American Oil and Gas Reporter - July 2015 - 165

ConventionCoverage: Tennessee Oil & Gas Association
situation. Although market prices may
not favor American producers, the geopolitical and military instability in Eastern
Europe, the Middle East, and North Africa
favors the U.S. market long term, Brown
held.
"The prices will benefit consumers,
particularly the recovering U.S. manufacturing sector," she described. "Despite
today's unfavorable price conditions,
global financial experts agree that the
center of the oil market has shifted to the
United States. So, we may not have everything going for us, but we have more
going for us than we may think."
Local Ordinances
Consumer Energy Alliance's Vice
President of State Affairs Brydon Ross
cautioned TOGA about the risk of local
ordinances and bans on oil and gas drilling
and production.
As of late May, Ross said there were
approximately 500 local control bans
pending or in effect across the country.
An organic, organized movement has arrayed itself against the industry, he detailed, but the other side of the argument
lacks such voices. "The anti-development
groups are targeting methods of market
transportation: rail lines, pipelines, etc.,"
he said. "They have planned it ahead of
time, and they are very good at creating
the perception that oil and gas development

Brydon Ross with the Consumer Energy
Alliance warns TOGA members about
possible local bans on oil and gas drilling.
Ross encouraged industry members to
rally third-party support to defend the
industry to counteract the many movements organized against it.

is bad for communities."
These ordinances target anything from
natural gas liquids to seismicity to
pipelines, he continued, and several either
passed or were pending in states such as
Virginia, North Carolina, Texas, Ohio,
and Pennsylvania.
However, Ross offered several pieces
of advice on local ordinances, including:
* Support from the labor and manu-

facturing sector helps people realize it's
not a corporate problem, but a public
one. "It's not an industry versus citizens
issue, and you never want them to see it
that way," he clarified. "You want them
to see it for what it is: a citizens versus
citizens issue."
* A coalition of "regular folks" must
champion the industry, because, "that is
exactly what (the opposition) has done,"
he said. "Most of the anti-industry group
members are everyday citizens; so when
someone from an oil and gas company
comes in to talk, it looks like 'big, bad
business' is trying to smooth things over.
That is why it's important to have community and civic leaders-people respected
in their communities-speaking for the
industry. Have a third-party messenger."
* It helps to emphasize that oil and
gas drilling and production revitalize
communities, and that natural gas is helping the United States reduce its greenhouse
gas and carbon emissions.
* Companies should consider local
regulatory attention a near certainty.
"Look over the loopholes now, and start
reaching out to communities as soon as
possible," Ross advised. "And always,
keep the debates between citizens."
* The message about the industry
should be "aspirational, inspirational and
motivational," he affirmed.
❒

TOGA Expecting Push For Frac Bans

GATLINBURG, TN.-Local anti-development groups may push for the Tennessee Legislature to ban hydraulic fracturing during its 2016 session, the Tennessee Oil & Gas Association speculates.
During the association's annual membership and board meeting May 22 at
Gatlinburg's Park Vista Hotel, TOGA
Chairman William Goodwin II and President Chuck Laine warned members about
what they could expect during next year's
legislative session.
"The environmental groups really
pulled back this year," Laine explained.
"They weren't as active as in years past,
and didn't introduce a single measure
against fracturing or mining.
"I think it was because they were
trying to figure out the freshmen Democratic legislators," he continued. "But, I
expect them to be in full force next year,
and have bills against fracturing."

Laine, who lobbies the Tennessee legislature on TOGA's behalf, also said the
2015 session was indicative of what lawmakers might do next year, especially in
regard to local ordinance issues. "This association already is struggling with cities
and counties on tax issues," he mentioned.
TOGA members should start working
on rallying legislative support for a bill
saying that local governing bodies, such
as municipalities and counties, cannot
pass a ban on hydraulic fracturing, Laine
suggested.
One member commented that TOGA
need not be concerned if the state's four
major cities-Nashville, Knoxville, Chattanooga, and Memphis-passed such bans,
as long as towns in production-heavy
areas did not do the same. However, another member countered, such bans would
set an "ugly precedent," and might spark
county-level overreach.

A third member asserted that, should
the state ever ban hydraulic fracturing, it
should have to compensate the landowners
and producers at fair market value for
taking away those rights. "If (towns in
production-heavy areas) ban hydraulic
fracturing, that is going to cost the state
a lot of money," he added. "So, it's something we should start working on, now
that we have a Republican supermajority
in the state legislature."
TOGA members should start working
now, before next year's legislative session,
Laine affirmed, because "bills take time to
write and gain adequate support," he said.
Membership Meetings
The membership and board meeting
also featured Goodwin's and Laine's
"state of the association" update, during
which they said annual convention attendance was indicative of the times.
JULY 2015 165

American Oil and Gas Reporter - July 2015

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