Resolution Passed by the Kansas, Inc. Board of Directors
Pittsburg, Kansas
September 9, 2002
Presented by Donald P. Schnacke

Except for policies No. 31 & No. 32, the new Kansas, Inc. strategy is woefully weak as it relates to the current needs of the Kansas oil and gas industry.

Governor Graves has by proclamation established a commission to study and create a Kansas energy policy. Kansas, Inc. needs to monitor and influence this activity.

The current potential developing today in Kansas is (1) the production of coal bed methane gas from vast formations in SE Kansas; and (2) the production of oil with the use of carbon dioxide in the central and western Kansas oil fields. A pilot project in Russell County, Kansas; using CO2 from a new ethanol plant is currently underway. Both of these activities could attract large investment money and create new jobs in Kansas and should be encouraged, to bring new economic life to this major Kansas industry.

Therefore, it is moved that Kansas, Inc. favors and encourages the production of coal bed methane gas and the use of carbon dioxide to encourage enhanced oil recovery from existing and known Kansas oil reserves, in order to economically stimulate the Kansas oil and gas industry resulting in increased financial investments and the creation of new jobs. - Motion was passed unanimously.