05/23/2006 Offshore Update House Votes to Retain Offshore Moratoria, Renegotiate Lease Contracts The U.S. House of Representatives took action on the Fiscal Year 2007 Interior Appropriations bill on May 19 and voted on three amendments of significant interest to the offshore industry. The House voted to remove language from the bill sponsored by Rep. John Peterson (R-PA) to lift OCS moratoria on natural gas production. The Peterson language was strongly opposed by the Florida delegation and an amendment introduced by Rep. Adam Putnam (R-FL) to remove the Peterson language passed by a vote of 217 to 203. Last year similar legislation was defeated 262 to 157 in a roll call vote. In a statement to reporters nationwide, IPAA President Barry Russell said: "Last night, Representative John Peterson (R-PA) made an admirable defense of his efforts to lift the congressional moratoria on offshore natural gas exploration in the Outer Continental Shelf. It was a very close vote to keep the natural gas prohibition (217-203); perhaps, the vote reflects a significant recognition that the nation can no longer turn a blind eye to our energy problems. Much of the debate was distorted and the industry is hopeful that the facts about the safety of offshore exploration will come to light as the House Resources Committee drafts its comprehensive energy legislation over the next few weeks." In another vote, Rep. Maurice Hinchey (D-NY) introduced language that would require collecting royalty revenue from future deepwater production on existing leases when threshold prices are exceeded. The Amendment suspends deepwater royalty relief for all future production from existing leases for oil, when the price of oil over a four week period exceeds $34.71/bbl and for natural gas, when the price of gas over a four week period exceeds $4.34 tcf. The language further required that companies holding deepwater leases from 1998 and 1999 which did not have price thresholds renegotiate them with Interior, or else lose the right to bid on leases in FY 2007. The amendment passed 252 to 165. IPAA's Russell noted: "In a separate amendment, the House voted to restrict domestic oil and natural gas companies from bidding on offshore leases unless they renegotiate contracts with the government that were signed in the late 1990s. This is an unfortunate act by Congress that threatens the credibility of federal contracts. The Clinton administration made a clear mistake in writing some lease contracts, and now Congress has made another mistake in writing this legislation." An amendment was offered by Rep. Ted Poe (R-TX) that would have lifted all OCS moratoria for both oil and natural gas exploration and production. The amendment was voted down by 279 to 141. Staff Contacts: Dan Naatz, Cortney Hazen Energy Committee Chairman Barton Responds to Senate Democrats Last week, Senate Democrats introduced an energy proposal they believe will reduce this country’s dependency on foreign oil. The bill calls for expanding the use of alternative fuels for vehicles, revokes subsidies for the oil industry and increases subsidies for the renewable fuels industry. U.S. House Committee on Energy and Commerce Chairman Joe Barton (R-TX) responded to the Democrats proposal energy policy in a letter to Senate Minority Leader Harry Reid (D-NV):
No, has, after all, been the Democratic Party’s consistent answer to the long string of initiatives that were designed to produce more energy for working Americans at prices the could afford to pay. Democrats have long said no to oil from America, no to pipelines, no to exploration in the Mountain West, no to exploring in the same Gulf region that Cuba and China will now explore, no to old refineries, no to new refineries, no to imports and no to the international combustion engine. Lately, Democrats have even started saying no to windmills. And now your goal for America is to say no to oil, period. The letter was endorsed by: Rep. Pombo (R-CA) Rep. Hall (R-TX) Rep. Pickering (R-MS) Rep. Shimkus (R-IL) Rep. Shadegg (R-AZ) Rep. Walden (R-OR) Rep. Sullivan (R-OK) Rep. Blackburn (R-TN) Rep. Pearce (R-NM) Rep. Drake (R-VA) Rep. McMorris (R-WA) Rep. Gohmert (R-TX) Rep. Nunes (R-CA) Please visit http://www.ipaa.org/news/wr/WR-2006-01-01.pdf to view the letter in its entirety. Chairman Barton and Energy and Commerce Committee Republicans are working on their own responses to high energy prices and supply concerns; legislation allowing the National Highway Traffic Safety Administration to restructure federal fuel efficiency standards for light automobiles may be brought up on the House floor this week, as well as legislation opening the Arctic National Wildlife Refuge (ANWR) for drilling. Chairman Barton also continues to work with Energy and Commerce Committee Democrats to attempt to negotiate a bipartisan approach to refinery legislation, now anticipated to be brought back to the floor after the Memorial Day recess. Staff Contact: Suzanne Whitehurst Meetings & Events IPAA's Midyear Meeting and Executive Conference: June 12-14 in Naples, Florida Rooms at the Ritz Carlton Beach Resort are almost sold out! Register Today To Attend This Event By Visiting https://www.ipaa.org/meetings/forms/2006MY.htm! Make plans NOW to attend IPAA’s Midyear Meeting and Executive Conference at the highly acclaimed Ritz Carlton Beach Resort in Naples, FL. Consistently rated as a Mobil Five-Star, AAA Five-Diamond resort, The Ritz-Carlton, Naples earned the approval of Travel + Leisure magazine readers as fourth in the United States and fifth in the world for exceptional service. Join independent oil and gas executives to network, share ideas, and learn the latest issues impacting
the industry all while enjoying the pristine beaches of Florida’s “Platinum Coast”. Highlights of the conference include a Jimmy Buffet themed dinner, a golf outing at one of Naples’ finest courses, and entertainment by humor columnist - Dave Barry. Reminder that dress attire is resort casual. Schedule of Events Visit www.ipaa.org for a complete listing of events. Special Events - Tuesday, June 13 Golf at Tiburon IPAA will offer a golf outing at Tiburón Golf Course, located at The Ritz-Carlton Golf Resort, Naples. As a 36-hole championship course designed by the legendary Greg Norman, Tiburon is marked by the use of stacked sod wall bunkers, coquina sand and no roughs offering players of all skill levels a serene setting and an unforgettable experience. Visit https://www.ipaa.org/meetings/forms/2006MY.htm to secure your space at Tiburon. A Day at the Top Rated Spa in Florida The Spa at The Ritz-Carlton, Naples listed at an impressive #12 in North America among the Top 50 Resort Spas in North America in the April 2005 issue of Conde Nast Traveler. The Ritz-Carlton Spa in Naples was also rated the top resort spa in Florida. Given these accolades, IPAA has made sure that you will have time to relax during our Spa Day where massages, manicure/pedicures and facials have been set aside exclusively for your use during the afternoon of Tuesday, June 13. To secure your preferred relaxation activity, click the link to register at the top of the page. A Spa Concierge will be available onsite near IPAA's registration desk on Monday, June 12 from 1:30 - 5:00 p.m. to confirm pre-scheduled appointments. Space is limited, so be sure to secure your preferred activity early. Spa reservations were due on May 12. Tennis Anyone? If tennis is your sport of choice, IPAA has reserved all four of the resort's tennis courts for your use in having a little fun in the sun. The har-tru tennis courts are located adjacent to The Spa. Space is limited, so be sure to sign up early by clicking the registration information at the top of this page. Thanks to our conference sponsors: Diamond: Shell Exploration & Production, Schlumberger Platinum: Baker Hughes, Inc., BJ Services Company, Guaranty Bank, Halliburton Gold: Devon Energy Corporation, Grant Prideco, Hart Energy Publishing, LP Silver: Ernst & Young, NS Group Inc., Koppel Steel, Newport Steel, The Oil & Gas Asset Clearinghouse, Tristone Capital Inc., XTO Energy Bronze: Harbison-Fischer Mfg. Co., Linn Energy, LLC, Lufkin Industries, Inc., New Mexico Oil & Gas Association, Oil & Gas Journal, Penneco Oil Company, Sutherland Asbill & Brennan LLP Supporter: Hubbell Exit Strategies, LLC, Kansas Independent Oil & Gas Association, William Howell Sponsorship Opportunities
To learn more about becoming a sponsor of this great event, contact IPAA's Tina Hamlin at 800-4332851 for details. Hotel & Travel Information The Ritz Carlton Beach Resort is Southwest Florida's only Mobil Five-Star, AAA Five-Diamond Resort and was named Top 15 Resorts in North America by the readers of Conde Nast Traveler! Please note: The Ritz Carlton is on a space/availability rate, so cal 800-241-3333 today to reserve acoommodations during the Midyear Meeting. IPAA has negotiated discounted airfares into Fort Myers on Continental Airlines, the official airline of IPAA! Call Continental Airlines Meetingworks at 800-468-7022 and refer to Z Code ZKCG and Agreement Code VG1JHE. Or, save an additional 3% by visiting www.continental.com to book your own reservations online. Choose your flight times and access your meeting discounts by inserting ZKCGVG1JHE in the offer code box. As our preferred transportation partner, BostonCoach provides executive sedan and group transportation services globally. To make a reservation, visit www.bostoncoach.com/ipaa/. To receive your 5% corporate discount, please store the IPAA account number 37636 in your profile, and use this number whenever you reserve BostonCoach for IPAA meetings. Questions? Please contact the IPAA Meetings Department at 800-433-2851. We look forward to seeing you in Naples, Florida! Staff Contact: Caroline Lee Meetings & Events IPAA’s 10th Annual Oil & Gas Investment Symposium London July 11-12 The Berkeley Hotel, Knightsbridge, London REGISTER ON-LINE at https://www.ipaa.org/meetings/forms/2006OGISLondon.htm! The U.S. oil and natural gas sector has been one of the top performers on Wall Street for several years. The trend is continuing into 2006 as the S&P 500 Energy Index continues to outpace the general market. What lies ahead? Come hear from the CEO's of some of the fastest growing North American oil & gas companies during IPAA's Oil & Gas Investment Symposium - London, July 12th at the Berkeley Hotel in London. The event is hosted by the Independent Petroleum Association of America (IPAA), the Washington D.C. based national voice for the independent oil and gas industry. IPAA hosts several investor conferences during the year with the most recent in New York that was attended by over 1,500 investment and industry professionals. Questions? Contact Martine McKenzie in IPAA's Meeting Department at mmckenzie@ipaa.org. Staff Contact: Martine McKenzie Meetings & Events
IPAA/API 9th Annual Land Access Strategy Meeting The 9th Annual IPAA/API Land Access Strategy Meeting will be held at the Stein Ericksen Lodge in Upper Deer Valley, Utah (www.steinlodge.com). The meeting will be held August 23-25, 2006. We look forward to another outstanding meeting and are working to secure speakers from the federal land management agencies as well as a number of staff members from the various House and Senate committees with jurisdiction over federal land issues. A tentative agenda with confirmed speakers is available by visiting http://www.ipaa.org/news/wr/WR-2006-01-04.pdf IPAA/API has secured discounted rates for the Land Access Meeting at the Stein Ericksen Lodge. Visit http://www.ipaa.org/news/wr/WR-2006-01-05.pdf for the meeting registration form and hotel reservation information. Unfortunately, registration for the Land Access Meeting is running very slow. Unless we have a significant increase in registration by June 15th, we will need to cancel the event in order to avoid incurring a substantial financial penalty with the Lodge. The Land Access Meeting has been an outstanding event through the years and provides our members with a unique opportunity to interact with policy makers and congressional staff in a relaxed setting. We look forward to seeing you in Deer Valley! Staff Contacts: Dan Naatz, Cortney Hazen Information Services Rig Count 5/19/06 Oil Gas U.S. Total Land Inland Offshore Gulf of Mexico Miscellaneous Source: Baker Hughes Staff Contact: Fred Lawrence 260 1378 1639 1574 22 103 96 1 5/12/06 259 1367 1627 1503 24 100 94 1 Year Ago 146 1169 1315 1202 23 90 87 0