2008 has been one heck of a year! Of course I said that last year. However, this past year is one we won’t forget. As Chairman of LOGA’s Board of Directors, I take full credit for the record high oil and natural gas prices. You see, assuming responsibility for price fluctuation is one of the privileges that past LOGA Chairman have taken if they choose. However with the credit for higher prices comes the blame of lower prices. With that being said, I do not assume responsibility for the recent rise or decline in prices for fear that I might also be blamed for the world financial crisis.

There was certainly more happening in Louisiana in 2008 than high energy prices. With the inauguration of Governor Bobby Jindal(R) on January 13th, Louisiana’s legislature went into a special session dealing with ethics reform. Though a tough pill to swallow for some, Louisiana’s low state ranking on ethics skyrocketed to near first, depending on the poll. Regardless, this is significant and will change the face of Louisiana politics in the years to come. . Because of LOGA’s ownership of the Jimmie Davis House and the great culinary skills of our own Gifford Briggs, LOGA has handled very well the ethics changes regarding meals and lobbying.

Following the Special Session on ethics reform, Governor Jindal called the Legislature back into session to deal with the budgetary surplus that occurred in fiscal year 2007. Because Louisiana’s legislature can only deal with fiscal issues in regular session odd number years, the Second Special Session on dealing with the budget surplus was necessary.

After the Second Special Session on the budget surplus, Louisiana’s legislature then went into the 2008 Regular Session where several significant pieces of Legislation that gave support to Louisiana’s oil and gas industry were passed.

Oh yes, 2008 was the first year of Term Limits so there were 63 new legislators, which is close to a 50% turn over in the Legislature, all new faces for LOGA’s staff to get to know.

What is important for me to say at this point is the incredible job that LOGA’s staff performed in dealing with the extraordinary year of 2008: the transition of a new administration, which includes a new cabinet, with the Secretary of Natural Resources, Commissioner of Conservation, Secretary of Wildlife & Fisheries, Secretary of DEQ; three legislative sessions; terms limits creating a 50% turn over of the legislature; and two major hurricanes, Gustav and Ike. Any one of the above is a big undertaking; and combined, became the “perfect storm.”

There’s more. Due to the development of the Haynesville Shale and the Cotton Valley resource plays in NW Louisiana, LOGA opened up it’s third statewide office in Shreveport to meet the needs of our LOGA members in the growing NW Louisiana oil and natural gas industry. We were pleased to announce Jodee Niswanger as LOGA’s North Louisiana Director.

On top of all of the above, LOGA’s staff has hosted at LOGA’s “Jimmie Davis House” 22 fundraisers for legislators and statewide offices, 4 receptions for non-profit organizations, and countless meetings for various groups. In addition to that, they hosted the 2008 Annual Meeting, 2nd Annual LAGCOE Golf Tournament, 2008 GCPE, 2008 LEGC (Louisiana Energy Golf Classic), and LOGA OSA (Oilfield Service Auction).

If you’re a member of LOGA or a non-member and operating in any sector of Louisiana’s oil and gas industry, you can be sure LOGA is there working for your best interest. As Chairman of LOGA’s Board of Directors for the past two years I have learned two things; first and foremost you could not ask for a more dedicated group to promote our industry any better than the LOGA team; second, you cannot believe Don Briggs, when he tells you being Chairman of LOGA will require little work. I will hand my LOGA Gavel over to a new Chairman in a few months and I can only hope he will he enjoy the relationship with LOGA’s phenomenal staff as much as I have for the past two years.

There is plenty of work yet to be done. LOGA is working on the following to mention only a few:

1. The Louisiana Supreme Court upheld the constitutionality of Act 312, which led to additional court decisions that support the legislatures decision in passing Act 312. The Supreme Courts decision was a major victory for industry. The “Legacy” issue is still a work in progress.

2. Issues in the Coastal Zone dealing with oysters, mitigation and the permitting process are being addressed and worked on. I predict those of you operating in the CZ will be pleased with the changes to come.

3. Ad Valorem taxes and decisions from the LTC (LA Tax Commission) on the issue of valuation remains to be a constant fight. I also believe there is a light at that end of the tunnel.

4. Issues in NW Louisiana dealing with the development of the Haynesville Shale are being worked on with a solid team of professionals from industry, community, technology, and LOGA.

5. The recent AG decision on parishes passing ordinances that are illegal means of taxation will continue to plague our industry and be an issue. The recent AG Opinion will be of great benefit in warding off those efforts.

These are of course, trying times and the waves of uncertainty continue to come ashore. However, trying times have come in the past and the resilience of the industry has always persevered and will in the years to come.

If you are not a member of LOGA, you should be. If you are a member, then please increase your dues, join LOGPAC, contribute to LOGA’s Legal Fund, and sponsor events, it is money well spent. LOGA could not have accomplished the many successes it had without solid financial support from our membership. Unfortunately costs continue to rise, especially in regards to the legal stands we have taken on behalf of our membership. We certainly get “more bang for our buck” from LOGA than from any other organization serving our industry. Please support it financially and by increasing membership.