Minutes of Meeting Oklahoma Energy Resources Board May 8, 2012 A meeting of the Oklahoma Energy Resources Board was held Tuesday. May 8, 2012 at 10:00 am. in the OERB Conference Room, 3555 NW Oklahoma City, Oklahoma. Notice of regular meeting and tentative agenda was posted for public view at the OERB main office on Friday. May 4, 2012. MEMBERS PRESENT: Teny Adamson, Pete Brown, Phil Cook, Mike Cross. Tom Goresen, David House, Ronnie lrani, Rusty Johnson, Sam Langford, Dale Malody, Tim Munson, Garrett Phelan. John Pilkington. and Will Whitley . MEMBERS ABSENT: Mark Aebi, Mike Cantrell. Bill Gifford. Suzette Hat?eld. Rob Johnston and Julie Kruger. MEMBERS RESIGNED AND NOT REPLACED: J.D. Holbird. OTHERS PRESENT: Mike Teny (OIPA President), Alan Busche and Jamie Dolph (Beacon liinvironmental), Dave. Thomas and Heath Kennedy (Brothers Co.) and Tim Baker (OCC). CALL TO ORDER Chairman David House called the meeting to order at 10:00 am. ATTENDANCE In the absence of Secretary Kruger, Cross called the roll and reported that a quorum was present. MINUTES Pilkington motioned to approve the March 2012 minutes as submitted. Munson seconded the motion and the motion carried by a vote of 14 and nay. Cook motioned to approve the March 2012 Special Meeting minutes as submitted. Brown seconded the motion and the motion carried by a vote of 14 and 0 nay. Director?s Report - Stitt gave the Director?s report (attached). Jennifer Billings gave the Public Relations report (attached). Billings showed a video from News OK regarding the new Well Site Safety campaign, House complemented the OERB staff and their accomplishments and particularly thanked Mindy Stitt, OERB Director for her line leadership and diligent work ethic. House presented Stitt with a plaque entitled Lady of Iron Will. House also thanked Dave Thomas and Heath Kennedy of Brothers Co., for arranging the plaque for Stitt. OERB Board Minutes, 5/8/12, page two. COMMITTEE REPORTS EXECUTIVE COMMITTEE Stitt reviewed the proposed 2013 and live?year budgets with the board. Pilkington asked if the State helped in any way in preparing the proposed budget. Stitt answered that they were not involved and that prices were estimated based on eighty percent of with a three percent decline in volumes each year. House added that the estimates are reviewed two or three times per year and adjusted as needed. Stitt stated that the Executive committee is requesting a $50,000 increase in the environmental budget in order to equal the Student Ed ?scal year budget. There was some discussion regarding the various proposed budgets. Stitt stated that the FY- 3 Environmental budget is estimated at $6 million dollars and Public and Student Education are estimated at $3 million dollars each. The Administrative budget is $1.2 million dollars. MOTION: Irani motioned to accept the proposed 2013 and ?ve-year budgets. Munson seconded the motion and the motion carried by a vote of 14 and 0 nay. A breakdown of each committee?s budget was provided. The Administrative budget is $1.2 million dollars. With regards to the student education budget. Goresen asked where the various ?eld trips are taken that the OERB is sponsoring. Stitt answered that there are eight various museums that the OERB pays for that students go through. Stitt explained that the museum must have an oil and gas exhibit or class in order for the OERB to pay for that ?eld trip. Cook asked how the students traveled to a ?eld trip location. House answered by school bus. MOTION: Pilkington motioned to accept all the proposed committee budgets. Munson seconded the motion and the motion carried by a vote of 14 and nay. House and Stitt reviewed proposed changes to the OERB Policy and Procedures manual (attached). MOTION: Cross motioned to approve changes to the Policy and Procedures Manual (attached). Johnson seconded the motion. The motion passed by a vote of 14 and 0 nay. ADMINISTRATIVE COMMITTEE House thanked Cross for his efforts in obtaining the administrative contract renewal. The Request for Proposal was published in the paper and distributed to the appropriate entities responded. The only two entities that submitted bids were the OIPF and Tassada Associates (TAI). dropped out leaving only the OIPF bid. House complemented OI PA President, Mike Terry, on a remarkable proposal. The average vote was 98.4% in approval of the OIPF proposal. MOTION: Cross motioned to renew the administrative contract with OIPF for a ?ve-year term renewable annually. Irani seconded the motion and the motion carried by a vote of 4 and 0 nay. ACCOUNTING COMMITTEE In the absence of Chairman Hat?eld, Mathis reported that the latest deposit was $l 377,929.96, bringing the current balance to $14.165,849.28. The unencumbered cash balance is $9,476,172.85. OERB Board Minutes. 5/8/20l2. page three. SCHOLASTIC OUTREACH COMMITTEE Chairman Munson asked Schaeperkoctter to give her report (attached). Sehaeperkoetter stated that over 1600 entries were received for the Well Site Safety Day poster and coloring contest. The new K-6?l grade Safety Campaign debuted at Well Site Safety Day. The three new Safety spots were shown as well as the new website. Schaeperkoetter added that the new campaign includes print materials and teachers can order posters and folders for their students. Petro Pros can also distribute additional stickers to the kids as they make presentations in the schools. Pilkington stated that it?s a ?dynamite program". Stitt added that the OERB still has the Lucky program which targets the older students. Munson announced that the EEO contract was up for the ?fth year of a five year contract. MOTION: Munson motioned to renew contract for the ?fth year of a five-year contract. Pilkington seconded the motion and the motion passed by a vote of 14 and 0 nay. ENVIRONMENTAL In the absence of Phil Spurlin. Chaimian Adamson asked Alan Busche to give his report (attached). Adamson recognized Alan Busche and Jamie Dolph on their efforts regarding the Sable Marr pit restoration. Busche was instrumental in ?nding the GeoGrid technology that was used to restore the site. Adamson stated that the Beacon staff constantly looks for innovative ways to improve efforts. Jamie Dolph managed the project. Dolph has a commitment to the program and was the one responsible for ?nding the gravel thrower which came from Montana. This machinery made it possible to cover a large area of ground uniformly and consistently with minimal disturbance to the surface. Dolph also instills and maintains a great relationship with the landowner and is the front man for OERB, whether it is a large or small site. Sowers stated that the environmental contract was up for renewal for the fourth year of a five-year contract. A modest increase in fees ol?5.7% is being requested. Sowers added that Beacon has not had a rate increase since 2010. The contract is bid every five years and audited every three years. The company has never had an audit finding. The committee recommends extending the contract for the 4'h year of a five-year contract with a 5.7% fee increase. MOTION: Adamson motioned to extend Beacon?s contract for the fourth year of a five-year contract with a 5.7% fee increase. Brown seconded the motion and the motion passed by a vote of l4 and 0 nay. Sowers apprised the board of two sites (the Lowe and the Luker) that are expected to cost over $20,000. Sowers requested approval to proceed with one project (the Lundy) that is expected to cost over $250,000. with the board (attached). MOTION: Adamson motioned to move forward with the Lundy project as recommended by the committee. Cross seconded the motion and the motion carried by a vote of 14 and 0 nay. Sowers updated the board on the Sable Marr pit project stating that the largest cost was the hauling transportation fee for the gravel. Sowers presented a slide show of the Sable Marr pit restoration. Pilkington asked if water was a problem on the Kelly pit. Sowers answered that no findings from the research conducted that exceeded regulatory action levels and that, initially. the EPA listed the facility as a CERCLIS Site. Since that time, however, the EPA has listed this site as an archived site with no further remediation planned. Currently, this is essentially a joint jurisdiction with the Oklahoma DEQ and the OCC. However verbal conversations with the Oklahoma DEQ have indicated that the should have regulatory jurisdiction. OERB Board Minutes. 518/2012, page four. Sowers stated that another possibility is to consider the Brown?elds program. which provides a process where the OCC and DEQ could say they agree with the restoration efforts being made and certification would be issued to that affect. Adamson added that this would include the potential for supplemental funding. Langford asked how long the Kelly pits have been on the OERB radar screen. Sowers answered since about 2007. Sowers also indicated that additional sampling has been conducted and that a geoteclmical evaluation has been perfomied on the two berms associated with this facility and that the berms (with the exception of certain isolated areas) are stable. House assured the board they would hear more about the Kelly pits during the tour and in future board meetings. House added that the Sable Marr project was a smaller version of the Kelly pits and was a good example on a smaller scale of what the Kelly pits will be like to restore. Adamson stated that call in data sheets begin on page 30 of the board packet. Specific data from the OERB staff indicates that approximately 50% of the projects received are from internal assessment activities. The other 50% are coming in from landowner call ins and also the work that the OCC inspectors perform in reviewing these sites. The OERB has seen an increase of about 30 to 60 call ins during the latest advertising campaign (running/ram March through May 3 0' It is effective in increasing the number of sites that are received from the landowners. Stitt reported that Phil Spurlin has been absent in the past few meetings due to his wife battling cancen PUBLIC EDUCATION COMMITTEE - Chairman Brown reported that the committee met last week to review two advertising concepts that will complement the Economic Impact ad campaigns. Brothers presented two concepts 1. Hands 2. Heartbeat. The committee agreed to proceed with production of both which should begin this summer. The press event to announce the results of the latest impact study which was completed by Steve Agee and the Economic Research and Policy Institute, is tomorrow at the State Capitol at 10:00 a.m. The study shows that one out of every three dollars of gross state product is due to oil and gas industry. Thomas added that each of the new ads will target a different age audience and should air in mid? August. Thomas also announced that the firm had just completed the Safety Campaign for K-6'h grade and is currently revising the Safety Campaign that targets high school age kids. Stitt reported that three contracts needed to be renewed. The ?rst one is the advertising contract with Brothers, which is up for the second year of a five-year contract. Stitt added that there were no changes to the contract. MOTION: Munson motioned to extend Brother?s contract for the second-year of a ?ve-year contract with no changes. Johnson seconded the motion and the motion carried by a vote of 14 and 0 nay. The second contract up for approval is the Public Opinion Research and Polling. This contract was re-bid. The incumbent was Shaphard Research who has had the contract for the past three years. livolve Research won the bid. Stitt related that the OERB has worked with them prior to the contract with Shaphard. Stitt added that while Shaphard was the lowest bid and did a good job of collecting data, their presentation of the data to the committee or the board was not done in a way that was beneficial for the OERB. Evolve Research does a great job of analyzing the data and providing OERB Board Minutes. 5/8/20l2. page ?ve. information and recommendations to the committee. The committee felt that was a large enough bene?t to justify the increase in cost. Evolve also does some unique and innovative things with polling and focus groups on the Internet using web based focus groups and thinking out of the box to reach people. Goresen asked what the cost difference was between Shaphard and Evolve. Stitt answered that Evolve was higher on focus groups. Evolve's information on cost is in the board packet on page 53-56. Stitt stated that Shaphard?s fee was 6,000 to $10,000 depending on the number of participants for a focus group while Evolve?s fee was around $14,000 depending on the number of participants. Billings added that Shaphard has their own facilities and Evolve does not. although Shaphard?s facilities were not nice enough to sway the decision towards Shaphard. MOTION: Brown motioned to accept Evolve Research for a three year term. Malody seconded the motion and the motion passed by a vote of 14 and 0 nay. Stitt stated that also up for renewal is the Web site Administration contract. The score summary is on page 58 of the board packet. Three different companies bid. Phase II is the incumbent. They scored a 321 which was the top score. An oral interview was conducted in order to answer a few additional questions. The company did very well in that interview and the committee recommends that the OERB stay with Phase II as Web site Administrator. Information regarding their contract and rate are on pages 59 through 63. Stitt stated that Waterfield Technologies also submitted a very good bid. Their rates overall were comparable, however, their upfront cost was substantial and because Phase II was doing a very good job the committee saw no reason to make a change. MOTION: Brown motioned to accept Phase II as the Web site Administrator for a five? year period renewable annually. Cross seconded the motion and the motion carried by a vote of 14 and 0 nay. Old Business. None. New Business- Stitt reported that all refund requests over $l00,000 must be approved by the board. Page five gives the refund report. Stitt added that there were no changes from previous years as far as the companies and individuals that are requesting refunds. Langford asked if most companies ask for l00% of their assessments. Stitt answered that, as far as can be determined. all except Chesapeake ask for a 100% refund. Brown asked if the OERB has audited any of these requests. Stitt answered that no extensive audit has been done since the one about 4 years ago, but Mathis does audit each request. as she receives them. lIouse asked for a motion to approve all of the refunds in excess 0f$100.000 (Samson Resources. Chesapeake Energy Corporation and Kaiser-Francis Oil Company). MOTION: Munson motioned to approve all of the refund requests in excess of $100.000. lrani seconded the motion and the motion passed by a vote of 14 and 0 nay. House stated that the OERB has an opportunity to educate legislators, city officials and regulators about hydraulic fracturing. Devon Energy has requested the OERB be the upfront host of the Oklahoma City area workshop which would present the API hydraulic fracturing standards. I-louse asked Stitt to explain further. Stitt directed the board to page 64 ofthe packet where she details the OERB Board Minutes. 5/8/20l2. page six. proposal. API is requesting the OERB host the workshop and help find a locationt speaker and agenda. Stitt added that the OERB would send invitations which would target elected of?cials, regulators, business organizations and different stakeholders in the oil and natural gas industry. In Ohio they partnered with OOGEEP which is the OERB equivalent. Stitt stated that there is no cost for the workshop and they provide breakfast and lunch. Stitt commented that there are typically between IOO and 150 people who attend the workshop. Cook explained that the API program fits the OERB mission. Adamson pointed out that it allows the regulators to become a part of the process and believes it?s a good concept. House asked Tim Baker if he had any comments. Baker thought it was a good opportunity and would be even better if news media would attend. Terry stated that the OERB is looked at differently than oil and gas companies which aids in dealing with critics. Terry agrees with Baker that it would be great for media to attend. House stated that when talking with any of the attendees of these workshops, the people said it is an amazing resource to them. MOTION: Cross motioned for the board to agree to partner with the API by hosting and coordinating a Hydraulic Fracturing Standards workshop to be held in approximately September, 20l2. Cook seconded the motion and the motion carried by a vote of 14 and 0 nay. House reviewed the nominations for of?cers (page 67 of packet). Ronnie lrani Chaimian Tim Munson Vice President Julie Kruger Secretary Russell Johnson Treasurer House asked for additional nominations from the ?oor. None were made. MOTION: Cross motioned to accept the nominations for of?cers. Pilkington seconded the motion and the motion passed by a vote of 14 and nay. lrani thanked House for all his work and stated how very impressed he was with his leadership. Stitt announced that there was a DVD available with all the commercials, to date, in their packets. The commercials are assorted by category and year. Stitt also thanked House for his dedicated leadership, his friendship and for mentoring her. Stitt commented that House was all about responsibility and not POWER. Stitt further stated that House kept a ?watchful eye? over the funds of the OERB. Stitt presented him with a plaque in honor ofhis service to the board. ADJOURNMENT There being no further business, Pilkington motioned to adjoum the meeting and Cross seconded the motion. The meeting adjourned at 1 1:49 am. Respectfully Submitted, ie Kruger, Secretary OERB Board Meeting Roll Call Date: 5/57 Adamson PRESENT Aebi PRESENT Brown PRESENT Cantrell PRESENT Cook PRESENT Cross PRESENT lg Gifford PRESENT Goresen PRESENT Hatfield PRESENT House PRESENT ,1 Terry ABSENT Mark ABSENT Pete ABSENT Mike ABSENT Phil ABSENT Mike ABSENT Bill ABSENT 4 Thomas ABSENT Suzette ABSENT David ABSENT Vt run1(l1y No (Duo lrani Ronnie PRESENT ABSENT Johnson Rusty PRESENT 1 ABSENT Johnston Robert PRESENT ABSENT Kruger Julie PRESENT Langford - Sam PRESENT ABSENT Malody - Dale PRESENT ABSENT Munson ,1 Tim PRESENT ABSENT Phelan Garrett PRESENT ,1 ABSENT Pilkingto ,Jr. John PRESENT ABSENT vvr?they VVHI PRESENT ABSENT Wig 416mm 5pm 935:5;sz Cheryl Standage From: meetingnotices@sos.ok.gov Sent: Friday, May 04, 2012 8:20 AM To: cstandage@oerb.com Cc: MeetingNotices@sos.ok.gov Subject: Open Meetings Confirmation Meeting Notice COnfirmation CHERYL STANDAGE OKLAHOMA ENERGY RESOURCES BOARD (OERB) - ENVIRONMENTAL 3555 NW. 58TH ST.. #430 OKC. OK 73112 405?942-5323 This message confirms your meeting notice posting with the Secretary of State. DATE AND TIME OF POSTING: FRIDAY. MAY 4. 2012 INFORMATION POSTED THE REGULAR SCHEDULED FOR: MAY 2012 8:30 AM AT 3555 NW 58 SUITE 430 CONFERENCE ROOM OK HAS BEEN You may view and print the web postings ol?your body's meeting notices by visiting our website at: gour meet_ines page. Cheryl Standage From: meetingnotices@sos.ok.gov Sent: Thursday, January 05, 2012 9:08 AM To: cstandage@oerb.com Cc: MeetingNotices@sos.ok.gov Subject: Open Meetings Confirmation Meeting?o?ce Q9n?npatidn CHERYL STANDAGE OKLAHOMA RESOURCES BOARD (OERB) - ENVIRONMENTAL COMMITTEI- 3555 NW. 58TH ST., #430 OKC, OK 73112 405-942-5323 This message con?rms your meeting notice posting with the Secretary of State. DATE AND TIME OF POSTING: THURSDAY, JANUARY 5. 2012 9:08 AM INFORMATION POSTED A REGULAR MEETING HAS BEEN SCHEDULED FOR: TUESDAY, MAY 08, 2012 8:30 AM AT OERB 3555 NW 58 SUITE 430 LARGE CONFERENCE ROOM OK You may view and print the web postings of your body's meeting notices by visiting our website at: \rnur ingmigg page. REPORT May 8, 2012 Since the last board meeting, the staff made presentations for the OKNARO Annual Convention, the Oklahoma Career Tech Annual Meeting, the Northwest Oklahoma Association of Bankers, an OU Energy Management Mentoring Luncheon, two OCC District Luncheons and two groups of Singapore students attending OCU. The staff manned a booth at the following events: OKNARO Annual Convention, Sciencefest, Claremore School?s Take 25 Safety Event, the Okfuskee County Earth Day and Western Farmers Co-Op Earth Day. Attached is a summary report of work orders issued to construction contractors for phase restoration work since March 14, 2012. For this period, the OERB issued 28 work orders for a total of $233,952.00, the largest being issued to Kinder Dozer lnc. in the amount of $40,720.00. Public Relations Report Jennifer Billings Respectfully submitted, M) SR Mindy Stitt, Executive Director Oklahoma Energy Resources Board COMMUNICATIONS REPORT OERB BOARD REPORT Communications May 8, 2012 THE FOLLOWING NEWS RELEASES WERE PREPARED AND DISTRIBUTED: Well Site Safety Day Safety Campaign Launch 62 Teacher Press Releases Economic Impact Media Alert NEWSPAPER COVERAGE (press clippings received since last board meeting March 13, 2012): May 2, Vian Tenkiller News, Notes from the 53rd May 2, Watonga Republican, Coloring Winner May 2, Altus Times, Duke Student Honored May 2, Fort Gibson Times, Stephanie Hickman honored April 26, Canton Times, OERB launches new safety campaign April 26, Canton Times, 6th Grade Visits Geo Science Center April 26, Tulsa World, OERB enlists students? help with safety campaign April 25, Oklahoman, OERB Launches new safety campaign April 25, Stilwell Democrat, OERB launches new safety campaign for young students April 20, Journal Record, Giving Land Back to Oklahomans April 19, Morris News, Morris Schools Bulletin April 19, Owasso Reporter, Catoosa teachers receive free supplies at workshop April 19, Prague Times-Herald, Area teachers fuel up on free supplies April 19, Rush Springs Gazette, Area teachers fuel up on free supplies April 19, Sentinel Leader, Sentinel teacher fuels up on free supplies April 18, Skiatook Journal, Education workshop April 17, Perry Daily Journal, Perry teacher fuels up on free supplies April 15, Ada Evening News, Area teachers fuel up on free supplies April 15. Okmulgee Daily Times, Morris Public School Bulletin April 15, Express Star, Area teacher fuels up on free supplies at energy workshop April 14, Muskogee Phoenix, Teachers take part in energy workshop April 12, Cushing Citizen, Deep Rock Elementary students learn about fossil fuel energy April 12, Hughes County Times, George attends natural gas and oil workshop April 12, Latimer County today, Area teacher fuels up on free supplies April 12, Talihina American, Area teacher fuels up on free supplies April 12, Clayton Today. Area teacher fuels up on free supplies April 12, Garber-Billings News, Garber teachers fuels up on free supplies April 11, Holdenville News, Area teacher fuels up on free supplies April 11, New York Times, Continental Resources Announces Addition of Longtime Energy leader April 8, Norman Transcript, Kennedy Elementary School April 5, The Tribune, PEAK students get pre?hlistoric COMMUNICATIONS REPORT April 1, Norman Transcript. Kennedy Elementary visited by Petro Pro March 29, City Sentinel, New Bricktown Fire station earn LEED silver certification March 25, The Verdict. Mindy Stitt, OERB March 18, Holdenville News, Gomez participates in Oklahoma Academic Mind Games March 16, Seminole Producer, 880 Students Play Mindy Games March 15, The Black Chronicle, Young, The Hamms and The Edwards Named March 12, Daily Ardmoreite, Man of all Trades March 7, Tulsa Daily Commerce, Area Brownfields program misunderstood March 6, Altus Times, School Board to hold special meeting Total: 40 RADIO COVERAGE: OETA Effect of low natural gas prices FOX 25 Well Site Safety Day NewsOK Well Site Safety Day MISCELLANEOUS COVERAGE: NAODA Spring Newsletter April 12, Oil Gas Financial Journal, Cantrell joins Continental April 15, Petroleum News, Cantrell joins Continental?s executive team 2012 COVERAGE The OERB has been included in 64 newspaper stories 2 organizational newsletters, 0 radio programs 4 television news stories, 1 televised half-time reports and 2 miscellaneous print pieces. - Economic Impact Campaign Spring/Summer Newsletter 12k site - Keeping up with blogs on Hydraulic Fracturing page and Advancing Energy page PLANNING: - National media plan RELATIONSHIP BUILDING: - Legislative e-blast - e-blast PRSA, Women in Comm, Young Energy Professionals, SPE, etc. OERB Financial Summary May. 2012 Assessment Deposit Current Cash Balance $1,277,929.96 $14,165,849.28 FY-2011 Budget Paid to Date Outstanding Encumbrances Administrative $2,628,555.83 $2,420,136.35 $0.00 Public Education $5,500,000.00 $5,357,080.86 $0.00 Environmental $6,000,000.00 $5,780,701.01 $10,846.23 Reserve $1,185,014.25 Total $15.313.570.08 $13,557.91822 $10,846.23 FY-2012 Budget Paid to Date Outstanding Encumbrances Administrative $2,981,993.11 $878,181.51 $308,018.33 Public Education $6.550,000.00 $3.950,145.60 $2,331,312.86 Environmental $6,500,000.00 $3,949,936.96 $2,039,499.02 Reserve $6,782,421.19 Total $22.814.414.30 $8.778.264.07 $4,678,830.21 Unencumbered CashL $9,476,172.84 I .. . Receipts vs. Disbursements - Last 25 Months 52,700.00000 3250000000 {u . . -.. 5250000000 5240000000 . 32.309000?, DReceipts IDisbuisemenls s2.2oo,ooc.oo i 5210000000 .. .. .- 5 32.000.00000 5190000000 - .. . i . . i 51.700.00000 .-. . 3150000000 - . .. - 5130000000 51.200.00000 81.100.000.00 $1.000 000.00 - 3900.000 00 3300.000 00 i 5600000 no 350000000 5400.000 00 use 000 00 5200.000 00 5100.000 00 $0 00 u-Ilw 5/2/201 2 2011 REFUND FORMS REQUESTS Updated 05/01/12 First Name Last Name Company Name Address City Slat. Zip REFUND 201 1 Received Approved Claim Ck Mailed Refund Amount Richard Behling Royalty Owner 5017 S. 71 E. Avenue Tulsa 74145 $628.84 03113112 03130112 5628. 84 Danita Cockrell Nadel 8. Gussman Company. L.L.C. 15 E. 5th St. Suite 3200 Tulsa 74103 $15,381.34 04/0211 2 Karen Benton Samson Resources Two West Second Street Tulsa 74103-3103 $200,945.43 03108112 03130112 $200,945.43 Paul Bowyer Chesapeake Energy BOX 18496 Oklahoma City 73154 1,154,490.48 03123112 04/27/12 1,154,490.48 Linda Maughan Royalty Owner 2000 N. Broadway, Suite M001 73160 Yvonne Diebold Kaiser-Francis Oil Company P.0 Box 21468 Tulsa 74121 1 18,542.63 0312011 2 Gail Lanier Royalty Owner 1428 Wilburn Dr. Oklahoma City 73127 Annette Hott Monte Hott Production Co 229 S. Eagle Lane Oklahoma City 73128 $1,629.83 03120112 05/01/12 $1,629.83 Mark Roye Royalty Owner 405 E. Caddo Avenue Wilburton 74578 M. Craig Deisenroth M. Craig Daisenroth Oil 8. Gas 1924 Utlca Ave, Ste 540 Tulsa 74104 $2,211.03 02113112 02120112 $2,216.44 Robert Albrecht Lario Oil 8. Gas Company 301 8. Market Street Wichita 67202 $3,445.56 02121/12 Michael Combrink Mack Energy Company PO. Box 400 Duncan 73534 $1,298.64 04/0211 2 Barbara ?Marek Bergman Petroleum Corporation 108 E. Ogden Ave. Suite 101 Hirisdale 60521 510.188.75 04/09/12 Vicki Burris Berexco. L.L.C. 2020 N. Bramblewood Wichita 67206 Grant W. Eisner Southwestern Exploration Consultar 6412 Avondale Dr.. Suite 200 Nichols Hills 73116-6400 1,474.03 03120112 Alan T. McKay Royalty Owner 6301 Ct. Oklahoma City 73132 $369.75 03120112 Charles Spradlin, Jr. Okmar Oil Company 2020 N. Bramblewood Wichita 67206 10,163.27 0312011 2 Charles Spradlin, Jr. Shelro Petroleum Corporation 2020 N. Bramblewood Wichita 67206 137822 031201 1 2 Charles Spradlin, Jr. Beresco Properties. Inc. 2020 N. Bramblewood Wichita 67206 11,259.89 031201 1 2 Chanes Spradlin, Jr. Robert Beren. LP. 2020 N. Bramblewood Wichita 67206 1.81356 03120112 Charles Spradlin, Jr. Manuel Corporation 2020 N, Bramblewood Wichita 67206 612.39 031201 1 2 Charles Spradll?n. Jr. Roberen Properties. Inc 2020 N. Bramblewood Wichita 67206 $2,269.65 03120112 Lori Kuntz Royalty Owner Scott Mueller Jamestown Resources. L.L.C. PO. Box 18756 Oklahoma City 73154 $5,590.22 0312311 2 Scott Mueller Larchmont Resources. L.L.C. PO. Box 18756 Oklahoma City 73154 $16,912.84 03123112 Scott Mueller Arcadia Resources. LP. P. 0. Box 18756 Oklahoma City 73154 $15,746.99 03123112 James Adelson Allegro Royalty Pool. L.L.C. 15 E. 51h St . Suite 3200 Tulsa 74103 $57.86 04/021 1 2 James Adelson Energy Group. L.L.C. 15 E. 51h St. Suite 3200 Tulsa 74103 $158.83 04/02/12 Tom H. McCasland. Ill MERC6 PO Box 400 Duncan 73534 $449.74 04/02/12 Tom McCasland. Fourgen. L.L PO. Box 400 Duncan 73534 530.446.84 04/0211 2 31 Tom H. McCasland. Ill Mack Oil Co PO. Box 400 Duncan 73534 520.686.45 04/02/12 Tom H. McCasland. Soulhok Development Co. PO Box 400 Duncan 73534 $449.74 04/0211 2 Fred Buxton Scintilla. L.L.C. 1307 5. Boulder. #400 Tulsa 74119 55215695 04/0211 2 Kevin Easley David J. Chemicky Trust 1307 3. Boulder. #400 Tulsa 74119 $2750.89 04/0211 2 Kevin Easley DPC Corporation 1307 5 Boulder. #400 Tulsa 73119 $1,866 52 0410211 2 Total $1,359,911.02 $1,685,377.16 ASSESSMENT DEPOSIT HISTORY MONTH 1994 1995 1 996 1997 1998 1 999 2000 2001 2002 2003 January 183,993.86 181,764.05 164,304.22 427,266.64 666,663.15 473,503.93 558,675.32 967,194.20 $531,276.56 711,372.64 February 103,807.90 80,029.30 103,773.98 625,151.81 267,637.83 249,374.49 342,351.45 702,373.18 403,121.75 412,190.81 March 130,359.77 143,489.18 140,064.18 591,208.89 490,455.60 214,329.08 419,847.58 853,956.65 220,237.49 739,816.01 April 163,722.46 181,620.01 165,680.07 707,709.39 523327.21 313,787.19 620,632.31 $1,665,454.99 $557,840.51 748,041.61 May 121,460.34 123,085.36 111,733.55 360,679.34 152,084.77 181,050.99 301 .640. 78 758,117.41 245,785.81 985,507.52 June 152,154.22 120,410.74 177,177.30 443,127.32 345,922.26 359,227.25 593,829.54 1,288,710.37 513,412.17 1,002,757.10 July 217,685.58 221,199.17 147,295.01 485,333.10 533,868.82 292,356.33 631,224.12 1,145,024.08 600,093.17 999,014.66 August 51,556.66 92,591.19 110,139.34 208,881.86 198,831.85 272,202.15 314,718.17 560,705.26 361,841.70 1,420,141.51 September 170,565.59 113,340.01 132,523.39 372,854.10 277,209.72 360,290.67 741,475.97 901,914.83 568,615.39 13,061.93 October 134,004.12 116,938.72 137,607.00 535,113.01 390,407.45 414,514.54 712,600.24 678,047.06 669,110.55 863,033.61 November 124.870.11 137,079.91 171,572.56 298,596.40 197,303.32 348,342.28 678,220.52 472,188.44 431,670.67 702,950.83 December 116,574.60 136,023.39 340,089.09 343,562.88 238,288.57 404,667.27 681,324.49 514,330.68 620,485.31 598,147.79 TOTAL $1,670,755.21 $1.647.571.03 $1,901,959.69 $5,399,484.74 $4,282,000.55 $3,883,646.17 $6,596,540.49 $10,508,017.15 $5,723,491.08 $9,196,036.02 Refunds $80,981.13 $46,258.68 $141.702.78 $295, 345. 50 $163,315.76 $217,469.64 833345484 $422,905.77 $233,487.31 865,499.64 of Assess. 4.85% 2.81% 7.45% 5.47% 3.81% 5.60% 5.05% 4.02% 4.08% 9.41 MONTH 2004 2005 2006 2007 2008 2009 2010 201 1 2012 2013 January 983,492.97 1,123,981.11 1,926,463.89 1,084,18619 1,478,902.15 1,766,656.05 1,037,056.80 1,299,110.42 $1,862,347.88 Februany 591,212.39 1,058,206.81 1,586,795.88 1,219,723.93 1,588,428.10 976,496.31 904,740.87 887,639. 57 1,328,254.87 March 799,624.33 849,055.58 1,201,116.34 1,196,566.15 1,338,927.52 875,152.60 939,013.31 973,612.78 1,458,343.41 April 1,384,680.25 1,242,599.48 1,694,672.07 1,151,302.39 1,657,409.72 992,268.53 1,522,202.82 $1,544,258.84 $1,383,295.47 Mal 278,276.02 881,648.13 1,068,539.65 1,116,253.01 1,633,170.26 676,974.52 1,257,947.48 1,070,663.88 1,277,929.96 June 765,764.08 1,154,170.82 1,391,022.80 1,204,687.22 2,008,022.11 671,063.88 1,334,943.42 1,057,798.72 July 1,368,367.94 1,240,078.34 1,164,136.63 1,324,082.65 712,226.61 1,255,025.58 1,626,101.86 August 1,579,281.02 966,346.84 1,195,433.02 1,240,964.03 2,278,438.03 718,621.67 1,094,969.87 1,435,389.20 Sept_ember 1,021,108.95 1,071,114.66 1,110,634.81 1,391,248.31 2,273,119.98 821,983.23 1,085,978.55 1,390,766.58 October 309,168.33 1,165,632.58 1,256,710.52 1,367,456.21 2,568,326.14 1,062,289.69 855,009.16 1,421,297.12 November 672.653.57 1,283,982.18 1,320,088.91 1,230,417.20 1,759,372.62 758,143.39 1,070,374.05 1,350,548.77 December 555,288.48 1,090,045.07 1,014,572.96 1,056,179.67 926,706.43 788,847.41 808,130.76 1,227,921.55 TOTAL 510.308.918.33 $13,126,86160 $15.930.187.48 $14,583,06696 $21,356,24001 510.820.723.89 $13,165,39267 $15,285,109.29 $7,310,171.59 $0.00 Refunds 1,191,612.49 $1,694,480.22 $1,661,622.06 $1,959,349.49 $2,636,725.39 $930,289.68 $1,295,690.00 $1,685,377.16 of Assess 11.56% 12.91% 10.43% 1 3.44% 12.35% 8.60% 9.84% 11.03% 5/2/2012 Est. Average Oil Price Est. Oil Volume Est. Average Gas Price Est. Gas Volume FY-2013 5 YEAR PROPOSED BUDGET Estimates/Actuals July - April FY-2012 Estimates May - June FY-2012 11.340.666 288 409.000 FY-2013 - . 351/ 74,319.000 0 1899185000 FY-2014 72.089.430 1,842,209,450 FY-2015 69.926747 . . ,1 I 12-4 1.786.943.167 FY-2016 L. 9 Lu 67.828.945 cz- - 1.733.334.872 Gross Assessments $14,484,266 71 52.013.963.36 510.721.596.95 511352.117 12 511.215.948.48 510.890.685.90 'Prices used are based on 80% of NYMEX. ?Production volume is based on a 3% decline each year Budget 03FY-2012 FY-2012 FY-2013 FY-2014 FY-2015 be FY-2016 3? Revenue Year Carry Forward $9,391,053.02 310.319.876.73 56.506848 47 54,127 496.13 82.042208 89 Net Assessment 614320.042 40 61.993823 73 51061438098 511.238.595.95 811103.788 99 310781779 04 OK Tax Comm Recovery 516422431 810.069 82 $53,607.98 556760.59 556079 74 554453 43 Other Revenue 534758398 $50,000 00 $365,000.00 $350,000.00 532500000 530000000 Total Revenue and CF ?4,222,903.71 $2,053,893.54 $21,352,865.70 518.152.205.01 $15,612,364.87 513.178.441.36 ?01 the Estimated Assessments, we determined that OTC misclassifies approx. of which is recoverable by OERB. Expenditure Admin Contract $969,574 10 $193,914 82 7 3% 51.230.818.88 8 3% 81315405 40 9.4% 81.381.175.67 10.2% 51.450.234.45 11 Legal/Audit/Assess. Audit $0.00 811500.00 0.1% 515000.00 0 1% 515000.00 0.1% 81500000 0 1% $15,000.00 01?. Refunds $0.00 51.681.931.60 10.5% 51600198 34 10 8% 8169430348 121% 51.673.980.31 12 3% $1,625,434.87 12 99 Environmental $5,416,666.70 $1,133,333.30 41 0% $6,000,000.00 40 4% $5,500,000.00 39 2% $5,250,000.00 38.7% $4,750,000.00 37 Education $5,458,333.34 $1,091,666.66 41 0% $6,000,000.00 40.4% $5,500,000.00 39.2% $5,250,000.00 38.7% 54.750.000.00 37 Total Expenditures Carry Forward Available $11,844,574.? $4,112,346.38 $10,319,876.73 Refunds for and out years were figured at 15% of assessments FY-2013 and FY-2014 Admin contract increase due to office space rental. Education for FY-2013 includes $3,000,000 Public Ed, $3,000,000 Student Ed. $14,846,017.22 $6,506.848.47 $14,024,708.88 $4,127,496.13 513.570.155.98 $2,042,208.89 $12,590,669.32 $587,772.04 Overhead Expenses: Salaries 8. Wages Contract Labor Payroll Taxes Pension Plan Contributions ln5urance A Expenses: Office Rent Contract Labor Professional Fees/Tax Pension Repairs Maintenance Equipment Rental Office Supplies Postage Telephone Expense Dues Subscriptions Computer Serwces Expenses Copy Expense Public Relations Newsletters Travel Office Equipment Office Furniture 8- Fixtures Miscellaneous TOtal Overhead Expenses: Management Fee OEEF: Total Overhead Expenses/Mgmt. Fee: Subcontracted Labor Total Expenses: Oklahoma Independent Petroleum Foundation Estimated Fiscal Year End 2012 Budget Report Proposed Fiscal Year 2013 Budget Year to Date Year to Date Year to Date FY '13 Proposed Budget Estimate Variance Budget 7/1/12 - 6/30/13 662,004.00 643,625.00 318,379.00 692,136.00 0.00 520.00 (520.00) 0.00 54,840.00 52.35863 2,481.37 57,145.44 63,996.00 65,400.06 (1,404.06) 70,125.56 113,700.00 101,016.86 12,683.14 113,926.56 57,000.00 56,328.68 671.32 85,680.00 2,520.00 1,050.00 1,470.00 2,520.00 12,000.00 10,852.67 1,147.33 12,000.00 2,700.00 2,527.22 172.78 2,700.00 7,020.00 6,800.38 219.62 7,020.00 14,400.00 13,238.98 1,161.02 14,400.00 14,004.00 8,751.58 5,252.42 11,400.00 13,200.00 11,021.54 2,178.46 13,200.00 3,000.00 2,564.39 435.61 3,000.00 6,000.00 4,826.71 1,173.29 6,000.00 2,580.00 1,351.63 1,228.37 2,580.00 4,440.00 3,441.35 998.65 4,440.00 0.00 0.00 0.00 0.00 30,000.00 26,030.57 3,969.43 30,000.00 5,400.00 7,852.13 (2,452.13) 7,500.00 1,020.00 425.00 595.00 2,520.00 6,540.00 (6,578.64) 13,118.64 5,400.00 $1,076,364.00 $1,013,404.74 $62,959.26 1,143,693.56 50,000.04 50,000.04 0.00 50,000.04 1,126,364.04 1,063,404.78 62,959.26 1,193,693.60 37,124.88 47,124.88 (10,000.00) 37,124.88 $1,163,488.92 $1,110,529.66 $52,959.26 1,230,818.48 2014 Fiscal Year 5% increase Before Adjustment on Office Ftent 2015 Fiscal Year 5% Annual Increase 2016 Fiscal Year 5% Annual Increase 2017 Fiscal Year 5% Annual Increase 1,315,405 40 1,381,175.67 1,450,234.45 1,522,746.17 /5 FY-2013 Proposed Environmental Budget Proposed Budget: $6,000,000.00 Expenditures: Consultant Charges $2,100,000.00 Environmental Advertising 300,000.00 OCC Reimbursements, Luncheons, etc. 50,000.00 Subtotal: ?22450:000-00 Balance $3,550,000.00 Average Cost/Project 11,822.50 $4,729.00 per site 2.50 sites per Project) Number of Projects Required: 300 Projects Current Project Inventory (as of March 31", 2012) Phase 1.00 Projects Projects Received Need 320 Projects Phase 1.10 Projects ROE Received, ready for Assessing 116 Projects Phase 2.20 to 2.40 Assessment Complete 268 Projects Total 704 Projects Note: 1. Environmental Advertising will be decreased in the event of a reduction to the Environmental Restoration Budget. 2. The ERC will have the flexibility of adding to the Environmental Advertising Budget (if warranted). FY-2013 Public Education Budget Total Education Budget (-) Student Education (-) ConservationNVeatherization Education Budget Remaining Advertising (Brothers' Contract) Web site Maintenance/Updates (Phase Two) Research - Public Opinion Economic impact (SoonerPoll, OCU, etc.) Misc. Pub. Ed. (Booth Space, Press Events, Special Projects, etc.) Total Public Education Budget 69996669 Amount 6,000,000.00 (3,000,000.00) 3,000,000.00 2,750,000.00 45,000.00 115,000.00 90,000.00 3,000,000.00 Student Education Proposed Budget-FY 13 K-12 Curricula $975,000.00 Educators' Micro Site $200,000.00 Petroleum Scholars Program $368,000.00 PetroTech Program $130,000.00 Well Site Safety $665,000.00 Field Trips $350,000.00 Marketing/Sponsorships $56,000.00 Miscellaneous $136,500.00 Balance for Future Projects $119,500.00 Total Budget $3,000,000.00 025 Petro Pro Presentation Statistics 2011-2012 Presentations Completed Students Reached Presentations Scheduled of Students 2010-2011 Presentations Completed Students Reached 2009-2010 Presentations Completed Students Reached Curricula Statistics Little Bits it of Teachers Trained 2011-2012 2010-2011 2009-2010 Fossils to Fuel 8 of Teachers Trained 2011-2012 2010-2011 2009-2010 Fossils to Fuel 2 8 of Teachers Trained 2011-2012 2010-2011 2009-2010 Petro Active 8 of Teachers Trained 2011-2012 2010-2011 2009-2010 CORE Energy Science Math Social Studies July 0 0 45 112 July 100 111 July 114 85 38 July 43 21 July 27 20 July Science Math Social Studies Language Arts 2010-2011 tt of Teachers Trained Science Math Social Studies Language Arts 2009-2010 ft of Teachers Trained As of 05/01/2012 Aug. oo good) 61 3?06 00000 Sept 10 386 2 152 309 Sept 41 25 46 Sept 48 19 36 Sept 15 24 tow-no: 34 OERB Student Education Statistics Oct. 21 1085 13 549 21 2260 Oct. 47 60 113 Oct. 39 31 112 Oct. 19 17 31 Oct. 16 25 OctNov. 39 1243 22 760 21 967 Nov. 84 88 Nov. 19 85 35 Nov. 11 52 18 Nov. 22 16 NovDec. 39 1142 14 84 14 469 Dec. 000 Dec. Dec. 000 0000 Dec. 09?00 00?00 Jan. 24 943 30 1007 11 278 Jan. 25 Jan. 15 Jan. 15 Jan. 0 an 00000 00000 Feb. 32 1232 1 3 346 29 846 Feb. 59 101 161 Feb. 26 26 38 Feb. 20 1 5 16 FebMarch 32 2161 11 485 53 2258 March 31 30 72 March 33 39 68 March 25 14 42 April 52 1702 33 706 47 1639 April 72 49 April 18 19 April 21 16 April April 00000 May 237 134 53 1455 46 1378 May 000 coo June 0 00 June 5 3 or gocooc 00000 00000 YTD 258 10131 134 192 5589 252 10516 YTD Trained 326 483 537 YTD Trained 322 331 371 YTD Trained 157 145 190 YTD Trained 94 80 102 YTD Trained 298 Total Trained 1,346 1,020 537 Total Trained 6.259 5. 937 5. 606 Total Trained 749 592 447 Total Trained 1,725 1,631 1,551 Total Trained 664 1.075 469 510 2,718 586 900 431 465 2, 382 501 763 377 407 2,048 30 200 150 100 I 50 Call-ins to OERB January-April I I I 2009 2010 2011 2012 . I Projects 3/ Projects/Sites Received January-April 500 400 300 ?i#?P?r6j?dt? 200 100 7 371 Projects/Sites Restored January-April 300 250 200 150 100 50 l# Projects Sites 33 $2,000,000.00 $1,500,000.00 - $1,000,000.00 - $500,000.00 Construction Costs January-April $0.00 2008 2009 2010 2011 2012 I Amount Spent rm" ?1 - at? . Environmental Assistance Corporation April 19. 2012 Mr. Steve Sowers Oklahoma Energy Resources Board 3555 NW 58'? Street. Suite 430 Oklahoma City, OK 73112 RE: Proposed Rate increase Dear Mr. Sowers. As per our discussions pursuant to your request. we reviewed our current OERB rates and would propose a modest increase. Please peruse the following information and advise if you have any questions. Background: . Due to the competitive bid process BEACON. we have historically discounted the OERB rates from our private client rates. . Being an oil and natural gas company providing environmental services. we are aware of industry activity and are sensitive to timing and rate increases. . All previous rate increases have been based on the Consumer Price index as a means to account for inflation and is intended solely to keep our pay scale competitive to insure employee continuity for the program. Proposed Rate Increase Justification: . Our last rate increase was effective July 1, 2009. 0 Due to an industry downturn, BEACON voluntarily reduced our rates effective July 1, 2010. . With an increase in industry activity, BEACON requested a return to our previous rate effective July 1, 2011. . The CPI was 212.71 in March, 2009 and is 229.39 as of March 2012, an increase of . BEACON has experienced operating expense increases in every area for the past five years. Proposed Rate Increase: . Based on the above information, BEACON Environmental respectfully requests an average rate increase of 5.7% (CPI increase since 2009 is as shown on the attached spreadsheet. Respectively submitted, r- .3 i w/jgf? t; G. Phil Spurlin President Attachment 3? 6/ 2000 SE. mm 31. Building 400.8UiieC Edmond, Okiohoma 7301.3 (405) 330-8688 FAX (405) 330-8668 BEACON Rate History and Proposed FY-13 Rates Current FY-13 FY-08 FY-09 FleO FY-11 FY-12 1.078 Proposed PN 80.00 87.00 85.00 87.00 87.00 93.79 92.00 5.7% PMIPC 75.00 82.00 80.00 82.00 82.00 88.40 87.00 6.1% PP 63.00 68.00 66.00 68.00 68.00 73.30 72.00 5.9% ST 51.00 55.00 53.00 55.00 55.00 59.29 58.00 5.5% DT 45.00 50.00 48.00 50.00 50.00 53.90 53.00 6.0% FS 40.00 43.00 42.00 43.00 43.00 46.35 45.00 4.7% SC 32.00 34.00 34.00 34.00 34.00 36.65 36.00 5.9% Avg 5.7% CPI 213.53 212.71 217.63 223.47 229.39 7.8% CPI increase 3/09 - 3/12 5.7% Average proposed increase 35 3? $9,000,000.00 $8,000,000.00 $7,000,000.00 $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 $0.00 m_w_ --..Total Environmental Restoration Budget Beacon Personnel (hourly charges) . Beacon Project Expenses 3? 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% of BEACON Charges to Total Environmental Budget I Principal Proj. Mgr./Coor 5i". Proj. Prof. I Sr. Tech. I Tech/Cadd Field 5. Sec/Clerk Total Hourly ?4 0 Proj# ProjName BEACON Expenses Restoration Proj Total #Sites K303 Fred erickson 1,099.00 55.0% $178.00 8.9% $720.00 36.1% $1,997.00 1 K137 Reynolds Brad 2 2,146.25 63.8% $269.00 8.0% $949.00 28.2% $3,364.25 2 0072.1 Stipe 1,528.75 53.5% $129.00 4.5% $1,200.00 42.0% $2,857.75 1 1220 WilliamsJohnnie 1,364.75 36.9% $235.00 6.4% $2,100.00 56.8% $3,699.75 1186 Chaney J. 4,002.25 37.0% $679.13 6.3% $6,150.00 56.8% $10,831.38 K100 King K.W. 6,693.25 36.1% $1,405.00 7.6% $10,450.00 56.3% $18,548.25 5070.3 Burk Farm 6,363.00 31.2% $609.00 3.0% $13,400.00 65.8% $20,372.00 K022 Raschen 2 3,185.00 16.6% $471.00 2.5% $15,500.00 80.9% $19,156.00 MNOLD J058 Deep Rock Energy Resources, LLC 6,296.50 15.7% $851.54 2.1% $33,000.00 82.2% $40, 148.04 Bacon 3 $20,735.50 23.8% $3,405.74 3.9% $62,817.50 72.2% $86,958.74 G472 Canyon Creek Ranch $35,674.75 25.5% $3,796.71 2.7% $100,200.00 71.7% $139,671.46 17 K086 Yerby 2 $47,395.00 17.4% $5,481.21 2.0% $219,933.00 80.6% $272,809.21 55 NOTE: BEACON time and expenses for G472, Canyon Creek Ranch, include all Phase and II investigation for 28 additional sites that are delayed by landowner and operator issues. Proiects Completed as of 4/15/12 Proj SBEAC Time $Expenses $Restoration $3ij Total Sites Avg $/site All Projects 185 799,686 23.2% 137,075 4.0% 2,508,011 72.8% 3,444,772 580 5,939 Rest 143 334,644 39.8% 52,944 6.3% 452,657 53.9% 840,245 268 3,135 Rest - 29 168,712 25.3% 28,056 4.2% 469,602 70.5% 666,371 108 6,170 Rest 13 296,330 15.3% 56,075 2.9% 1,585,752 81.8% 1,938,157 204 9,501 4/ May 8, 2012 Officer nominations for consideration: Chairman Ronnie lrani Vice Chairman Tim Munson Secretary Julie Kruger Treasurer Russell (Rusty) Johnson, b7 g2! l: W-4 May 8, 2012 Mr. Terry Adamson Chairman, Environmental Restoration Committee Oklahoma Energy Resources Board RE: Executive Summary The following Executive Summary reviews the projects as turned in to the OERB and status of each. SUMMARY for April, 2012 0 Received 14 new projects from the OCC Completed 26 projects with 49 sites for a total construction cost of $207, 623 Committed $190, 828 for construction based on new bids received for 31 projects with 60 sites 2012 PROJECT OVERVIEW (Calendar Year): . Received 106 projects with 110+ sites. . Completed 86 projects with 282 sites. CUMULATIVE PROJECT OVERVIEW Projects Sites Total Received 7,091 15,409+ Dropped 1,333 1,504 On Hold 124 243 Completed 4,830 11,939 Active 804 1 ,723+ Total cumulative environmental spending through 4/30/12: $71 ,942,003.01. STATUS OF ACTIVE PROJECTS Projects Sites Under Construction 122 307 Phase 1/2 Complete 254 988 Waiting on ROE 307 307+ Phase 1/2 Backlog 121 121+ 2000 E. 15m ST. Building 400. Suite Edmond, Oklahoma 730l3 (405) 330-8688 FAX (405) 330-8068 Environmental Restoration Committee Report Oklahoma Energy Resources Board BUDGET Fiscal Year 2010-2011 Environmental Budqet: Environmental services and related project costs YTD: (includes analytical laboratory) Committed environmental services Construction complete (invoices paid and approved but not paid) Construction complete (invoice not yet received) Committed construction Projects in bidding process Balance as of 4/30/12 3 Fiscal Year 2011-2012 Environmental Budqet: Environmental services and related project costs YTD: (includes analytical laboratory) Committed environmental services Construction complete (invoices paid and approved but not paid) Construction complete (invoice not yet received) Committed construction Projects in bidding process (some will move to FY-13) Balance as of 4/30/12 Sincerely, Phil Spuriin, RPG President cc: Mindy Stitt May 8, 2012 Page 2 5,700,000 (2,092,070) (3,356,637) (6,296) (5,455,003) 244,997 5,200,000 (1,844,075) (255,925) (2,270,394) (21,297) (1,325,198) (520,175) (6,237,064) (37,064)