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Vol. 7 No. 9 |
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Members,
In this version of The Standard, we provide several updates including information on the State of Texas v. DOI lawsuit, Oilfield Security efforts, and recaps of 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 2024 Top Hand honoree, Q3 New Members, and other important information. 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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New Mexico Updates |
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NMED Releases Draft Strategic Water Supply Feasibility Study
On September 17, 2024, the New Mexico Environment Department issued the below press release.
"The New Mexico Environment Department today [September 17, 2024] released a draft feasibility study for the Strategic Water Supply (SWS), a groundbreaking initiative aiming to protect New Mexico’s freshwater supply in the face of water scarcity challenges.
The study provides greater details on the technical and economic aspects of the SWS raised by stakeholders — including individuals, businesses, academia, government agencies, and others. Its core goal is to present key challenges and the opportunities for the future of New Mexico’s water supply and economy.
The SWS will support the nation’s transition to renewable energy and advanced manufacturing by providing water-intensive processes an alternative to consuming the state’s limited freshwater supplies. Such industries include green hydrogen, electric vehicle and battery manufacturing, critical minerals, microchips, solar panels and wind turbines.
NMED is seeking feedback from subject matter experts to ensure the feasibility study’s thoroughness. The department also invites those who previously replied to the Request for Information that closed in March 2024 to provide input. The list of respondents can be found here.
The feasibility study can be downloaded from the NMED website here. To provide feedback, follow the instructions on the same webpage."
If you have further questions about the Strategic Water Supply or the feasibility study, please reach out to Stephen Robertson (stephen@pbpa.info) for more information. |
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Texas Updates |
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Texas Legislative Update
Between hearings across the state on important issues in both the House and Senate, PBPA has been testifying and providing support on the wide variety of issues that have been touching oil and gas operations, environmental regulation, electrical transmission needs and much, much, more.
As the Legislature turns its focus into the next session, one crucial area that we always focus on are the needs of our operators and the ability of the regulated agencies to serve those needs. Through funding effective and efficient permitting and timely inspections, etc., your operations will not be hamstrung by a lack of resources that have historically been the case when the state inadequately funds relevant agencies.
This session our focus will be to continue efforts to fund IT and personnel needs at the Railroad Commission of Texas, the personnel needs for inspections required under new federal rulemaking at the Texas Commission on Environmental Quality, and the likely need for important legal review of certificates of convenience and necessity that the Public Utilities Commission will need to implement the Permian Basin Reliability Plan.
To that end, we have scheduled a meeting with TCEQ and their Executive Office to discuss their Legislative Appropriation Request and their needs ahead of the 89th Legislative Session which begins on January 14, 2025.
This will take place virtually (with the possibility of some hybrid option) on October 9, 2024 at 10:00am CT. If you would like to attend, please reach out to michael@pbpa.info to let us know. Similar meetings with other agencies will also be scheduled this Fall. |
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Chapter 4 Rulemaking Update
PBPA continues to solicit feedback regarding the waste rules proposed by the RRC, specifically amendments to 16 Texas Administrative Code (TAC) §3.8 (also known as Statewide Rule 8) and 16 TAC Chapter 4, Subchapter B, relating to Commercial Recycling; and new 16 TAC Chapter 4, Subchapter A, relating to Oil and Gas Waste Management.
These rules amend the current regulations in Chapter 3, Rule 8, and among other changes establish a new Chapter 4, which govern authorized and permitted waste management facilities and establish new requirements for design, construction, maintenance, life, burial and closure. Additionally, it establishes new bonding requirements depending on the type of waste management facility and in some cases requires testing and monitoring before, during, and after use of the pit.
We have been working aggressively to listen to comments on all of these issues and would appreciate your prompt feedback. The deadline for public comment has been extended to October 15, 2024.
Please consider reaching out to michael@pbpa.info if you have any questions. |
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Permian Basin Reliability Plan Update
PBPA continues to lead on advocacy for improved electrical infrastructure to serve the growing demand in our region. In Texas, these efforts have focused lately on the Permian Basin Reliability Plan (Plan) being considered by the Public Utility Commission of Texas (PUC). After optionality for a Plan was proposed by the Electric Reliability Council of Texas (ERCOT), PUC Commissioner Lori Cobos submitted a memo for consideration by the PUC outlining how to move forward. In short, the memo supports adopting an order by the PUC that would authorize the local projects and transmission import paths identified by ERCOT as being needed to respond to the Permian Basin growth in electricity demand. This memo will likely be considered if not voted upon at a PUC meeting scheduled for September 26. It is possible many of you may be reading this report after Commissioner Cobos’ memo has already been considered by the PUC.
PBPA has engaged with PUC staff, PUC Commissioners and other stakeholders to continue to push for our members’ needs, which in simple terms focus on increased transmission without delay for the Permian Basin. If an order is adopted by the PUC supporting both the local projects and import paths, transmission and distribution service providers (TDSPs) will be able to begin submitting plans to construct the local projects or the import paths and we could be one step closer to increasing electricity delivery in west Texas.
Once an order is adopted by the PUC, we will make sure to keep everyone updated. If you have any questions about the Permian Basin Reliability Plan or PBPA’s other electrical initiatives, please let us know. |
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Federal Updates |
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State of Texas v. DOI regarding the dunes sagebrush lizard
On September 23, 2024, the Texas Attorney General’s office announced that they have sued the federal government for their listing of the dunes sagebrush lizard as endangered under the Endangered Species Act. PBPA opposed the original listing proposal and final decision to list regarding the lizard. We have and continue to support local and state lead conservation efforts for the lizard and other species impacted by human activities. We support the Attorney General’s decision to bring suit on the U.S. Fish and Wildlife Service’s (the “Service”) listing decision and look forward to their success!
The State of Texas is arguing that the “…Service failed to rely on the best scientific and commercial data available when making its designation as required by law and therefore made inaccurate and arbitrary assumptions about the current and future status of the species. Further, the regulation classifying the dunes sagebrush lizard as endangered did not take into consideration the ongoing voluntary conservation efforts already in place at a local and state level. Because of this, the federal government’s action would unduly undermine vital economic development in the Permian Basin, subjecting Texas industries and private landowners to regulatory uncertainty and ambiguity about what they can do with their own land.”
To read the full filing submitted by the State of Texas in the U.S. District Court for the Western District of Texas, click here.
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BLM Methane Rule Blocked in Texas
Earlier this month, a judge for the US District Court of North Dakota, Daniel Taynor, blocked the Interior Department from enforcing the Waste Prevention Subject to Royalties and Resource Conservation Rule (the “Rule”) in states that were party to the suit, which include North Dakota, Texas, Utah, Montana, and Wyoming. This ruling does not block the enforcement of the Rule in states not party to the suit, such as New Mexico.
In his ruling, Judge Traynor provided that the Rule adds unnecessary federal regulation on top of existing laws. He further criticized the Rule for conflicting with state and federal regulations already in place under the Clean Air Act and for not providing significant additional environmental benefits. He noted that the Rule infringes on states’ rights and imposes new bureaucratic requirements that could harm local industries.
The decision followed a lawsuit from several Republican-led states, which argued that the rule improperly encroached on EPA authority and exceeded BLM’s statutory limits.
The following link provides a press release from the Governor of North Dakota: https://www.governor.nd.gov/news/burgum-wrigley-welcome-court-ruling-blocking-blm-venting-and-flaring-rule-taking-effect. |
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Genomic Analyses of the Lesser Prarie Chicken
This summer, the findings of an important study conducted by Purdue University regarding the Lesser Prarie Chicken were released.
An accurate understanding of prairie chicken speciation gained new urgency in 2022, when the U.S. Fish and Wildlife Service listed the lesser prairie chicken as endangered in the southern portion of its range.
A rigorous genomics study of prairie chickens in Colorado, Kansas, Oklahoma, New Mexico and Texas led by Purdue University scientists has found evidence of hybridization between species with no clear indication of genetic problems such as inbreeding. The scientists published their findings July 24, 2024, in the Proceedings of the National Academy of Sciences Nexus.
Using technology that study co-author Zachary Lowe likens to “GPS for genetics,” the results show the power of genomics to document which animals are a mix of closely related species and which ones genetically qualify as unique lineages.
To read more about the findings of this study and its impact, check out the PBPA Newsroom. |
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Special Topic Updates |
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Oilfield Security
Earlier this month, PBPA attended and presented at the Permian Basin Oilfield Crime Committee’s 2024 Oil & Gas Law Enforcement Conference held for security, law enforcement and prosecution personnel in the Permian Basin. The crowd was very robust, with law enforcement and district attorney representation from Texas and New Mexico Counties, Texas DPS Troopers, including the DPS officer assigned to oilfield crime in the Permian Basin, investigators from the Railroad Commission of Texas, FBI agents, and internal security personnel from numerous PBPA member companies.
Presentations and discussion topics for the two day conference included:
PBPA was honored to update attendees on possible legislative opportunities to combat oilfield crime. PBPA continues to work with champions for this cause in Congress (including Congressman Tony Gonzales and Congressman August Pfluger), in the Texas Legislature (including Senator Kevin Sparks), and at the local level (including Midland Mayor Lori Blong). In fact, this week, Congressman Gonzales introduced the Protect the Permian Act (link: https://gonzales.house.gov/_cache/files/f/f/ffef19e9-591a-4c8f-8553-2947cc25ddb2/AE18A6DCF29D2EC84F7840076EA05440.gontx-141-xml.pdf) in the U.S. House of Representatives which is intended to increase criminal penalties for stealing, transporting, and selling oil and oil field-related equipment and expand federal resources to law enforcement agencies to target oil theft. We support this legislation from Congressman Gonzales and are actively advocating for its passage.
While legislative opportunities are materializing at both the federal and state level, PBPA is also continuing to work on recommended practices to be utilized by operators of all sizes to help prevent and combat oilfield crime. We hope to have those final recommended practices out to everyone soon. In the meantime, however, we did want to share a few recommended practices with everyone that were highlighted at the recent Oil & Gas Law Enforcement Conference:
We are grateful for the work put in to combat oilfield theft by our local, state and federal law enforcement partners, as well as by the internal security officials at our member companies. True progress in these efforts will take all of our vigilance and focus. PBPA looks forward to advocating for efforts this upcoming legislative session in Texas, which starts in January 2025 and will continue our advocacy for legislation in Congress as well. If you have any questions about these efforts, please reach out to us and let us know. |
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PBPA Electrical Coalition Update
While PBPA’s Electrical Coalition continues to support efforts in Texas regarding improvement of electric power delivery throughout our region (see the report in this edition of The Standard on the Permian Basin Reliability Plan), we are working to improve conditions in New Mexico as well. This month, members of the coalition met with representatives from Xcel Energy to discuss increasing electric delivery and reliability in the Land of Enchantment. PBPA has hosted several meetings with transmission and distribution service providers (TDSPs) regarding services in Texas, but this was the first such meeting with a New Mexico TDSP.
This meeting, hosted by Priority Power, gave coalition members the opportunity to learn in detail about the specific hurdles to increasing power delivery in New Mexico and to engage in a dialogue on possible solutions to those challenges. While the conversations were fruitful, the challenges are far from over and each side has agreed to hold additional meetings moving forward as we seek to improve electric power generation and delivery. If you are interested in learning more about the electric power challenges in either New Mexico of Texas, or if you are interested in learning more specifically about the PBPA meeting with Xcel, please reach out to us and let us know.
Our next PBPA Electrical Coalition meeting is going to be held on October 2nd. |
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Membership News |
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Create Your Member Center Login Today!
The PBPA's new online Member Center includes new resources 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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The Permian Basin Petroleum Association is proud to announce our 2024 Top Hand Award Winner. The PBPA Top Hand is the highest award bestowed by the members of the PBPA, and one of the highest honors given to an energy professional in the Permian Basin. Being a Top Hand means that you exemplify all of the best qualities of professional and community service.
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Thank you to everyone who attended, sponsored, or volunteered at the 62nd PBPA Annual Meeting.
We are grateful for the support of our membership and the participation of the many expert speakers that made the event worthwhile.
Official event photos will be shared soon! Keep an eye out on the PBPA Facebook and Linkedin pages for updates. |
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RECAP: Joint September Luncheon |
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On September 25, 2024, PBPA hosted a joint luncheon with the Texas Tax Payers and Research Association (TTARA) at the Petroleum Club of Midland. Guest speaker at the luncheon was Texas Lt. Governor Dan Patrick who sat down for a one on one conversation with Brint Ryan, CEO and founder of Ryan, an international tax services provider. We greatly appreciate everyone who came out to attend the luncheon and offer a special thank you to TTARA and Ryan for helping to make the luncheon possible.
Lt. Governor Patrick discussed possible tax priorities for the upcoming legislative session, but identified the grid as the number one priority going into the session. PBPA continues to work to educate those in Austin, and around the state, on the importance of improving electricity generation and delivery specifically for the Permian Basin and we continue to work with all those who want to strengthen this vital area of infrastructure. We appreciate the partners we have, including Lt. Governor Patrick, Senator Kevin Sparks, Rep. Tom Craddick, and Ector County Judge Dustin Fawcett who each attended the joint meeting. |
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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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Texas Tech Energy Law CLE/Symposium November 1, 2024 Lubbock, TX
The Texas Tech school of Law is hosting its third annual energy-law CLE/symposium at the Texas Tech Law school in Lubbock on Friday, November 1, 2024. This year’s theme is energy transactions, and the conference provides seven hours of CLE, including one hour of ethics. The topics include CCUS transactions, geothermal leases, Relinquishment Act leases, JOAs, brine leases, and wind/solar leases. You can attend this symposium in person or remotely. For more information or to register, please see the linked flyer. Or you can register by clicking this link and going to the JELP (Journal of the Energy Law Practitioner) website - Home - TTU - Journal of the Energy Law Practitioner (ttujelp.org) |
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Permian Basin Petroleum Association | 601 North Marienfeld St., Suite 200, Midland, TX 79701 |