American Oil and Gas Reporter - December 2015 - 93

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ConventionCoverage: Pennsylvania Independent Oil & Gas Association
the commonwealth has lost."
He said "the punch" of Pennsylvania's
job losses "has landed, and (the governor)
has had to resort to campaign-like language, because that is all he has."
When asked about severance taxes
being used to fund Pennsylvania's education system, Turzai said he was "more
than willing to have a robust education
discussion, but the governor and legislature
need to leave the oil and gas industry out
of the discussion."
"Certain citizens are paying a lot of
money into their education system and
getting very little back in terms of quality
or graduation rates," he argued. "We
need to focus on objectives and accountability for our education system at the
state and local levels."
Turzai said it was unfair for the commonwealth to single out oil and gas, or
any other sector, to pay additional taxes.
"It is ludicrous to think you can try to
squeeze $1 billion out of one industry
without killing it, its jobs, or the energy
independence that comes with it," he said.
He recommended PIOGA "emphasize
the broad business impact oil and gas
has on communities, states and the nation,
as well as its products' important and
varied uses."
"The landscape of the entire debate
(on oil and gas) has changed," he stressed.

Chairman Gary Slagel comments on the
industry's future during this commodity
price slump. He said the association
would have to cut a few programs, and
invited members to attend board and
committee meetings if they wanted to
be involved in the decisions.

Pennsylvania House Speaker Mike Turzai, R-Allegheny, on screen, video conferences with
PIOGA President Lou D'Amico, at right. Turzai was unable to present in person, but nevertheless addressed PIOGA and updated its members on industry-related legislation.

"The industry and its allies need to keep
debunking the myths so that political
leaders and citizens alike understand the
narrative based on facts.
"Keep emphasizing those common
themes," Turzai encouraged. "Highlight
how many well-paying jobs your industry
creates, and how Pennsylvanians and
other American companies are working
to make this country energy secure, and
maybe one day, energy independent."
PIOGA's Future
PIOGA President Lou D'Amico and
Chairman Gary Slagel spoke briefly to
conference attendees regarding the association's future.
According to D'Amico, association
leaders are "taking a long hard look" at
PIOGA's structure, needs and potential.
Slagel commented that the industry
was facing an "economic cyclic low."
However, he said PIOGA was in a tough
situation because its members were producing more gas than was demanded.
The association has a very active committee and a full-time staff person dedicated to finding and promoting more end
uses for natural gas, he added.
"Many pipeline projects will be on line
within the next 12 months," Slagel noted.
"But, if there is no demand for the gas at
the other end, we still will be in the same
situation. The midstream sector's growth
should help alleviate the situation if it is
merely a transportation issue; but beyond
that, we need to develop the market."
Slagel said almost all state, regional,
and national oil and gas associations felt
the same way. He also noted that the industry's economic woes were impacting
PIOGA's budget. He said PIOGA's Board

of Directors would have to make cuts in
some areas, but it is "committed to remaining
focused on the members' essential needs."
In this way, he invited members to
attend the association's open board meetings, to ensure that members were aware
of the issues the board would decide. He
also asked members to participate in the
committees, or at least to be informed on
what they were discussing.
"We want to make sure we can stay
in front of the issues, and be of service to
conventional and unconventional members
alike," he continued. "We will continue
to monitor all regulatory, legislative and
political issues. We simply need to ensure
we don't overextend ourselves, but PIOGA
also has to remain an association that is
here for its members."
❒

NGR's Buda-Rose Well
Completed, Producing

TULSA-New Gulf Resources LLC
has completed the Gaylor 12 well in its
vertical Lower Cretaceous "Buda-Rose"
project in Madison County, Tx.
The company says it is drilling vertical
wells that commingle production from
as many as five zones in a given wellbore.
NGR's Gaylor 12 had initial production
of 458 barrels of oil and 1.2 million cubic
feet of natural gas from the commingled
Lower Cretaceous Buda, Georgetown,
Edwards, and Glen Rose formations.
NGR confirms it has one rig operating
continuously in the Buda-Rose play.
"We continue to see our drilling and
completion methods improve, and we
are taking even lower service costs," says
Ralph Hill, NGR's chairman and chief
executive officer.
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DECEMBER 2015 93

American Oil and Gas Reporter - December 2015

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