Oklahoma Independent Petroleum Association
Attn: Mr. Mike Terry, President
500 NE 4th Street, Suite 200
Oklahoma City, OK 73104
Dear Mr. Terry:
This letter is to inform you that Devon Energy will not renew its membership in OIPA. This decision was not reached lightly, but we feel it is in the best interest of both organizations.
This decision arose from our serious concerns with OIPA’s ability to be an effective advocate
for the significant capital investments Devon is making in Oklahoma. The current governance
structure at OIPA does not equitably distribute board memberships based on any operational
or membership level criteria, so the voice of active operators is diluted in any decision
making process. This inequity in the organization9s structure has led to what Devon considers
to be adverse public policy positions from OIPA. In no way is this decision a reflection on the
hard work and dedication of the OIPA staff. Devon appreciates their hard work for OIPA and
the oil and gas industry.
Devon will be focusing our investment on one association that best represents our interests.
We look forward to a time in which the OIPA is more aligned with active development in
Oklahoma.
Please also accept this letter as my resignation as President of the Wildcatters Club and my
position on the OIPA Board of Directors.
Respectfully,
~~’ U V …..—._
~~~
Tony D. Vaughn
cc: Jeff McDougall, OIPA Chairman
JMA Energy Company
1021 NW Grand Boulevard
Oklahoma City, OK 731 ~ 8
Devon has been a valued member of OIPA and one of Oklahoma’s best companies for many years.
As one board member of OIPA I am saddened by their decision to leave . At the same time they have exhibited the same kind of integrity they have always shown by doing so.
The OIPA is not a civic or religious organization. It is a trade association. That means it exist to promote the interest of Independent producers in Oklahoma- all of them. Devon has made a business decision according to what they believe is in their company’s interest.
The oil and gas industry in Oklahoma is made up of over 5000 operators, many thousands of working interest partners, and hundreds of thousands of mineral owners. Representing all of them at once is cumbersome at times. Democracy is messy. I have been on the board for over 35 years and President for two. There have been many disagreements over policy in that time. Somehow we have always managed to work them out; often through spirited debate and compromise.
By far my own preference would be for all Independent producers to stay in the same association and continue to work for solutions in the best interest of the entire industry.
Several years ago several of the largest companies joined and changed the name of the old Midcontinent oil and gas association and lobbied directly for their interest. That is their right and it most certainly advantaged them politically. It was smart. They get to push their own agenda as public companies with their own association lobbyist as well as several lobbyist of their own . OIPA has one lobbyist. That lobbyist is the only one most independent producers have. I personally consider it a conflict to serve on two Oklahoma oil and gas association boards with opposing agendas.
I have great respect for Devon coupled with tremendous admiration for their founder Larry Nichols. While I regret this decision and my own lack of ability to do my part toward another solution, I respect the integrity of their decision.