American Oil and Gas Reporter - October 2015 - 120

ConventionCoverage: Eastern Kansas Oil & Gas Association

Steve Korf (left), District
3 supervisor for the Oil &
Gas Division of the
Kansas Corporation Commission, visits with Mark
Robbins, a member of the
Eastern Kansas Oil & Gas
Association, following his
presentation at EKOGA's
annual convention, held
at the Prairie Band Casino
& Resort in Mayetta, Ks.

by $60 million and transferring additional
funds, to leave the state with an ending
balance of $6.4 million, Bruno reported.
Looking ahead, Bruno cautioned that
many of the measures that helped balance
the Kansas budget this year were onetime transfers, and legislators would have
to look elsewhere to fill any future deficits.
The major threat to finances in 2016 is
school funding, with court cases on equity
between districts and adequacy of spending
looming, he related.
"The adequacy case will be the really
big dollar one," Bruno predicted. "Some
of the projections say the state should be
paying upward of $750 million more a
year."

TA Wells
Before KCC approves temporarily
abandoned status for a well, it will require
protection such as a shut-in valve be installed, the agency's Korf reported. He
added he planned to change the paperwork
for well shut-ins to reflect that requirement.
Operators also will have to revise procedures for handling wells more than 15
years old before shifting them to TA
status, he said. KCC now is requiring a
casing integrity test for older wells completed with cement on the bottom before
approving the shift.
"Staff members have looked at a number of older wells. On wells more than
15 years old, KCC will ask for a casing
integrity test," Korf said. "It will not be a
big deal, but KCC can tell EPA or any
other group that it knows this well with
TA status is not an environmental hazard."
The KCC is preparing to check the
status of 7,600 inactive wells in its database, Korf advised. The agency will communicate with operators to ensure all inactive wells are properly in TA status.

"KCC will send out letters in increments of 400 or 500, trying to order them
in such a manner that a large number of
wells is not hitting any operator at one
time," he described. "KCC is trying to
make it as easy as it can, considering the
times."
If a well is ready to produce but the
operator is waiting for better market conditions, Korf reported, it is considered a
declaratory well and does not need TA
status, but it must produce at least once a
year. He said operators just needed to
update the agency on that well's declaratory status.
Operators should contact the District
3 KCC office for MIT due dates. Operators are encouraged to run some tests
early to keep from having all tests due at
the same time, he said. He added the
agency also wanted to work with operators

120 THE AMERICAN OIL & GAS REPORTER

to stagger dates for wells set to be
plugged. State regulations require plugging within 90 days of the end of production, but he said the agency recognized
that might impose a significant financial
burden.
"When the agency works these out, it
will have the commission send out a
plugging order, so that is all done to
where everyone is aware of it," Korf
said. "You are covered if there are
landowner complaints."
Presidential Address

Following the banquet, Keen read a
farewell message from EKOGA President
Steve Stanfield.
"We find ourselves in a very challenging condition this year," Stanfield
wrote. "For me, this accentuates the importance of the work done by EKOGA.
Your work and support as members is
equally important. Our local oil and gas
industry has proven its resilience time
and again, and we will once again weather
a very challenging market, but not without
some hardship and pain."
During his two years as president, Stanfield said EKOGA had accomplished much
for its members in the area of rules and
regulations, and had continued its positive
relationship with legislators at the local
and state levels. The association also maintains its focus on issues that directly impact
its members, is on financially sound footing,
and continues to provide educational opportunities such as the annual and midyear
meetings, he applauded.
"The association's membership continues to grow," Stanfield concluded. "I
am excited about the number of new nextgeneration board members we added
during these two years. The future of our
local oil and gas industry depends on this
next generation. We also have had veteran
leadership on the board that continues to
provide wisdom and experience while
helping to mentor the new generation.
Together, they will ensure the association
remains strong and is working for membership for decades to come."
r

Coming In November

Tom Bruno, who lobbies for the Eastern
Kansas Oil & Gas Association, gives a
legislative update at the association's
annual convention, held Sept. 16-17. He
warned the Kansas budget could present
a serious problem in 2016.

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American Oil and Gas Reporter - October 2015

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