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Vol. 7 No. 10 |
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Members,
In this version of The Standard, we provide several updates including information on PBPA's Comments on Chapter 3 & Chapter 4, important decisions in New Mexico, and our November Luncheon. 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 Top Hand Award Banquet, Committee Meetings, 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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PBPA Events |
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NEXT MONTH: Join us for an insightful discussion with PUC Commissioner Lori Cobos on the Permian Basin Reliability Plan and other critical energy topics.
Commissioner Cobos, a longtime advocate for West Texas, played a pivotal role in the Public Utilities Commission's unanimous adoption of the Permian Basin Reliability Plan. We are thrilled to welcome her for an in-depth conversation about this transformative initiative and other key issues shaping the future of energy in the Permian Basin.
Don't miss this opportunity to engage with one of the region’s foremost leaders! Sponsor the event to reserve a table for eight and you'll also receive promotional benefits for your company. |
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In just a few short months we look forward to honoring Mr. Dennis Johnson of Summit Petroleum, LLC, as the 2024 Top Hand—a prestigious recognition of his outstanding contributions to the oil and gas industry and to the Permian Basin communities.
We invite you to be part of this special evening filled with elegance, camaraderie, and celebration as we pay tribute to a true leader and pillar of the Permian Basin community.
Tables for eight start at $1,500, with individual tickets also available. Don’t miss this chance to network, celebrate, and make lasting memories with industry peers! The Top Hand Award Banquet sells out every year, so reserve your tickets early! |
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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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New Mexico Updates |
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New Mexico EIB Decision
As you may remember, back in March 2024 the New Mexico Environment Department (NMED) petitioned the New Mexico Environmental Improvement Board (EIB) to update fees and the fee structure used by NMED for air quality permits. Roughly, NMED was seeking to increase the money it received for its air program in order to support enforcement and staffing amid an increasing workload.
On Wednesday, October 23, 2024, the EIB voted unanimously to reject the proposed series of fee increases, which, as proposed, would have included a five-times increase in fees for General Construction Permits among other fee increases. In short, the EIB based their decision on a lack of justification given by NMED for the specific sizes of the increases and lack of information provided on how the additional funds generated by the increase in fees would be spent.
Members of the EIB admitted that while increases were long overdue, better justification should have been provided by NMED for the specific increases for which they were asking. We expect NMED to continue to pursue fee increases in the not-too-distant future. They can do this by appealing the EIB decision or resubmitting its proposal with additional information.
Please reach out to Stephen Robertson (stephen@pbpa.info) for more information. |
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New Mexico Legislative Update
October has included several interim legislative committee hearings in New Mexico that have included discussions on oil and gas issues. Among these meetings have been gathers of the Legislative Finance Committee (LFC), the Revenue Stabilization and Tax Policy Committee, the Radioactive and Hazardous Materials Committee, the Economic and Rural Development and Policy Committee, and the Water and Natural Resources Committee.
On October 22, 2024, the LFC entertained presentations from Senior Business Economist at the Federal Reserve Bank of Dallas, Garrett Golding, and Chief Economist for the LFC, Ismael Torres, who both spoke about the possible economic implications to the state if a statewide setback was put in place through legislation. During the budget based legislative session conducted earlier this year, the proposal for a statewide setback was entertained but fortunately was not put into law. Since that initiative’s failure, there have been substantiated concerns that the idea of a statewide setback would again be brought up in the upcoming 2025 legislative session.
The recent LFC hearing represented an opportunity to inform members of the committee about the negative economic impact to the state of a statewide setback. Projections offered during the hearing showed that such a law would result in at least $800 million in annual lost revenue to the state. Regardless of this negative economic impact, we know that the issue of a statewide setback will be introduced this upcoming legislative session. We will work this through our New Mexico Legislative Committee, which will start meetings in earnest towards the end of this year and continue with a weekly schedule throughout the session.
Please reach out to Stephen Robertson (stephen@pbpa.info) for more information. |
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RECAP: Carlsbad Mayor's Energy Summit
On October 16 and 17, 2024, Mayor Rick Lopez conducted his first, but the city’s 12th, Carlsbad Mayor’s Energy Summit at the Pecos Village River Carousel House and Walter Gerrells Performing Arts and Exhibition Center. PBPA and several of our members were on hand for conversations about education, workforce, infrastructure, housing, as well as an industry panel on government and regulatory barriers.
The Carlsbad Mayor’s Energy Summit is a great opportunity to share with residents of Carlsbad the great work going on in the oil and gas industry. It also offers us the opportunity to engage with other stakeholders to discuss the current and upcoming challenges for both our industry and, in general, the communities of southeast New Mexico.
Thank you to all those from industry who attended, and a special thank you to those PBPA members who participated in the summit, such as Bradley Bishop with Mewbourne Oil Company, Tim Baker with ConocoPhillips, Alexandria Fleming with Chevron and Jonny Heins with Permian Resources. We encourage PBPA members to take advantage of opportunities like this to share their experience and knowledge with those outside our industry. Industry is best served when we are sharing our story.
Please reach out to Stephen Robertson (stephen@pbpa.info) for more information. |
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Texas Updates |
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PBPA's Chapter 3 and Chapter 4 Comments
As you know, over the last several years, PBPA has been deeply engaged with the RRC’s efforts to overhaul oil and gas waste management practices, as currently outlined in Rule 8. This engagement has included the filing of our comments on proposed modifications to Chapter 4 and Chapter 3, as well as continued dialogue with the agency on identified issues. We have worked diligently to compile consensus feedback over the years and have also provided informal and formal insights reflecting the diverse opinions held and shared by our members. Make no mistake—this represents a significant change to existing practices.
Our members recognize the importance of modernizing certain provisions of Chapter 3, Rule 8 (“Rule 8”), and of complying with legislative mandates to establish efficient, consistent, and orderly permitting for commercial disposal facilities. We support these efforts and encourage continued collaboration between the Commission and industry to update waste practices. PBPA firmly believes that environmental protection and natural resource development are not mutually exclusive; Texas has long been a leader in both.
PBPA concurs with the Railroad Commission’s characterization from one year ago, acknowledging that this rulemaking represents a major overhaul for water protection and oil and gas waste management rules. At that time, the Commission noted, “for the first time in nearly 40 years, the Railroad Commission’s Statewide Rule 8 will undergo a substantial overhaul to better reflect modern waste management practices and recent advancements in production methods.”
This proposed rulemaking is a meaningful departure from current rules. Its complexity requires careful scrutiny to ensure that modernization is achieved without imposing unreasonable burdens on the industry.
Over the past 40 years, the industry has made significant gains and improved efficiencies in water and waste management. Our members observe that the existing provisions of Rule 8, along with its enforcement, have effectively safeguarded public health and safety for decades. It’s also worth noting that one primary reason for updating these rules is the substantial investment and advancement in industry practices to manage produced water, reduce freshwater usage, and derive value from materials historically viewed as waste.
Our comments are supplemented by additional suggestions to follow; however, this summary focuses on the key provisions PBPA members wish to address. Our objectives include modernizing waste management, encouraging the recycling of oil and gas wastes, and promoting the beneficial reuse of produced water.
We will continue to engage with Commissioners and staff throughout this rulemaking process, and we encourage you to continue providing feedback to both us and the Commission. We thank everyone who has been deeply involved in this effort. Your time and technical expertise have been invaluable, and we appreciate your ongoing support to ensure the next 100 years in the Permian Basin are as promising as the past. |
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Permian Basin Reliability Plan Update
We’ve come a long way since the December 14, 2023 Public Utility Commission of Texas (PUC) meeting in Midland and we now have a final order for PUC Project 55718 establishing the Permian Basin Reliability Plan (Plan). With this order in place, we can expect the planning to begin on several thousand circuit miles of much needed transmission service, including both import and local projects, to address the projected 2038 needs of the Permian Basin.
With years of hard work under our belt on this issue alone, we have long known how important reliable electricity delivery has been for our membership. We are proud of the work undertaken to help establish the next great century for domestic energy production in the Permian Basin. To quote our President Ben Shepperd, “While other states and countries are turning their backs on domestic energy production, decreasing reliability, and increasing costs, Texas is again taking the lead.”
In the order signed and filed in early October, the PUC approved all local projects required to serve the region as identified in the Plan and gave its authorization to prepare all eight import paths proposed by the Plan. We appreciate the leadership at the PUC, the Legislature, and our partners within the industry but also beyond, that has been critical to this success.
Later in October, specifically on October 24, 2024, the PUC held a meeting at which PUC staff provided an update to Commissioners regarding the Plan. Commission staff outlined a memorandum that would establish the process by which the Plan projects will be constructed. This is under a new Project 57152.
The Commission has effectively supported this memorandum which establishes a bifurcated process for Plan projects that are without disagreement and for those that are contested. To put it very simply, “agreed to” Plan projects with no disputes will be filed under a joint proposed final order and presented to the Commission. For Plan projects that are disputed, each project will operate as an individual contested case.
As additional updates become available, we will make sure to get those out to everyone. |
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TCEQ OOOOc Implementation Stakeholder Meetings
The Texas Commission on Environmental Quality (TCEQ) has announced a series of stakeholder meetings to be held in November to gather informal comments on the proposed rulemaking to comply with the U.S. Environmental Protection Agency’s (EPA) OOOOc. Attached is the notice for such meetings from TCEQ. As required by OOOOc, TCEQ’s proposed rulemaking is looking to address applicability, emission standards, monitoring, recordkeeping, testing, and reporting requirements for designated oil and gas facilities. The rules would set emission standards and/or control requirements for emissions of greenhouse gases (primarily methane) from existing facilities.
Stakeholder Meeting Locations and Dates:
November 6, 2024, from 10:00 a.m. to 12:00 p.m. This will be a hybrid in-person and virtual meeting. English and Spanish recordings of the meeting will be posted on the rule project webpage at the link provided above. TCEQ – Austin 12100 Park 35 Circle Building A, Room 173 Austin, TX 78753
November 14, 2024, from 6:00 p.m. to 8:00 p.m. This will be an in-person meeting held at: Arlington City Council Chambers 101 W. Abram Street Arlington, TX 76004-3231
November 20, 2024, from 6:00 p.m. to 8:00 p.m. This will be an in-person meeting held at: Location to be determined Midland, TX 79705
Prior to the meeting, information on the location will be made available at the following webpage: https://www.tceq.texas.gov/permitting/air/rules/2024-ooooc-rulemaking-oilgas-stakeholder
PBPA has formed a working group to determine PBPA’s engagement with this process. If you are interested in participating in these efforts, please reach out (stephen@pbpa.info) and let us know. |
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Membership News |
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As we approach the 2024 November election, the Permian Basin Petroleum Association encourages all our members and stakeholders to take part in the voting process. Whether you live in Texas or New Mexico, your vote matters – especially when it comes to the policies that affect our industry and communities.
Early voting details:
PBPA advocates for the policies and regulations that support the oil and gas industry in the Permian Basin, and we know how important this election is for our future. By participating in voting, you help shape the decisions that impact not only our industry but also the communities we serve.
Please take the time to vote early and encourage your family, friends, and colleagues to do the same. Every vote counts! |
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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Below are some valuable training opportunities that are available at no cost, funded through Texas Grants.
As with all Texas Grants, it's essential to note that ongoing participation is required; if there isn't sufficient student engagement, the grants may be reallocated.
Additionally, there are specific TEEX (Texas A&M Engineering Extension Services) courses included in these grants, which are especially beneficial for individuals involved in DOT operations, emergency response, or disaster clean-up. Please see the links below for more information on these training options: |
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Permian Basin Petroleum Association | 601 North Marienfeld St., Suite 200, Midland, TX 79701 |