillate fuel oil lagged, especially for on-highway uses, API’s yearend 2009 and December statistics showed.  “Clearly, petroleum demand is mirroring the economic recovery,” said John C. Felmy, API chief economist, on Jan. 15. “We are seeing December demand figures stronger than fourth-quarter figures and fourth-quarter figures stronger than full-year figures. But the data also indicate that the recovery still has a distance to go, particularly if you look at ultralow-sulfur diesel fuel.”

Industry News and Events

Gas Drilling Techniques Under Fire … Again

published in: New York Times on: 01/20/2010 by: John Collins Rudolf

Federal government oversight of hydraulic fracturing – a drilling technique that boosts natural gas extraction by blasting water, sand and chemicals underground at high pressure – is sorely lacking, putting drinking water supplies at risk, an environmental policy group claimed in a report released Tuesday.  According to the Environmental Working Group, a research and advocacy group based in Washington, drilling companies are side-stepping a permitting requirement for the use of diesel fuel in their fracturing fluids by using similar petroleum distillates that contain the same toxins as diesel, but require no permitting.

Thinking Beyond Petroleum

published in: Forbes on: 01/19/2010 by: Ian Berman

The funny thing about windows of opportunity is that they have a way of closing.  Over the past year, spurred by mounting worries over Iran’s nuclear ambitions, Congress has taken up the issue of economic pressure against the Islamic Republic in earnest. The result is a series of sanctions bills aimed at targeting what is commonly viewed as the regime’s economic Achilles’ Heel: its deep dependence on foreign refined petroleum.

New Report Highlights Benefits of Natural Gas in Reducing Greenhouse Gas Emissions

published in: OilVoice on: 01/18/2010 by: Staff

Australia’s natural gas industry has welcomed the Climate Group’s 2009 Greenhouse Indicator Annual Report, highlighting the benefits of natural gas in reducing greenhouse gas emissions.  ‘Without government assistance and without special policy treatment, natural gas has already proven its benefits to the environment,’ Chief Executive of the Australian Pipeline Industry Association (APIA), Cheryl Cartwright, said today.

Habitat and Anadarko Brave the Elements to Launch New Community Project, Construction Begins on First-of-its-Kind Town Home Community site in Denver

Snow and single-digit temperatures did not chill the hearts of Anadarko employees, as approximately 40 volunteers from the energy company worked throughout the day to launch construction of the Metro Denver Habitat for Humanity’s Bails Town Home Community project. Click here to read the news release.

2010 Colorado Business Hall of Fame inducts Merle Chambers and James Wallace

February 4, 2010 at the Hyatt Convention Center (650 15th Street, Denver, CO)

Join Junior Achievement and the Denver Metro Chamber of Commerce will induct five new Laureates at Colorado’s premier business black-tie gala event, the 21st Annual Colorado Business Hall of Fame.  Over the past 21 years more than 100 of Colorado’s more prominent business leaders have been inducted into the Hall of Fame and this year is no different as Hank Bosco, Merle Chambers, The Gart Brothers, Fred Hamilton and James Wallace join this group. Proceeds from the event support the programs of Junior Achievement and the Denver Metro Chamber of Commerce.  A reception for the event begins at 6:00 p.m. with program to follow.

Tables for this event start at $2,750 with individual tickets for $275. For more information or to purchase tables contact Shawna Robbins, at Junior Achievement, at 303-260-6286 or srobbins@jacolorado.org.

For more information visit: http://www.jacolorado.org/content/view/78/90/

16th Annual Great Balls of Fire 9-Ball Billiards Challenge

February 16, 2009 in Denver, CO

The Great Balls of Fire 9-Ball Billiards Challenge is all about the goodness in people who want to make a difference in the lives of children and their families. Hosted by the Colorado Professional Firefighters, Denver Firefighters Local 858 and Wynkoop Brewing Company.

Several IPAMS members have chosen to sponsor this worthy charity event.

Click here to learn more and how to become a sponsor.

Colorado Energy Jobs Summit

February 19, 2010 at Anschutz Medical Campus, Aurora, CO

U.S. Senator Mark Udall, the Keystone Center, Third Way and the University of Colorado will host an Energy Jobs Summitt. Energy Secretary Steven Chu is confirmed to deliver the Keynote address for the summit. Official invitation with specific registration information coming shortly. Registration is based on limited seating; please make sure to register early.

Content Policy

Materials contained herein are a summary of industry related issues and are for the edification of IPAMS members only. Contents do not reflect official comments or positions of IPAMS. Attribution of Wildcatter Weekly contents for publication without IPAMS consent is prohibited. NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.

Each year, professional trade organizations like IPAMS ask you for financial support.  This year, we also encourage you to get more value from your membership.

IPAMS volunteer leaders and professional staff were able to save the natural gas and oil industry here in the Intermountain West over $9 billion during 2009. Even so, we know we could do more if we were able to better leverage the voices of the 260,000 natural gas and oil employees in our region.  Our future success depends on an actively involved and deeply informed membership.  Likewise, the greatest challenge we face is effectively communicating with our members’ employees across our region.

With over 400 member companies in every sector of natural gas and oil development, IPAMS is now one of the largest and most effective natural gas and oil trade associations in the country.  Nevertheless, I am deeply concerned that our workforce doesn’t appreciate the extent to which federal and state policies currently under consideration could impact our region.  Policies that saddle the Intermountain West with greater uncertainty and higher costs will discourage investment and long-term growth.  Engaging our industry’s employees is critical to help our region succeed in an increasingly competitive marketplace for natural gas and oil.

There are a number of quick and painless ways that you take full advantage of IPAMS membership:

1. Sign-up to receive updates and action alerts
2. Encourage your employees to sign-up to and receive updates (If your company is a member, your employees are members too!)
3. Get involved in one of our many committees or social networks
4. Attend an IPAMS event
5. Invite other companies to join IPAMS and consider upgrading your company membership

For more specifics on increasing the value of your IPAMS Membership, please read below.

Sign-up to receive updates

Please create (or update) your user profile on the Members Only section of our website, http://member.ipams.org/public/.  After you have successfully logged in, please make sure that we have all of your current information in the Manage Account feature on the left side of the page.   There, you can add your preferences including name, title, address, username/password and decide which IPAMS messages you’d like to opt-in/out of. If you have any questions or trouble logging in, please call us at (303) 623-0987.

Once you are on the Manage Account page, you can choose which services you’d like to subscribe to, such as:

• Daily Newsbrief (a daily posting of industry-specific news articles)
• IPAMS newsletter Wildcatter Weekly
• Marc Smith’s Weekly Message (which includes important industry action alert notifications)
• Basin-specific Advisory Networks
• Environment & Air Quality Issues
• Government & Public Affairs Issues
• Market trends
• Tax Issues
• Wildlife Updates

Get involved in a Committee or Social Network

As an IPAMS member, you are also invited to participate on our committees, where your expertise and experience is needed.  Below are the IPAMS standing committees that support the efforts of our professional staff:

• Government & Public Affairs Committee (Vice President- Tim Hopkins, Black Hills Exploration)
  • IPAMS Basin Advisory Networks focus on basin and state-specific issues. By assigning task forces to manage issues for each region, IPAMS is able to monitor activities in the active basins in the region with input from Board-appointed State Vice Presidents.
    • Colorado State Vice President – Pam Roth, Williams
    • Montana State Vice President – Bruce Bowman, Fidelity Exploration & Production Co.
    • Nebraska State Vice President – Phil Kriz, Evertson Oil Company
    • New Mexico State Vice President – T. Greg Merrion, Merrion Oil & Gas
    • North and South Dakota State Vice President – Brent Miller, Whiting Petroleum Corp.
    • Utah State Vice President – Brad Miller, Anadarko Petroleum Corporation
    • Wyoming State Vice President – Randy Bolles, Devon Energy Corporation
• Crude Oil Markets Committee (Vice President – John Benton, El Paso E&P Company, L.P.)
• Membership Committee (Vice President – Bill Lancaster, GMT, Inc.)
• Events Committee (Vice President – Jeff Lang, Samuel Gary, Jr. & Associaties, Inc.)
• Natural Gas Markets Committee (Vice President – Porter Bennett, Bentek Energy LLC)
• Natural Gas Transportation Committee (Vice President – Greg Ruben, El Paso – Western Pipelines)
• Banking & Finance Committee (Chairman – Daria Mahoney, U.S. Bank National Association)
• Legislative, Legal & Regulatory Committee (Chairman – Shane Schulz, Questar Market Resources, Inc.)
• Air Quality Subcommittee (Chairman- Phil Schlagel, Anadarko Petroleum Corporation)
• Tax Subcommittee (Chairman – Bryan Pratt, Ehrhardt Keffe Steiner & Hottman PC)
• Wildlife Subcommittee (Chairman – Joe Icenogle, Fidelity Exploration & Production Company)

For those of you who understand the power of social media networks, I strongly encourage you to become connected on IPAMS Facebook page, or receive updates from our Twitter feed.

Attend an IPAMS event

IPAMS hosts numerous meetings and events throughout the year. Please be sure to stay up to date with important industry issues by attending IPAMS regularly scheduled meetings, speaker series, workshops, and conferences focusing on regional, national, and global outlooks, marketing, transportation, technology, and other current issues. Please mark your calendar for the following 2010 events and check our Meetings and Events page often:

• IPAMS Board of Directors’ Meeting, January 27, 2010 at the Brown Palace, Denver, CO
• 2010 Washington, D.C. Call-Up, March 1-3, 2010 (Click here to register)
• Wildcatter of the Year Gala, May 15, 2010, in downtown Denver, CO
• IPAMS Annual Meeting & Summer Conference, June 23-25, Park Hyatt, Beaver Creek, CO

Invite a company you work with to join or consider upgrading your membership.

The Intermountain West is home to thousands of companies that derive a livelihood from the natural gas and oil industry.  Consider asking one of the contractors or vendors you work with to join IPAMS.  To find out if a company is already a member, use your log in and password to search IPAMS membership directory (http://member.ipams.org/public/core/directory.aspx?&iSession=8e2b6982b2474bc99780591487fb0d13.)

Thanks to word of mouth advertising, more than a dozen new companies have already joined IPAMS during the first three weeks of 2010.

Special thanks to IPAMS members who have recently upgraded their membership!

• Pure Energy Services (USA), Inc.
• Pioneer Natural Resources
• Jonah Gas Company, LLC
• Mesa Energy Partners
• BENTEK Energy LLC
• Tall Grass Energy Company
• Macquarie Tristone
• Denver Mineral & Royalty Company
• Petros Environmental Group, Inc.
• NVI-Nondestructive & Visual Inspection
• Albrecht & Associates

If you are the primary IPAMS contact for your company, please consider forwarding this information to all of your employees and colleagues.  The more involvement we have, the more effective advocates we will be for your company and for our industry.

If you would like to know more about IPAMS or discuss a membership upgrade, please give me a call at your earliest convenience.  Again, thank you for all that you do for IPAMS. It’s because of you that our association is bigger, better, and stronger than ever before.  We look forward to serving you in 2010!