American Oil and Gas Reporter - February 2015 - 130

fund the pertinent regulatory bodies," he
describes. "And at current production
rates, our state's oil and gas severance
taxes adequately fund the corresponding
regulatory bodies. There is no need to
increase severance tax rates from $0.20
a barrel of oil and $0.05 an Mcf of gas."
The Ohio Legislature has discussed
severance taxes at least five times during
the past several years, Bennett recalls,
adding that the issue "will not go away,
and we do not anticipate it will anytime
soon." OOGA sought a resolution with
the 2.5 percent compromise last year, he
continues, adding that touching the topic
again "will be interesting," given oil and
gas prices.
During the 2014 session, the Ohio
Legislature also discussed HB 490, the
midyear biennium budget, which Bennett
says included a few industry issues such
as ad valorem taxes and unitization. "The
bill's language called for an ad valorem
fix," he suggests, "that would have ensured
county auditors were following the law
in determining ad valorem tax amounts."
The bill died in the Senate, but when
the governor releases his budget bill in
February, Bennett and Hickman say they
expect many HB 490 issues to resurface.
The governor's administration also may
want legislative clarification on industry-related issues, Bennett outlines, such
as chemical disclosure, background checks,
and insurance and bonding for water recycling facilities.

"The Utica Shale has made the Ohio
industry front-page news," he continues.
"We always have been active in our communities, but the industry used to fly
under the radar more. The goal is to educate people on how thoroughly this industry is regulated, and to ensure that
any rules and regulations have scientific
backing. This industry has to be defined
by facts and science; we cannot let fear
and emotions into the equation. Otherwise,
we are going to end (banning hydraulic
fracturing) like New York."
To help the association communicate
with its members, Hill says OOGA reorganized its internal committee structure.
The association has created new committees, and now its Board of Trustees
will conduct committee call-ups more
frequently, he details.
"We used to have a Board of Trustees
meeting every quarter, but that is too
long between meetings," Hill comments.
"So, with committee call-ups every month
between board meetings, OOGA committee members can inform the trustees
of any problems in a timely manner. We
implemented that in 2014, and we think
we will start reaping the benefits of that
in 2015."
Hill also remarks that growing shale
play activity has revitalized the association,
and has brought in young professionals
who are active association members and
leaders. "Until the shale play came to

A Changing Association
As the industry and association members' needs change, both Bennett and
Hill say OOGA will continue to change
with them. As a first-year executive vice
president, Bennett says he does not take
his role lightly. "There are a lot of long
hours and long nights to ensure this association runs properly," he comments.
"We spend a lot of time advocating for
our members on both the federal and
state levels.

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Ohio, we were talking about the 'graying'
of our industry-everyone seemed to be
in their 40s or older," he recalls. "Thanks
to the Utica, young people are coming
into Ohio. And because these young professionals are stepping up and taking on
leadership within the association, the new
blood is invigorating our membership.
That is a good thing."
OOGA's youth and strength will be
on full display during this year's winter
meeting, March 11-13 at the Hilton
Columbus at Easton, Hill predicts. Association leaders are expecting more than
2,000 attendees.
"The winter meeting is our premiere
event, where we work to bring in nationally
acclaimed speakers and organize an interesting agenda and exhibition area for
our members," he continues. "It is a wonderful networking tool. It allows the vendors and exhibitors opportunities to connect and have face time with their customers and clients."
OOGA expects a larger turnout than
last year, despite the price drop, Hill
says, adding that the meeting's attendance
and vendor numbers have been growing
for several years. "If it continues, we are
going to run out of space," he expresses.
"We are almost bursting at the seams.
The convention center is only so big.
Each year, we keep filling it more, and I
think it only has made the meetings
better."
Ì

the push. Even so, some oil and natural
gas industry leaders are championing the
mind-set that the shifting market, despite
its difficulties, will provide opportunities
for both producers and consumers.
Ohio Oil & Gas Association Executive
Vice President Shawn Bennett says Ohio
producers are beginning to cut activity,
but at the same time, bargain gas and oil
prices are stimulating the state's manufacturing industry. "It's a double-edged
sword in Ohio," he describes. "We have
seen member companies cutting budgets,
reducing workers' hours, and pausing
whatever operations they had planned.
And yet, our manufacturing sector is
taking advantage of the low commodity
prices."
Bennett clarifies that, because no one
knows how long commodity prices will
slump, OOGA members are re-evaluating
their budgets, and many are trimming or
pausing their drilling plans. The western

American Oil and Gas Reporter - February 2015

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