American Oil and Gas Reporter - May 2016 - 87

ConventionSection: California Independent Petroleum Association
may have been permitted inappropriately
for injections into possible groundwater
sources with beneficial uses. The agency
says some of those 47 wells may not be
UIC wells. The Central Coast Water
Board sent out 12 requests for technical
reports to operators running injection
wells, asking for verification of their UIC
status.
Market Conditions
Layton indicates that California's oil
and gas companies are reacting to market
conditions and reducing activity levels.
"There has been a general slowdown
in routine well work," he assesses. "Rather
than repairing any well that goes off production, folks have had to look at the
economics a lot more. Of course, worker
safety and compliance with environmental
regulations are paramount, but where expenditures are discretionary, there are
wells that are not being put back on line,
given the price of oil."
California's rig count is a clear indication of activity. Only five rigs were running
in the state in mid-April, Layton observes,
despite California's status as the thirdhighest oil producing state in the country.
However, he predicts that when oil prices
recover, the state's production community
will be ready to respond, if regulators
and legislators let them.
"Folks in other states have their own
sets of regulatory issues, but California's
climate definitely is a product of the increased passion of those who do not like
this industry," he poses. "That goes back
to the debates over fracturing, which carry
collateral impacts that have given rise to
regulations that have more than a hint of
being punitive to the oil and gas industry.
"With that on top of the pressure from
low prices, I do believe the industry will
need some time to heal as prices recover,"
Layton says. "I am sure there will be
folks ready to start drilling right away,
but as a whole, I would say once we get
this problem behind us, we have to get
healthy again before we can take on the
mantle of growing our businesses."
Annual Meeting
The 2016 annual meeting marks CIPA's
40th anniversary, Zierman points out,
adding that members see the association
as more relevant today than ever.
"California operators are facing dual
pressures: market forces that no one really
can do anything about, and the artificial
forces of regulation and legislation, which

are being pursued by a very small group
who are out of step with the vast majority
of legislators and the public," he assesses.
"Nonetheless, they do what they do, so
CIPA has to deal with that. But that is why
we have CIPA, and that will be one of the
things discussed at the annual meeting."
CIPA has not held a convention in the
Napa region for 20 years, and Zierman
says association members are looking
forward to returning to wine country. "It
will be beautiful and interesting. Retaining
attendance in these times will be challenging, but we are encouraged by strong
sponsorship numbers and are focused on
producing a quality meeting," he states.
During the business session, CIPA will
offer a panel discussion on capital markets
to help members struggling to refinance
debt and secure equity partners, Zierman
says. During the gala dinner that ends the
general session day, the association will
recognize three individuals with:
* The Glen Ferguson Award, presented to a deserving producer member;

* The Lee McFarland Award, presented to an outstanding associate member;
and
* The C.C. "Bud" Albright Award,
presented to an individual outside the oil
and gas industry.
Layton says he is happy to be part of
such a great organization, "and I want to
do my part to make sure CIPA is celebrating its 50th anniversary 10 years from
now."
❒

Coming In June
AOGR's June issue spotlights ongoing activity throughout the basin,
from leading players focused on multiple horizons across their giant
acreage positions, to a variety of
mid-sized and small independents
concentrating on specific plays utilizing vertical, directional and horizontal drilling techniques.

CIPA Annual Meeting - Napa, Ca.
Thursday, June 9
10 a.m.-Noon Executive Committee Meeting,
Meritage Resort & Spa, Napa
Noon-3 p.m. CIPA Board Meeting
3-4 p.m. CNGPA Board Meeting
5-6:30 p.m. Welcome Reception

Friday, June 10
8 a.m.-1:30 p.m. Golf Tournament, Chardonnay Golf Course
10 a.m.-4:30 p.m. Wine-Tasting Tour
2-4 p.m. "Locavore" Cheese Class
6-9 p.m. CIPA My Wine

Saturday, June 11
5:30-9:30 a.m. Hot Air Ballooning
7:30 a.m.-4 p.m. Trade Show, Meritage
Ballroom Foyer
7:30-8:30 a.m. Continental Breakfast, Meritage Ballroom
8:30-10:35 a.m. First General Session, Meritage Ballroom
Rock Zierman, CIPA Chief Executive Office, Welcome
Steve Layton, CIPA Chairman, Opening
Remarks
Legislative Panel on California Energy
Policy: Assemblymen Jim Cooper (District 9), Rudy Salas (District 32), and
Mike Gipson (District 64)
Panel Discussion: "How Independents Can
Navigate Capital Markets"
Moderator: Guy Evangelista, Bank of
Oklahoma

Panel: Joe Rittinghaus, Wells Fargo Bank
Denver Energy Group; Scott Cockerham,
Conway Mackenzie Capital Advisers;
Mark Greenfield, Blank Rome LLP; and
Michael Ross, Morgan Stanley
10-11:30 a.m. Trinitas Vineyard Tour and
Tasting
10 a.m.-4:30 p.m. Sonoma Square Excursion
10:35-10:50 a.m. Break, Meritage Ballroom
Foyer
10:50 a.m.-12:30 p.m. Second General Session, Meritage Ballroom
Congressman Tom McClintock, R-Ca.,
"How Congress Can Reclaim its Authority
from the Bureaucracy"
Jonathan Bishop, State Water Resources
Control Board; and Bob Gore, The
Gualco Group, "The New Realities in
Water Policy in California"
12:30-2:30 p.m. Membership Luncheon and
Afternoon Session, Meritage Ballroom
Rock Zierman, "The State of the Association"
Presentation of the Bud Albright Award
Derek Richards, Closing Presentation
2-3:30 p.m. Food and Wine Pairing Class
2:15-3 p.m. Break, Meritage Ballroom Foyer
2:15-4 p.m. Trade Show Conclusion
5:30-7 p.m. Chairman's Reception
6-11 p.m. Kids Camp
7 p.m.-12:30 a.m. Gala Dinner, Awards
and Dancing

Sunday, June 12
8-9:30 a.m. Send-Off Breakfast
MAY 2016 87

American Oil and Gas Reporter - May 2016

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