Compact Comments
December/January 2008

Oil and Gas Producing States to Fight Federal Revenue Sharing Provision

The IOGCC will fight to restore the funding cut by the passage of a Congressional spending package provision that will reduce states’ share of revenues from federal oil and gas production.

The provision reallocates funding from a current 50-50 split of federal oil and gas revenues to a 48-52 percent split.

“This latest Congressional action poses a significant threat to states and state programs,” said Alaska Gov. Sarah Palin, IOGCC chairman. “The IOGCC will continue to do everything in its power to fight this provision.”

Gov. Palin said she is also concerned that this Congressional action could set a precedent in reducing the share of revenue that is distributed to the states.
“The IOGCC has long advocated for a 50-50 split on revenue and was in fact instrumental in achieving that goal several years ago,” said IOGCC Acting Executive Director Gerry Baker. “We believe that the federal government has not made its case for this action. Previous studies have shown that states can administer the revenue distribution at a much lower cost than the federal government.”

Although the new provision will affect many states, it will hit western states with the most public lands the hardest. Such is the case with New Mexico, an IOGCC member state.

“Revenue from oil and gas production on federal land is an important source of income for the state of New Mexico,” said Mark Fesmire, chairman of New Mexico’s Oil Conservation Commission. “This new provision would hit the state hard and would reduce our share of revenue by more than $11 million per year.”

IOGCC Midyear Issues Summit in Calgary is Coming Soon

Register Jan. 18 for the Midyear Issues Summit in Calgary, Alberta, May 4 - 6, 2008.

Join us in Calgary, Alberta, Canada this May for the opportunity to discuss emerging issues of the nation's oil and natural gas.

A passport is required if flying to Canada.

Calgary, Alberta
Sheraton Suites Calgary Eau Claire
May 4 - 6, 2008

Key Dates
Early Registration Cut-off
Wednesday, April 9

Hotel Room Cut-off
Wednesday, April 9

Visit the IOGCC Web site to register and for updated information.

IOGCC to Kick Off Grant-funded Source Reduction Grant

The U.S. EPA recently awarded the IOGCC an $84,000 grant to provide training and technical assistance to field inspectors, independent operators and producers in West Virginia and Virginia. The grant award will enable the IOGCC to present a training event specifically designed for the region’s state field inspectors and a training event targeting independent producers and operators in the region.

Promoting efficient materials management in natural gas production is an exciting opportunity due to the availability of inexpensive technological upgrades. These upgrades are an incredibly cost-effective means of preventing billions of cubic feet of natural gas, composed mostly of the greenhouse gas methane, from being lost into the atmosphere. In many instances, these technologies also provide a remarkable return on investment to the producer.

The high number of marginal wells and small oil and gas companies in states such as West Virginia and Virginia require a more decentralized approach to reaching those who are the decision-makers for local and regional operations. In order to custom design the training to meet the needs of independent producers and field inspectors and to understand the unique challenges facing independent producers, the IOGCC will conduct focus groups and begin curriculum development February 2008. Training events are tentatively scheduled for late summer.

Key partners in this collaborative project are the Independent Data Collection Center (IDCC); West Virginia DEQ Department of Oil and Gas; Virginia Department of Mines, Mineral and Energy Division of Oil and Gas; West Virginia Oil and Natural Gas Association (WVONGA); and the Independent Oil and Gas Association of West Virginia (IOGA).

Briefs

  • IOGCC's Nominating Committee reported that several applications were received for the executive director position. The committee will be conducting interviews in mid January and is expected to present its recommendation to the Business Committee for a vote at the Washington, D.C. meeting in March.

  • IOGCC would like to welcome two newly inaugurated governors, Gov. Steve Beshear of Kentucky and Gov. Bobby Jindal of Louisiana, to the IOGCC. The IOGCC would like to thank former Gov. Ernie Fletcher of Kentucky and former Gov. Kathleen Blanco of Louisiana for the support they have shown the IOGCC.

  • IOGCC welcomes two new official representatives. Gov. Otter of Idaho appointed George Bacon as Idaho's official representative to the IOGCC. Gov. Bredesen of Tennessee appointed Paul Schmierbach as Tennessee's official representative to the IOGCC.

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