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Vol. 9 No. 2 |
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Members,
In this version of The Standard, you will read about the official wrap-up of New Mexico's second session of the 57th legislature, updates on the Lesser Prairie Chicken, and some pertinent agency events in Texas. 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 Golf Tournament, the Permian Basin Regulatory Seminar, and more. As always, we also provide details on upcoming events and other relevant community activities:
Important Updates
Community Events
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Regards, |
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PBPA President |
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2026 Spring Swing Golf Tournament |
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Just over two months away! Whether you’re bringing a full team or registering as an individual, we recommend signing up ASAP to guarantee your place on the course. Many sponsorships are limited and offered on a first-come, first-served basis, so we encourage you to commit early for the best visibility and placement.
Don't forget the newest change this year — two flights! Due to course changes at OCC and to give you more flexibility to compete and network, we’re offering two tournament flights:
➡️ Morning Flight (8:00 AM Shotgun Start) ➡️ Afternoon Flight (1:30 PM Shotgun Start)
Volunteers are needed to help make this event a success. If you or someone on your team is interested in assisting with check-in, on-course activities, or general event support, we would greatly appreciate your help.
For more information on this event, please call our office at 432-684-6345 or email Jamie Ramirez-Lujan at jamie@pbpa.info. |
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New Mexico Updates |
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Second Session of the 57th Legislature Update
While this years New Mexico Legislative Session ended on February 19, the Governor’s Veto period didn’t end until March 11. With the Governor’s Veto Period now over, we can put a bow on the Second Session of the 57th Legislature. Unfortunately, for those efforts we still opposed, the veto period was uneventful. However, the passed legislative proposals we supported were also unaffected by the veto period, so we have some wins to focus on as well.
Here is a list of those priority bills tracked by PBPA that have now been signed into law by the Governor:
HB 2 – GENERAL APPROPRIATIONS ACT OF 2026 Sponsor: Nathan Small Summary: While HB 2 generally authorizes appropriations and expenditures for state agencies, it is included here because it provides $1 million in one‑time funding and $500,000 in recurring funding to the New Mexico Institute of Mining and Technology for seismology equipment and expansion of the Bureau of Geology and Mineral Resources’ seismic monitoring network, in partnership with the Oil Conservation Division at EMNRD. This funding originated in HB 48 (NM TECH SEISMOLOGY EQUIPMENT), sponsored by Reps. Joseph Sanchez and Jack Chatfield, and its Senate companion bill, SB 44, sponsored by Sens. Craig Brandt and Bobby Gonzales. The enhanced seismic monitoring funding included in HB 2 will support both NMOCD and industry by improving the quality and availability of data used for produced water disposal permitting and management.
HB 109 - WATER PROJECT FUND CHANGES Sponsor: Joy Garratt Summary: House Bill 109 (HB 109) provides criteria for prioritizing water projects pursuant to the Water Project Finance Act and allows the New Mexico Finance Authority to fund water projects from the Water Project Fund without receiving the approval of the legislature until 31 December 2028. It requires a two-thirds majority of both houses of the legislature to extend this date.
SB 151 - CORPORATE INCOME TAX CHANGES Sponsor: Peter Wirth Summary: SFCcs/STBTCcs/SB 151: Senate Finance Committee Substitute for Senate Tax, Business and Transportation Committee Substitute for Senate Bill 151 makes changes to the Corporate Income and Franchise Tax Act to decouple certain provisions of federal corporate income tax law, modifies apportionment rules to include income of controlled foreign corporations, and creates multiple new tax credits and gross receipts tax deductions. The bill adds back certain federal bonus depreciation and interest expense deductions, removes a prior subtraction for income under Section 951A of the Internal Revenue Code, and clarifies that apportionment factors apply to attributed controlled foreign corporation income. The bill also creates refundable income and corporate income tax credits for local journalist employment and local news printers, a physician income tax credit, and gross receipts tax deductions for affordable housing development and certain in-office health care equipment and medication. SFCcs/STBTCcs/SB 151 contains multiple applicability dates, with certain provisions effective for taxable years beginning January 1, 2026 or January 1, 2027, and certain gross receipts tax deductions effective July 1, 2026.
Sponsor: Kristina Ortez Summary: House Bill 70 (HB 70) relates to public utilities, distinguishing between the Public Regulation Commission and the agency that supports it; clarifying agency duties; requiring compliance with the gift act; making other technical changes to the Public Regulation Commission Act; creating the Utility Oversight Fund; changing distribution of collected fees and penalties; and providing for the enforcement of fees by the Public Regulation Commission.
HB 64 - PUBLIC PROJECT REVOLVING FUND APPROPRIATIONS Sponsor: Kathleen Cates Summary: House Bill 64 (HB 64) appropriates a total of thirteen million two hundred fifty thousand dollars ($13,250,000) from the Public Project Revolving Fund to the Drinking Water State Revolving Loan Fund, Local Government Planning Fund and Cultural Affairs Facilities Infrastructure Fund. The New Mexico Finance Authority Oversight Committee endorsed this bill.
HB 108 - WATERSHED DISTRICT TAXES AND DIRECTORS Sponsor: Rebecca Dow Summary: House Bill 108 (HB 108) revises the Watershed District Act to clarify governance roles between watershed districts and soil and water conservation districts and to require soil and water conservation districts (SWCD) to levy taxes when requested by a watershed district. The bill also updates definitions, clarifies how watershed district directors are appointed when multiple conservation districts are involved, and aligns assessment, budgeting, and expenditure procedures. HB 108 takes effect on July 1, 2026.
HB 80 - OIL & GAS CONSERVATION TAX ACT CHANGES Sponsor: Mark Murphy Summary: House Bill 80 (HB 80) makes significant changes to the funding and use of the Oil and Gas Reclamation Fund by increasing the share of Oil and Gas Conservation Tax revenues distributed to the fund, modifying how money in the fund may be used, and making a limited appropriation when certain fiscal conditions are met. The bill phases in increased distributions and directs all conservation tax receipts to the fund for a defined period. HB 80 takes effect on July 1, 2027.
HB 63 - NMFA WATER PROJECT FUND PROJECTS Sponsor: Kathleen Cates Summary: House Bill 63 (HB 63) authorizes the New Mexico Finance Authority to make loans or grants from the Water Project Fund for certain water projects and declares an emergency. The New Mexico Finance Authority Oversight Committee endorsed this bill.
HB 111 - WATER LAW VIOLATION MAXIMUM PENALTY Sponsor: Kristina Ortez Summary: House Bill 111 (HB 111) increases the maximum penalty for a violation of water law
HB 154 - ADVANCED ENERGY PRODUCT DEFINITION Sponsor: Meredith Dixon Summary: House Bill 154 (HB 154) amends the Advanced Energy Equipment Income Tax Credit and the Advanced Energy Equipment Corporate Income Tax Credit by revising the definition of advanced energy product. The bill replaces the prior reliance on federal tax law references with a detailed state list of qualifying products and components, including solar, wind, battery, fusion, inverter technologies, and specified critical minerals. HB 154 applies to taxable years beginning on or after January 1, 2026.
SB 2 - STATE HIGHWAY PROJECT BONDS Sponsor: Roberto (Bobby) Gonzales Summary: Senate Bill 2 (SB 2): The proposed bill would increase revenues dedicated to road funding and expand bonding authority for state highway projects, while increasing transparency in how bond-financed projects are selected and prioritized.
Thank you everyone for your engagement and support this session. PBPA sincerely appreciates your partnership and collaboration throughout the legislative process and we look forward to continuing this work together during the interim. Together, we can continue to protect and strengthen your license to operate in the Land of Enchantment.
Please reach out to Stephen Robertson (stephen@pbpa.info) for more information. |
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Texas Updates |
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2027 Texas Freight Mobility Plan: Share Your Input
The Texas Department of Transportation is currently updating the Texas Freight Mobility Plan, and they are seeking input from stakeholders across the state—including the oil and gas industry—to help guide future investments in freight infrastructure.
Freight movement is critical to keeping Texas’s economy strong, and this plan plays an important role in shaping how goods move efficiently and safely across highways, rail, ports, pipelines, and beyond. As a member of the Permian Basin Petroleum Association, your insight is valuable in ensuring the needs of our region and industry are well represented.
TxDOT is hosting a series of in-person workshops this April to gather feedback on key priorities, challenges, and opportunities related to freight mobility. PBPA encourages members—or a representative from your organization—to participate, particularly in the Midland session:
Registration is required, and additional details (including times, locations, and agenda) will be shared directly with registrants. We encourage your participation to help ensure the Permian Basin’s freight and infrastructure priorities are clearly communicated as this plan is developed. |
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TCEQ's Emissions Reduction Incentive Grants (ERIG)
The Texas Commission on Environmental Quality is preparing to open a new round of funding through its Texas Emissions Reduction Plan (TERP), and PBPA members are encouraged to learn more about this opportunity.
The Emissions Reduction Incentive Grants (ERIG) program—opening April 29, 2026—provides financial incentives to support the replacement or repowering of older equipment, including locomotives, marine vessels, stationary engines, and certain non-road equipment. These upgrades are aimed at reducing nitrogen oxide (NOₓ) emissions in eligible areas across Texas.
To help stakeholders better understand the program and application process, TCEQ is hosting an informational webinar:
As a member of the Permian Basin Petroleum Association, this is a valuable opportunity to explore potential funding that could support operational improvements and emissions reduction efforts within your organization.
Registration is required and must be completed by 5:00 p.m. (CT) on April 16. A webinar access link will be provided upon registration. The webinar is free and open to the public. For questions, you can contact the TERP team directly at 800-919-8377 or via email at terp@tceq.texas.gov. |
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Federal Updates |
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Lesser Prairie Chicken Update
While PBPA continues to fight in our case regarding the listing of the Lesser Prairie Chicken (LPC) under the Endangered Species Act (ESA) at the U.S. Fifth Circuit Court of Appeals, we have a few other LPC related updates we wanted to share with everyone.
USFWS Propose New Status Review On February 26, 2026, the U.S. Fish and Wildlife Service (USFWS) provided notice that in response to the Court’s order in our delisting lawsuit, they are initiating a new 12-month petition finding process for the LPC under the ESA. Comments regarding this new 12-month petition are due by March 30, 2026. PBPA is developing comments on this proposal through our Species, Habitat and Operations (SHOC/ESA) Committee.
CEHMM’s 2025 Annual Report CEHMM, who manages the Candidate Conservation Agreements (CCAs) in New Mexico for the LPC and the Dunes Sagebrush Lizard, has released its 2025 Annual Report. The report highlights the impact of CCAs supporting the two species. This report is just in time to be included in information considered by USFWS during their 12-month petition finding process. |
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Membership News |
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Create Your Member Center Login Today!
Wondering who all is a member of the PBPA? Our online Member Center includes a membership directory for Gusher-level members and higher! Create your login today using the email we have on file to access resources like:
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PBPA Events |
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2026 Permian Basin Environmental Regulatory Seminar |
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The 2026 Clay Shoot + Pit King Challenge is set to occur on June 25th at Jake's Clays. More information will be released at a later date. We hope to see you there! |
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Committee Meetings |
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For more information on these or any of our other committees, please contact Stephen Robertson at stephen@pbpa.info or (432) 684-6345. |
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Community Events |
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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 |
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Permian Basin Water in Energy Conference April 7 - 9, 2026
The Permian Basin Water in Energy Conference (PBWIEC) is dedicated to advancing water management in the energy industry, bringing together experts from around the world to discuss innovative solutions and strategies. Their mission is to lead the conversation on water management within the energy industry, facilitating collaboration and knowledge-sharing to drive sustainable solutions. |
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Safety Summit June 8 - 12, 2026 San Angelo, TX
The TEEX Safety Summit is returning to San Angelo’s Howard College this June.
This summit is a great way to attend multiple classes in one location and at a discounted rate.
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While PBPA does not engage in political activity, we always want to make sure our members are aware of opportunities to get to know candidates or elected officials who could make decisions that impact operations in the Permian Basin. This is not a PBPA event or an endorsement of any candidate or party. |
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Permian Basin Petroleum Association | 601 North Marienfeld St., Suite 200, Midland, TX 79701 |