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Members,
With our Annual Meeting fast approaching, the PBPA team is busy at work finalizing the superb lineup of speakers to bring to Midland. We hope that you will join us for this informative event to hear pertinent information about the industry and network with fellow leaders. There are currently many moving parts and ongoing battles that impact the industry and the annual meeting, similar to this newsletter, will help shed some light on important topics.
In this version of The Standard, we provide several pertinent updates, a recap of our 2nd 2023 meeting with Oncor, an update on the DSL comment extension request, and other important information. As always, we also provide details on upcoming PBPA events and other relevant community activities:
Important Updates
- 2023 Annual Meeting
- RECAP: Railroad Commission of Texas Field Tours
- RECAP: 2nd Oncor Meeting of 2023
- DSL Extension Request Granted
- WOTUS Rule Amended
- Infrastructure Update
- RRC Submits Comments on Proposed EPA Rules
- RRC Adopted Rulemaking: Chapter 5
- PBPA GHGRP Working Group Activity
- Texas Produced Water Consortium Annual Meeting
- Committee Meetings
Community Events
- Midland College PPDC Training Courses
- Alex Epstein at Texas Tech
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Additional events can be found on the calendar in the Member-Only Center!
Regards,
Ben Shepperd
PBPA President
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Less than one month to go!
Sponsorships and Registrations are available for the 2023 PBPA Annual Meeting.
The event will feature an evening reception on the 27th followed by a full day of informational speakers, panels, and networking on the 28th.
So far, we have announced a few of the speakers that will be present at the event. Keep an eye out for future PBPA communications to find out who else will be present!
The official agenda and speaker information will be available very soon and we encourage you to reserve your spot early for this event!
Check our website for updates as they become available.
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RECAP: Railroad Commission of Texas Field Tours | |
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This month, PBPA hosted members of the regulatory community on field tours and discussions in the Permian Basin.
For several participants, this was their first opportunity to engage in oil and gas field tours, which were conducted at PBPA member drilling, water gathering and recycling, and production facilities.
A special thank you to the PBPA members who helped make this event possible! Permian Regulatory Solutions, PLLC, Fasken Oil & Ranch, Diamondback Energy, Pioneer Natural Resources Company, XTO Energy, Endeavor Energy Resources, LP, Apache Corporation.
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RECAP: 2nd Oncor Meeting of 2023 | |
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Earlier in August, members of PBPA’s Electrical Coalition held a meeting with staff from Oncor to discuss a number of electrical transmission and distribution topics. This is another in a series of meetings that Oncor has agreed to hold with PBPA members to work on solutions to the difficulties limiting electric reliability in the Permian Basin. Thank you to everyone who attended this meeting and a special thank you to Endeavor Energy Resources for hosting.
During the meeting, we touched on every topic we had included in the meeting agenda and discussed possible solutions to a number of challenges. By the end of the meeting, Oncor was given a number of discussion points to take back and consider. PBPA members were also introduced to a trial process from Oncor that would be intended to expand opportunities to provide electricity in the field, with customers understanding that such a process would come with additional risk in the reliability of service. If you’re interested in learning more about this offering, PBPA’s meetings with Oncor, or the PBPA Electrical Coalition, please let us know. The Electrical Coalition will hold its next meeting in September and PBPA is also in the midst of planning its next meeting with Oncor for our members.
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DSL Extension Request Granted | |
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Earlier this month, the PBPA submitted a request to the U.S. Fish and Wildlife Service (Service) for an extension of the public comment period. The request also included an invitation for the Service to hold an additional public meeting in Midland, TX before the close of the public comment period.
On Wednesday, August 30th, the Service announced that it is extending the public comment period seeking public input on the proposal to list the dunes sagebrush lizard as endangered under the Endangered Species Act. The public comment period will now be open for 90 days, closing on October 2, 2023. As of now, the request for a public meeting in Midland, TX has been denied.
The PBPA is also working on more extensive comments to submit in opposition of the listing. This issue is being worked through our Species, Habitat, and Operations Commission (SHOC). If you are interested in engaging in this committee or supporting these comments, please let us know.
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Waters of The United States (WOTUS) Rule Amended | |
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Yesterday, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of the Army announced a final “waters of the United States” (WOTUS) definition to purportedly conform with the Supreme Court’s decision in Sackett v. EPA (Sackett). A press release states that, “…the decision in Sackett made clear that certain aspects of the 2023 rule are invalid. The amendments issued today are limited and change only parts of the 2023 [WOTUS] rule that are invalid under the Sackett v. EPA decision. For example, today’s final rule removes the significant nexus test from consideration when identifying tributaries and other waters as federally protected.”
The agencies claimed to be using the “good cause” authority under the Administrative Procedures Act (APA) to issue the final rule without taking comment on the proposed revisions. “Good Cause” under the APA allows an agency to issue a rule change without taking comment in limited cases that include where an agency determines that the notice-and-comment process would be “impracticable, unnecessary, or contrary to the public interest.” Certain stakeholders have already sent correspondence to the agencies promising to challenge the new final rule both on procedural and substantive grounds.
The EPA and the Army will host a public webinar on September 12, 2023, to provide updates on the definition of WOTUS. For registration information, please visit EPA’s webpage for the amendments rule. The agencies also plan to host listening sessions this fall with co-regulators and stakeholders, focusing on identifying issues that may arise outside this limited rule to conform the definition of WOTUS with the Sackett decision.
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Earlier this month, the 2024 Unified Transportation Plan (UTP) was approved by the Texas Transportation Commission. This approved plan includes the single largest investment in roads and highways found in the Permian Basin. While the plan includes specifically allocated funds for I-20 expansion in the Midland and Odessa area, the widening of US 285 near Pecos, and a Super 2 design for US 67 in Reagan and Upton Counties, it also includes nearly $600 million in Commission Strategic (discretionary) funding for other I-2o improvements and $1.2 billion in District Discretionary funds during the next decade.
The District Discretionary funds will go towards projects selected at the district level and can be used for a wide range of purposes, including capacity, safety, and maintenance. With the projects being chosen at the district level, this should allow for plenty of opportunity for local input.
We greatly appreciate the Transportation Commission’s support of the Permian Basin and, while this is fantastic news for our area, there is more work that needs to be done! TxDOT is currently soliciting comments on the need for improvements and expansions of the I-27 corridor, which will include expansion south of Lubbock. Comments can be made at the following link: https://txdot.mysocialpinpoint.com/ports-to-plains/map#/.
Once you click on the link, you can drag and drop your comment category (Safety; Economic Development; Freight/Trucking; Traffic; Connectivity and Access; or Environment Concern) from the top of the web browser onto the segment of highway in that you have an interest. We encourage you to participate in this commenting process and encourage you to forward this opportunity on to others.
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RRC Submits Comments on Proposed EPA Rules | |
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The Railroad Commission of Texas (RRC) and the Texas Commission on Environmental Quality (TCEQ) submitted joint comments opposing the EPA’s proposed rule that would add regulations to fossil fuel-fired electric generating units in attempt to decrease carbon dioxide (CO2) emissions.
The likely outcome of this rule could result in the elimination of coal-fired units and a reduced ability to operate natural gas-fired power plants, which are critical for electricity supply in a state experiencing a booming population like Texas.
The comments also detail the unrealistic assumptions and artificially high metrics EPA used to estimate the climate benefits of the rule. Additionally, the supplemental costs involved, along with the additional infrastructure that would be necessary to implement the proposed requirements, would impose unreasonable costs in comparison to the anticipated benefits, all while placing reliable fuel supply for the electric grid at risk.
“The EPA continues to undermine the needs of Americans,” said RRC Chairman Christi Craddick. “The latest proposed rule is unrealistic and potentially dangerous as it reduces or eliminates access to electricity for consumers. During extreme heat waves, like we are currently experiencing in Texas, and extreme cold snaps, access to power from natural gas and coal is critical for survival. I am proud to join with TCEQ and push back against these outrageous proposed regulations.”
"President Biden’s obsession with ‘net-zero’ is propping up unreliable energy sources that only make our electric grids unstable and leave consumers with higher energy costs,” said Commissioner Wayne Christian. “In May, the Public Utilities Commission of Texas and the Federal Energy Regulatory Commission warned that the retirement of thermal-based energies is leaving our grids extremely vulnerable to power blackouts, and this decision will only lead to less investment in those sources and less reliable energy on our grids.”
“Our state and our nation are at a crossroads when it comes to the future reliability of the electric grid. Unfortunately, the EPA’s proposed rule will send us further down the path of less dependability and higher consumer costs,” said Commissioner Jim Wright. “Since 2000, the population of Texas has increased by 43% and our economy has grown by 88%, yet we’ve added only 18% more dispatchable generation to our electric grid. The EPA’s short-sided approach will only serve to further disincentivize investment in reliable electric generation and reduce our ability to provide electricity when it is needed most.”
A final rule from the EPA is expected in early 2024.
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RRC Adopted Rulemaking: Chpt. 5 | |
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At its open meeting on August 22, 2023, the Railroad Commission of Texas (RRC) adopted amendments to various rules in Chapter 5 relating to Carbon Dioxide. The amendments concern enforcement primacy for the federal Class VI Underground Injection Control program.
The adopted rules will be published in the Friday, September 8, 2023, issue of the Texas Register and will become effective Monday, September 11, 2023. The PDF version of the adopted rules is available at the link below.
For more information on this and other rulemakings, or to access the online comment form for any proposed rulemakings, click below.
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PBPA GHGRP
Working Group Activity
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The U.S. Environmental Protection Agency (EPA) has released proposed revisions to the Greenhouse Gas Reporting Program (GHGRP) and a public comment period on these proposed revisions is open until October 2, 2023.
PBPA has organized a working group through our Regulatory Practices Committee and our Health, Safety, and Environment Committee to review, analyze, and provide comments on these proposed revisions. If you are interested in helping with this effort, please reach out to Stephen, stephen@pbpa.info, to join the effort.
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TX Produced Water Consortium Annual Meeting | |
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PBPA is proud to be a member of the Texas Produced Water Consortium, which held its annual meeting in Austin this week. The Consortium, hosted at Texas Tech University, gathers industry, leaders, elected officials, regulating agencies, academic professionals, and other stakeholders who are committed to research and development on new innovations in water management.
PBPA was on hand to participate in this discussion with and on behalf of our members as we continue to advocate for beneficial reuses of produced water that can continue to benefit the industry and the state.
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- Regulatory Practices Committee: September 19, 2023
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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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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Alex Epstein at Texas Tech | |
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On Tuesday, 9/5, Texas Tech will host author and energy-policy commentator Alex Epstein.
Alex is the author of The Moral Case for Fossil Fuels and his recent follow-up, Fossil Future. This event is being jointly hosted by Texas Tech's law school, business school, petroleum engineering department, and Free Market Institute. The lecture will be from 5:30 to 6:30 p.m. in the Red Raider Ballroom in the Student Union Building, preceded by a book signing from 4:45 to 5:15 p.m.
Alex has become an important voice in the national debate on energy policy, and this is a great opportunity for you to hear him speak in person. The event is free of charge and open to the public.
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