Believe it or not, but I have now been on the job as your Corporation Commissioner for almost ten months, a job I was elected to just over a year ago. Football season is in full swing, the leaves on the trees have changed and Thanksgiving is just weeks away, certainly reminders to me of the days just prior to election night, November 4, 2008. I vividly remember that time last year and seemingly running full speed day and night, or maybe it was night and day, in the final weeks before the election. With my travels all over the state in the past months for speeches and events, I feel some similarity though maybe not quite the same intensity as last year!

While there has certainly been change in my own personal and professional life since the election, that seems to pale in comparison to the changes we all face since the 2008 presidential election. I have been amazed at how quickly the current administration has pushed "change" that will negatively impact business and individuals especially those in Oklahoma involved in the energy sectors.

Our agency, along with other Oklahoma state agencies, continues to deal with about a 5% reduction to our monthly appropriations. As you might recall from my earlier Murphy Mails, the OCC receives about 20% of its budget from appropriations and 74% of our overall budget is made up of salaries. We continue face cost cutting measures while striving to maintain and improve the effectiveness and efficiency of our service to the public.

Each month I continue to meet and speak with various groups and elected officials across the state to inform and update them on happenings at the OCC. In the past months, I have spoken at town hall meetings in McAlester and Clinton, spoken to professional and civic groups in Enid, Tulsa, Ardmore, Stillwater, and Shawnee (to name a few), participated in a conference on unconventional oil and gas reservoirs, moderated a panel on horizontal drilling at a recent OCC oil and gas seminar, and continued discussions on horizontal drilling with mineral owners and the public--all in addition to conducting numerous hearings and meetings with the other Commissioners. Many Oklahomans, as well as Commissioners from other states, are surprised that the Commissioners in Oklahoma hold posted public meetings and hearings on a daily basis. As far as I am aware, we are one of the only agencies in the United States that regularly conducts public meetings each day.

As you might recall from an earlier Murphy Mail, ONG filed a rate case this summer seeking an increase of approximately $37.5 million ($66 million was listed in the newspaper, but in simple terms ONG proposed that most cost riders already in place would end and now be included within the base rates - thus the approximate net figure of $37.5 million.) A stipulation and settlement agreement of all the parties in the case was filed on October 28, 2009 and is currently pending before an administrative law judge (ALJ). It proposes the Commission approve an actual base revenue increase of $26.5 million. The ALJ will make a recommendation to the Commissioners which can ultimately be rejected, accepted or modified. The link for easy access to all documents filed in the ONG rate case can be found on the OCC's website at http://www.occeweb.com/ONG/ong.html .

The hearing on the 918 area code exhaust issue (running out of telephone numbers in the 918 area code) was conducted by an OCC ALJ who recommended the overlay option, which means customers would keep their current telephone numbers and all new telephone numbers would have a new area code. No testimony advocating any other option was presented and the one party that objected to the ALJ's recommendation withdrew its objection. Numerous public comments were filed in the case by those requesting either the overlay option or the split option (by which some customers would keep their current telephone numbers and others in a designated area would have a changed telephone number with the new area code). The Commissioners requested further information on the status of the date the 918 area code numbers will be exhausted prior to making a final decision and that information request is currently pending.

Ongoing public meetings on issues related to horizontal drilling continue as part of our ongoing efforts to be responsive to technology advancements and other changes taking place in the petroleum industry affecting producers, mineral owners and other interested parties. Since the last meeting in October, various subgroups have been formed to review the legal, technical and other aspects of any proposed changes to existing rules. (See the sidebar for more details.)

Along with Commissioner Cloud, who is the Oklahoma representative on the regional state committee of the Southwest Power Pool (SPP), I attended the recent SPP quarterly meeting in Tulsa. The SPP is a regional transmission organization with members in Kansas, Nebraska, Oklahoma, Mississippi, Louisiana, Missouri, New Mexico, Texas and Arkansas. The SPP was formed in 1941 and is mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale prices of electricity across the various states. One of the significant decisions made at the quarterly meeting was to approve a priority projects plan for the study and construction of transmission lines including those in Oklahoma. One of the transmission lines in this plan is the proposed line from Woodward to Hitchland (near Guymon) that would impact the future development of wind farms in the panhandle of Oklahoma.

While natural gas prices have risen and oil prices have stayed relatively high, the active rig count in Oklahoma continues to hover around 75 rigs per week and the number of permits to drill filed at the OCC per month has continued to decrease. Our staff remains busy dealing with environmental and pollution issues related to drilling new wells and operation of of older wells.

Many of those I have seen across Oklahoma have commented that I seem healthier and more energetic (my Mom wonders if that is possible!) since the campaign, so things must be going well with the job. I still feel incredibly grateful and blessed to have the opportunity to serve Oklahomans and try to make a difference for our state. This past week, one of the OCC staff commented that I was a "lightning rod for change". While his words caught me a bit by surprise, they are probably true since one of my ongoing goals is to help make this agency the best in the state for efficiency, effectiveness and responsiveness in serving the public and that necessarily involves change.

Many challenges lie ahead for our agency and for Oklahoma in the coming years, but I have faith that we will deal with those challenges and move in the direction of making Oklahoma the best ever. As always, thank you for your ongoing support, encouragement and prayers.

God Bless,
Your Commissioner, Dana