Vol. 8 No. 6

Members, 

In this version of The Standard, we provide several updates including information on the end of Texas's 89th Legislative Session, actions taken by the U.S. EPA, and a visit to the Permian Basin by the U.S. House Energy & Commerce Committee. Our team has been hard at work advocating for the oil and gas industry in the Permian Basin and your input and participation are highly appreciated.

Below, you will also find information on our 63rd Annual Meeting, the 2025 Permian Basin Oil & Gas Compensation Survey, and new PBPA members. As always, we also provide details on upcoming PBPA events and other relevant community activities:

Important Updates

• 63rd PBPA Annual Meeting
• TOMORROW: Joint Luncheon with TTARA ft. Speaker Dustin Burrows
• Albert Chang Appointed New Director of OCD
• LFC Hears Report on Orphaned Wells
• Texas Legislative Update
• RRC Mapping Automation Portal Available Online 
• RRC Chapter 4
• U.S. Environmental Protection Agency Updates
• PBPA Engages U.S. House Energy & Commerce Committee During Permian Basin Visit
• Q2 New Members
• In Memoriam: Yolanda Perez
• 2025 Permian Basin Oil & Gas Compensation Survey
• RECAP: Clay Shoot + Pit King Challenge
• Committee Meetings

Community Events

• Midland College PPDC Courses
• RRC Regulatory Conference
• Additional events can be found on the online event calendar!

Regards, 

Ben Shepperd

PBPA President

You're Invited to the 63rd PBPA Annual Meeting!

This event brings together industry leaders, experts, and advocates for two days of networking, insights, and collaboration. View the draft agenda below for an exciting lineup of speakers you won’t want to miss.

Event Schedule:
📍 Wednesday, September 17
6:00 – 8:00 PM – Welcome Reception at the Permian Basin Petroleum Museum

📍 Thursday, September 18
7:30 AM – 2:00 PM – Kickoff Breakfast, Keynote Luncheon, and a full day of engaging panels and presentations at the Petroleum Club of Midland

Don’t miss your opportunity to sponsor or register today!

*PBPA Members can receive the member rate by using code PBPA2025 at checkout.*

Time is Running Out – Register Now to Hear from Speaker Dustin Burrows!

This Thursday, June 26, Texas House Speaker Dustin Burrows will headline a special luncheon at the Petroleum Club of Midland, and there’s still time to secure your seat — but not much!

Speaker Burrows will break down key takeaways from the 89th Texas Legislative Session, with a focus on tax relief measures and legislative outcomes that matter to the Permian Basin and beyond. Don’t miss this rare chance to hear directly from one of the state’s most powerful political leaders.

Albert Chang Appointed New Director of OCD

On June 17, 2025 the Energy, Minerals, and Natural Resources Department (EMNRD) announced the appointment of Albert C.S. Chang as the new director of the New Mexico Oil Conservation Division (OCD). 

A graduate of the University of Washington School of Law, Chang holds a master’s degree in public administration and a bachelor’s degree in chemical engineering. He is a licensed professional engineer and a licensed attorney in New Mexico.

Chang currently serves as director of the state’s Mining and Minerals Division. As MMD director, Chang led award-winning efforts to reclaim lands damaged by mining. He also helped MMD reduce permitting backlogs and ensured the responsible development of the state’s mineral resources.

The official announcement and additional information can be found here.

LFC hears Report on Orphaned Wells

On June 24, 2025, the New Mexico Legislative Finance Committee (LFC)—a nonpartisan legislative service agency that provides the New Mexico Legislature with fiscal and policy analysis, recommendations, and oversight of state agencies—released a Policy Spotlight report regarding orphaned well plugging in the state.  That report can be found here.

This report was presented and discussed by members of the LFC at a meeting held in Taos also on June 24, 2025.

Key Findings:

• Current orphaned wells will cost the state more than $200 million; future liability very likely exceeds $700 million.
• Reforms that prioritize operator-led cleanup can limit the state’s financial exposure.

Key Recommendations:

The Legislature should consider...

• Amending statute to define “orphaned” and “abandoned” wells, aligning the definitions with their common use in the oil and gas industry and clarifying that “orphaned” wells are oil and gas wells for which the state has pursued and received plugging authority;
• Amending Section 70-2-14 NMSA 1978 to specify that wells producing below certain thresholds set in rule require additional financial assurance;
• Amending Section 70-2-14 NMSA 1978 to allow an operator to meet its financial assurance obligations by fully funding a third party trust or escrow up to OCD’s site- or operator-specific estimated plugging and remediation costs; and
• Amending statute to clarify OCD’s authority to review and disallow the transfer of wells should the division determine, through processes outlined in rule, the purchaser is unlikely to be able to fulfill its asset retirement obligations.

The Energy, Minerals and Natural Resources Department should...

• Promulgate rules defining “low-producing” wells (such as wells producing less than 750 BOE annually or ~ 2 BOE per day);
• Promulgate rules to expand the definition of “inactive” wells to include consistently ultra-low producing wells (such as wells that produce less than 180 BOE annually or ~0.5 BOE per day for more than three years);
• Promulgate rules specifying that low-producing wells require individual well financial assurance, posted within two months of notice, and clarifying that their transfer is contingent on regulatory approval;
• Publish a list of orphaned wells monthly, including both wells the state has already plugged and those it is planning to plug and the costs associated with their plugging and reclamation, to ensure transparent tracking of state expenditures on orphaned wells; and
• Ensure the presence of a “company man” for all state-contracted well plugging who is responsible for filing daily reports on the activities undertaken by the contractor, the materials used, and the estimated plugging cost.

We will review this report with the members of PBPA’s Regulatory Practices Committee and continue to engage on this issue during the interim with members of the LFC, EMRND and our partners at NMOGA and IPANM.  If you have any questions or comments, please let us know.

Texas Legislative Update

This week, Governor Greg Abbott had to make his final decisions on legislation. As you know, the Texas Constitution requires that the Governor take action on pending legislation within 20 days of the adjournment of the session in most cases. He may choose to sign and approve, disprove and veto, or file the legislation without a signature. If he signs the bill, or files the bill without a signature, it shall become law subject to its effective date. If he vetoes the bill, it is returned to the chamber of origin and does not become law. As no vetoes provided during the regular session were overridden, these vetoes are final.

Well…”final.”

As you may already know, Governor Greg Abbott has already issued a call for the Texas Legislature to return and complete some items of business beginning July 21, 2025. More on that later.

The statistics for the 89^th Regular Session are as follows:

While this session, the total number of vetoes are less than the historical average, I’m sure the feeling is still disappointing for those whose measures were vetoed.

Speaking of, several items Governor Abbott disproved of include a few that he has asked the Legislature to reconsider methods to solve these items in a different manner and has afforded that opportunity for a few specific items.

According to the Governor’s release announcing the First Called Session of the 89^th Legislature, he has isolated the following items as subject to the call. The Governor at any time before or during the special session may add items to the call. The Legislature may consider items that are subject to the call.

At this time, the Governor has identified several bills that were vetoed or filed without signature that will be placed on the upcoming Special Session agenda for further consideration: 

• Senate Bill 3: Relating to the regulation of products derived from hemp, including consumable hemp products and the hemp-derived cannabinoids contained in those products.
• Senate Bill 648: Relating to recording requirements for certain instruments concerning real property.
• Senate Bill 1253: Relating to impact and production fees for certain water projects and to the regulation of certain wells; authorizing a fee.
• Senate Bill 1278: Relating to an affirmative defense to prosecution for victims of trafficking of persons or compelling prostitution.
• Senate Bill 1758: Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.
• Senate Bill 2878: Relating to the operation and administration of and practices and procedures related to proceedings in the judicial branch of state government.

We will continue to provide more information ahead of the July 21^st opening day of the First Called Session, and will also keep you posted about the upcoming Constitutional Amendments Election in November.

As always, if you have any questions or thoughts on Texas Legislative items, please reach out to michael@pbpa.info.

RRC Mapping Automation Portal Available Online 

The Railroad Commission of Texas (RRC) has officially launched the RRC Mapping Automation Portal (RRC MAP). This new tool allows oil and gas and pipeline operators to input and update real-time information related to their facilities that are part of Texas’ natural gas supply chain for power generation.

This portal will play a critical role in helping the RRC maintain up-to-date infrastructure data during weather emergencies. Operators who receive an email from the RRC’s Critical Infrastructure Division are required to log in to RRC MAP and submit the requested information. The email will include detailed instructions.

RRC MAP links facilities throughout the natural gas supply chain—from upstream gas production and produced water disposal to the power plant endpoint. Data collected through this portal will be shared with the Texas Public Utilities Commission for inclusion in the Texas Electricity Supply Chain Map. This designation helps identify critical natural gas infrastructure during energy emergencies, as outlined in Senate Bill 3 and House Bill 3648, passed by the 87th Texas Legislature.

Training and Resources
A training presentation with step-by-step guidance is available on the RRC website here: RRC MAP Training Presentation (PDF)

The presentation covers:

• Accessing RRC MAP through the RRC Access Management Process (RAMP)
• Filing agent setup
• Responding to RRC notifications
• Facility identification and confirmation
• Consequences of non-response

For questions, please contact the RRC’s Critical Infrastructure Division at 512-463-6737 or CID@rrc.texas.gov

RRC Chapter 4

With the implementation of the new Chapter 4, Subchapter A waste management rules on July 1, 2025, the Railroad Commission of Texas has updated the website for its Environmental Permits and Support Unit to include current information to help stakeholders with the implementation. The website includes guidance focused on the changes relevant to the new rules, including Authorized Pits, Waste Profiles, and Waste Manifests.

The website includes draft versions of several forms which may be used even though they are still being proposed and have not been formally adopted by the Commission. Recorded webinars from earlier this spring and other materials are also available for download on the website.

Any information regarding implementation of the new Chapter 4 rules can be directed to the Commission’s Environmental Permits and Support Unit at (512) 463-3840 or by sending an email to EPSch4@rrc.texas.gov .  The webpage contains other contacts for specific programs, such as Authorized Pits, Waste Haulers, and Waste Management Permits.

U.S. Environmental Protection Agency Updates

EPA Proposed Rule Changes

U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin has announced two major regulatory rollback proposals:

1. Repeal of Greenhouse Gas (GHG) Standards under Section 111 of the Clean Air Act (CAA):
   This proposal would eliminate all existing GHG emissions standards for the power sector, including the Obama- and Biden-era Clean Power Plans from 2015 and 2024. The repeal cites the 2022 West Virginia v. EPA Supreme Court decision, which limits EPA authority on "major questions" such as nationwide fuel-mix shifts. The agency argues that requirements involving carbon capture and storage (CCS) and natural gas co-firing are not adequately demonstrated or cost-effective.
2. Rollback of 2024 Mercury and Air Toxics Standards (MATS):
   This proposal would repeal recent amendments to the MATS rule that led to the retirement of numerous coal-fired power plants, particularly those burning lignite. The rollback would eliminate updated standards for filterable particulate matter (fPM) and continuous emissions monitoring, citing high costs and technical challenges. However, the EPA maintains its broader finding that regulating hazardous air pollutants from power plants remains "appropriate and necessary."

PBPA is monitoring these proposals and provide additional updates as they are available, particularly for the Repeal of the GHG Standards which could have a positive indirect impact of natural gas markets.

EPA Proposes Granting Texas Authority Over Class VI Carbon Storage Wells

The U.S. Environmental Protection Agency (EPA) has proposed approving Texas’ application for primacy over Class VI underground injection wells under the Safe Drinking Water Act (SDWA). This would grant the Texas Commission on Environmental Quality (TCEQ) full authority to regulate carbon dioxide (CO₂) geologic sequestration projects, streamlining the permitting process for carbon capture and storage (CCS) in the state.

Texas already has primacy over Class I–V wells. With this approval, it would become the fifth state to receive Class VI primacy, joining North Dakota, Wyoming, Louisiana, and West Virginia. The EPA has determined that Texas’ program meets all legal and technical standards and is consistent with SDWA requirements.

This step supports both regulatory efficiency and the broader development of domestic energy infrastructure—key goals of current federal policy on emissions reductions and energy innovation.

Public Participation Opportunities:

• A 45-day public comment period will open following publication in the Federal Register.
• A virtual public hearing is scheduled for July 24, 2025, from 5:00–8:00 p.m. CST.

PBPA will continue monitoring this process and encourages stakeholders to participate in the comment period and public hearing.

PBPA Engages U.S. House Energy & Commerce Committee During Permian Basin Visit

On June 2, 2025, representatives from the Permian Basin Petroleum Association (PBPA) participated in a roundtable discussion with members of the U.S. House Energy and Commerce Committee during their official visit to the Permian Basin. This visit provided a valuable opportunity to discuss key issues impacting the oil and gas industry and to highlight the region’s critical role in supporting American energy security.

Committee members in attendance included Chairman Brett Guthrie (KY), and Representatives Randy Weber (TX), Rick Allen (GA), August Pfluger (TX), Russell Fry (SC), Nick Langworthy (NY), and Craig Goldman (TX).

PBPA was represented by our current chairman, former chairmen, board members, other representatives from PBPA member companies, and PBPA executive staff members Ben Shepperd and Stephen Robertson.

The roundtable discussion focused on legislative and regulatory actions that affect energy development in the United States, particularly in the Permian Basin. Participants discussed federal regulatory initiatives deterring production growth and the legislative justifications behind them, as well as potential Congressional actions to support responsible domestic production and infrastructure development.

We deeply appreciate the time and attention given by these members of Congress and their staff. Their willingness to visit our region and engage directly with local stakeholders reflects a genuine interest in understanding the operational realities of oil and gas development. These types of visits are vital to PBPA’s advocacy efforts and help to build strong, informed relationships with policymakers whose decisions have a significant impact on our industry.

We are especially grateful to Chairman Guthrie, Congressman Pfluger, and their teams for helping organize and lead this important visit. Thanks to Congressman Pfluger’s leadership, the Permian Basin has now hosted three official Congressional committee field visits since his election to the U.S. House of Representatives—an extraordinary level of engagement that speaks volumes about the region’s influence and importance.

We also extend sincere thanks to all PBPA members who attended or supported the coordination of the roundtable and tours. Hosting such an impactful event takes time, effort, and commitment, and we’re proud of how our members continue to step up to advocate for our industry and our region.

Thank you and welcome to our newest PBPA members! 

PBPA membership means advocacy, connections, and education. Know someone who could benefit? Refer them and help us grow together.

It is with heavy hearts that PBPA shares the loss of Oxy’s Yolanda Perez who recently passed following a short illness.  Yolanda, or Yo, was a stalwart member of several industry and PBPA efforts on regulatory issues at both the state and national levels.  She served as a volunteer on behalf of Oxy on PBPA’s Regulatory Practices Committee and Water Committee. In particular, Yo was a key contributor on many PBPA official commenting efforts, including New Mexico’s Methane Rules and rule proposals at the Railroad Commission of Texas and the Texas Commission on Environmental Quality. 

Yo was a tireless advocate for the industry who gave her all in everything she did.  However, she will be greatly missed more for the person she was and the friend she was to so many in and out of the industry. Our hearts and prayers go out all those touched by Yo’s too brief time with us.

Her funeral arrangements are as follows:

Sunday, June 29^th

Visitation and Rosary

Visitation: 5:30-6:30pm

Rosary: 6:30pm

Monday, June 30^th

Funeral Service at 10am

Holy Cross Catholic Church

839 Church Street

East Bernard, TX 77435

Reception to follow at

American Legion Hall

8110 TX-60

East Bernard, TX 77435

Higginbotham is conducting their eighth annual Permian Basin Oil & Gas Compensation Survey, sponsored by the PBPA, to give locally operating businesses data you can use to analyze your pay levels against current market practices.
 

Pre-Order Your Copy of the Survey Results

• Analyze salaries for over 90 positions.
• View reports that show annual base salary/hourly rates, bonuses, target bonus percentages, long-term incentives and total annual compensation. 
• Get comprehensive data for budgeting, administering competitive pay levels and updating compensation structures.

How to Order:
Click here to pre-order the survey results. After ordering, you will have the opportunity to also participate in the survey by receiving a link to the questionnaire. Order soon to meet the data submission deadline of July 16, 2025.

PBPA Member Discounts:
PBPA members who participate in the survey receive the survey results at a 40% discount. Non-participating members receive a 20% discount on the survey results. Pricing details will be made available on page 3 of the order form after you make your selections. 

This month, we hosted our annual Clay Shoot + Pit King Challenge at Jake’s Clays in Midland. The event was a great success, and we’re incredibly grateful to all of the sponsors, shooters, cookers, and volunteers who helped make it possible!

Congratulations to the first-place teams from each course and our High Overall (HOA) shooters:

• Timberline Course: New Wave Energy Services – 203

• Julia Course: Imperative Chemical Partners – 310

• Jaybird Course: Diamondback Energy – 325

• HOA Timberline: Bryce Tarbet, Encino Environmental Services, LLC – 77
• HOA Julia: Jerry Green, Plains – 92
• HOA Jaybird: Nathan Pruitt, Diamondback Energy – 93

Finally, congratulations to the winners and finalists of the 2025 Pit King Challenge! This year’s competition was fierce, and our cookers served up some truly unforgettable dishes. The fan favorites were:

• 🥇 1st Place: Lucky Family of Excellence

• 🥈 2nd Place: SLB

• 🥉 3rd Place: Milestone Environmental Services, LLC

Event photos will be available soon! Be sure to keep an eye on our Linkedin and Facebook pages for when they are posted. 

Committee Meetings

• Regulatory Practices Committee: 7/15/2025

For more information on these or any of our other committees, please contact Stephen Robertson at stephen@pbpa.info or (432) 684-6345.

MC PPDC provides quality training programs designed to keep oil and gas industry professionals current in their areas of expertise by offering the latest industry updates, as well as providing timely and pertinent educational opportunities. Click the link below for upcoming classes being offered by the MC PPDC in the coming months.

Customized Training Available! For more information contact Midland College PPDC at (432) 683-2832 or cepetroleumtraining@midland.edu

 July 14-16, 2025

Kalahari Resorts & Conventions
3001 Kalahari Boulevard
Round Rock, Texas 78665

The Railroad Commission of Texas (RRC) is hosting this conference to inform and train oil & gas and pipeline operators and other industry representatives on the applicable laws, rules, and procedures for hydrocarbon production in Texas.

Registration is now open! To view the event webpage, visit the RRC website.

Permian Basin Petroleum Association | 601 North Marienfeld St., Suite 200, Midland, TX 79701