Driller
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©2013 The Wichita Eagle and Beacon Publishing Co., 825 E. Douglas, Wichita, KS 67202. SUNDAY SPORTS, 1D ‘Betty Blue Eyes’ to have American premiere in Wichita Arts & Leisure 1C Business 5B Sports 1D Weather 8B Opinion 14A-15A Real Estate 1E Local & State 1B Obituaries 2B Crosswords 8C Help Wanted 1F At first they couldn’t find the bobcat. Eventually, Sarah Benbrook and her children, Brice, 11, and Jerika, 9, spotted “Bobby” resting on its back inside a hollow log, camouflaged by the natural surroundings in its enclosure at the wildlife exhibit in Riverside Park. It may be harder to find Bobby in the park west of downtown Wichita in a couple of years. The bob- cat’s long-range future, and the future of the other 25 species in the enclosure, will come under scruti- ny during the next year. Plans presented this week by City Manager Robert Layton call for cuts in amenities at Riverside and O.J. Watson parks to save about $250,000 in the city’s 2015 budget. Eliminating the wildlife exhibit would save $76,000. Trimming activities in Watson Park, such as the miniature train that children and adults have been riding for decades, would save $170,000. WATSON PARK, ARTS PROGRAM ON TABLE Fernando Salazar/The Wichita Eagle A beaver gnaws on the fence at the Riverside Park wildlife exhibit on Friday. Cuts would affect park’s wildlife exhibit BY FRED MANN The Wichita Eagle Please see WILDLIFE, Page 9A WASHINGTON — The biggest overhaul of the U.S. health care system in 50 years has spawned one of the most complex computer projects in the govern- ment’s history. Dubbed “the hub,” the $267 million computer system built by a unit of UnitedHealth Group Inc. is one of the most important determiners of whether the Affordable Care Act succeeds. The hub ties to- gether the databases of seven U.S. agencies, ranging from the Internal Revenue Service to the Peace Corps, to determine which Americans can buy med- ical coverage and get U.S. subsidies through the new government-run insurance exchanges. Marilyn Tavenner, the Medicare chief whose DATA GATHERED ON EXCHANGE APPLICANTS Health overhaul privacy concerns loom for GOP BY ALEX WAYNE Bloomberg News Please see HEALTH, Page 4A Wichita officials have been negotiat- ing to extract oil from beneath Centu- ry II with a man who has had unpaid state taxes, loan defaults and debt recovery judgments in the past 10 years. A second key figure in the negotia- tions ran a company that has a tax dispute with the state. City officials had no idea about those issues until The Eagle found the financial cases in Sedgwick County District Court last week — weeks after city planning officials began discuss- ing a mineral rights lease with the men. Representatives of the drilling com- pany say David Leben, who has a history of money problems, has limit- ed association with the project and no financial interest in it. But a city official says Leben presented himself as the leader of the deal. Now, the drilling project once seen as a funding source for major city projects appears on shaky ground, with several city officials saying they won’t partner with any driller who has financial issues. Council members say they are un- happy that city staff has not yet vet- ted the backgrounds of the oilmen who have sought the project, Leben FINANCIAL ISSUES A CONCERN AS WICHITA WEIGHS DOWNTOWN OIL PROJECT City to take 2nd look at potential drillers BY BILL WILSON The Wichita Eagle Travis Heying/The Wichita Eagle This lot near McLean and First has been proposed as a possible drilling site to tap into oil beneath Century II. Please see DRILLERS, Page 5A C LINTON STATE PARK — Patches of prairie meet ridges of dense wood- lands of hickory, oaks and walnuts at Clinton State Park, the trees often rising from steep, rock-strewn hillsides that fall into the reservoir. The area a tad west of Lawrence has a bit of Ozarks flavor. The state is now seeking proposals from developers to build a large resort and con- vention center in the park to compete with the Ozarks for tourism dollars. “I think there’s a market for it, some real opportunities,” said Steve Kelly, Kansas De- partment of Commerce depu- ty secretary. “I think it could attract people to this region and retain some (area) people who have been leaving to go to places like Lake of the Ozarks or maybe Big Cedar Lodge down by Branson for business meetings or re- treats.” Robin Jennison, head of the Kansas Department of Wild- life, Parks and Tourism, also thinks Clinton is the place, and that the time is now, for a resort. “A lot of things are coming together, and the (U.S. Army Corps of Engineers) is very willing to work with us,” Jennison said. “The city of Clinton Reservoir near Lawrence being considered Resort proposals sought Michael Pearce/The Wichita Eagle The ridge behind the marina at Clinton State Park is the possible site of a resort. Michael Pearce/The Wichita Eagle Robin Jennison discusses a possible Clinton State Park resort at the lake with Megan Hiebert, marina owner. BY MICHAEL PEARCE The Wichita Eagle Please see RESORT, Page 6A SUNDAY, JULY 21, 2013 FINAL EDITION $2.00 ARTS & LEISURE, 1C
description
Single story in this entry "Wichita city officials to take second look at potential driller" by Bill Wilson
Transcript of Driller
©2013 The Wichita Eagle andBeacon Publishing Co., 825 E.Douglas, Wichita, KS 67202. S
UN
DA
Y
SPORTS, 1D
‘Betty Blue Eyes’ to have Americanpremiere in Wichita
Arts & Leisure 1C
Business 5B
Sports 1D
Weather 8B
Opinion 14A-15A
Real Estate 1E
Local & State 1B
Obituaries 2B
Crosswords 8C
Help Wanted 1F
At first they couldn’t find the bobcat.Eventually, Sarah Benbrook and her children,
Brice, 11, and Jerika, 9, spotted “Bobby” resting onits back inside a hollow log, camouflaged by thenatural surroundings in its enclosure at the wildlifeexhibit in Riverside Park.
It may be harder to find Bobby in the park west ofdowntown Wichita in a couple of years. The bob-cat’s long-range future, and the future of the other25 species in the enclosure, will come under scruti-ny during the next year.
Plans presented this week by City Manager RobertLayton call for cuts in amenities at Riverside andO.J. Watson parks to save about $250,000 in thecity’s 2015 budget. Eliminating the wildlife exhibitwould save $76,000. Trimming activities in WatsonPark, such as the miniature train that children andadults have been riding for decades, would save$170,000.
WATSON PARK, ARTS PROGRAM ON TABLE
Fernando Salazar/The Wichita Eagle
A beaver gnaws on the fence at the Riverside Parkwildlife exhibit on Friday.
Cuts wouldaffect park’swildlifeexhibitBY FRED MANNThe Wichita Eagle
Please see WILDLIFE, Page 9A
WASHINGTON — The biggest overhaul of the U.S.health care system in 50 years has spawned one ofthe most complex computer projects in the govern-ment’s history.
Dubbed “the hub,” the $267 million computersystem built by a unit of UnitedHealth Group Inc. isone of the most important determiners of whetherthe Affordable Care Act succeeds. The hub ties to-gether the databases of seven U.S. agencies, rangingfrom the Internal Revenue Service to the PeaceCorps, to determine which Americans can buy med-ical coverage and get U.S. subsidies through thenew government-run insurance exchanges.
Marilyn Tavenner, the Medicare chief whose
DATA GATHERED ON EXCHANGE APPLICANTS
Health overhaulprivacy concernsloom for GOPBY ALEX WAYNEBloomberg News
Please see HEALTH, Page 4A
Wichita officials have been negotiat-ing to extract oil from beneath Centu-ry II with a man who has had unpaidstate taxes, loan defaults and debtrecovery judgments in the past 10years.
A second key figure in the negotia-tions ran a company that has a taxdispute with the state.
City officials had no idea aboutthose issues until The Eagle found thefinancial cases in Sedgwick CountyDistrict Court last week — weeks aftercity planning officials began discuss-ing a mineral rights lease with themen.
Representatives of the drilling com-pany say David Leben, who has ahistory of money problems, has limit-ed association with the project andno financial interest in it. But a cityofficial says Leben presented himselfas the leader of the deal.
Now, the drilling project once seenas a funding source for major cityprojects appears on shaky ground,with several city officials saying theywon’t partner with any driller whohas financial issues.
Council members say they are un-happy that city staff has not yet vet-ted the backgrounds of the oilmenwho have sought the project, Leben
FINANCIAL ISSUES A CONCERN AS WICHITA WEIGHS DOWNTOWN OIL PROJECT
City to take 2nd look at potential drillersBY BILL WILSONThe Wichita Eagle
Travis Heying/The Wichita Eagle
This lot near McLean and First has been proposed asa possible drilling site to tap into oil beneath CenturyII. Please see DRILLERS, Page 5A
CLINTON STATE PARK —Patches of prairie meetridges of dense wood-lands of hickory, oaksand walnuts at Clinton
State Park, the trees oftenrising from steep, rock-strewnhillsides that fall into thereservoir. The area a tad westof Lawrence has a bit ofOzarks flavor.
The state is now seekingproposals from developers tobuild a large resort and con-vention center in the park tocompete with the Ozarks fortourism dollars.
“I think there’s a market forit, some real opportunities,”said Steve Kelly, Kansas De-
partment of Commerce depu-ty secretary. “I think it couldattract people to this regionand retain some (area) peoplewho have been leaving to goto places like Lake of theOzarks or maybe Big CedarLodge down by Branson forbusiness meetings or re-treats.”
Robin Jennison, head of theKansas Department of Wild-life, Parks and Tourism, alsothinks Clinton is the place,and that the time is now, for aresort.
“A lot of things are comingtogether, and the (U.S. ArmyCorps of Engineers) is verywilling to work with us,”Jennison said. “The city of
Clinton Reservoir near Lawrence being considered
Resort proposals sought
Michael Pearce/The Wichita Eagle
The ridge behind the marina at Clinton State Park is the possible site of a resort.
Michael Pearce/The Wichita Eagle
Robin Jennison discusses a possible Clinton State Parkresort at the lake with Megan Hiebert, marina owner.
BY MICHAEL PEARCEThe Wichita Eagle
Please see RESORT, Page 6A
SUNDAY, JULY 21, 2013 FINAL EDITION $2.00ARTS & LEISURE, 1C
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and Alan DeGood.Leben acknowledges a his-
tory of financial problems: aforeclosure for $468,000; twoloan defaults totaling$195,000 in 2004 and 2005;debt recovery judgments; andtwo state income tax warrantstotaling about $12,000 filed in2007 and 2008 in SedgwickCounty District Court. He saidhe is making payments on thetaxes.
DeGood is a veteran Wichitaoilman whose name is on thepaperwork filed with the cityfor the project. AmericanEnergies Corporation, wherehe served as president, faces astate income tax warrant filedin February for $95,557.51over a dispute about whethernatural gas wells producedenough to warrant severancetaxes.
He said tax warrants arecommon for natural gas drill-ers during such disputes. Hehas no personal financialcases in Sedgwick CountyDistrict Court.
DeGood said he is a pet-roleum geologist for Trek-AEC, the only company bid-ding to drill for oil underCentury II. Trek is a Texascompany formed in July 2012out of a merger with Wichita-based American EnergiesCorporation.
He said he knew aboutLeben’s financial problems,which Leben attributes tofallout from what he called a“nasty divorce.”
But DeGood said Lebendoesn’t work for and has nofinancial interest in Trek-AEC.Project consultant Greg Ferrisalso called Leben a limitedoutside consultant and saidhis financial history had noth-ing to do with the project.
Leben agreed he has nocurrent financial interest inTrek-AEC. He said he is repre-senting it as a contract pet-roleum landman to acquiremineral rights leases. DeGoodand Leben confirmed thatLeben sold “the prospect,” an industry term for a pos-sible oil find, to Trek-AEC andwill have a financial interestin the Century II project if the company strikes enoughoil.
City planning director JohnSchlegel, who has headed thelease negotiations along with
City Manager Robert Layton’soffice, said Leben “presentedhimself as a principal in theproject” during meetingsabout the oil drilling.
First meetings
Schlegel and the two oilmendisagree broadly over ac-counts of the first meetingsbetween the city and Trek-AEC.
Schlegel said Monday thathis office had been dealingwith Leben, representingTrek-AEC. But DeGood andLeben said Schlegel was con-fused about who was who.
Leben said, “Schlegelthought Alan was me and Iwas Alan. His jaw droppedTuesday when he found outwhat was what.”
Schlegel said that Lebenpresented himself to city officials as the leader of thedeal. Leben and DeGood ap-peared together in meetingswith his office, with “Lebendoing all of the talking …with some authority,” Schle-gel said.
“Nobody discussed titles. Ijust assumed he was a princi-pal,” Schlegel said.
DeGood, however, signedTrek-AEC’s response to thecity’s request for drilling pro-posals, Schlegel said.
Council member Janet Mill-er, in whose District 6 the wellwould be drilled, downplayedthe confusion, calling it the“unique” result of an unprece-dented city search for an oildriller.
‘Whispers andrumblings’
The financial issues aretroubling to City Councilmembers who say they don’thave enough information toapprove proceeding with thedrilling project, and no back-ground information about themen pursuing it.
“Certainly, I’d share someconcerns … knowing wehaven’t been briefed enoughto know where we’re at andfully understand what needsto take place if we decide togo forward,” said councilmember Jeff Longwell, alongtime proponent of drillingfor oil downtown.
“This certainly would bringa lot of concern to any of thecouncil members.”
Schlegel called the councilconcerns legitimate. He saidthe planning office just re-cently, using vetting work-
sheets developed for the city’seconomic development office,sent out the first round ofvetting paperwork to Trek-AEC.
“I think that’s a legitimatecriticism, and it’s a good one in hindsight,” Schlegelsaid.
“Because this was a uniquething, a lease agreement formineral rights, I guess we canbe criticized for not havingthought to do the vettingsooner.
“Well, I guess you’ve justdone my vetting,” he told TheEagle.
Layton said last week thathe’d “begun to hear whispersand rumblings” about Leben’sfinancial problems, butpraised DeGood’s long historyin the Wichita oil industry.
The ‘prospect’
The Century II drilling ideais the brainchild of DavidLeben’s late father, Ted.
In 1969, Ted Leben drilled ademonstration well on theCentury II site. When theveteran Wichita oilman diedin 2010 at 91, he left behindgeological work that suggest-ed millions of barrels of oilare still under the downtownconvention facility, DavidLeben said.
“A lot of oil,” Leben said.Layton, Longwell and Miller
said this week that the citydoesn’t want to lease city landto any driller with a history offinancial troubles.
“We will not recommendpursuing this project unlesswe feel we have credible part-ners,” Layton said.
“If this proves to be true,this information would cer-tainly raise concerns aboutwhether these are individualsthe city should choose to dobusiness with,” Miller said.
“I would not ever vote to gointo a contract with someonewho has financial issues likeyou have described,” Long-well said. “We’re not lookingto team with anybody likethat.”
Leben said it would “be ashame” if the project died onthe back of his past financialdifficulties.
“This could be an icon forWichita,” he said.
“I’m just a guy trying torebuild his life.”
Reach Bill Wilson at 316-268-6290
Follow him on Twitter:
@bwilsoneagle.
DRILLERSFrom Page 1A
ARLINGTON, Texas — In-vestigators will try to deter-mine if a woman who diedwhile riding a roller coaster ata Six Flags amusement parkin north Texas fell from theride after some witnesses saidshe wasn’t properly secured.
The accident happened justafter 6:30 p.m. Friday at SixFlags Over Texas in Arlington.Park spokeswoman SharonParker confirmed that a wom-an died while riding the TexasGiant roller coaster – dubbedthe tallest steel-hybrid coasterin the world – but did notspecify how she was killed.Witnesses told area mediaoutlets the woman fell.
“We are committed to deter-mining the cause of this tragicaccident and will utilize everyresource throughout thisprocess,” Parker said in a
statement Saturday. “It wouldbe a disservice to the family tospeculate regarding whattranspired.”
Arlington police Sgt. Chris-topher Cook, the department
spokesman, referred all ques-tions to Parker. Messages leftfor Parker were not returned.
Carmen Brown of Arlingtontold the Dallas Morning Newsthat she was waiting in line to
get on the ride when the acci-dent happened and witnessedthe woman being strapped in.
“She goes up like this. Thenwhen it drops to come down,that’s when it (the safety bar)
released and she just tum-bled,” Brown said. “Theydidn’t secure her right. One ofthe employees from the park– one of the ladies – sheasked her to click her morethan once, and they were like,‘As long you heard it click,you’re OK.’ Everybody else islike, ‘Click, click, click.’
“Hers only clicked once.Hers was the only one thatwent down once, and shedidn’t feel safe, but they lether still get on the ride,”Brown said.
Six Flags said the ride willbe closed as the investigationcontinues, and a concertscheduled for Saturday wascanceled.
The Texas Giant is 14 storieshigh and has a drop of 79degrees and a bank of 95degrees. It can carry up to 24riders. It first opened in 1990as an all-wooden coaster but
underwent a $10 million renovation to install steel-hybrid rails and reopened in2011.
When the car that the wom-an had been riding in return-ed to the loading zone, twopeople got out and were vis-ibly upset, Rockwell residentJohn Putman told the FortWorth Star-Telegram.
“They were screaming, ‘Mymom! My mom! Let us out,we need to go get her!’ ” Put-man said.
Also Friday, an Ohio amuse-ment park’s thrill ride mal-functioned when a boat acci-dentally rolled backwarddown a hill and flipped overin water, injuring all sevenpeople on it. Operators stop-ped the Shoot the Rapidswater ride after the accident,said officials with Cedar Pointamusement park in Sandusky,Ohio.
Officials seeking cause in roller coaster deathAssociated Press
Louis DeLuca/
Associated Press
This aerial photoshows the TexasGiant rollercoaster at SixFlags Over Texasin Arlington,where a womanfell to her death.Investigators willtry to determine ifthe woman wasproperly securedon the ride.
