American Oil and Gas Reporter - May 2015 - 125

ConventionSection: Oklahoma Independent Petroleum Association

Oklahoma Producers Split
On Horizontal Unit Bill
By Dan Holder

OKLAHOMA CITY-While low commodity prices sideline drilling rigs and
crews across the globe, many Oklahoma
producers retain a high degree of optimism
in the oil and gas industry's future, with
a significant number of companies that
are committed to developing the state's
resource plays, including SCOOP and
STACK.
That positive attitude will be present
when the Oklahoma Independent Petroleum Association celebrates its 60th anniversary at its annual convention, to be
held June 5-9 at the Four Seasons Resort
and Club in Las Colinas, Tx. OIPA President Mike Terry says some in the industry
see encouraging signs regarding oil prices
while others are not so upbeat.
Terry says the South Central Oklahoma
Oil Province (SCOOP) is drawing the
most industry attention in the state, with
the Sooner Trend, Anadarko (Basin),
Canadian and Kingfisher (counties)
(STACK) right behind. SCOOP, running
from south of Oklahoma City toward the
Texas border, has as much as 400 feet of
pay at 15,000 feet, while the STACK
wells are targeting Woodford and Mississippian-age shales, he reports.
"The rig count is down in Oklahoma,
but it hasn't declined at the same rate as
in other states. It definitely is not as bad
as the national decline," Terry says.
"Some companies still are drilling at a
slower pace, and some hope to take advantage of decreased costs from the
service sector. OIPA is hoping things
turn around, at least by the third quarter
of 2015."
In addition to market uncertainties,
Oklahoma's producers face several challenges in the statehouse, Terry warns,
including legislation affecting how longer
laterals in horizontal wells are drilled.
HB 2177
The OIPA Board of Directors voted
to oppose HB 2177 unless an additional
amendment was added to the bill's language. According to the state legislative
website, the bill, by House Speaker Jeffrey

OIPA Annual Meeting - Las Colinas, Tx.
Friday, June 5

4 p.m. Exhibit Booth Setup, Four Seasons
Resort Ballroom Foyer, Promenade, and
Las Colinas East and West Ballroom
and Foyer
6-10 p.m. Wildcatters and Sponsors Cookout,
Four Seasons Pavilion

Saturday, June 6

7-11 a.m. Meeting Registration, Trinity
River Foyer
8 a.m.-1 p.m. Wildcatter's Saturday Swing
Golf Scramble, Four Seasons TPC
Wildcatters and Sponsors Only
Four Tee Scramble
Awards Lunch Immediately Following
the Tournament in the Pavilion
8:30 a.m.-1 p.m. Sporting Clays Tournament
Elm Fork Shooting Sports
2-3 p.m. Meeting Registration, Trinity River
Foyer
3-5 p.m. Board of Directors Meeting, Amphitheater
OIPA Board Members Only
6-8:30 p.m. Exhibit Booths Open, Four
Seasons Ballroom Foyer, Promenade,
and Las Colinas East and West Ballroom
and Foyer
6-7:30 p.m. Lucky 7's Welcome Reception,
Four Seasons Ballroom Foyer and Promenade
Adults Only
7:30-9:30 p.m. Oil Field Services Fundraising Auction, Four Seasons Ballroom D
9:30-11:59 p.m. Cards & Cocktails Casino
Party, Four Seasons Ballroom

Hickman, R-Fairview, amends the 2011
Shale Reservoir Development Act to
allow oil and gas operators to petition
the Oklahoma Corporation Commission
for permission to join units to drill extended-lateral horizontal wells across
multiple units outside of shale formations.
Hickman says his legislation ensures
Oklahoma remains on the cutting edge
of technology to enhance opportunities
to develop the state's energy resources.
Under the bill, the OCC would be responsible for allocating costs and proceeds
relating to the multiunit well for each of
the affected units.
OIPA says it would support the multiunit legislation if it included protections

Sunday, June 7

7-8:30 a.m. Rise & Shine Breakfast, Four
Seasons Ballroom A, B, C
8-8:45 a.m. Chapel Service, Fairway Ranch
8 a.m.-1:30 p.m. Exhibit Booths Open,
Four Seasons Ballroom Foyer, Promenade, and Las Colinas East and West
Ballroom and Foyer
9-11:30 a.m. Sunday General Session, Cottonwood Room
Financial Panel: Jeff Diethert, Simmons
& Company International; Bruce Day,
Crowe & Dunlevy
11:30 a.m.-1:30 p.m. Chairman's Luncheon,
Four Seasons Ballroom
2-4 p.m. Party on the Patio, Four Seasons
Boardroom Patio
7-10 p.m. Party Poolside, Four Seasons
Resort Pool
Children Welcome

Monday, June 8

7-8:30 a.m. Rise & Shine Breakfast, Four
Seasons Ballroom A, B, C
8-11:30 a.m. Exhibit Booths Open, Four
Seasons Ballroom Foyer, Promenade,
and Las Colinas East and West Ballroom
and Foyer
8:45-11:30 a.m. Monday General Session,
Cottonwood Room
Noon-5 p.m. Exhibit Tear Down
12:30-5 p.m. OIPA Golf Classic, Four Seasons TPC and Cottonwood Courses

for oil and gas producers in legacy vertical
wells. The board is seeking amendments
to HB 2177 that require 63 percent of all
working interest owners in any well producing from a common source to approve
the project before horizontal drilling begins.
"We have board members who support
the bill as is, and board members who
would like to see significant changes to
the proposed language," Terry says.
"Weighing the wants and needs of companies actively drilling in Oklahoma
against the wants and needs of our state's
producers has made for lengthy and sometimes lively board meetings, and has put
OIPA at the forefront of industry negotiMAY 2015 125

American Oil and Gas Reporter - May 2015

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