Kansas Oil and Gas Activity in the Mississippian Lime Play
The Kansas Department of Commerce and several other state agencies are examining the potential economic development benefits and challenges of supporting oil and gas activity in the Mississippian Lime Play (MLP) and to ensure the state is prepared for all the related activity in the region.
The potential economic benefits to Kansas could be significant, resulting in hundreds of wells drilled, billions of dollars in investment, thousands of jobs and industry activity in the MLP for the next 20 to 30 years.
The MLP is a porous limestone formation that encompasses areas of northern Oklahoma, and southern and western Kansas. The region was considered tapped out by vertical drilling decades ago, but a technique known as hydraulic fracturing (also called fracing or fracking) in combination with horizontal drilling has the potential to significantly revive oil and gas activity in the region.
Kansas Oil and Gas Small Business Opportunities Conference
The State of Kansas hosted this conference on Nov. 27, 2012, with more than 500 people in attendance. The day began with Gov. Sam Brownback and other state leaders joining industry representatives to get an update on current activity in the Mississippian Lime Play (MLP) and the road ahead, as well as discussions about how Kansas small businesses could benefit from the oil and gas activity underway in the MLP.
Joining Brownback were Commerce Secretary Pat George, Kansas Corporation Commission Executive Director Patti Petersen-Klein and Kansas Geological Survey Interim Director Rex Buchanan. Industry representatives include Matt Grubb, chief operating officer, SandRidge Energy; Robert Murdock, CEO, Osage Resources; Michael Radler, CEO, Tug Hill Operating; David Todd, vice president of production, Shell Exploration and Production Co.; and Wayne Woolsey, CEO, Woolsey Operating.
The afternoon sessions included a business-to-business networking session, where more than 60 Kansas small businesses had the chance to meet and exchange information with several major exploration and production companies, and their vendors and suppliers. More than 275 job seekers attended a career and resources fair hosted by 30 oil and gas related companies and training organizations.
During the roundtable discussion, several issues were discussed including bringing electric power to drill sites/wells; the re-use/treatment of produced water; fresh water capabilities and infrastructure; skilled labor and training capacity; and the need for long- and short-term housing.
Learn more about the conference, as well as oil and gas activity in the Kansas MLP:
--The Kansas Corporation Commission has put together a summary of opening remarks and question and answer session from the morning roundtable discussion. Click here
to read the summary.
--Rex Buchanan, interim director of the Kansas Geological Survey, gave a presentation about the geology of the MLP. See his presentation slides here
--Ed Cross, president of the Kansas Independent Oil and Gas Association, gave an overview of oil and gas production in Kansas. See his presentation slides here
News Stories from the Conference
Kansas could see oil boom from Mississippi Lime formation
– Kansas City Star, Dec. 16, 2012
Small Kansas businesses hoping to cash-in on oil and gas prospects
– KWCH TV, Wichita, Nov. 27, 2012
Gauging the optimism of the Mississippian Lim oil and gas play – Wichita Business Journal, Nov. 28, 2012
Kansans seek oil and gas jobs at Hutchinson job fair – KWCH-TV, Wichita, Nov. 27, 2012
Kansas Oil Boom Expected to Boost Economy – KAKE-TV, Wichita, Nov. 27, 2012
New oil boom brings hundreds to Hutchinson – KSN-TV, Wichita, Nov. 27, 2012
Kansas waiting for Mississippian oil and gas potential to become clear – Wichita Business Journal, Nov. 27, 2012
Oil companies encouraged, but not certain of Kansas oil boom – Wichita Eagle, Nov. 27, 2012
Assessing a prospect: Reps look at oil and gas potential in region – The Hutchinson News, Nov. 27, 2012
What's New--March/April 2013
--Updated oil and gas production data and an updated map of horizontal well activity have been posted (links to the upper left). Through the end of Jan. 31, 2013 (latest production data available), there were 178 active horizontal wells in Kansas, along with more than 49,000 vertical oil wells and 23,000 vertical gas wells. The horizontal wells are producing 215,000 barrels per month of oil and 1.6 million mcf of gas per month.
--Total oil production statewide is 4 million barrels per month and 25 million mcf per month of gas.
--In April 2013, the Kansas Corporation Commission approved 534 intent to drill notices, including 32 for horizontal wells. For the same period last year, the KCC approved 611 intent to drill notices, including 8 horizontal wells. From Jan. 1-Dec. 31, 2012, the KCC approved 6,861 intent to drill notices, including 296 horizontal wells.
--The horizontal well water usage map has been updated through March 31, 2013. Data is compiled from FracFocus, a chemical registry website used by industry to report water and chemical usage during hydraulic fracturing.
--The Kansas Corporation Commission has issued a report (bottom link at left) that outlines the applicability of the state and federal regulations and industry specific exemptions related to transportation. With the increase in exploration due to new technology and techniques like horizontal drilling and hydraulic fracturing, understanding the regulations and exemptions can make all the difference for a successful business operation.
--The Department of Commerce, through the Community Development Block Grant program, is offering $1.5 million to communities for a pilot housing project that can be used to provide gap funding for rehabilitation, reconstruction or infrastructure activities. The maximum grant award is $500,000 and projects will be accepted until funds are depleted. For more information about this opportunity, contact Linda Hunsicker with the Department at (785) 215-4484 or .
State and Industry Resources
The state has formed the Inter-Agency Working Group (IAWG) that includes representatives from the Departments of Agriculture, Transportation, Revenue and Health and Environment; the Kansas Corporation Commission (KCC); the Kansas Water Office; the Attorney General’s Office; and the Kansas Housing Resources Corporation.
In addition, an Industry Advisory Group and a Community Advisory Group have been formed. For more details on these advisory groups, see Frequently Asked Questions. The state is working together with both groups to gather information on MLP activity and address questions and concerns as they are identified.
Please contact the following agencies or groups for specific questions about:
Production Data and Other Statistics
Kansas Geological Survey's Oil and Gas Production Data -- (785) 864-3925
Economic Development and Overall Administration Policy Questions
Department of Commerce – Dan Lara, (785) 296-3760,
Industry Oversight and Power Grid Questions
Kansas Corporation Commission – Jesse Borjon, (785) 271-3269,
KCC's MLP Electric Power Issues -- Frequently Asked Questions and Contact Information
Kansas Geological Survey's Earthquake Statement
Water Permits, Policy and Related Questions
Department of Agriculture Division of Water Resources – Mary Geiger, (785) 296-2653, email@example.com
Kansas Water Office– Katie Patterson-Ingels, (785) 296-0877, e-mail
Tax, Valuation and Related Questions
Department of Revenue
Property Valuation -- Lynn Kent, (785) 296-4159, document.write('lynn.kent'+'@'+'kdor.ks.gov')" target=_blank>e-mail
Mineral Tax -- Margo Rangel, (785) 296-7713,
Individual and Corporate Income Tax Office -- (785) 368-8222, document.write('tac'+'@'+'kdor.ks.gov')" target=_blank>e-mail
General Questions -- Jeannie Koranda, (785) 296-0671, document.write('jeannie_koranda'+'@'+'kdor.state.ks.us')" target=_blank>e-mail
Kansas Department of Transportation – Steve Swartz, (785) 296-3585,
Environment, Health and Related Questions
Kansas Department of Health and Environment – Miranda Steele, (785) 296-5795,
EPA Resources for Oil and Gas Extraction Sector
Companies Interested in Demonstrating Products or Services
Kansas Petroleum Council -- Ken Peterson, (785) 234-0589,
Kansas Independent Oil and Gas Association – Ed Cross, (785) 232-7772,