IPAMS Meetings and Announcements

This Saturday: Wildcatter of the Year

May 15, 2010 in Denver, CO

IPAMS 2010 Wildcatter of the Year Gala will be held at the Denver Center for the Performing Arts this Saturday, May 15, 2010. This black tie event begins with a cocktail reception in the lobby of the Bonfils Theatre at 6 p.m. and is followed by dinner in the Seawell Ballroom.

IPAMS Wildcatter of the Year is a lifetime achievement award honoring distinguished service to the natural gas and oil industry and the community. Members of our industry in the Intermountain West nominate deserving colleagues for the Wildcatter of the Year, and the name of the winner is kept secret until the presentation. The winner receives a beautiful bronze sculpture by artist Veryl Goodnight from New Mexico.

Over 600 attendees are currently registered. Click here to see a preview of the evening’s event.

If you haven’t done so yet, please click here to register.

After registering online, please email Becca Ness or call (303) 623-0987 with the names of your guests to ensure they have a nametag at check-in.

A special thank you to our sponsors:

Montana/Dakotas Lease Sale Update

Ever since the Montana lease sale settlement was announced, IPAMS has been advocating that the corrective NEPA environmental analysis be completed within six months so that the lease suspensions can be lifted and sales proceed in 2010. While we remain concerned that leases are suspended and sales postponed, the silver lining is that members of the Western Congressional Delegation have been galvanized on these issues, as they have recognized the implications of stopping economic activity and job creation because of climate change analysis. Montana Senators Baucus and Tester sent a letter to BLM requesting timely completion of the environmental analysis, as has Congressman Earl Pomeroy (D-ND).

In addition, certain members of Congress have recognized that this is another way the Administration is attempting to regulate climate change in the absence of Congressional action. Senators Barrasso (R-WY), Inhofe (R-OK), and Vitter (R-LA) have introduced a NEPA Certainty bill that would prevent federal agencies from considering climate change in NEPA analyses; and today, Congressman Dennis Rehberg (R-MT) with co-sponsor Stephanie Herseth-Sandlin (D-SD) introduced the LEASE Act (Limit Executive Actions Suspending Energy). Their bill would prevent federal agencies from taking any administrative action to regulate greenhouse gas emissions including issuing orders, promulgating regulations, or otherwise regulating, monitoring, mitigating, predicting or documenting such emissions.

Click here for IPAMS position paper on Montana/Dakotas leasing.

Fundraiser 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 Jon Bargas if you have any questions.

IPAMS Annual Meeting and Summer Conference

June 23-25 in Beaver Creek, CO

Registration is open for the IPAMS Annual Meeting and Summer Conference, June 23-25 in Beaver Creek, CO. Join us 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!

Click here to see the complete details.

For more information, contact Becca Ness or 303.623.0987.

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.

This week we are proud to recognize the following new memberships:

UPGRADED MEMBERSHIP

Williams

PIONEER MEMBER

Timothy Hamilton

Poulson, Odell, and Peterson LLC

NEW FRONTIER MEMBERS

Resolute Natural Resources

For more information or to refer a company to IPAMS regarding membership please contact Susan Fakharzadeh.

IPAMS in the News

Retired land managers back leasing reforms (subscription required)

published in: E&E Land Letter on: 05/13/2010 by: Scott Streater

An IPAMS member survey released last month suggests the Intermountain West has been placed at a competitive disadvantage as the Interior Department gives greater scrutiny to drilling proposals in Colorado, Wyoming and Utah. “We’ve seen already that the uncertainty over Interior’s proposed reforms have diverted $3.9 billion in investments [by the industry] from the West,” said Kathleen Sgamma, director of government affairs for the Independent Petroleum Association of Mountain States in Denver.

Bennett, Barrasso Move to Stop Oil and Gas Reforms

published in: Public Lands News on: 05/10/2010 by: James Coffin

One of Salazar’s biggest critics, the Independent Petroleum Association of the Mountain States, has complained that the new system would put bureaucrats in charge of oil and gas development, rather than scientists with expertise.

Groups sue over BLM drilling plan

published in: Associated Press on: 05/07/2010 by: Mead Gruver

Kathleen Sgamma, director of government affairs for the Independent Petroleum Association of Mountain States, called it a “pretty standard lawsuit.” The BLM developed the plan over several years with participation from a variety of groups, Sgamma pointed out. “The groups suing are never satisfied with the balanced approach that BLM tries to take. It’s another way to try to shut down oil and gas,” she said.

Other Upcoming Meetings

Wyoming Basin Advisors Network (WYBAN) Meeting – May 27th, 10:00 a.m.

Colorado Basin Advisors Network (CBAN) Meeting – 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).

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.

The West

BLM director for Montana, North Dakota, South Dakota retires

published in: Ag Week on: 05/11/2010 by: Staff

The top Bureau of Land Management official for Montana, North Dakota and South Dakota has retired. Gene Terland of Columbus had been the agency’s state director since 2006. He will be replaced by Howard Lemm, the associate state director, until a permanent replacement is selected.

Colorado

Interior Department opening Colorado’s North Park to gas and oil drilling

published in: Denver Post on: 05/09/2010 by: Bruce Finley

Over the protests of conservation groups, federal land managers are moving to open 11,160 acres of North Park for gas and oil drilling. The valley between the Zirkel and Medicine Bow mountains sustains antelope, elk, moose, bighorn sheep, raptors, trout and sage grouse.

Montana

Blackfeet Tribe to distribute $5.5M as part of oil exploration deal

published in: Associated Press on: 05/08/2010 by: Staff

The Blackfeet Tribal Business Council has approved using $5.5 million that’s part of a reservation oil exploration deal to buy land, build a grocery store, and give each tribal member a $200 payment. Chairman Willie Sharp Jr. says the council approved the plan late last month.

New Mexico

Boats mobilized at Navajo Lake as crews inspect areas for natural gas leak

published in: Farmington Daily Times on: 05/07/2010 by: Elizabeth Piazza

Reports of a release in an old natural gas line at Navajo Lake sent emergency crews to scour the area Thursday checking for signs of a leak, authorities said. “The Oil Conservation Division environmental engineer went out on the lake with a State Parks ranger and found no evidence of a release,” said Jodi Porter, spokeswoman for the Oil Conservation Division.

North Dakota

ND oil lease auction brings record $158M

published in: Associated Press on: 05/06/2010 by: James MacPherson

A quarterly state auction for oil drilling rights on North Dakota state land has reaped a record $158 million, most of which will go toward public school funding, figures released Thursday show. The two-day Land Department auction that ended Wednesday fetched an average $2,967 an acre for about 53,275 acres of land in a dozen counties in western North Dakota’s oil patch, agency records show.

ND Legislators debate impact of oil boom on counties

published in: Bismarck Tribune on: 05/06/2010 by: Rebecca Beitsch

The oil boom is costing millions to counties in oil country as they try to ramp up services to deal with the influx of people and traffic to their communities. A new study by the the Association of Oil Producing Counties found that those counties were experiencing a greater workload and having to incur more costs as a result of oil by as much as $57 million.

Utah

Company applies for gas-fired power plant

published in: Salt Lake Tribune on: 05/12/2010 by: Mark Havnes

A plan to burn natural gas at a proposed power plant in Sevier County still has problems, residents say, but not as many as a proposal for a coal-powered plant. On Wednesday night, Sevier Power Co. asked the county’s Planning and Zoning Commission to approve a gas-fired plant that would generate 540 megawatts of electricity.

Energy projects threaten Utah’s water resources

published in: Deseret News on: 05/09/2010 by: Harold Shepherd

With Shell Oil’s recent withdrawal of a water right permit application to divert 375 cubic feet per second of water from the Yampa River in northwest Colorado, one would get the impression that the bubble has finally burst on mass scale, traditional energy development in the West and that the oil industry has finally come to terms with the impact of traditional energy development on rapidly diminishing water resources. Not so in Utah.

Wyoming

Amid talk of oil play, Wyo. nets record lease sale

published in: Associated Press on: 05/13/2010 by: Mead Gruver

The U.S. Bureau of Land Management auctioned off a record $32.3 million in federal oil and gas rights in Wyoming amid speculation that a major oil play could be in the offing in the eastern part of the state. Tuesday’s quarterly lease sale in Cheyenne broke the previous record of $30 million set in April 2008 and was three times the total paid for all leases in Wyoming last year.

Commission delays fracking rules decision until June

published in: Casper Star-Tribune on: 05/12/2010 by: Dustin Bleizeffer

The Wyoming Oil and Gas Conservation Commission will delay several rule changes until its next formal hearing on June 8. Included in the rule changes are more stringent reporting requirements regarding chemicals used in hydraulic fracturing, a technique to crack gas-bearing rock formations to stimulate gas production.

Backlog of protested Wyo leases persists at BLM

published in: Associated Press on: 05/11/2010 by: Mead Gruver

Environmental protests, uncertainty over endangered species and a change in presidential administrations have bogged down oil and gas leasing in Wyoming. The U.S. Bureau of Land Management has issued just 51 of nearly 1,200 oil and gas leases sold at its 11 lease auctions since June 2008.

Washington Watch

Poll: Good marks for Obama on spill, more drilling

published in: Associated Press on: 05/13/2010 by: Seth Borenstein and Alan Fram

The Gulf of Mexico oil spill hasn’t stained President Barack Obama nor dimmed the public’s desire for offshore energy drilling, according to a new Associated Press-GfK Poll. While some conservative pundits, such as Rush Limbaugh, have called this “Obama’s Katrina,” that’s not how the public feels, the poll found. BP PLC, which owned the well that has gushed more than 4 million gallons since an Apr. 20 oil rig explosion, is getting more of the public’s ire.

Power companies find plenty of reasons to like Kerry-Lieberman bill (subscription required)

published in: E&E News on: 05/13/2010 by: Darren Samuelsohn

The nation’s largest electric utilities emerged yesterday as a big winner in the Senate climate legislation after months of high-stakes, closed-door negotiations. Big power companies got many of the things they asked for from Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), including valuable allocations that help them compensate their customers for otherwise higher energy prices to pre-emption of both existing state climate laws and U.S. EPA’s ability to write its own greenhouse gas rules.

Nat gas industry disappointed with climate bill

published in: Financial Times on: 05/13/2010 by: Sheila McNulty

US natural gas producers have been keeping their fingers crossed that the next energy bill out of Congress would include major incentives for the fuel. They were unhappy with the Waxman-Markey proposal for barely mentioning natural gas and have been in Washington ever since trying to get lawmakers to recognise the benefits of natural gas. The American Petroleum Institute says it is still considering its view on Senators John Kerry and Joe Lieberman’s draft bill.

Over 200 Grassroots Clean Energy/Environmental Groups object saying Kerry-Lieberman Dirty Energy Bill Is No Solution to Climate Crisis

Republicans bristle at feds’ land plan

published in: Politico on: 05/12/2010 by: Marin Cogan

A tightly held administration plan to consider designating up to millions of acres of land in the West as national monuments has Western Republicans up in arms. Republican members of Congress are bristling over an Interior Department “not for release” memo that was leaked to Rep. Rob Bishop (R-Utah), outlining 14 areas, totaling 13 million acres in the West that the administration is considering for designation as national monuments.

Salazar Says Oil Agency Will Separate Safety, Leasing

published in: Bloomberg/Businessweek on: 05/11/2010 by: Katarzyna Klimasinska

The Obama administration plans to split the government agency that regulates offshore oil drilling into two as part of its response to the BP Plc spill in the Gulf of Mexico, Interior Secretary Ken Salazar said. The Minerals Management Service’s oversight of safety and environmental enforcement will be separated from its oil leasing and royalty collection “so that the American people know they have a strong and independent organization holding energy companies accountable,” Salazar said today in a statement.

Dems plot fee hike on oil

published in: Politico on: 05/11/2010 by: David Rogers

Alarmed by the growing cost of the Gulf disaster, Democrats are actively discussing at least a one-cent-per-barrel increase in fees paid by the oil industry to finance a government trust fund covering damage claims from such spills. No final decision has been made, but the added revenue is coveted by tax writers, still struggling to find close to $50 billion in offsets needed to pay for an election-year package of infrastructure investments and popular tax break extensions.

Incumbent watch: Who’s next to go?

published in: Politico on: 05/11/2010 by: Alex Isenstadt

Sen. Bob Bennett (R-Utah), who was defeated Saturday, was the first incumbent to lose his party’s nomination this year. But he almost certainly won’t be the last in this unusually volatile election year. Last week alone, Rep. Dan Burton (R-Ind.) squeaked through a crowded GOP primary field, winning with just 30 percent of the vote.

Media Watch

Op-ed: Sage grouse decision an opportunity

published in: Salt Lake Tribune on: 05/10/2010 by: Michael L. Wolfe, Professor, Utah State University

As a wildlife professional with 40-plus years experience working in academia and with state and federal agencies, I’ve seen the status of several species change in response to protective measures. In March the U.S. Fish and Wildlife Service announced that the greater sage grouse merits Endangered Species Act (ESA) protection. The sage grouse was added to the list of candidate species awaiting protection under the ESA when funding allows.

Op-ed: Shale Gas Will Rock the World (subscription required)

published in: Wall Street Journal on: 05/10/2010 by: Amy Myers Jaffe

There’s an energy revolution brewing right under our feet. Over the past decade, a wave of drilling around the world has uncovered giant supplies of natural gas in shale rock. By some estimates, there’s 1,000 trillion cubic feet recoverable in North America alone—enough to supply the nation’s natural-gas needs for the next 45 years. Europe may have nearly 200 trillion cubic feet of its own. We’ve always known the potential of shale; we just didn’t have the technology to get to it at a low enough cost.

Editorial: Does the Climate Bill Have a Chance?

published in: New York Times on: 05/09/2010 by: Editorial Staff

The oil spill in the Gulf of Mexico has revived interest in long-stalled Congressional legislation aimed at addressing climate change and American dependence on fossil fuels. The House approved its own version of the bill last year, but the Senate version, which is set to be unveiled on Wednesday by its sponsors, Senators John Kerry and Joseph Lieberman, has been recast to take into account the concerns of farm and energy states, and includes a provision that allows offshore oil drilling.

Editorial: Seeking balance on the prairie

published in: Bismarck Tribune on: 05/09/2010 by: Editorial Staff

North Dakota welcomes the development of its energy resources. Be those resources wind, coal, oil or biofuels. Gov. John Hoeven made it clear when addressing the Williston Basin Petrolum Conference in Bismarck last week: “Getting permits to drill in other parts of the country isn’t always easy. We want to do things right. We want to do things well. We want to make sure the people of North Dakota are taken care of. But we want to do business in this state. We’re all about doing business.” That strategy has been paying off.

Littwin: Public surprisingly chill over oil spill

published in: Denver Post on: 05/09/2010 by: Mike Littwin

It was a strange, weird and totally unscripted moment, the last thing you’d expect to see these days at a national political convention. But as Rudy Giuliani was delivering his speech at the 2008 Republican convention, the crowd broke out into a “drill, baby, drill” chant. And Giuliani — who was the warmup act for Sarah Palin that night — clearly didn’t know how to react.

Environment and Wildlife

Green groups hope Gulf spill galvanizes movement

published in: Associated Press on: 05/13/2010 by: Staff

In the weeks after an oil rig exploded and killed 11 men in the Gulf of Mexico, worried environmental groups scoured the water for oil plumes, set up animal triage centers and stretched boom across shorelines. Activists hope their involvement doesn’t end there; maybe, they contend, this is the catalyst that America’s green movement needs.

Colorado, New Mexico governors tout interstate wildlife corridors

published in: Denver Post on: 05/13/2010 by: Bruce Finley

The Colorado and New Mexico governors teamed up Wednesday to tout a report that warns of climate change and development threats to wildlife — and build on their initiative to establish animal migration corridors. The pro-wildlife politics reflect a push by the Denver-based Freedom to Roam coalition, which also is lobbying in Washington, D.C. Corporate, government and conservation leaders behind the effort propose a network of corridors for elk, mountain goats and sheep, pronghorn, bears, wolverines — seen as essential for wildlife survival amid population growth, climate change and energy development.

Markets

EIA more bullish on 2010 in latest outlook

published in: Oil & Gas Journal on: 05/11/2010 by: Marilyn Radler
In its latest short-term energy outlook (STEO), the US Energy Information Administration projects that US real gross domestic product will grow by 3% this year, while worldwide real oil-consumption-weighted GDP will increase by 3.6%. Both of these projections are 0.2% higher than in EIA’s previous outlook. For 2011, EIA forecasts real GDP growth will be 2.9% in the US and 3.7% worldwide.

Industry News and Events

BP Says Leak May Be Closer to a Solution

published in: New York Times on: 05/12/2010 by: Henry Fountain and Matthew L. Wald

After days of deepening gloom, BP and two Obama administration officials suggested on Wednesday that the company was closer to a solution that might halt the seemingly uncontrollable oil spill in the Gulf of Mexico. The officials said engineers and scientists at BP’s command center in Houston had drafted plans to work on and around an underwater blowout preventer, a massive safety device that is designed to seal an oil well in an emergency but failed to do so after the explosion at the rig on April 20.

Environmental Learning for Kids Cast-a-Line BBQ

May 15, 2010 at Lake Lehow, Colorado

Environmental Learning for Kids (ELK) is hosting it’s spring fishing event, Cast-a-Line, on Saturday, May 15th from 11 – 3 at Lake Lehow in southwest Denver. Click here for more information or visit the ELK website, www.elkkids.org.

Fundraiser for Rep. Cynthia Lummis (R-WY)

May 17, 2010 in Houston, TX

Dave Roberts, Jerry Howard and Randall Luthi will be co-hosting a lunch fundraiser at Masraff’s Restaurant, 1753 Post Oak Blvd in Houston. Suggested contribution is $1000/PAC or $500/individual.

Click here to view the invitation.

2010 International Coalbed & Shale Gas Symposium & RPSEA Forum

May 17-21, 2010 in Tuscaloosa, Alabama

The focus of this symposium is on accurate delineation and efficient recovery of both mine-related and stand-alone coalbed methane resources worldwide. While the majority of the papers presented relate to coalbed methane, this meeting provides a wonderful opportunity for interdisciplinary examination of diverse technologies concerning coalbed methane and shale gas.

Click here for more information.

“The Compelling Case for Natural Gas Vehicles (NGV)”

May 18, 2010 in Denver, CO

Information for all professionals interested in utilizing natural gas as a transportation fuel, from the fleet manager to fueling infrastructure and vehicle providers. The workshop will cover the following topics:

• Natural Gas 101- the basics

• Identifying funding opportunities

• Making the business case for using natural gas

• Vehicle availability and infrastructure logistics.

Click here to register.

2010 Industry Awareness Luncheon

May 18, 2010 in Denver, CO

Desk and Derrick Club of Denver, an educational organization for those employed in or affiliated with the oil and gas industry, will hold their 2010 Industry Awareness Luncheon, with Mr. Scott McInnis as the keynote speaker.

This year’s luncheon theme is “Change – The Only Constant in the Energy Industry” with Mr. McInnis addressing “Jobs and Colorado’s Economic Future.”

The cost is $40 per person. For a reservation form, please email Joanne England. Reservation forms and payment must be received by Friday, May 14, 2010.

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.

Institute for Energy Research’s 2nd Annual Houston Luncheon

June 4, 2010 in Houston, TX

The Institute for Energy Research (IER) will have John Stossel, Fox Business Anchor, as their keynote speaker at their 2nd Annual Luncheon.

For additional event and sponsorship questions, contact Nancy Bradley at events@iertx.org or call (713) 591-1732. Click here for more information and registration.

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.

2nd Annual Front Range Energy Career Expo

September 24, 2010 at Red Rocks Community College

The Front Range Energy Career Expo and Forum (Expo) is designed as an educational event for high school students in the Denver Metro area. The goal of the event is to bring college representatives, energy companies, and students together in one location, to present information about college options and job opportunities to the future generation of leaders that will graduate from high school in the next two years. This year’s event will be co-hosted by High Plains Communications, LLC and Red Rocks Community College.

To sponsor, speak, or host a booth contact Jaime Gardner or (970) 597-0696.

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.

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