Vol. 8 No. 2

Members, 

In this version of The Standard, we provide several updates including information on the Texas and New Mexico Legislative sessions, NEPA, and more. 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 2025 Spring Swing Golf Tournament, the Permian Basin Environemental Regulatory Seminar, and other important information. As always, we also provide details on upcoming PBPA events and other relevant community activities:

Important Updates

• 2025 Spring Swing Golf Tournament
• New Mexico Legislative Update
• NMED Comprehensive Climate Action Planning Community Input Meetings
• Texas Legislative Update
• Federal Updates
• Council on Environmental Quality and NEPA
• Create Your Member Center Login Today!
• March Membership Luncheon
• 2025 Permian Basin Environmental Regulatory Seminar
• Committee Meetings

Community Events

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

Regards, 

Ben Shepperd

PBPA President

Join us for the 2025 Spring Swing! This four-man scramble takes place on Odessa Country Club's two magnificent courses with food, fun, and fellowship available to all who attend.

If your company would like to cook on one of the courses, we have ONE spot left! For more information, please call our office at 432-684-6345 or email Jamie Ramirez-Lujan at jamie@pbpa.info.

Tournament Schedule:

• 11:00 AM: Registration & Lunch
• 12:30 PM: Shotgun Start
• 5:00 PM: Closing Reception (Afternoon awards presented! Must be present to win.)

New Mexico Legislative Report

The first session of the 57^th New Mexico Legislature has now passed the halfway mark, and the bill introduction deadline passed on February 20.  So, while new ideas could still get amended into bills that have already been filed, we more or less know what we will be working with for the last three to four weeks of the 60 day session.

Out of the nearly 1,000 bills introduced this session, PBPA is currently tracking just over 50.  Some of these bills have moved through committees, others have stalled.  However, even if a bill appears to be dead, no bill is truly without a pulse until the session adjourns sine die.

Below is a status report on just a few of those bills and resolutions PBPA has been tracking.  As a note, in the time since this report was drafted, some of the listed actions may need updating.  If you have any questions about the discussed legislation or any other legislation currently being considered in New Mexico, please reach and let us know.

Those Bills that Appear to be Stalled

• HB 34 (Oil Conservation Protect Health & Environment), by Rep. Debra M. Sariñana (D), proposes adding “to protect public health and the environment” to the empowering language, which previously only required preventing waste and protecting correlative rights as its charges in rule making, for the Oil Conservation Division and the Oil Conservation Commission.  In House Ag. & Water, a Committee Substitute for this bill added “may”, trying to address concerns expressed as to unintended impacts of this bill, and this version was passed out of House Ag. & Water on February 3, 2025. However, since then, this bill has not made it onto the agenda for House Energy (the other House committee to which it was referred), so we are hopeful this legislation has stalled. 
• SB 4 (Clear Horizons & Greenhouse Gas Emissions), by Senator Mimi Stewart (D), would have codified the Governor’s greenhouse gas reduction executive order, as well as established unachievable reductions in greenhouse gas emissions for the state by 2050, leaving to the Environmental Improvement Board the development of the regulations on how exactly to achieve such reductions.  On Monday, February 24, 2025, a packed Senate Finance Committee entertained SB 4.  Chairman Munoz allowed thirty minutes of public testimony for both those opposed and those in support of this proposal.  Even with that allotted time, there were nearly a dozen opponents still standing to give testimony when time ran out, as well as a few proponents.  Fortunately, after a nearly three hour hearing, SB 4 was tabled by a bi-partisan vote.
• SB 99 (No Fuel Less-Than-Zero Carbon Intensity), by Senator Antoinette Sedillo Lopez (D), would have prohibited transportation fuels from being assigned a carbon intensity value of less than zero under the Clean Transportation Fuel Standard Program rules.  Roughly, if this bill had been passed, the only way to achieve net-carbon zero in New Mexico would have been to completely remove all carbon emissions from the state without offering any type of offset.  This bill received a hearing in Senate Conservation where fortunately it was tabled by a 5-4 vote. 
• SB 139 (Zero-Emission Vehicle Rule Prohibition), by Senator Pat Woods (R), would have rolled back regulations put in place by the Air Quality Bureau (AQB) which require 80% of all vehicles offered by dealership in New Mexico to be electric in the not too distant future.  Even with practical arguments for the legislation and against the AQB regulation, for instance over the last 36 months electric vehicles sales only made up 3% of the market in New Mexico, SB 139 was tabled by a straight party vote in Senate Conservation.

The Oil & Gas Act Bills

During the 2024 Session HB 133 was introduced in an attempt to make a number of changes to the Oil & Gas Act in New Mexico.  Fortunately, HB 133 never made it to the Governor’s desk.

This session, in an attempt to resurrect several of the proposals found in HB 133 but through a variety of vehicles (putting their eggs in different baskets), Chair of House Energy, Rep. Matthew McQueen (D), has introduced three bills being HB 257 (Oil & Gas Well Transfer Rulemaking), HB 258 (Natural Gas Capture Requirements), and HB 259 (Oil & Gas Act Violation Penalties).  While a few of these bills encountered some early setbacks, HB 257 may be the only one of the bunch stalled at this point.  HB 258 was passed out of House Energy on February 11, 2025, and is waiting to be placed on the agenda in House Judiciary.  An amended version of HB 259 was passed out of House Energy on February 18, 2025, and is also now waiting to be placed on the agenda in House Judiciary.  No vote has been taken on HB 257 in House Energy, so it could still be alive.

Some of the Worrisome Bills that are Moving

• HB 548 OIL & GAS EQUALIZATION TAX ACT by Rep Nathan P Small
• Quick Review: Creates a new 0.85% severance tax on the taxable value of oil and other liquid hydrocarbons removed from natural gas at or near the wellhead in New Mexico.  Companies must make an advance tax payment based on their average monthly tax liability from the previous year.  This is a nearly 25% jump in the tax rate on crude oil in the state and is projected to cost the industry over $400 million in its first year in place.
• Action Update: Even though this bill was filed on the last day for bill filings, and even though originally it was only assigned to House Tax & Revenue, the bill quickly made it onto the agenda for House Energy this week.  While the Republicans on House Energy provided plenty of ammo to shoot down this bill, if not at least push it off for an interim analysis, the bill was voted “Do Pass” out of House Energy on a straight party vote on Thursday, February 27, 2025.  While it still has to go to House Tax & Rev, it is projected to be heard, then tabled in that committee to be part of a greater omnibus tax bill proposal.  Besides making some incredibly valid points about the timing, intent and lack of need for the bill, the only good result of the prolonged debate put forth by Republicans in House Energy was that Chairman McQueen ran out of time to bring up his own incredibly worrisome proposal on Cost of Plugging and Abandonment of Wells, which you can read more about below under the “Some Troublesome Bills Filed on the Last Day of Bill Filing” section.
• HB 35 (Children’s Health Protection Zones), by Rep. Debra Sariñana (D)
• HB 140 (“Hazardous Waste Constituent” Definition), by Rep. Christine Chandler (D)
• HB 212 (PFAS Protection Act), by Rep. Joanne Ferrary (D)
• SB 21/22 (Pollutant Discharge Elimination System Act), by Senator Peter Wirth (D)
• SB 23 (Oil & Gas Royalty Rate Changes), by Senator George Muñoz (D)
• SB 37 (Strategic Water Reserve Fund), by Senator Elizabeth Stefanics (D)
• SB 178 (Produced Water & Abandoned Wells Fund), by Senator Harold Pope (D)

Some Positive Bills that are Moving

• HB 273 (Certain Natural Gas as Renewable Energy), by Rep. Randy Pettigrew (R).  If put into law, this effort would add “natural gas using combined cycle technology” to those energy sources that qualify as renewable energy resources as used in the Rural Electric Cooperative Act.  While this bill may or may not make it through House Energy, its next stop, it was voted “Do Pass” out of House Rural Development with by-partisan support.

• SB 142 (Grid Modernization Roadmap), by Senator George Muñoz (D). If put into law, this effort would require the Public Regulation Commission to be consulted by the Energy, Minerals and Natural Resources Department (ENMRD) in the development of a roadmap for grid modernization, among other changes.

Thank you to all those who have helped with our advocacy efforts this session in New Mexico whether in person or through virtually attending and engaging in our weekly New Mexico Legislative Committee Meetings.  And a special thank you to those who understand the importance of the oil and gas industry in New Mexico who serve in the House and the Senate as well as to our friends at NMOGA and IPANM for their undying commitment to the mission of protecting your right to operate in the world’s greatest energy producing region.  This session has been another where collaborative efforts have helped in and out of committee.  While the session is far from over, we are oh so much closer to the House and the Senate adjourning sine die than we were a month ago!

Some Troublesome Bills Filed on the Last Day of Bill Filing

• HB 481 COSTS OF PLUGGING & ABANDONMENT OF WELLS by Rep Matthew McQueen
• Quick Review: This bill proposes amendments to the Oil and Gas Act to increase accountability for the plugging, abandonment, and remediation of oil and gas wells, facilities, and infrastructure.  Current and past owners, operators, and lessees of oil and gas wells, facilities, pits, or surface equipment are responsible for reimbursing the Oil Conservation Division (OCD) for the costs of: (1) Plugging and abandonment of wells (including saltwater disposal wells); (2) Deconstruction, removal, and disposal of associated infrastructure (e.g., production equipment, flow lines); (3) Remediation of environmental contamination associated with oil and gas activities; and, (4) Restoration and revegetation of impacted land.  While companies can attempt to allocate liability contractually, this bill would allow the OCD to ignore those contractually negotiated terms and pursue reimbursement from any “responsible party” at its discretion.  This is an approach that algins with California.
• HB 581 NMED INSPECTIONS BEFORE NEW PERMITS, by Rep. Patricia Roybal Caballero
• Quick Review: Before granting construction or operating permits for new or modified facilities, the New Mexico Department of Environment (NMED) and local agencies must first inspect all existing facilities owned or operated by the applicant to confirm compliance. If an applicant fails to provide proof of compliance, NMED must inspect all of their existing facilities within six months.  Establishes biannual (every two years) mandatory inspections for all permitted facilities. NMED and local agencies are required to raise permitting fees to cover the costs of inspections. Regulators are granted broad access to facilities and records for inspections. The Department may deny, revoke, or suspend permits for facilities found in non-compliance.

NMED Comprehensive Climate Action Planning Community Input Meetings

The New Mexico Environment Department and New Mexico Energy, Minerals, and Natural Resources Department are holding public meetings around the state to help inform New Mexico’s Climate Action Plan (link). The Climate Action Plan will provide an actionable roadmap to meet New Mexico’s climate pollution reduction targets.

They invite you to join and share your ideas, values, beliefs, and priorities about creating a healthy, secure, and prosperous future for all New Mexicans. 

All meetings are from 5:30-7:30 p.m. and food and beverages will be served. Please register for one or more of the meetings here (link). 

• 2/20/2025 - Gallup, NM, El Morro Theater Event Center
• 2/27/2025 - Hobbs, NM, NM Junior College Larry Hanna Workforce Dev. Facility         
• 3/6/2025 - Tucumcari, NM, NM Mesalands Community College
• 3/13/2025 - Silver City, NM, Grant County Veterans Memorial Business and Conference Center
• 3/20/2025 - Las Vegas, NM, NM Highlands Student Union Building
• 3/27/2025 - Albuquerque, NM, TBD
• 4/3/2025 - Statewide, Virtual meeting

Question?: Becky Smith, 505-469-1576, email

Texas Legislative Update

With less than 100 days remaining in the Texas Legislature’s 89^th Regular Session, PBPA continues to review nearly 5,000 bills filed in both the Texas House and Senate while there are nearly two and a half weeks left until the bill filing deadline.

With that said there is much work to be done to ensure that the growth of the oil and gas industry in the Permian Basin continues to thrive.

First and foremost, Senate Bill 1 and House Bill 1 are each chambers budget bills and we are very focused on funding several items to ensure that the agencies that regulate oil and gas activity and needs are able to efficiently permit items necessary to produce the oil and gas in the Permian Basin.

These include

For the RRC:

• Oil and Gas Orphaned Well Plugging, $100 million
• Produced Water and Injection Data Reporting System, $7.6 million and 2 Full Time Equivalents
• Oil and Gas Authorized Pit Registration System, $2.7 million and 2 Full Time Equivalents
• Oversight and Safety Regulatory Filing and Permitting Systems, $6.2 million
• Underground Injection Well Investigation Team, $2.7 million and 10 Full Time Equivalents

For the PUC:

• Staffing Increase, $7,467,500 million with 35 new Full Time Equivalents
• Infrastructure Resiliency and Reliability, $2,761,200 and 8 new Full Time Equivalents

For TCEQ:

• Enhance Permitting, Compliance, and Public Engagement, $26 million and 115 Full Time Equivalents
• Salary and Retention Efforts, $39.5 million
• Produced Water, $6.7 million and 39 Full Time Equivalents
• Administrative Support, $4.06 million and 12 Full Time Equivalents

In all of those instances we have found the state cannot be pennywise and a pound foolish. We want good government with agencies who are able to work with the industry in helping to address new permitting areas in transmission, produced water, and more.

Additionally there are several bills that our members are working on. These include Senate Bill 1150 which aims to address how our industry can better manage inactive wells with the Railroad Commission of Texas.

Senate Bill 391 by Sparks would allow for a five year review of the work that we have done to implement the Permian Basin Reliability Plan. This plan would address our regions growing needs for transmission construction and electric reliability in the Permian Basin.

And of course several important bills related to oilfield theft include:

• Senate Bill 494 by Sparks
• House Bill 1647 by Landgraf
• Senate Bill 1320 by Sparks

In conjunction with a budget request of $2.5m for the Department of Public Safety, those bills will help us learn more about the growing challenge of combatting oilfield theft as well as take action to provide resources necessary to police and prosecute these crimes.

There are also many other bills that we will support and oppose but those are just a few important ones and as always, please feel free to reach out to Michael@pbpa.info with any questions and/or concerns.

Federal Updates

In the last Standard, we let you know about Congressman Pfluger’s Protecting American Energy Production Act, which would prohibit any federal moratorium on the use of hydraulic fracturing.  Well, since that email, this bill was passed by the House and is now headed to the Senate!  Congratulations to Congressman Pfluger and his staff on a great effort.  We look forward to helping this bill through the Senate!

Another action that has moved in the House is H.J. Res. 35, which is a Congressional Review Act (CRA) resolution also sponsored by Congressman Pfluger.  The Resolution disapproves the Biden Administration’s Waste Emissions Charge (WEC), or methane emissions fee regulation on oil and natural gas facilities.  While this measure garnered less bi-partisan support than the Protecting American Energy Production Act, it still did pull six votes from Democrats as it passed the House on Wednesday, February 26, 2025.  Later in the evening, the Senate laid out S.J. Res. 12, sponsored by Senator John Hoeven (R-ND), which contains the same language as H.J. Res. 35 regarding the WEC.

Also in our last Standard, we informed you about a number of Executive Orders (EO) that had been enacted by President Trump.  Some of these included Unleashing American Energy, Regulatory Freeze Pending Review, and the National Energy Emergency. Since those EOs and in furtherance of those EOs, a number of Secretarial Orders (SO) from a variety of federal agencies have also been released.  Some of those to note are the following:

• SO 3417 - Addressing the National Energy Emergency; February 3, 2025
• SO 3418 - Unleashing American Energy; February 3, 2025
• SO 3419 - Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis; February 3, 2025
• SO 3421 - Achieving Prosperity through Deregulation; February 3, 2025

SO 3417, SO 3419, and SO 3421 are more general.   SO 3418, on the other hand, is more specific and requires the revocation of a large number of Biden era EOs and SOs.  We will continue to track these various orders to ascertain their impact on operations in the Permian Basin.  If you have any questions about these orders or any others, please let us know.

In a new action, on February 11, 2025, President Trump announced the restoration of full tariffs of 25% on steel and aluminum.  If you are seeing this tariff impact your operations, please let us know.

Lastly, here are some updates on nominees and appointments to federal offices which could be impactful to oil and gas operations in the Permian Basin:

• Chris Wright has been confirmed as Secretary of Energy.
• Doug Burgum has been confirmed as Secretary of Interior.
• Leslie Shockley Beyer, formerly CEO of the Energy Workforce & Technology Council, has been nominated to be Assistant Secretary of Land and Minerals Management at the Department of Interior. In this position, she would oversee the Bureau of Land Management.
• Kathleen Sgamma, formerly of Western Energy Alliance, has been nominated to be Director of the Bureau of Land Management.

Scott Mason IV, a former deputy energy secretary for Oklahoma and member of the Cherokee nation, is the new U.S. Environmental Protection Agency administrator for region 6, which covers Texas and New Mexico.

Council on Environmental Quality and NEPA

The Trump administration announced, last week, its plan to introduce an interim final rule called “Removal of National Environmental Policy Act Implementing Regulations.” This rule would eliminate all regulations established by the Council on Environmental Quality (CEQ) since 1977. Because it is an interim rule, it could take effect immediately without undergoing the standard notice and comment period. This move aligns with President Trump’s executive order aimed at advancing American energy by repealing CEQ’s National Environmental Policy Act (NEPA) regulations and replacing them with nonbinding guidance for agencies, with the goal of streamlining and accelerating the permitting process. The decision follows recent court rulings that determined CEQ lacked the legal authority to impose NEPA regulations on federal agencies.

Although these CEQ regulations are expected to be revoked, agencies must still comply with NEPA’s statutory requirement to conduct environmental reviews for federal projects and related decisions. To ensure continuity, the Trump CEQ issued a memo outlining instructions for agencies to develop their own NEPA procedures, along with interim guidance to keep project approvals moving forward during the transition.

Start 2025  off Right: Create Your Member Center Login Today!

The PBPA's 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:

• Job Postings
• News Releases
• Membership Directory
• Event Calendar
• & More!

March Membership Luncheon

Thursday, March 20th

Petroleum Club of Midland

Save the date for our March 2025 Membership Luncheon! More information including the speaker and content will be released when it is available. 

PBPA periodically holds membership luncheons featuring a distinguished guest speaker. Membership Luncheons are a great way to meet fellow PBPA members and hear from experts on topics that are pertinent to the oil & gas industry.

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 seminar 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.

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.

Committee Meetings

• Regulatory Practices Committee: 3/18/2025
• Health Safety & Environment Committee: 4/3/2025
• Texas Legislative Commitee: Every Tuesday at 10 AM (1/7/2025 - 5/27/2025)
• New Mexico Legislative Committee: Every Wednesday at 12 PM (1/22/2025 - 3/19/2025)

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

Permian Basin Water in Energy Conference

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

The PBWIEC is a program of The University of Texas Permian Basin and housed at the University’s Shepperd Leadership Institute, allowing students at UT Permian Basin to directly benefit from the conference proceeds.

UTPB is excited to invite you to participate in the University of Texas Permian Basin (UTPB) Spring Career & Internship Fair on March 27, 2025! This event is a fantastic opportunity to connect with talent from UTPB and explore potential candidates for internships, part-time, and full-time positions.

Event Details:

• Date: March 27, 2025
• Time: 1:00 PM - 4:00 PM
• Location: UTPB Gym
• Cost:
• Single Booth (For-profit): $450
• Single Booth (Nonprofit, Education, Government): $250
• Double Booth: $600 (SOLD OUT)
• Two lunch tickets are included with your registration

UTPB is proud to work with over 300 local partners and are thrilled to share that approximately 80% of our students choose to stay and work in the Permian Basin after graduation. The Career & Internship Fair is the perfect place to meet talented individuals eager to contribute to the local workforce.

Space is limited, so please register to secure your spot! For more information or to reserve your space, please contact us at careerservices@utpb.edu or 432-552-2890.

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