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Vol. 8 No. 4 |
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Members,
In this version of The Standard, we provide several updates including information on recent Federal actions, an update on the Texas Legislative Session, and recaps on recent events. 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 Clay Shoot + Pit King Challenge, the Permian Basin Basin Environmental Regulatory Seminar, and the newly released Spring Swing Recap Video! As always, we also provide details on upcoming PBPA events and other relevant community activities:
Important Updates
Community Events
Regards, Ben Shepperd PBPA President |
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2025 Clay Shoot + Pit King Challenge |
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Ready, Aim, Fire Up the Grill – It’s Time for PBPA’s Annual Clay Shoot + Pit King Challenge! Start the day with a high-energy sporting clay shoot, then stick around for a mouthwatering cook-off lunch that brings the flavor and fun. Whether you’re looking to network with industry peers, thank your team, or just enjoy a day outdoors, this event hits the mark. It’s more than just a shoot—it’s about connecting with the people who power our region’s energy industry. 🎯 Sponsorships and team spots go fast—don’t miss your chance to be part of the action. 🔥 Not a shooter? Bring the heat in our Oil Patch Pit King Challenge! Fire up your best BBQ or pit creation for a shot at bragging rights and the coveted Pit King crown. Sign up today and make your mark—on the range or at the grill! |
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New Mexico Updates |
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First BLM New Mexico oil and gas lease sale under Trump Administration nets over $20 million
Earlier this year, the Bureau of Land Management (BLM) New Mexico State Office leased seven parcels totaling 1,317.29 acres for $20,671,801 in total receipts for its quarterly oil and gas lease sale. The combined bonus bids and rentals from the lease will be distributed between the federal government and the State of New Mexico. This was the first lease sale on lands in New Mexico under the new Trump Administration. Other lease sales have since been held in Montana, North Dakota, Wyoming and Navada this quarter. These sales have brought in just over $39 million, with more than half of that revenue coming from New Mexico.
“This quarter’s lease sales demonstrate Interior’s unwavering commitment to fostering American Energy Dominance, and we are grateful to those who produce energy on federal lands,” said Department of the Interior Secretary Doug Burgum. “By building on the commonsense, pro-growth policies of the Trump administration, we’re ensuring public lands are being used to their fullest potential to support national security, economic strength and livelihood of the American people.”
Consistent with Executive Order 14154, “Unleashing American Energy,” the BLM's lease sales help meet the energy needs of U.S. citizens and solidify the nation as a global energy leader long into the future. Oil and gas lease sales support domestic energy production and American energy independence, while contributing to the nation’s economic and military security.
Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 16.67 percent of the value of production. For Information on current and upcoming BLM leases, you can visit the National Fluid Lease Sale System. The BLM’s lease sales are held online through EnergyNet. Results are available on the National Fluid Lease Sale System. After navigating to the page, filter to the sale, and select the action “View Sale Documents” to view the sale results. |
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NMED Virtual Climate Action Plan Meetings
The following invitation was recently shared by the New Mexico Environement Department (NMED). The PBPA encourages member participation in the conversations so that your voice can be heard.
The New Mexico Environment Department and New Mexico Energy, Minerals and Natural Resources Department invite you to a series of statewide virtual community conversations to help shape New Mexico’s Climate Action Plan.
The Climate Action Plan will provide an actionable roadmap to achieve New Mexico’s climate pollution reduction goals while promoting community health, workforce opportunities, and economic development across the state.
Each conversation will focus on specific sectors of New Mexico’s economy and the programs policies, and projects in the Climate Action Plan that address climate pollution in those areas.
We want to hear from you! Your ideas and priorities are essential to building a healthy, secure, and prosperous future for all New Mexicans.
Community Conversation Schedule: All meetings will be held via Zoom from 5:30 – 7:30 p.m.
Register here: https://www.surveymonkey.com/r/ZBHC3BG
Learn more on our website: https://www.climateaction.nm.gov/cap/
Zoom links will be sent to all registrants and posted on our website and on the New Mexico Environment Department calendar: https://www.env.nm.gov/events-calendar/ |
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Texas Updates |
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Texas Legislative Update
With approximately one month remaining in the 89th Legislative Session in Austin, the work PBPA has invested in supporting key issues — and opposing problematic ones — is beginning to show results. While it is too early to declare victory, especially in a session defined by volatility, we remain cautiously optimistic.
While there have been over 9,000 bills and resolutions filed for consideration this session, and while PBPA has been tracking hundreds of bills that could impact operations in the Permian Basin, the following is an analysis and update on a few of PBPA’s priorities that have seen recent movement:
SB 1150 (Sen. Middleton)/HB 2766 (Rep. Geren): Relating to the plugging of and reporting on inactive wells subject to the jurisdiction of the Railroad Commission of Texas; authorizing an administrative penalty.
This bill addresses the regulations surrounding the plugging of inactive wells under the jurisdiction of the Railroad Commission of Texas. Currently, operators can seek—and the Railroad Commission has routinely granted—multiple plugging extensions. The inactive well population in Texas has ballooned to over 150,000. Under this legislation, operators cannot obtain extensions for plugging inactive wells if they have been inactive for over 15 years and 25 years have passed since completion, unless specific conditions are met. Operators can request compliance plans that detail their commitment to plugging or restoring inactive wells by September 1, 2040. Factors such as economic conditions and compliance history will be considered. The Commission must submit an annual report on inactive wells to state authorities, including statistics on inactive wells, plugging activities, and financial assurance methods. PBPA is supportive of this legislation and some of our members argued for even more stringent limitations on plugging extensions on inactive wells. PBPA testified in support.
Status: A Committee Substitute for SB 1150 was adopted and passed out of the Senate on April 22, 2025. After being received in the House, it was referred to House Energy Resources.
HB 265 (Rep. Craddick): Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas Fund (GTF) and to the permissible uses of money deposited to the GTF. HB 265 creates not just the GTF in the state treasury but also establishes the Grow Texas Grant Program. This legislation would provide assistance to address the genuine needs of energy producing counties and communities blessed by industry activities, enabling them to build and maintain roads, schools, and healthcare facilities. Such infrastructure is not just necessary but is pivotal for the prosperity and safety of affected areas. The funds would come from Severance taxes produced in the area. In relation to HB 265, HJR 35 (Rep. Craddick) initiates the Constitutional Amendment which will go to the voters in November to authorize the funding of HB 265. PBPA testified in support.
Status: HB 265 and HJR 35 were laid out for consideration in House Appropriations on April 29, 2025, but further action is pending.
HB 188 (Rep. Landgraf): Relating to the allocation of certain constitutional transfers of money to certain funds and accounts, including the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund, and to the permissible uses of money deposited to Texas STRONG. Similar to Representative Craddick’s GTF legislation, this bill addresses a crucial need by establishing the Texas severance tax revenue and oil and natural gas (Texas STRONG) defense fund. This initiative would ensure that revenues from our vibrant energy sector are allocated to address the areas most impacted by oil and gas activities. Under this bill, the funds will be used responsibly to support essential services and infrastructure, prioritizing grants that will bolster first responders, healthcare, education, and workforce preparedness in qualifying counties. This bill would also require amending the Constitution via HJR 47. PBPA testified in support.
Status: HB 188 and HJR 47 were laid out for consideration in House Appropriations on April 29, 2025, but further action is pending.
Oilfield Theft Bill Package: There are five different bills (or sets of bills if there are House and Senate companions) that have been filed this session regarding Oilfield Theft prevention, investigation and prosecution. These bills are a PBPA Priority. We have been active in the development, promotion and hopeful passage of the following efforts.
SB 494 (Sen. Sparks)/HB 1647 (Rep. Landgraf) – Industry & Law Enforcement Task Force: These companion bills establish a statewide task force under the Railroad Commission of Texas to address the escalating issue of organized oilfield theft. The task force is designed to strengthen coordination between the oil and gas industry, energy trade associations, and law enforcement agencies, ensuring a comprehensive and strategic approach to combating petroleum product theft. The primary responsibilities of the task force include conducting an ongoing study of oilfield theft in Texas. This study will examine laws from other jurisdictions, analyze the impact of theft on state sales tax revenue, and evaluate the broader economic consequences. In addition to this research, the task force will develop recommendations for outreach and prevention efforts, including training programs for law enforcement on best practices for investigating and deterring petroleum theft.
To ensure transparency and inform future policy, the task force is required to submit a detailed report to state leaders by December 1 of every even-numbered year. This report will include legislative recommendations aimed at improving security, increasing industry transparency, and enhancing consumer protection against petroleum theft.
Status: SB 494 was passed unanimously out of the Senate in March and was reported favorably out of House Energy Resources on April 28, 2025. HB 1647 was reported favorably out of House Energy Resources on April 21, 2025 and placed on the House Calendar for April 30, 2025.
SB 1320 (Sen. Sparks) – Organized Oilfield Theft Prevention Unit: The bill aims to combat organized oilfield theft in Texas by establishing a dedicated unit within the Texas Department of Public Safety (DPS). Chapter 411 of the Government Code will now include Subchapter AA, which defines key terms associated with oilfield theft, including “unit,” “oil and gas equipment,” and “organized oilfield theft.” The core function of the organized oilfield theft prevention unit will be to investigate offenses related to theft involving oil and gas equipment and arrest offenders as described under specific sections of the Penal Code.
The unit will coordinate with federal, state, and local law enforcement agencies, and other stakeholders, offering a collaborative approach to tackling these crimes. The director of the unit will create a command structure, establish operational rules, and ensure proper training and working conditions for personnel. A specific focus will be placed on developing tailored training for local law enforcement, public awareness initiatives, and maintaining a centralized database for tracking incidents related to organized oilfield theft.
Furthermore, DPS is mandated to submit a biennial report by January 1 of each odd-numbered year that will assess the unit's activities, effectiveness, and offer legislative recommendations.
Status: SB 1320 passed out of the Senate favorably on April 14, 2025. After being received in the House it was referred to House Energy Resources on April 22, 2025.
SB 1806 (Sen. Sparks)/HB 3707 (Rep. Craddick) – Energy Resources Theft Reform: This bill authorizes trained law enforcement officers to inspect cargo tanks transporting petroleum products on public roads or railroads, collect samples for forensic analysis, enhances penalties for unlawful appropriation of petroleum products and equipment, and establishes criminal penalties for operating disposal wells without a permit.
This bill addresses regulations concerning the inspection, sale, and management of petroleum products, oil and gas equipment, and oil and gas waste. It amends existing criminal procedures and establishes new definitions and procedures particularly focused on petroleum products, such as crude oil and condensate.
Status: This bill has passed both chambers but was amended before passing out of the House, so it now goes to Conference Committee.
As a reminder, these are just a few of the bills PBPA is engaging on in support of operations in the Permian Basin. If you have questions about the status or PBPA position on any bills or resolutions, whether they are listed above or not, please reach out to PBPA staff or plan on attending our weekly Texas Legislative Committee meetings. |
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RRC Notice: Updated Webinar Dates
The Railroad Commission of Texas (RRC) has announced a series of webinars to help operators and stakeholders prepare for the newly adopted Chapter 4 Rules on oil and gas waste management, which go into effect July 1, 2025.
The PBPA encourages members to attend these valuable sessions, which are being led by RRC Technical Permitting Staff. Each session is 90 minutes long and will cover key updates and implementation guidance.
Webinar Schedule:
Additional Details:
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Federal Updates |
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Joint Letter to Repeal MERP
In early April, PBPA joined over two dozen other state and national oil and gas trade associations on a letter sent to Speaker of the House, Mike Johnson, and Senate Majority Leader, John Thune, calling on Congress to repeal the Methane Emissions Reduction Program (MERP) created in the Inflation Reduction Act of 2022 (IRA).
Since its inception, the MERP has created considerable uncertainty and operational challenges for American energy producers. Its rollout has been plagued by delays and a lack of clear guidance, leaving many in the industry unsure of how to achieve compliance. Additionally, the program imposes steep financial burdens—most notably through a rigid fee schedule—that threaten the economic viability of domestic production.
Congress now has a critical opportunity to repeal this deeply flawed statute before it inflicts further harm on the American energy sector. |
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DOI Announces Emergency Permitting Procedures
In response to the President’s declaration of a National Energy Emergency, the U.S. Department of the Interior has announced it will implement emergency permitting procedures to accelerate the development and supply of domestic energy and critical minerals.
These emergency measures streamline compliance with key federal regulations—including the National Environmental Policy Act (NEPA), the Endangered Species Act (ESA), and the National Historic Preservation Act (NHPA)—to allow for quicker review and potential approval of vital energy-related projects.
What This Means for PBPA Members: The emergency procedures are aimed at expediting the permitting process for projects that support exploration, production, transportation, refining, or generation of the following resources:
The Department has emphasized that under these emergency protocols, many decisions—particularly for eligible projects like mines—could be made in weeks instead of months, reducing the permitting delays that threaten economic stability, energy security, and foreign policy objectives. |
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EPA Actions to Combat PFAS
Yesterday, U.S. EPA Administrator Lee Zeldin outlined a broad set of actions to address Per- and Polyfluoroalkyl Substances (PFAS) contamination, with implications for energy producers, water systems, and downstream users.
Key Actions Announced:
These initiatives are part of EPA’s broader “Powering the Great American Comeback” effort and reflect the agency’s renewed emphasis on science, compliance, and partnerships.
What This Means for PBPA Members: Operators involved in activities with potential PFAS exposure—directly or through supply chains—should anticipate stricter reporting, potential liability, and increased scrutiny from regulators. PBPA will monitor how these developments affect upstream and midstream operations and keep members informed as implementation unfolds. |
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EPA Region 6 Trip to the Permian Basin
On April 15, 2025, Congressman August Pfluger, Congresswoman Julie Fedorchak (ND), EPA Region 6 Administrator Scott Mason, and several members of the Region 6 staff attended a field tour and roundtable discussion with PBPA members conducted in the Permian Basin. As a reminder, EPA’s Region 6 includes both Texas and New Mexico, as well as other states. The purpose of this field tour was to provide an in-person educational opportunity for the EPA representatives and to provide a venue for dialogue between the regulatory agency and members of the regulated community.
Congresswoman Fedorchak is the sole member of the U.S. House of Representatives from North Dakota (they only have one district). Prior to serving in Congress, Congresswoman Fedorchak accumulated 30 years of experience in business and public service. Most recently, she completed 12 years as a member of the North Dakota Public Service Commission. Congresswoman Fedorchak has been a national advocate for the responsible, aggressive energy development that is necessary for economic growth, public safety and national security.
Region 6 Administrator Mason is the 14th regional administrator of the EPA’s South Central Region. This is Mason’s second appointment to EPA, having served as the Director of the EPA’s American Indian Environmental Office during President Trump’s first administration. Most recently, Mason was the Deputy Secretary of Energy of Oklahoma. He has over 20 years of experience serving at the local, state and federal levels of government in various capacities, including serving as a vice president and the executive director of federal programs at The University of Oklahoma and on the staff of Oklahoma Governor Mary Fallin.
Joining Administrator Mason were Region 6 Water Division Director Troy Hill, Region 6 Air Division Director Dr. James McDonald, Region 6 Public Affairs Director Darrin Larson and Region 6 Videographer Carl Havlik.
PBPA greatly appreciates Congressman Pfluger for organizing this event, Congresswoman Fedorchak for joining us and sharing with us her priorities in representing the good people of North Dakota, and Administrator Mason for sharing his vision and priorities as head of the Region 6 office.
Over a dozen PBPA member company representatives participated in EPA’s trip to the Permian Basin and were involved in frank discussions on regulatory reviews underway at EPA, sparked by Executive Orders from the Trump Administration. We thank each of these representatives for taking the time to join us for this event and for engaging directly in the advocacy process from which all members of the Permian Basin oil and gas industry will benefit. And, we especially thank Diamondback Energy and ChampionX for conducting the field tour aspect of this event. |
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PBPA Events |
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Earlier this month, the Spring Swing Golf Tournament at Odessa Country Club provided a fantastic day filled with fun, friendly competition, and great conversation. ⛳ Thank you to everyone who joined us—we truly enjoyed spending the day with you!
We extend our heartfelt thanks to our sponsors and volunteers. Your support and generosity made this event possible, and we couldn’t have done it without you.
Be sure to check out the official event VIDEO produced by The Oilfield Photographer. Event photos are also available on our social media pages—and feel free to tag, share, and relive the memories! 📸 |
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2025 Permian Basin Environmental Regulatory Seminar |
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TOMORROW: The Midland College Petroleum Professional Development Center (PPDC) and the Permian Basin Petroleum Association (PBPA) proudly present the annual Permian Basin Environmental Regulatory Seminar.
The 2025 PBERS is scheduled for Thursday, May 1, 2025 at Bush Convention Center (Ballroom upstairs), 105 N Main St, Midland, TX 79701 from 7:30 am to 5:00 pm. Registeration will close April 30th, so register to reserve your spot today!
This seminar is a proactive approach for oil and gas industry professionals to keep current on the most recent environmental regulations and policy changes. This important one-day seminar focuses on the latest state & federal regulatory updates and their operational impacts on the petroleum industry. |
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RECAP: Desk & Derrick Club West Region Meeting |
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During the Association of Desk & Derrick Club’s (ADDC) West Region meeting held in late April, PBPA’s Stephen Robertson presented as the event’s keynote speaker. The ADDC West Region includes ADDC chapters from as far south as the Permian Basin to as far north as Alberta, Canada. The Regional Meeting was a great way for PBPA to reach out to industry participants from the Permian Basin and beyond to share information on the association’s advocacy efforts and to build stronger industry relationships.
The ADDC is an international non-profit organization providing energy education and professional development. Membership is open to those employed in or affiliated with the petroleum, energy, and allied industries as well as individuals interested in increasing their knowledge about these industries, who can benefit from broad-based, cross functional training. Engaging in the ADDC is a great way to further your education on the wide ranging aspects of oil and gas operations.
The ADDC was established in New Orleans, Louisiana in 1949, and the first chapters in the Permian Basin were finalized in 1951. ADDC has been a great partner of PBPA over the decades and we always appreciate returning the favor! |
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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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Save the Dates — 2025 RRC Regulatory Conference
The Railroad Commission of Texas (RRC) invites oil & gas and pipeline operators, other industry representatives and exhibitors to attend its annual conference at its new venue in 2025.
Who: Railroad Commission of Texas What: 2025 RRC Regulatory Conference When: Monday, July 14 - Wednesday, July 16, 2025 Where: Kalahari Resorts & Conventions, 3001 Kalahari Blvd., Round Rock, Texas 78665
Registration will open in early May. To view the event webpage, visit the RRC website. |
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Permian Basin Petroleum Association | 601 North Marienfeld St., Suite 200, Midland, TX 79701 |