Tulsa-based Samson Resources II LLC reported 30-day initial production of 2,339 boe/d (97% oil) from the Spearhead (Federal 11-2635 4075) well in the Shannon formation in Converse County, WY, within the Powder River Basin. With about 145,000 net acres in the PRB, the board is considering expanding its delineation program. An operating budget is be finalized late in 1Q2019.

West Virginia Gov. Jim Justice has unveiled a roughly $5 billion budget proposal for 2019-20 that includes no tax increases or spending cuts and would instead increase spending by about 2%. When he took office in 2017 Justice suggested a tiered severance tax for gas and coal production that would go up or down with prices. In 2018 he proposed then backed off an increase in taxes to fund teacher pay raises. Revenue collections have recently surged on higher severance, corporate, sales and personal income tax receipts. West Virginia imposes a 5% flat tax on gross oil and gas production.

The Pennsylvania Department of Environmental Protection (DEP) has opened the Regional Permit Coordination Office (RPCO) to increase permitting efficiency. The RPCO will assist with construction permitting and coordination for erosion/sediment control and water obstruction/encroachment permits. The office was opened to aid with large-scale infrastructure projects such as natural gas pipelines and highways. DEP receives 30,000 applications per year from a variety of sectors. The state modernized the process in 2018.

Phillips 66 Partners LP, Harvest Midstream Co. and PBF Logistics LP are testing support to jointly develop the ACE crude oil pipeline system in Louisiana with initial capacity of 400,000 b/d that would connect the market hub in St. James to downstream refining destinations in Belle Chasse, Meraux, and Chalmette. A delivery destination in Clovelly could be added. subject to market demand. The system, with enough support, could be in service by the second half of 2020. Harvest wold contribute its existing CAM Pipeline to the system. An open season was launched Monday (Jan. 14). Information is available at acepipeline@p66.com.

The Railroad Commission of Texas (RRC) is planning a one-day session on Feb. 28 in Houston to educate oil and gas industry representatives on a variety of topics, including injection well permitting, drilling permits, stacked laterals, assigning acreage to pooled development/proration units, completions and use of state Form P-16 on acreage designation. Registration is required, with a $50 fee/person. The event is to be held at the Norris Conference Center Westchase, 9990 Richmond Ave., Suite 102.