The Rocky Mountain Oil &amp Gas Association (RMOGA) has fallenprey to low commodity prices and industry belt-tightening justshort of its 80th anniversary. The trade group plans to shut itsdoors permanently June 1.

“It is largely a financial decision,” said RMOGA President JohnMorrison, a lawyer with Fleck, Mather &amp Strutz. “And as the oiland gas industry in the Rocky Mountain region has changed, both inthe make-up of the players and the level of activity, it’s becomeincreasingly difficult to fund an organization like RMOGA.”

The move comes amid reorganization of the American PetroleumInstitute (API) and follows talk among industry players last yearof combining the Natural Gas Supply Association with API. Clearly,the pressure is on to cut costs, and trade association dues-payinghas become less of a priority.

API has reorganized into six industry segments: upstream,downstream, pipeline, marine transportation, natural gas, andallied industries. API also is addressing public perception of theindustry and global climate change, said spokeswoman Susan Hahn.”RMOGA is considered an allied organization because API does nothave a state petroleum council in that area. We have tried tocoordinate and work with them, and they with us, where there wereissues that were mutually beneficial for us to do that.

“Obviously it’s an unfortunate loss [of RMOGA], but I don’tthink that API is in a position to address it in any detail.”

NGSA spokeswoman Linda Schoumacher said the organization is notcombining with API or anyone else. Of RMOGA, “I can certainly seethat there may have been instances where we have worked with them,but I don’t know of any formal process where we’ve collaboratedwith them on an issue on an ongoing basis. I think the greaterimpact on the industry is not the closing of RMOGA but the currenteconomic and market situation which has made it necessary.”

RMOGA membership is about 280 oil and gas players who pay duesbased on a formula that considers production, refining, marketing,transportation, and processing volumes. Morrison would not discloseinformation about average dues, but an industry observer saidannual dues for some member companies reach the “six figures.”

The association has focused on issues such as improving produceraccess to public lands, as well as tax, royalty, environmental,refining, and marketing issues. RMOGA, founded in Casper, WY, in1920 moved to Denver in 1975 and took over API activities inColorado, Wyoming, Utah, and Montana when API was closing officesin those states. RMOGA currently has 14 employees in offices inSalt Lake City, UT; Denver; Casper; Billings, MT; a joint officewith API in Bismarck, ND; and a contract office in Boise, ID. Theassociation represents the oil and gas industry in Idaho, Montana,Wyoming, North and South Dakota, Nebraska, Colorado, and Utah.

The association’s demise also stems from the desire of membercompanies who don’t have activities in all the RMOGA states toparticipate in state-specific trade associations, Morrison said. “Ithink that many companies are starting to look very closely at thedues they pay to trade associations and they want to make sureduplication is eliminated.” Mergers and acquisitions and the exitof some major producers from the Rockies also have thinned theranks of RMOGA membership.

Morrison said he expects RMOGA state divisions to reorganizeinto some kind of stand-alone state associations. The associationis active in public lands issues, “and we believe there will besome kind of public lands office organized in Denver. I think someor all of those reorganized divisions will probably purse some sortof affiliation or relationship with other trade associations thatare out there.”

Claire Moseley is director of RMOGA’s land/E&ampP division andsaid she’s looking at aligning herself with another association orforming a new association just to deal with public lands issues.”It depends on whether I can raise the money or not. I’m hoping tohave a pretty good idea by June 1st, which is when we close ourdoors.”

Joe Fisher, Houston

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