American Oil and Gas Reporter - September 2015 - 134

ConventionSection: Indiana Oil & Gas Association

Association, State Combine
On Regulatory Rewrite
By Dan Holder

MT. VERNON, IN.-While Indiana's
oil and gas operators are suffering through
low commodity prices like the rest of the
world, they are preparing for the next industry upturn by helping revise the state's
regulatory environment.
Jeffrey Hoy, president of the Indiana
Oil and Gas Association, says InOGA's
annual convention will include an update
by Director Herschel McDivitt on the regulation changes being sought by the Division
of Oil & Gas in Indiana's Department of
Natural Resources. The association's annual
meeting will be held Oct. 8 at the Tropicana
Hotel and Casino in Evansville, In.
"McDivitt came to the association and
said he was going to rewrite the rules,
which he has wanted to do ever since he
got into office," reports Hoy, a petroleum
geologist who owns JLH Geologic Consulting in Mt. Vernon. "It has been a
while since the state changed its oil and
gas regulations. Now would be a good
time to revisit these rules and do some
more proactive stuff. We have had a lot
of luck working with the state on these
new regulations."
Hoy points out that for the most part,
following global trends, industry activity
is down in Indiana. "Everyone is not optimistic or pessimistic; they are trying to be
realistic with the downturn in prices," he
says. "Companies are trying to cope by
eliminating expenses and doing the little
things that let them increase production a
little bit. Everybody who has been around,
for the most part, has been through these
dips before. We are surviving."
Regulatory Rewrite
In the very early stages of conversations
on the new oil and gas rules, Hoy says
word came from Governor Mike Pence's
office that no regulatory changes were to
have negative impacts on any segment
of Indiana's business community. In the
long run, he predicts changes to Indiana's
oil and gas regulations will make it a
little bit harder and more expensive to
operate in the state, but he judges the
new rules will not be an unsurmountable

InOGA Annual Meeting
Evansville, In.
Thursday, Oct. 8

8:30-9 a.m. Workshop Registration, Tropicana Convention Center
9 a.m.-12:10 p.m. Workshop
Jeffrey Hoy, InOGA President, Opening
Remarks
Robert O'Daniel, Harbison-Fischer,
"Downhole Pump Efficiency"
Steve Persinger, Franklin Well Services,
"Managing Sucker Rod Failures in a
Rod Pump"
Break
Jerry Robinson, Franklin Well Services,
"Stimulations: Back to the Basics"
Bob Herr, Paragon Oil, "More Oil from
Old Wells"
12:10-1:30 p.m. Lunch on Your Own
1:30-5 p.m. Workshop
Mark Milam, Performance Plus Consulting, "Middle Mississippian: Three Wells
and Three Different Stimulations"
Frank Lindsey and Chuck Venditti, CountryMark Production, "EPA Clean Air
Act: What Does It Mean to You"
Break
Panel Discussion on Proposed IDNR
Regulations
5-6 p.m. Social Hour in Exhibit Area
6-9 p.m. Banquet
Awards
Dinner
Keynote Speaker
Business Meeting

task for drilling and producing operations.
One of the bigger challenges for rewriting Indiana's regulations is avoiding the
mistakes seen when other states undertook
similar jobs, Hoy says, adding that InOGA
wants to avoid a repeat of situations
where the regulatory changes were dictated
by senior state officials to the regulatory
agencies. He says he hopes Indiana continues its policy of industry and regulators
working together.
During this process, the state invited
InOGA members to comment on the revised regulations, Hoy says, and has held
public meetings in the Indiana towns of

134 THE AMERICAN OIL & GAS REPORTER

Evansville, Vincennes and Anderson. He
points out the latter site, on the east edge
of the state, is a reminder that Indiana
still is producing from the Trenton Field.
At one time, the Trenton was the largest
natural gas discovery in the country, containing more than 1 trillion cubic feet of
gas as well as an estimated 1 billion
barrels of oil, Hoy says.
Several oil and gas definitions are
likely to change as part of the regulatory
revisions, Hoy describes, including making
somewhere around 80,000 gallons the
threshold for triggering high-volume hydraulic fracturing regulations. He adds
that most Illinois Basin fracturing projects
require 20,000 gallons or less, so the
new definition should not have major
impacts.
Topics that have generated some disagreements between the state and industry
representatives include production reporting requirements, and rules for oil
and gas facilities built within 100-year
flood plains, he says.
"The state extended the call to comment
to the end of July," Hoy reported in August. "Now, an ad hoc committee that is
helping the state has gone through the
rules and submitted a red-lined copy back
to McDivitt's office. He has some deadlines coming this fall."
InOGA's talks with the Division of
Oil and Gas remain informal, and Hoy
points out any proposed revisions still
have to go through government hearings
and debates.
"As an organization, InOGA wants to
get the changes to where would we send
them to the Board of Directors, and tell
them the rules have been hashed over
and passage is pretty much just a formality.
We are more than halfway there, and
have the reviews now to where they just
need some fine-tuning and tweaking. We
are getting there," Hoy assesses.
One continuing positive for moving
ahead in the process is that state regulators
listen to industry's concerns, Hoy says.
"I really don't know if the state needed
the regulations rewritten, but that is what
IDNR wanted to do. If you want to be
proactive in this industry, there probably



American Oil and Gas Reporter - September 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2015

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