June 3, 2010
posted on: Jun 03, 2010
IPAMS Meetings and Announcements
IPAMS Annual Meeting and Summer Conference
June 23-25 in Beaver Creek, CO
Tomorrow is the last day to register at the discounted price for the IPAMS Annual Meeting and Summer Conference! Click here to view the agenda and details and register today!
Join IPAMS in this relaxed setting for just the right mix of business and pleasure– discuss topics such as production and transportation, demand growth and western regional competitiveness while networking with fellow IPAMS members. Sponsorship opportunities are available!
Thank you to our current sponsors:
Anadarko Petroleum Company | Bill Barrett Corporation | Devon Energy Corporation | EnCana Oil & Gas (USA) Inc. | Noble Energy | Halliburton | Pioneer Natural Resources | Questar Market Resources | Williams | Whiting Petroleum
Basic Energy Services | Berry Petroleum Company | Black Hills Exploration & Production | Hart Energy Publishing | Ultra Petroleum, Inc. | Wells Fargo
G3 Operating, LLC | El Paso E&P | Ensign United States Drilling | Welborn Sullivan Meck & Tooley, P.C. | Petroleum Development
Edmonds Energy Corp. | Fulbright & Jaworski L.L.P | Mesa Energy Partners | M.J. England & Associates | New Prospect Company | Nielson & Associates | Samson Resources | Schlumberger | Tracker Resources | Trinity Petroleum Management LLC
For more information and for sponsorship, contact Becca Ness or 303.623.0987.
Breakfast Reception for Steve Pearce (R-NM)
June 8, 2010 at 7:30 a.m. in Denver
IPAMS PAC is hosting a breakfast for former New Mexico Congressman Steve Pearce on Tuesday, June 8 at 7:30 a.m. at IPAMS (click here to see the invitation.)
Steve Pearce is a long time friend of the industry who was first elected to the House in 2002 and made an unsuccessful bid for the U.S. Senate against Tom Udall (D-NM). Now Pearce is fighting to regain his seat in Congress, and he needs our support. Steve was a leader on the House Natural Resources Committee, where he was the Ranking Member on the Subcommittee on Energy and Mineral Resources. Before being elected to Congress, Pearce served in the New Mexico House of Representatives, and owned and operated his own oilfield services firm. If elected, Pearce will retain his seniority and return as a fourth term Congressman from New Mexico.
Please join IPAMS PAC in helping Steve Pearce return to Congress where he will continue to fight for domestic energy production. You can be on the Host Committee for a $1,000 donation or just attend the breakfast for $500. Checks should be payable to “People for Pearce.” Please remember that corporate donations are not permitted.
Thank you for supporting this important event, and please contact Jon Bargas if you have any questions.
Join IPAMS In Washington DC
June 14-16, 2010
IPAMS is organizing a trip to DC with small independents on June 14-16 to discuss proposed onshore fee and royalty rate increases. If you’re a small independent who would like to help us explain to Congress what the impacts of inspection fees, non-producing acreage fees, and a permanent APD fee will be on western jobs and economies, please contact Kathleen Sgamma.
Help Stop Harmful Policies That Impact Western Energy Producers
Last week, the U.S. House of Representatives passed legislation that would extend expiring tax provisions and modify the tax treatment of “carried interest”. The Independent Petroleum Association of America (IPAA) has indicated much of the rationale for changing carried interest relates to its use by investment funds. In the natural gas and oil industry, small businesses often use a carried interest approach to create drill funds to develop new resource areas. The proposed legislative changes would alter the tax treatment for these projects and likely will not contain small business exclusions. IPAA has issued an action alert and IPAMS strongly encourages all members to click here and contact your representative in Congress.
Congress is already considering numerous revenue raising policies that impact all independent operators: the backbone of the western natural gas and oil supply. Inspection Fees, Non-producing Acreage Fees, Royalty Rates and permanent Application for Permit to Drill (APD) fees have all been proposed in the President’s FY 2011 Budget still under review by Congress.
Coupled with $36.5 billion in additional taxes on industry, these new fees and taxes will disproportionately impact the small businesses that produce 82% of America’s natural gas and 68% of the oil. The increased costs will remove capital from the development and production of American energy and result in further job losses.
Industry already more than pays for the administration of the onshore natural gas and oil program by returning $46 for every $1 BLM spends. In fact, if you factor in other federal taxes, industry returns about $123 dollars for every dollar the government spends. What other federal program provides such value to the American taxpayer? After the IRS, natural gas and oil production is the second highest source of revenue to the federal government.
IPAMS in the News
Letter to the Editor: “Editorial distorts”
published in: Salt Lake Tribune on: 06/02/2010 by: Kathleen Sgamma
The editorial “Rule change: Salazar reforms will improve process” (Our View, May 20) distorts the federal lands record in Utah. You ignore the seven years of effort that the people of Utah contributed to land-use planning.
Hatch Urges Administration to Reconsider Accessing Western Energy After President Suspends Off-shore Exploration
published in: TradingMarkets.com on: 05/28/2010 by: Staff
A recent survey by the Independent Petroleum Association of Mountain States (IPAMS) showed that in the absence of federal constraints, energy companies would be investing an additional $2.8 billion in the Rocky Mountain region.
Guest Editorial: Setting the record straight on wind energy
published in: Denver Post on: 05/28/2010 by: Frank Prager, Xcel Energy
Earlier this year, the Independent Petroleum Association of Mountain States (IPAMS) commissioned BENTEK Energy to prepare a study of the impact of renewable energy generation on Colorado air quality.
IPAMS Membership Update
IPAMS thanks our broad membership for supporting our organization through your 2010 dues. Your financial support ensures that we have the resources to continue to defend and promote your investment in the Intermountain West. For more information or to refer a company to IPAMS regarding membership please contact Susan Fakharzadeh.
Other Upcoming Meetings
Utah Basin Advisors Network (UBAN) Meeting with Senior Interior Advisor- June 8th, 10:00 a.m. Alan Gilbert, Senior Advisor to the Interior Secretary, Southwest and Rocky Mountain Regions will join the UBAN on Tuesday, June 8th at 10:00 to discuss leasing, permitting, NEPA analyses, wilderness, RMPs and other issues in Utah. Due to space constraints, we are asking for RSVPs for this meeting. Teleconferencing will also be available. Please contact Spencer Kimball if you plan to attend in person.
Colorado Basin Advisors Network (CBAN) Meeting: Colorado Rare Plants Presentation- June 9th, 10:00 a.m. This CBAN meeting will feature a presentation regarding a list of recommended Best Management Practices (BMPs) to reduce the impacts of oil and gas development to ‘plants of concern’ in Colorado by representatives of the Colorado Rare Plant Conservation Initiative. The Colorado Rare Plant Conservation Initiative, a partnership of 22 public agencies, private organizations, and academic institutions recently completed these voluntary oil and gas BMPs with funding from the National Fish and Wildlife Foundation (NFWF). The Nature Conservancy and the Colorado Natural Heritage Program are co-leading this effort and have asked IPAMS’ members to provide feedback on the list of BMPs. If you would like to attend this meeting, please RSVP to Spencer Kimball at 303-623-0987, and please be prepared to discuss the list of BMPs (Available here).
Wyoming Basin Advisors Network (WYBAN) Meeting: Wyoming RMP amendments for sage grouse- June 10, 10:00 a.m. In order to incorporate new sage grouse management policies set forth in the BLM Wyoming Instructional Memorandum for sage grouse (released in December 2009), BLM is preparing to amend the Casper, Kemmerer, Pinedale, Rock Springs, Newcastle, and Rawlins RMPs. Please join us for the next WYBAN meeting on June 10th at 10:00 am to discuss the amendment and help coordinate IPAMS’ comments. Comments are due by June 28. Click here to view the Federal Register notice.
Agendas are available for upcoming meetings at http://www.westernenergyalliance.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.
Visit westernenergyalliance.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.
Western Election News
Colorado guv candidates agree on jobs, differ on oil industry regulation
published in: Colorado Independent on: 06/03/2010 by: Scot Kersgaard
In their first appearance together, Colorado’s three major gubernatorial candidates on Tuesday agreed that jobs and the economy are the dominant issues in this year’s election. Republicans Dan Maes and Scott McInnis championed the oil and gas industry in the state and decried regulation.
Romanoff confirms White House job discussions
published in: Denver Post on: 06/03/2010 by: Michael Booth
U.S. Senate candidate Andrew Romanoff said publicly for the first time Wednesday that a White House deputy discussed three specific jobs that “might be available” if Romanoff dropped a primary challenge to a fellow Democrat, Sen. Michael Bennet.
Colorado
Fuel station is natural (gas) fit
published in: Citizen Telegram on: 06/03/2010 by: Heidi Rice
Already considered a front-runner in the state in the use of clean energy, the city of Rifle will get even greener with the construction of a compressed natural gas (CNG) filling station to help increase the use of natural gas as transportation fuel.
Ritter on oil regs: how you like me now?
published in: Fox 31 on: 05/28/2010 by: Eli Stokols
All is quiet on the western slope, at least on the subject of regulating oil and gas development — but that’s about to change.
Firm delays drilling in western Colo. as officials pursue health study (subscription required)
published in: E&E Land Letter on: 05/27/2010 by: Eryn Gable
A Denver-based energy company has delayed plans to drill more than 200 natural gas wells in a residential area in western Colorado, according to local officials monitoring the proposal.
Montana
Oil spill impact will reach the valley
published in: Grand Forks Herlad on: 05/28/2010 by: Ryan Johnson
The Gulf oil spill might be more than 1,000 miles from the Red River Valley, but experts say people up here will still notice effects from what has become the worst oil spill in U.S. history.
Montana BLM Request for Information
Montana BLM is asking operators for information as part of their NEPA analysis of climate change. They are attempting to get the corrective NEPA done so that suspensions on 2008 leases can be lifted and lease sales can proceed in 2010. Your comments on the validity of this information request are appreciated, as IPAMS has “contributing status” as a result of our intervention in the Montana 2008 lease sales lawsuit. Click here for more information.
New Mexico
N.M. drilling activity doubles in one year (subscription required)
published in: E&E Land Letter on: 05/27/2010 by: April Reese
Despite new rules regulating waste pits, oil drilling in New Mexico has more than doubled this year, New Mexico Gov. Bill Richardson (D) announced this week.
North Dakota
Dorgan calls absence of a special N.D. legislative session a ‘big mistake’
published in: Grand Forks Herald on: 06/02/2010 by: Patrick Springer
Sen. Byron Dorgan, D-N.D., said Wednesday that it is a “big mistake” not to call a special legislative session to address the significant infrastructure challenges confronting communities in North Dakota’s oil patch.
‘A North Dakotan through and through’
published in: Grand Forks Herald on: 06/01/2010 by: Kevin Bonham
Arthur Link, who served as North Dakota governor for eight years in the 1970s, championing a go-slow approach to energy development in western North Dakota, died Tuesday in Bismarck at age 96.
Western ND oil boom challenges law enforcement
published in: WDAY News on: 05/27/2010 by: Staff
The oil boom in western North Dakota is a challenge for law enforcement. Police say with the flood of new workers from out-of-state, crime is on the rise.
Utah
Fewer Oil Leases Offered In Utah
published in: KUTV Utah on: 05/25/2010 by: Rod Decker
A federal oil lease auction was held Tuesday morning in Utah, but only one parcel was sold. State leaders fear new rules from Washington will doom Utah’s oil industry.
Wyoming
Wyo. set to approve fracking disclosure rules (subscription required)
published in: E&E Land Letter on:06/03/2010 by: Phil Taylor
Wyoming regulators next week are expected to approve tough new rules aimed at tightening state oversight of a controversial oil and gas drilling technique that operators credit for helping open up vast new mineral reserves.
Washington Watch
Salazar may become fall guy in oil spill debacle
published in: Washington Examiner on: 06/03/2010 by: Julie Mason
With the BP oil spill getting worse and government’s oversight of the industry increasingly under scrutiny, calls for the ouster of Interior Secretary Ken Salazar seemed inevitable.
Obama hopes oil spill boosts support for climate bill
published in: Washington Post on: 06/03/2010 by: Steven Mufson and Michael D. Shear
President Obama tried Wednesday to channel public outrage about the Gulf of Mexico oil spill into support for a climate-change bill, seeking to redefine an issue that threatens to tarnish his presidency.
In oil spill shadow, Obama pledges energy bill push
published in: Reuters on: 06/03/2010 by: Alister Bull
President Barack Obama pledged on Wednesday to find support in the Senate for a bill to overhaul U.S. energy policy, using the Gulf of Mexico oil spill to hasten production of cleaner renewable fuels.
Obama Wants to Roll Back Tax Breaks for Oil Companies
published in: New York Times on: 06/02/2010 by: Helene Cooper
President Obama will call Wednesday for rolling back billions of dollars in tax breaks to oil companies, and will vow to push for climate change legislation “in the coming months,” setting the stage for another potentially divisive battle in Congress.
Oil Companies Weigh Strategies to Fend Off Tougher Regulations
published in: New York Times on: 06/02/2010 by: Eric Lichtblau and Jad Mouawad
When the Obama administration imposed new restrictions last week on offshore drilling in the wake of the BP oil spill, officials carved out an exemption that received little public attention: Companies working in shallow waters, unlike deep-sea operators like BP, could again begin drilling for oil and gas.
Interim Director Named for Drilling Agency
published in: New York Times on: 05/28/2010 by: John M. Broder
Interior Secretary Ken Salazar on Friday named Bob Abbey, director of the department’s Bureau of Land Management, as interim director of the Minerals Management Service, the scandal-ridden agency responsible for oversight of offshore drilling.
Did she resign or was she pushed out?
published in: Politico on: 05/27/2010 by: Scott Wong
Rep. Jim Moran (D-Va.) got a call Thursday morning from Liz Birnbaum, head of Minerals and Management Services, the agency under fire for its lax oversight of offshore drilling after the BP oil spill. She was set to testify before Moran’s House subcommittee later that morning but said she wasn’t coming.
Media Watch
Editorial: Environmentalists Also To Blame For Exxon Valdez And Gulf Spills
published in: Investors.com on: 06/01/2010 by: Editorial Staff
To save the environment, a senator from Pennsylvania wants to shut off a major source of natural gas. Weren’t the roads to the Exxon Valdez and Deepwater Horizon disasters paved with equally good intentions?
Editorial: Develop energy wisely
published in: InForum on: 05/30/2010 by: Editorial Staff
North Dakota faces an enviable but difficult challenge: how to make responsible use of our oil resources in ways that are consistent with our values and that ensure the long-term well-being of the state.
Editorial: Obama’s Blowout Preventer
published in: Wall Street Journal on: 05/28/2010 by: Editorial Staff
BP and the Coast Guard yesterday were cautiously optimistic that the “top kill” maneuver could stanch the Gulf of Mexico oil leak, and let us hope this is the beginning of the end of the disaster.
Editorial: Don’t back off on fracking disclosure
published in: Grand Junction Daily Sentinel on: 05/27/2010 by: Editorial Staff
A few words for U.S. Rep. Diana DeGette, the Denver Democrat, who introduced legislation to require energy companies to disclose the substances they use to fracture tightly compacted sands thousands of feet below the surface.
Environment and Wildlife
Water advocate calls for water-energy alliance
published in: Casper Star-Tribune on: 06/01/2010 by: Dustin Bleizeffer
The oil and natural gas industry in the United States pumps enough groundwater to supply 5 gallons of water for every American every day, according to the American Ground Water Trust.
Feds won’t protect prairie dog
published in: Casper Star-Tribune on: 05/28/2010 by: Staff
The high-altitude cousin of the black-tailed prairie dog has also been denied federal protection. The U.S. Fish and Wildlife Service announced Thursday that the white-tailed prairie dog does not merit protection under the Endangered Species Act, in part because of the animal’s abundance in Wyoming.
Technology, Alternative & Renewables
A Bullish View of Wind Power Out West
published in: New York Times on: 06/02/2010 by: John Collins Rudolf
Wind energy has plenty going for it: it is clean, unlimited in supply and the most economical source of renewable power. Its clearest drawback is unreliability: sometimes the wind just does not blow.
Wind-energy companies losing to cheap natural gas, lack of subsidies
published in: Denver Post/Bloomberg on: 06/01/2010 by: Christopher Martin
Vestas Wind Systems A/S, Siemens AG and Suzlon Energy Ltd. may end up with underused U.S. factories as cheap natural gas and a lack of federal support reduce wind turbine deliveries this year by as much as 50 percent.
Arizona could become a hotspot for alternative energy, but new plants won’t open without new infrastructure
published in: Arizona Republic on: 05/30/2010 by: Ryan Randazzo
Renewable-energy companies from Florida to Spain have their sights on Arizona, submitting applications for more than 80 solar and wind power plants across the state valued at tens of billions of dollars.
Western states can accommodate 30% wind, 5% solar — NREL (subscription required)
published in: E&E Land Letter on: 05/27/2010 by: Katherine Ling
Wind and solar energy could provide 35 percent of the electricity used for half the Western states by 2017, according to a new federal study.
Markets
With Gulf Disaster, Maybe Time To Look Onshore (subscription required)
published in: Wall Street Journal on: 06/02/2010 by: Isabel Ordonez
Investors are turning their attention to gas reserves onshore in the US as new regulatory risks and uncertainty following the massive oil spill in the Gulf of Mexico plague offshore assets.
Gulf mess spills over to stocks
published in: Associated Press on: 06/02/2010 by: Tim Paradis
Stocks took another late-day dive Tuesday after the government said it was starting criminal and civil investigations into the Gulf of Mexico oil spill.
U.S. natural gas production reaches highest level in 30 years
published in: Ft. Worth Star- Telegram on: 06/01/2010 by: Staff
U.S. natural gas production in March rose to the highest level in at least 30 years, led by gains in Texas and Alaska, the Energy Department reported Friday.
Industry News and Events
BP modifies plan to capture oil from leaking well
published in: Reuters on: 06/03/2010 by: Ed Stodard
The latest plan to capture oil belching from a BP well into the Gulf of Mexico will work less well than originally hoped, the U.S. Coast Guard said on Thursday.
DOE Grant Opportunity–Geothermal/Oil, Gas Wells
DOE has announced $20 million in grants for Innovative Geothermal techniques. What is unique about this one is that it targets geothermal “from productive, unproductive, or marginal oil and gas wells”.
Click here for more information.
BENPOSIUM
June 7-10, 2010 in Houston, TX
The most comprehensive natural gas symposium that applies the “fundamentals” perspective to how production, capacity, flow, inventories and demand interact to drive prices, trading opportunities and marketing and investing strategies. The goal of BENPOSIUM is to provide executives, analysts, traders and investors for an in-depth look at the shifting energy market dynamics and how these developments are the reshaping natural gas and power industry landscape. Click here to view the agenda and to register.
Utah: A Model for Clean, Safe Energy Development
June 15th in Salt Lake City, UT
The Responsible Energy Development Forum (REDF) and School and Institutional Trust Lands Administration (SITLA) are hosting an energy seminar entitle Utah: A Model for Clean, Safe Energy Development on June 15th from 10:00 a.m. – 12:30 p.m. at the State Capitol. The program includes remarks from state Senator Kevin VanTassell and Representatives Roger Barrus and Eric Hutchings, and a panel moderated by DOGM Director John Baza including representatives from Anadarko, Arch Coal, Bill Barrett Corp., Questar, Rocky Mountain Power, and the Utah Mining Association. Click here for the agenda.
Western Governors’ Association 2010 Annual Meeting
June 27-29, 2010 in Whitefish, MT
The Western Governors’ Association will recognize “100 Years of Common Ground” at this year’s Annual Meeting. Topics will include:
-Sharing a Finite Resource: Challenges and Opportunities in Water Management
-Building New Energy Generation and Transmission
-Working Across Borders to Conserve Landscapes
For more information on the meeting visit the WGA Web site at www.westgov.org.
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