Vol. 8 No. 5

Members, 

In this version of The Standard, we provide several updates including information on Oilfield Crime Prevention legislation in Texas, New Mexico and Federal Regulatory updates, the Congressional Reconciliation Package and on a variety of recent PBPA activities. 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 taking place next week on June 6th. We hope you can join us! As always, we also provide details on upcoming PBPA events and other relevant community activities:

Important Updates

• NEXT WEEK: Clay Shoot + Pit King Challenge
• WQCC Rules on Produced Water
• NMED Heat Rule Proposal
• OCC approves ban on PFAS
• Oilfield Crime Prevention Legislative Update
• Reconciliation Package, i.e. the “One Big Beautiful Bill”, clears the U.S. House
• Federal Regulatory Update
• PBPA Community Engagement
• RECAP: Permian Basin Environmental Regulatory Seminar
• Committee Meetings

Community Events

• Midland College PPDC Courses
• TTARA Luncheon
• EnergyPlex Conference
• IPAA Annual Meeting
• TCEQ Awards Banquet
• RRC Regulatory Conference
• Summer Workshops for Texas Educators
• Additional events can be found on the online event calendar!

Regards, 

Ben Shepperd

PBPA President

NEXT WEEK: The Clay Shoot + Pit King Challenge will take place at Jake's Clays in Midland and will feature a morning sporting clay shoot followed by a delicious cook-off lunch. 

The deadline to register as a shooter or a team of four is MONDAY, June 2nd. Don't miss out on this opportunity to network with fellow industry leaders or treat your team to a day of fun and fellowship.

Event Schedule:

• 8:30 AM: Morning Rotation Registration
• 9:00 AM: Shotgun Start
• 11:15 AM: Pit King Challenge will be ready & lunch served
• 1:00 PM: Awards Presented! Must be present to win.

Afternoon Volunteers Needed! 

Help the PBPA team sell raffle tickets, gun board squares, and tally Pit King Challenge votes from 11 AM - 2 PM. Volunteers receive company recognition at the event, free food and drinks, and the opportunity to network with industry leaders! Contact Jamie at jamie@pbpa.info today if you can assist. 

WQCC Rules on Produced Water

The New Mexico Water Quality Control Commission (WQCC) recently approved a new rule regarding the discharge and reuse of treated produced water.  While the rule does not support the use of treated produced water outside the oil and gas industry, this authority did not exist in New Mexico prior to this rule either, meaning that the rule maintains the existing prohibition on such discharges in New Mexico, resulting in minimal change to the regulatory status quo.  However, change is not only needed but supported by pilot projects that provide support for the validity of such reuse.  Although there was brief consideration of authorizing limited discharge for these pilot projects, the Commission ultimately declined to do so due to what they claimed was insufficient evidentiary support.

This action could set back New Mexico’s statewide water conservation efforts, which had been a priority of the Governor and her 50-Year Water Action Plan. Other jurisdictions, including other western states and the federal government, have developed rules that both protect the environment and allow for the treatment and reuse of produced water. Unfortunately, this is not the path on which the WQCC has set New Mexico.  For reuse of treated produced water to occur in New Mexico, a new rulemaking will need to be initiated.

NMED Heat Rule Proposal

The New Mexico Environment Department’s (NMED) Occupational Health and Safety Bureau has submitted a petition to the state’s Environmental Improvement Board to adopt a proposed rule on occupational heat illness and injury prevention. This rulemaking includes both work accommodation activities and training activities – which must be documented.  The rulemaking hearing was scheduled to take place beginning on July 16, 2025 before the Environmental Improvement Board.  The proposed rule is eerily similar to a rule proposed by U.S. Occupational Safety and Health Administration (OSHA) under the Biden Administration.  While a new hearing date has not been publicized, NMED has apparently pushed back the hearing date to allow more time for public comment.

OCC approves ban on PFAS

The New Mexico Oil Conservation Commission (OCC) adopted a rule on May 22, 2025 prohibiting the use of per- and polyfluoroalkyl substances (PFAS) in oil and gas completions and recompletions, including in hydraulic fracturing operations. The rule will be effective in approximately 60 days from the decision, unless someone requests a rehearing of the OCC’s decision.  Prior to voting on the rule itself, the OCC discussed a request by eNGOs seeking clarification in the rule. The eNGOs requested the OCC consider including all downhole operations in the PFAS ban, however that request was denied.

Oilfield Crime Prevention Legislative Update

During the current Texas Legislative Session – scheduled to adjourn sine die on June 2, 2025 – PBPA supported a number of proposals to combat oilfield crime, particularly in the Permian Basin.  Oilfield crime is not a new challenge for operators in our region, but it has been one of increasing concern for which PBPA was asked by our members to pursue legislative solutions.

This session four initiatives, in particular, were prioritized by PBPA in Austin.  And, fortunately, each of these initiatives have been passed by both the House and the Senate and have been sent to the Governor for his endorsement.  This endorsement is not a given, however, as Governor Abbott does have the power of veto and has used that veto in the past specifically on a previous legislative proposal aimed to combat oilfield crime (see HB 3291 from the 2015 Legislative Session).  While we continue to secure the Governor’s support of the four bills that were passed by the Legislature, we wanted to provide everyone with a review of those bills:

• HB 48, by Chairman of House Energy Resources Drew Darby from San Angelo, Chairman of House Transportation Tom Craddick from Midland, Chairman of House Environmental Regulation Brooks Landgraf from Odessa, and Vice Chair of House Energy Resources Eddie Morales from Eagle Pass.  This bill creates an Organized Oilfield Theft Prevention Unit within the Department of Public Safety to combat theft involving oil and gas equipment in Texas.  This unit will be tasked with investigating specified oilfield theft related offenses.  The unit is required to coordinate with federal, state, and local agencies, and to engage with communities affected by such thefts. Based on floor debates, its headquarters will be positioned in the Permian Basin, but will be responsible for investigations state-wide.  In addition to investigations, the unit's responsibilities include providing specialized training to local law enforcement, conducting outreach programs to educate the public and industry professionals, and maintaining a database to track thefts and related criminal activities.

• SB 494, by Senator Kevin Sparks from Midland.  This bill aims to combat the theft of petroleum products in Texas by creating a dedicated task force within the Railroad Commission of Texas. The task force will consist of members from the oil and gas industry, energy trade associations, and various law enforcement agencies to ensure a comprehensive approach to the issue.  The task force's duties involve conducting an ongoing study of petroleum theft, which will include reviewing laws from other jurisdictions, analyzing the impact of petroleum theft on sales tax revenue, and assessing the broader economic implications. It is tasked with making specific recommendations for outreach and prevention programs aimed at stakeholders and law enforcement training on effective strategies to combat this crime. Not only has this proposal been based by both the House and the Senate, but it was signed by the Governor on May 20, 2025 and will go into effect September 1, 2025.

• SB 1806, by Senator Sparks. 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.  This bill enhances inspection capabilities by training officers to conduct thorough inspections of cargo tanks suspected of transporting petroleum products. These inspections allow for sampling and forensic analysis.  The bill revises penalties for theft of petroleum products and oil and gas equipment by introducing a graded system based on the value of the items appropriated, ranging from third to first-degree felonies, significantly increasing the stakes for theft in this sector.  Moreover, it establishes criminal penalties for operating disposal wells for oil and gas waste without necessary permits from the Railroad Commission, also graded by the value of waste disposed of. This is another proposal that has already been signed by the Governor. It too will go into effect on September 1, 2025.

• SB 1646, by Chairman of House State Affairs Ken King from Canadian. This bill addresses criminal conduct involving the theft and unauthorized possession of copper and brass and regulates the sale of such materials to metal recycling entities. It significantly broadens the definition of "critical infrastructure facility", now encompassing various utility and telecommunications structures, which adds new layers of protection against theft.  Under the newly added provisions, committing an offense by damaging or stealing copper or brass from these facilities is now classified as a felony of the third degree. The bill delineates a new offense called unauthorized possession of certain copper or brass material, which is initially deemed a state jail felony but escalates to third-degree felony under specific aggravating circumstances, such as previous convictions or possession from critical infrastructure.  Moreover, metal recycling entities face new obligations, requiring thorough record-keeping of transactions involving copper or brass. This includes maintaining comprehensive records, documenting the nature and source of materials, and ensuring compliance with strict acquisition protocols. Entities violating these regulations face administrative penalties of up to $10,000.

We are tremendously appreciative of the work and support of these proposals that came from the Senators and Representatives for the Permian Basin.  Particularly, Senator Kevin Sparks has been an incredible champion of these efforts and for the oil and gas industry in general.  The desire and ability to educate others in the Capitol about the importance of these proposals by Senator Sparks, Chairman Darby, Chairman Craddick, Chairman Landgraf, Chairman King and Vice Chairman Morales, has won the day and provided the oil and gas industry of Texas with new tools to combat oilfield crime.  We thank them all as representatives ourselves of the oil and gas industry, and as constituents in their districts. 

While we recognize that the passage of legislation alone will not eliminate oilfield theft in the Permian Basin, we believe the measures advanced through the legislative process this year represent a significant step toward that goal. We remain committed to supporting all efforts to combat oilfield crime in every way possible, with the aim of making the Permian Basin not only the world’s leading energy-producing region, but also the safest and most secure.

Reconciliation Package, i.e. the “One Big Beautiful Bill”, clears the U.S. House

On May 22, 2025, the U.S. House of Representatives passed a budget reconciliation package by the narrowest of margins in a 215 to 214 vote.  While the national highlights for this vote include an extension of the tax cuts enacted under the first Trump presidency in 2017, raises in defense spending, cuts to Medicaid spending and a $4 trillion increase in the nation’s barrowing authority, there were also a number of oil and gas industry specific provisions of which we wanted to make sure you were aware.

Leading up to the passage of the full reconciliation package, on Tuesday, May 6, 2025, the U.S. House Natural Resources Committee took a vote (which passed 26-17) on its portion of the reconciliation package.  Topics covered by House Natural Resources in the Reconciliation markup, provisions include:

• Reinstating quarterly onshore oil and gas lease sales, generating $12 billion in revenue.
• Mandating at least 30 lease sales in the Gulf of America over the next 15 years and six in the Cook Inlet, generating billions of dollars in new revenue.
• Returning to reasonable oil and natural gas royalty rates.
• Requiring geothermal lease sales, generating $23 million in new revenue.
• Resuming leasing for energy production in the National Petroleum Reserve in Alaska and the Arctic National Wildlife Refuge, generating over $1 billion in new revenue and savings.
• Resuming coal leasing on federal lands.
• Increasing timber sales on federal lands and requiring long-term timber contracts.
• Rescinding various wasteful slush funds established under the Biden administration in agencies such as the National Oceanic and Atmospheric Administration, the National Park Service, and the Bureau of Land Management.
• Investing in water infrastructure in the West.
• Providing funding to celebrate America’s 250th anniversary, including by establishing the National Garden of American Heroes.

The reconciliation package passed off the House floor also included a 10 year delay of the Methane Emissions Reduction Program.  The package did not include changes to intangible drilling costs (IDCs), percentage depletion, passive loss, or carried interest.  The full package now heads to the Senate where changes are likely to be made.

In support of the House Natural Resources Committee’s markup, PBPA submitted a letter in support of this action.

Federal Regulatory Update

In response to President Trump's National Energy Emergency declaration, the Department of Interior (DOI) is implementing emergency procedures to fast-track energy and critical energy development projects – including oil and gas development, reducing the typical longer permitting process to just 28 days. The expedited process will cover a broad range of energy sources including oil, gas, coal, uranium, and renewable resources, with Interior Secretary Doug Burgum stating these measures are essential for national security and energy independence. This process relies upon creating a fast-tracked/emergency review process for permit requests created under NEPA, ESA, and NHPA. We also anticipate that additional expedited review procedures could be released by the agency. 

DOI has prepared application forms attached to each of the alternative procedure documents hyperlinked below.  For detailed submission instructions and requirements, DOI recommends contacting your local district, state, or regional office.

NEPA Reviews:  DOI is creating streamlined environmental review processes (see an alternative National Environmental Policy Act compliance process) that bypass normal NEPA requirements. For projects to qualify, they must involve energy resources (like oil and gas) and have submitted formal applications. Project applicants must opt into these expedited reviews in writing and agree to follow environmental mitigation measures. The process creates two tracks: for projects unlikely to have major environmental impacts, officials complete a quick 14-day environmental assessment with no required public comment period. For projects with likely significant impacts, there's a 28-day review process including a brief public comment period (typically 10 days) and one public meeting. Only high-ranking Interior Department officials can approve projects under these emergency procedures, and all approvals must still comply with other environmental laws like the Endangered Species Act. These arrangements remain in effect throughout the declared energy emergency unless explicitly replaced by new guidance.

ESA:  DOI, through the U.S. Fish and Wildlife Service, has established streamlined procedures for projects specifically related to energy resource development as defined in EO 14156 (including oil, gas, coal, and other resources) – see expedited Section 7 consultation process. The process requires written project applicant consent, high-level DOI approval, and simplified coordination between federal agencies and FWS during the emergency period. The legal framework primarily relies on three key authorities: Executive Order 14156 (establishing the emergency), Section 7(a)-(d) of the Endangered Species Act (governing consultation requirements), and 50 CFR 402.05 (allowing alternative procedures during emergencies). Importantly, once the emergency ends, agencies must conduct full ESA consultations retrospectively, resulting in either a biological opinion or concurrence letter following standard regulatory timeframes under 50 CFR part 402.

NHPA:  DOI is also implementing expedited procedures for historic preservation reviews under Section 106 of the National Historic Preservation Act (see alternative procedures). The legal authority for these alternative procedures comes primarily from 36 C.F.R. § 800.12, which specifically allows for emergency procedures when the President declares an emergency. The Department is utilizing these emergency provisions specifically for energy-related projects as defined in EO 14156, which includes various energy resources from crude oil to critical minerals. The process relies on two main regulatory pathways: either following existing Programmatic Agreements with emergency provisions (under 36 C.F.R. § 800.12(b)(1)) or using ad hoc emergency procedures (under 36 C.F.R. § 800.12(b)(2)). For projects to qualify, applicants must be seeking to develop energy resources as defined in the EO and must submit formal applications. They must also affirm in writing their intention to use these alternative procedures and commit to implementing measures to protect historic properties where feasible. The responsible officials must notify the Advisory Council on Historic Preservation (ACHP), State Historic Preservation Offices (SHPOs), Tribal Historic Preservation Offices (THPOs), and affected tribes, allowing them a 7-day comment period. This expedited process remains in effect until the emergency declaration ends, at which point standard Section 106 procedures resume.

Shortly after making this announcement and releasing the alternative procedures guidance documents, DOI circulated a helpful FAQ document.

PBPA Community Engagement

As part of PBPA’s mission, we advocate for our member’s interests not just in front of elected officials and regulators, but also to stakeholders in and outside the industry.  This year, PBPA has spoken at (or is scheduled to speak at) the following stakeholder events:

• Midland Chamber of Commerce 
• Permian Basin Water in Energy Conference
• Permian Basin Environmental Regulatory Seminar
• Desk & Derrick Regional Annual Meeting
• West Texas Geological Society Annual Meeting
• Natural Gas Society of the Permian Basin 
• Texas Taxpayers and Research Association Luncheon (June 26)
• West Texas Legislative Summit (July 29)
• Permian Basin Petroleum Museum Brown Bag Lunch (August 12)

If you are part of an organization, or know of an organization, at which you think PBPA should speak, please reach out to us and let us know!

On May 1, PBPA and Midland College Petroleum Professional Development Center hosted the annual Permian Basin Environmental Regulatory Seminar at the Barbara and George H.W. Bush Convention Center in downtown Midland.  PBPA is honored to join Midland College every year help host this event that allows agency personnel and industry experts provide their insights on a variety of environmental and regulatory issues from Texas, New Mexico and Washington, D.C.

Presentations at this year’s seminar included:

• Trump Proofing New Mexico, a Legislative Update, by PBPA’s Stephen Robertson
• An Overview of the Texas Parks and Wildlife Department’s Kills and Spills Team, by the Department’s Travis Tidwell
• TCEQ Compliance Update and an Update on the Marginal Conventional Well Plugging Program, from TCEQ’s David Ramirez and Katy Drake
• Marginal Wells: Rising to the Challenge, by Elizabeth Lieberknecht, Environmental Defense Fund
• Constructive Approaches to Environmental Protection in the Oilfield, by Melinda Taylor, University of Texas at Austin
• Rule 36 and H2S Compliance: Understanding the Requirements and Justifications, by Krisha Marker, MM Safety, Inc.
• The 2025 New Mexico Regulatory Landscape, by Jennifer Bradfute of Bradfute Consulting
• A View of the Capitol City, a Federal Update, by IPAA’s Dan Naatz, and
• An Overview of the Railroad Commission’s New Chapter 4 Rules, by the Commission’s Paul Dubois.

During lunch at the seminar, the 2025 Bruno Hanson Environmental Excellence Award was given to (PBPA member) Atlas Energy Solutions for its innovative 42-mile conveyor belt that carries sand needed for hydraulic fracturing from a facility in Kermit, Texas to a loadout facility in Lea County, New Mexico.  The operation takes trucks off the public roads, reducing emissions and saving lives. 

We thank everyone who helped pack the room at this year’s seminar, but particularly we want to thank those at Midland College, including Chelsy Gann, Marinna Rodriquez, Victoria Santiago Edwards and Dania Montes, who helped to organize and execute the seminar, as well as Midland College’s Pervis Evans, who did a fantastic job of being master of ceremonies for the seminar.

Committee Meetings

• Health Safety & Environemtn Committee: 6/12/2025
• Regulatory Practices Committee: 6/17/2025

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

June 9-10, 2025

Hobbs, NM

Lea County is known as the EnergyPlex, home to traditional energies including oil and gas and nuclear as well as renewable energy such as wind and solar. The New Mexico EnergyPlex Conference, hosted by the Economic Development Corporation of Lea County, is free to attend and open to the public. Register for an in-depth look at different energy industries within Lea County and the opportunity to network with industry professionals.

The Independent Petroleum Association of America (IPAA) will host its 96th Annual Meeting from June 17–19, 2025, at the Williamsburg Lodge in Williamsburg, Virginia. The event will feature a keynote address by Senator Joe Manchin (I-WV), offering attendees insights into energy policy and permitting reform.

June 18:

• Registration Opens: 9:00 AM
• State and Regional Associations Brunch Meeting
• IPAA Committee Meetings:
• Environmental – 11:45 AM(IPAA)
• Board and Membership – 1:00 PM(IPAA)
• Membership and Tax – 2:30–3:30 PM(IPAA)
• Wildcatters PAC – 3:30–4:30 PM
• Special Historical Family Program: Featuring a "Queens Tea" with "Lord Dunmore," a colonial textiles demonstration, and a children's program.
• Welcome Reception: 6:00 PM, with live music and reenactors.

June 19:

• Annual Prayer Breakfast: 7:30 AM, featuring Dr. Timothy D. Holder.
• General Sessions: 8:45 AM–5:30 PM, including a special conversation with Senator Joe Manchin.
• Membership Luncheon: 11:45 AM–1:00 PM, with the Chief Roughneck Award presentation.
• Closing Reception & Dinner Under the Stars: 6:30 PM.
•  

For more details and to register, visit the IPAA Annual Meeting page.

 July 14-16, 2025

Kalahari Resorts & Conventions
3001 Kalahari Boulevard
Round Rock, Texas 78665

The Railroad Commission of Texas (RRC) is hosting this conference to inform and train oil & gas and pipeline operators and other industry representatives on the applicable laws, rules, and procedures for hydrocarbon production in Texas.

Registration is now open! To view the event webpage, visit the RRC website.

The Petroleum Museum is offering free Teacher Workshops sponsored by ExxonMobil! 

Whether you're a teacher yourself or know someone who is, help us spread the word about the 2025 Summer Teacher Workshop Series at the Petroleum Museum. It's a hands-on, high-impact experience designed to inspire and empower classrooms across Texas.

If you're a new or seasoned STEAM leader, these TEA-certified workshops are designed to spark innovation, boost confidence with tech tools, and provide ready-to-use resources for the classroom. Attendees earn Continuing Professional Education (CPE) hours while enjoying a collaborative, hands-on environment.

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