Vol. 7 No. 12

Members, 

In this version of The Standard, we provide several updates including information on the activities surrounding the upcoming state legislative sessions, Waste Management rules in Texas, and the Monarch Butterfly. Our team has been hard at work advocating for the oil and gas industry in the Permian and your input and participation are highly appreciated.

Below, you will also find information on our Top Hand Award Banquet, the 2025 event calendar, and other important information. As always, we also provide details on upcoming PBPA events and other relevant community activities. We wish you all a Merry Christmas and a Happy New Year and hope you enjoy the holiday season with your loved ones. 

Important Updates

• Top Hand Award Banquet
• NMED 2024 Emissions Inventory Bulletin
• Climate Change Bureau Greenhouse Gas Emission Inventory Update

• PBPA New Mexico Legislative Session Preview

• New Mexico Geothermal Interest Survey
• RRC Waste Management Rules Update
• PBPA Texas Legislative Session Preview
• Monarch Butterfly Proposed Listing
• Recommended Oilfield Security Measures
• New Members Q4 2024
• 2025 PBPA Calendar
• Committee Meetings

Community Events

• Midland College PPDC Courses
• Permian Basin Water in Energy Conference
• Additional events can be found on the online event calendar!

Regards, 

Ben Shepperd

PBPA President

In less than a month, we will gather for an evening of recognition and inspiration as we honor Mr. Dennis Johnson of Summit Petroleum, LLC, the 2024 PBPA Top Hand Award recipient.

Mr. Johnson’s visionary leadership and contributions to the oil and gas industry have left an indelible mark on the Permian Basin. At this year’s Top Hand Banquet, we’ll celebrate his extraordinary achievements and commitment to our community.

✨ Enjoy a distinguished cocktail reception.
🍴 Savor an elegant banquet dinner.
🏆 Witness the presentation of PBPA’s highest honor.

📅 Date: January 16, 2025
📍 Location: Petroleum Club of Midland

This event is more than a celebration—it’s an opportunity to connect with peers and reflect on the legacy of leaders like Dennis who shape our industry. 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!

* Tables in the main ballroom are very limited! Reserve yours today before they sell out. * 

NMED 2024 Emissions Inventory Bulletin

Emission Inventory Requirements will be collecting the 2024 Emissions Inventory.  The emission inventory period begins January 1, 2024, through December 31, 2024, and emissions reporting is due January 1 through April 1, 2025. 

NMED requires that facilities that all major sources submit an emissions inventory, and minor sources that meet the criteria below:

• Any source which emits, or has the potential to emit, 5 tons per year or more of lead or lead compounds, or 100 tons per year or more of PM10, PM2.5, sulfur oxides, nitrogen oxides, carbon monoxide, or volatile organic compounds shall submit an emissions report annually.
• Any source defined as a major source of hazardous air pollutants under 2.70 NMAC (Operating Permits) shall submit an emissions report annually.

An emissions inventory for asphalt, concrete, and rock crushing facilities is not requested.

In accordance with 20.2.73.300 NMAC, owners or operators must include actual annual emissions (permitted values are not accepted).  from all routine operations, fugitive emissions, excess emissions, and emissions from malfunctions, startup, shutdown and maintenance events. 

Greenhouse Gases:  Greenhouse gas (GHG) emissions from all facilities are required for the 2024 Emissions Inventory.  The GHG emissions must be submitted through the GHG branch of the Air Emissions Inventory Reporting (AEIR).  All facilities that are required to report criteria pollutants must submit greenhouse gases emissions.

Resources:  Guidance documents, training material, FAQs, the training schedule, calculation tools, and AEIR can be accessed here: https://www.env.nm.gov/air-quality/ei-submittal/.

Climate Change Bureau Greenhouse Gas Emission Inventory Update

The New Mexico Environment Department (NMED) released two comprehensive reports analyzing greenhouse gas emissions across the state, providing the most detailed and accurate inventory of New Mexico’s emissions to date.  

Findings confirm that New Mexico is making significant progress in reducing its greenhouse gas emissions. The state is projected to achieve a 29% reduction in emissions by 2025 compared to 2005 levels, keeping on track to meet Gov. Michelle Lujan Grisham’s climate goals. 

The reports, developed by Eastern Research Group (ERG) and Energy and Environmental Economics (E3) include:  

• 2005 New Mexico Oil and Gas Greenhouse Gas Baseline Inventory.  

• 2021 New Mexico Greenhouse Gas Emissions Inventory and Forecast. 

These reports, along with an overview presentation, are available on the NMED’s Climate Change Bureau webpage. 

Key findings in the reports include:  

• Greenhouse gas emissions from electric power plants in New Mexico have declined 60% since 2005. Renewable energy now contributes about 60% of current in-state electricity generation — surpassing the Energy Transition Act standard of 50% renewable energy by 2030.   

• Current policies, including New Mexico’s recently upheld ozone precursor rule and methane waste rule, lead to a projected 70% reduction in methane emissions in the oil and gas sector between 2005 and 2025. 

• Greenhouse gas emissions from the transportation sector in New Mexico grew 6% from 2005 to 2021, primarily due to increased use of diesel fuel. Under current state policies, including new motor vehicle emissions standards and the clean transportation fuel standard, fossil diesel use is projected to decline 11% from 2021 to 2030 and gasoline use is projected to decline 29% over the same period. 

Continued public and private investment in clean technology while New Mexico assures compliance with its laws and rules are key to meeting our ambitious climate goals.

As co-chair of the U.S. Climate Alliance, Gov. Lujan Grisham supports the 2015 Paris Climate Agreement and New Mexico is committed to achieving a statewide reduction in greenhouse gas emissions of at least 45% by 2030 as compared to 2005 levels. 

NMED will use these findings for the development of a Comprehensive Climate Action Plan supported by the U.S. Environmental Protection Agency-funded Climate Pollution Reduction Grant. Public and private investment in clean technology are important to achieving New Mexico’s ambitious climate goals.

PBPA New Mexico Legislative Session Preview

The next New Mexico Legislative Session begins on January 25, 2025.  While pre-filing of bills doesn’t begin until January 2, 2025, we are already starting to see draft language on several efforts. Those efforts, and others we are expecting to see this session, include but are not limited to the following:

• Setbacks, creating Child Protection Zones
• Financial Assurance changes
• Changes to the Reclamation Fund
• PFAS (forever chemicals)
• Climate Change bill codifying Governor’s Executive Orders
• Commissioner Garcia Richard’s bill to increase royalty rates on premium leases and possibly fee increases at ENMRD and NMED
• Governor’s Strategic Water Supply
• Rep. Hochman-Vigil and Dixon Grid Modernization bill
• Pore Space

The upcoming session is shaping up to be a busy one.  During the session, PBPA will be hosting weekly meetings in-person in Santa Fe, but also offering virtual engagement options for our members.  If you are interested in participating in these meetings, please reach out and let us know! – Stephen Robertson, stephen@pbpa.info

RRC Waste Management Rules Update

On December 17, 2024, during an open meeting, the Railroad Commission of Texas (RRC) adopted four rulemakings, including extensive and significant changes to the existing waste management functions currently addressed under Chapter 3, Rule 8, creating requirements in a new “Chapter 4.” Their assessment of this adoption can be found here.  The adopted rule will be officially published in the January 3, 2025, issue of the Texas Register.

The rules are an attempt by the RRC to modernize regulations to reflect advancements in modern waste management practices, such as the recycling of produced water, and enhance protections for groundwater and surface water. The rules include modernization of requirements for the design, construction, operation, monitoring, and closure of waste management units.  Additionally, the updates codify informal guidance from RRC experts, attempting to provide clarity and consistency for operators and the public. The rules also increase oversight by enhancing the RRC’s ability to track oilfield waste transport across Texas and dedicating staff to environmental permit compliance and inspections.

For additional details on the new waste management rules, visit: RRC Waste Management Rules.

While PBPA has begun reviewing the changes in their entirety, we wanted to provide the same to you posthaste so that you may also begin your internal reviews. Please click here for the link to the document.

PBPA Texas Legislative Session Preview

The Texas Legislature will convene in less than one month. The Texas Constitution authorizes the pre-filing of legislation ahead of opening day in January and as of now about 2,000 bills have been filed in total by members of both the House and Senate.  There are also a significant number of amendments to the state constitution that have been filed in addition to numerous congratulatory and memorial joint and simple resolutions. PBPA has begun to track legislation that will impact oil and gas operators, including those we will support, those we will oppose and those we will monitor out of concern.

This session, our focus will be multifaceted.  Some of our priorities, however, include appropriate agency funding, support for treated produced water reuse, and fighting oilfield crime.

• We want to ensure state agencies tasked with regulating oil and gas activities (including the Railroad Commission of Texas, the Texas Commission on Environmental Quality, and the Public Utility Commission, among others) have the appropriate funding necessary to ensure prompt permitting and review of vital functions.  
• We fully support advancing the beneficial reuse of treated produced water through effective permitting schemes. We have learned that the most important market encouragement is the permitting of activity that allows operators to develop their technologies and innovate toward new methods that allow sustainable growth of this sector along with the establishment of important liability protections.
• We remain concerned about oilfield theft and have worked to promote a best practices document to help aid operators with learning about techniques that can keep their employees, products, and facilities safe. However, as precaution is no guarantee against the actions of bad actors, we must work with the state to do more in providing law enforcement and prosecutorial resources to the regions that are being met with increasing crime that disrupts supply chains and commerce.

These are only the tip of the iceberg of legislative priorities that our members have and we aim to successfully tackle these known issues and those unknown at this time to ensure the Permian Basin continues to remain the greatest place to create jobs, live, work, and raise a family.  PBPA will hold weekly Texas Legislative Committee meetings throughout the session, hosted from our office in Austin with virtual options for those unable to attend in-person.  If you are interested in engaging in these efforts, please let us know! – Michael Lozano, michael@pbpa.info

Monarch Butterfly Proposed Listing

On December 10, 2024, the U.S. Fish and Wildlife Service announced a proposal to list the monarch butterfly as a threatened species with species-specific protections and flexibilities to encourage conservation under Section 4(d) of the Endangered Species Act (ESA). The Service also proposed to designate critical habitat at the overwintering grounds in California.

According to the Service, its proposed 4(d) rule incentivizes proactive conservation efforts and allows actions that have beneficial or minimal impacts to monarchs and that do not threaten the species’ overall population.  

This is a proposed threatened designation for the monarch butterfly, and the monarch butterfly does not have federal protections at this time. Through March 2025, the Service will gather input through a 90-day public comment period before issuing a final rule. If listed, protections would only go into place after the final rule is published.  

The proposal to list the monarch butterfly and designate critical habitat appeared in the Federal Register on December 12, 2024. The entire proposed rule package can be found on regulations.gov by searching docket number FWS-R3-ES-2024-0137.

For frequently asked questions about this proposal and additional information on the monarch butterfly, visit fws.gov/monarch.

Recommended Oilfield Security Measures

As many, if not all, of you know, oilfield crime has been a major concern in the Permian Basin.  While we continue to work on federal and state legislative efforts to help curb, if not eliminate, these activities, we know that there are actions operators can take to help that don’t necessitate legislation.  To that end, PBPA has been working with PBPA member VistaOne to develop recommended oilfield security measures.  This collection of recommended measures provides a comprehensive approach to combating oilfield crime, incorporating physical, cyber, and operational security measures alongside strategic recommendations for technology deployment and coordination with industry partners. Enhanced reporting protocols and structured training programs further solidify the approach, ensuring that all personnel are equipped and informed to contribute to crime prevention and incident response.

While this is not the end all be all of stopping crime in the oilfield, we hope through the understanding and implementation of these recommendations that the security of your operations is improved and that your assets are better protected.

Dates have been selected for PBPA's major 2025 events! Save the date on your calendar so you can be sure to attend. (All dates are subject to change.)

• Top Hand Award Banquet - January 16, 2025
• March Membership Luncheon - March 20, 2025
• Spring Swing Golf Tournament - April 7, 2025
• Clay Shoot + Pit King Challenge - June 6, 2025
• Annual Meeting - September 17-18, 2025

Committee Meetings

• Regulatory Practices Committee: 1/21/2025

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

March 4-6, 2025

Midland, TX

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. Our mission is to lead the conversation on water management within the energy industry, facilitating collaboration and knowledge-sharing to drive sustainable solutions.

The Permian Basin Water In Energy Conference is a program of The University of Texas Permian Basin. The UT Permian Basin College of Business Advisory Council, with Jim Woodcock at the helm, planted the conference idea in 2017. Since then, the PBWIEC has grown into a sought-after networking event and annual marketplace of ideas. UT Permian Basin’s Shepperd Leadership Institute is now home to the PBWIEC, allowing students at UTPB to directly benefit from the conference proceeds.

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