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Testimony to Kansas House Energy & Utilities Committee on SB 298
Testimony presented on January 13, 2010 by Edward Cross, KIOGA President, on requiring well identification signs to be placed on or near certain oil or gas wells.
Kansas Independent Oil & Gas Association
800 SW Jackson Street - Suite 1400
Good morning Chairman Holmes and members of the committee. I am Edward Cross, President of the Kansas Independent Oil & Gas Association (KIOGA). KIOGA represents the interests of independent oil and gas producers in Kansas. We have over 1,400 members from across the entire state and our members produce 86% of the oil and 63% of the natural gas produced in Kansas. We are the lead state and national advocate for Kansas independent oil and gas producers. I am responsible for public policy advocacy and interaction with external stakeholders including elected officials, regulators, government decision-makers, and community thought leaders. I am here this morning to express our support for Senate Bill 298 (SB 298).
The identification of individual oil and gas wells is part of the process of identifying responsible parties to plug those wells. Kansas has identified approximately 7,000 wells which are unplugged for whom the Kansas Corporation Commission (KCC) cannot identify a potentially responsible party. Where an oil and gas operator has abandoned a well prior to plugging and no responsible party has been identified, it becomes the responsibility of the State to plug the wells to protect the ground water of the State and to prevent other environmental damage. The plugging of these wells by the KCC is funded through sources largely from current industry participants.
KIOGA has participated in the KCC’s Open Docket which was established to address issues arising after the Quest-Cherokee decision in July 2008. Part of the KCC staff’s proposals coming out of that investigative docket is to inventory all wells and to better identify who is currently responsible for the plugging of those wells. This would enable the KCC staff to better identify the potentially responsible party should such a well subsequently be abandoned.
KIOGA participates in the Oil & Gas Advisory Committee which reports to the KCC. We concur with the Committee recommendation to seek legislation to allow KCC staff to better identify the oil and gas wells in the State. As such, KIOGA is supportive of SB 298. Thank you.