American Oil and Gas Reporter - October 2016 - 90

ConventionSection: Oklahoma Independent Petroleum Association
firms. "We will be back for the same
bites at the apple."
Nonetheless, Terry predicts such
changes will not come easily, noting that
the wind and solar industries employ
more than two dozen lobbyists. "I want
to help legislative leadership understand
that Texas uses as much natural gas it
produces, while Oklahoma sends 70 percent of its gas production out of state,"
he contrasts. "That is a tremendous missed
opportunity with regard to value-added
jobs, tax receipts, and business development. Oklahoma cannot seem to bring
industry to our state to use the valuable
resources it produces.
"Instead, Oklahoma leads the country
in wind subsidies," he continues. "It
makes no public policy sense to spend
taxpayer money bringing in competition
for the resources with which the state is
so rich. Each windmill costs the state
around $40,000. That is about what we
pay a teacher. Oklahoma needs more and
better-paid teachers more than it needs
windmills."
Terry suggests that it is in OIPA's interest for renewable energy projects to
stop draining and start contributing to
state coffers, not only out of essential
fairness, but also because of the broader
context. "During difficult budget years,
policymakers always look to the oil and
gas industry for a fix," he describes. "We
are not in a position to fix the budget
problems while we are doing the best we
can just to stay afloat in this price environment."
Other Issues
OIPA has not yet crafted a legislative
agenda for 2017, Terry says, but he suggests the session is difficult to predict
because it will feature an unprecedented
number of new lawmakers. That turnover
is a product of legislative term limits, he
says, adding that whatever the merits of
such requirements, they add to OIPA's
workload. "It takes a lot of time and
effort to establish those relationships and
educate people about the industry," he
observes.
Moreover, he notes, it is not only the
new lawmakers who will need to be
brought up to speed, since OIPA will be
reaching out to them with a new vice
president of legislative affairs. The person
who most recently held that position,
James Roller, has accepted a job elsewhere,
Terry reports. "First we have to hire
someone to head our legislative activity,
90 THE AMERICAN OIL & GAS REPORTER

OIPA Fall Conference
Ridgedale, Mo.
Sunday, Oct. 23
1 p.m. Registration Open, Grandview
Lobby, Big Cedar Lodge
1:30-4:30 p.m. Exhibitor Setup, Grandview
Ballroom Foyer
1:30-3:30 p.m. Board of Directors Meeting,
Lake View B&C
Board Members Only
4:30 p.m. Welcome Reception, Grandview
Ballroom Foyer
6-9 p.m. Campfire Dinner, Cedar Hollow
Transportation Provided

Monday, Oct. 24
7:30 a.m. Registration Open, Grandview
Lobby, Big Cedar Lodge
7:30-8:45 a.m. Breakfast, Grandview Ballroom
7:30 a.m.-Noon Exhibition Open, Grandview Lobby
8:30-11:45 a.m. General Session
Noon Keynote Luncheon
Speaker: Stephen Moore, The Heritage
Foundation
4-5:30 p.m. Sponsor Appreciation Reception, Grandview Foyer
6-9 p.m. A Night at Top of the Rock
Transportation Provided

Tuesday, Oct. 25
7:30-8:30 a.m. Breakfast, Grandview Ballroom, Big Cedar Lodge
8:30-11 a.m. Exhibit Booth Teardown
9:30 a.m.-2 p.m. OIPA Fall Classic Golf
Tournament, Buffalo Ridge Golf Course
Transportation Provided to Awards Reception Immediately Following

and then get to work," he states. "It is
going to be a really busy time."
Among the issues McDougall says
may surface on OIPA's 2017 legislative
agenda is natural gas gathering. "A lot of
gatherers have decided unilaterally to go
from percent-of-proceeds to fixed-fee
contracts that seem egregious to many
producers," he describes. "We have been
trying to get a handle on that and may
soon take some action."
Terry also raises local control as another
issue that has commanded OIPA's attention, citing Stillwater, Norman and Guthrie
as Oklahoma cities that have considered
ordinances to regulate oil and gas activity.
"We have to make sure those municipalities understand operators' and royalty
owners' rights, and the Oklahoma Corporation Commission's regulatory authority," he says.
A.J. Ferate, OIPA's vice president of

regulatory affairs, explains that Tuttle,
Ok., is another town that has examined
its options publicly for local oil and gas
regulations. Fortunately, he continues, S.
809, which Governor Mary Fallin signed
in 2015, clarifies local jurisdiction over
oil and gas issues.
"(Tuttle) turned out to be more of a
trucking issue," Ferate, explains. "Unfortunately, we have had disputes over the
years with localities when truck traffic
starts coming through at volumes they are
not used to. We still have a few issues to
work out with Tuttle, and I hope we can."
He goes on to note that Guthrie is
considering revising its ordinances, but
has moderated its initial anti-drilling
stance. "Although it has changed significantly, Guthrie started with the Stillwater
ordinance as a template," Ferate compares.
"The Stillwater ordinance is not within
the town's authority. Stillwater's noise
limitations and insurance requirements
made it very evident that it was about
stopping people from drilling in city
limits. I do not think that is the approach
in Guthrie."
Fall Conference
Members can expect to hear about all
these issues and more at OIPA's fall conference, Oct. 23-25 at the Big Cedar
Lodge in Ridgedale, Mo.
"It is always good to bring people together to talk about ideas and what is
going on," Terry reflects. "And it is in
such a beautiful place, especially at this
time of year."
He expresses particular enthusiasm to
hear Heritage Foundation Fellow Steven
Moore, a former Wall Street Journal
columnist who spoke a few years ago at
an OIPA annual convention. "I am excited
Moore is our keynoter," Terry relates.
"He is such a good speaker who is so in
tune with what is going on. He will be
speaking to us right before the election,
and should be very interesting."
Terry says conference registration is
scheduled to get under way early in the
afternoon on Sunday, Oct. 23. The day's
events include a Board of Directors meeting, exhibition, welcome reception, and
a campfire cookout.
Along with the exhibition, Terry says
events on the morning of Monday, Oct.
24, include breakfast and a general session,
followed by the keynote luncheon featuring
Moore's remarks. The evening features a
sponsor appreciation reception and a night
at Branson's renowned Top of the Rock
American Oil and Gas Reporter - October 2016

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