American Oil and Gas Reporter - January 2016 - 104

ConventionSection: Louisiana Oil & Gas Association

LOGA Prepares To Work
With New Governor
By Dan Holder
LAFAYETTE, LA.-As everyone suffers through the global price implosion
for oil and natural gas, Bryan Hanks,
chairman of the Louisiana Oil & Gas
Association, says he wakes every day
knowing the industry is one day closer to
the next boom cycle.
"That was my motto for 2015, and I
will keep it for 2016," says Hanks, president and chief executive officer of BETA
Land Services LLC in Lafayette, La.
"Everyone in Louisiana is cautious about
the governor-elect, John Bel Edwards.
Companies are giving him an opportunity
to make his first moves. Judgments then
will be made on what direction the state
will go and how those companies will
participate in Louisiana."
Speaking in advance of the association's
annual convention, scheduled for Jan.
27-29 at the Golden Nugget Hotel and
Casino in Lake Charles, La., Hanks says
many in Louisiana remain concerned how
the incoming Democrat will treat the oil
and gas sector.
LOGA President Don Briggs says the
industry can work with Edwards.
"I have known John Bel since he was
in the legislature, and he is open and
ready to talk," Briggs says. "He does not
have a big voting record with the oil and
gas industry, but he was representing his
constituents. I can appreciate that. He
now represents the whole state of
Louisiana. Being that the oil and gas industry is one of the state's largest and
most important industries, I think he will
be willing to do whatever he can to help
this industry."
Edwards and the Louisiana Legislature
face significant fiscal challenges this year,
as the state's budget deficit, near $1.5
billion in 2015, is projected to top $1.6
billion, Briggs says, adding that weak
commodity prices will shrink oil and gas
tax revenues. Legislators will have to
make hard decisions on how to close the
budget gap, and increasing taxes is a
likely part of that discussion, he offers.
"Honestly, it is difficult to see where
the state will get that money, but it cannot

be on the backs of the oil and gas industry.
With the downturn having the effect it
has, it will be hard to pull that money out
of this industry because it does not have
it," Briggs asserts.
Operators still are dealing with
Louisiana's litigious environment, with
years of legacy lawsuits draining many
companies' financial assets to pay for
environmental damage allegedly done
years ago. Several court rulings have required producers to pay millions of dollars,
but Briggs points to a November decision
by the Plaquemines Parish Council to
drop lawsuits against multiple companies
for alleged environmental damages as
one positive piece of news.
More glad tidings on legacy lawsuits
may be in order, he muses, because both
the governor and the legislative branch
are likely to be too busy seeking more
revenue to encourage such lawsuits.
State Legislators
LOGA Vice President Gifford Briggs
says the association wants to reach out to
and work with the new gubernatorial administration as well as rookie legislators.
"The state has major budget issues, and
the oil and gas industry hopes it does not
become the sole source for solutions from
a taxing standpoint," he says. "With the
industry hurting as much as it is, there is
not a lot of desire to kick the industry
when it is down. That may be somewhat
beneficial for us from a timing standpoint."
While a Democrat captured the governor's office last November, Republicans
swept all other statewide offices and increased their legislative majority, picking
up one seat in the House and two in the
Senate, the Louisiana legislative website
indicates. Don Briggs predicts the association will take more of a defensive
stance when the legislative session opens
in March.
Had David Vitter, the Republican candidate, won the governor's race, Don
Briggs continues, LOGA would have
pushed for tort reform and other measures
unlikely to advance under Edwards.
The association will continue edu-

104 THE AMERICAN OIL & GAS REPORTER

cating legislators on low commodity
prices' effect on oil and gas production
activities, he adds. He points out the
state loses $12.5 million for every dollar
drop in oil prices, and state legislators
who based their budget on $80 a barrel
in 2015 now are making calculations
based on $35 oil. "So, the state's budget
has a severe hole in it, and state legislators
have to be very much aware of the pain,"
he poses.
Hanks says one of the big questions
in the House will be who picks up the
speaker's gavel when the session opens.
Despite Republicans' strong majority, he
predicted in late December that political
circumstances might allow the Democrats
to vote in one of their own.
"Governor-elect Edwards would favor
that outcome, but the Republicans could
stick together," Hanks assesses. "That
decision will set the tone for the entire
session, as well as the special session,
and affect all dealings on state matters."
LOGA continues to enjoy its strong
relationship with state legislators, a result
of hard work by the association's staff,
Hanks praises. He says the oil and gas
industry will keep working with elected
Democrats as well as traditional allies in
the Republican Party.
"Now that the new governor is in
place, the association is extending olive
branches to everyone," Hanks says. "We
always have extended olive branches, but
we are really trying to reach out to Democrats to make sure we keep the good
of the state and the participation of the
oil and gas industry at the forefront, and
not let everything descend to partisan
politics."
As legislators take on the budget deficit,
Hanks says LOGA will maintain its
Senate and House presence, and ensure
their members have reliable information.
One important aspect of that communication is comparing Louisiana with neighboring states, he indicates.
"LOGA wants to make sure Louisiana
stays competitive, so if a particular incentive is targeted for eradication or
drastic modification to provide a perceived
increase in dollars, the state may in fact

American Oil and Gas Reporter - January 2016

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