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Members,
This Summer may be winding down, but PBPA remains hard at work and we wanted to take a moment to update you on some of our latest activities. Between the work of our committees and staff, there is no question that our efforts are vital to ensure the continued production of oil & gas in the Permian Basin. In Santa Fe, Austin, and Washington D.C. we must continue to educate and advocate for this industry as well as push back against anti-energy rhetoric that plagues the airwaves.
In this version of The Standard, we provide updates on the continuing Texas Legislature, State and Federal Regulatory action, and the renewal of our GHGRP Working Group. As always, we also provide information on upcoming PBPA events and other important community activities:
Important Updates
- Texas Special Sessions Report
- State Regulatory Updates
- Federal Updates
- Membership News
PBPA Events
- Sporting Clay Shoot & Oil Patch Pit King Challenge
- 2023 Annual Meeting
- Committee Meetings
Community Events
- Midland College PPDC Training Courses
- RRC Regulatory Conference
- West Texas Legislative Summit
- PRSC Road Safety Luncheon
- National Petroleum Council GHG Study Workshop
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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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State Legislative Updates | |
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Texas Special Sessions
Earlier this month, Texas House and Senate leaders, Speaker Dade Phelan and Lt. Governor Dan Patrick, respectively, announced a deal to provide the “largest tax relief package” in Texas history.
According to the announcement, the deal would take the shape of a House Joint Resolution (HJR 2), as well as Senate Bill 2, and Senate Bill 3, all proposed during the 2nd Called Session of the Texas Legislature this summer. Each of these legislative proposals was passed by both chambers and sent to the Governor’s desk.
HJR 2 will serve as the amendment to the Texas Constitution authorizing relief, Senate Bill 2 serves as the omnibus property tax relief bill, and Senate Bill 3 serves as the franchise tax relief bill.
Together these bills, if the constitutional amendment is accepted by the voters of Texas, accomplish the following:
- Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties.
- Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100,000 homestead exemption.
- Non-homesteaded properties, valued at $5 million and under, including residential and commercial properties, will receive a 20% circuit breaker on appraised values as a 3-year pilot project.
- The legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards.
You may read the release here.
Upon this announcement Governor Greg Abbott offered the following: "I promised during my campaign that the state would return to property taxpayers at least half of the largest budget surplus we have ever had. Today’s agreement between the House and the Senate is a step toward delivering on that promise. I look forward to this legislation reaching my desk, so I can sign into law the largest property tax cut in Texas history."
Accordingly, the Governor issued a proclamation, authorizing this 2nd Called Session of the 88th Legislature to consider:
- Legislation relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, property tax administration; and
- Legislation relating to the amount of the total revenue exemption for the franchise tax and exclusion of certain taxable entities from the requirement to file a franchise tax report.
It should also be noted that the Governor’s office has been reported to say that other legislation, including those that were vetoed, could be considered in a special session later “this Fall.”
| For more information on Texas Legislative efforts, please reach out to Michael Lozano (michael@pbpa.info). | |
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NM PFAS Update
The New Mexico Oil Conservation Commission (NMOCC) held a hearing on July 13th concerning the WildEarth Guardian's proposed rulemaking to address Perfluoroalkyl and Polyfluoroalkyl substances, so-called “forever chemicals”, used in the oil and gas industry. The hearing had the sole purpose of whether to hold a public hearing on the proposed rule. PBPA is working with NMOGA and IPANM on this issue and supported a hearing to be held in the first quarter of 2024. This will allow for proper stakeholder engagement and education. NMOCC set a hearing on the proposed rule for the week of February 26, 2024. We will continue to work with our fellow trades in New Mexico on this issue and keep everyone updated.
PUC Workshop
The Public Utility Commission of Texas (PUC) recently held a workshop to discuss the implementation of several important electricity bills, and other non-electricity projects, that were adopted during the 88th Regular Session. These include House Bill 5066, which requires the PUC to instruct and implement an electricity transmission plan for the Permian Basin. You may review the workshop at this link: https://www.adminmonitor.com/tx/puct/workshop/20230711/ The discussion on electrical issues began at 2:00 PM, which is around the 45:00 mark of the linked, archived video.
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Proposed Revisions to GHG Reporting
The U.S. Environmental Protection Agency (EPA) has released its proposed update of GHG Reporting Regulations and Implementation of the Inflation Reduction Act (IRA) Methane Tax. PBPA is re-gathering our GHGRP working group to review this proposal and work on official comments. Once this proposal gets officially published in the Federal Register, we’ll have 60 days to provide comments. This will affect reporting under GHGRP as well as the implementation of the IRA’s “methane fee.” Once finalized, the methane fee, which will start at $900 per metric ton of methane and increase to $1,500 within two years, will impact a wide range of petroleum and natural gas facilities. The methane fee will be calculated based on how GHGs are reported under GHGRP.
ESA Update
Senate Joint Resolution 9 (SJR9) was passed out of the Senate earlier this year and passed out of the House this week. The passage of SJR 9, would, if enacted, repeal the Administration’s 2022 listing of the Lesser Prairie-Chicken (LPC) and return the LPC to being managed by state wildlife agencies within its range. The resolution was brought by Sen. Marshall, R-KS, and had five cosponsors in the Senate. The SJR now goes to President Biden's desk.
The U.S. Fish and Wildlife Service has proposed listing the dunes sagebrush lizard (DSL) as endangered throughout its habitat under the ESA. Its habitat is entirely in west Texas and southeastern New Mexico. The public has until September 1 to provide comment on this proposed listing. PBPA is working through our SHOC and Legal Committees to provide comment opposing this listing decision. Since the Service announced its proposal, Congressman August Plfuger, R-TX, has filed the Limiting Incredulous Zealots Against Restricting Drilling (LIZARD) Act to block the action by the Service.
Also in July, the House Committee on Natural Resources Subcommittee on Water, Wildlife and Fisheries held a hearing entitled ESA at 50: Destructive Costs of the ESA. You can watch a replay of this hearing at: https://naturalresources.house.gov/calendar/eventsingle.aspx?EventID=414552. While several comments were expressed concerning the effectiveness of the ESA and the need for modernization, Congressman Pfluger, who is not a member of the committee but was allowed to join the hearing, asked pointed questions regarding the listing of the DSL to Fish and Wildlife Service Director, Martha Williams. PBPA worked closely with Congressman Pfluger and the committee in preparation for this hearing.
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Federal Funds for Marginal Wells
The EPA and Energy Department have announced they will give states $350 million this summer to tackle methane emissions from oil and gas wells that are major sources of emissions, but low-level producers of hydrocarbons. The funds are the first part of the $1.55 billion dedicated under the IRA intended for emissions reductions. According to a study conducted by GIS Environmental for the National Energy Technology Laboratory, almost 80% of the U.S.’s oil and gas wells are marginal producers.
Texas currently accounts for 43% of U.S. oil production, but only 25% of the nation’s emissions from low-producing wells. New Mexico accounts for 13% of U.S. oil production, and only accounts for 6% of emissions from marginal wells. These numbers are in comparison to California which now only produces about 3% of U.S. oil but accounts for 6% of marginal well emissions. While we always want to focus on improving operations in the field, those numbers sure seem to say that even with its high level of regulation, California needs a bit more help regarding its emissions from marginal wells than either Texas or New Mexico does.
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BLM Land Use Rule
Earlier this year, BLM proposed a new “Public Lands Rule.” Through a joint effort with Western Energy Alliance, the Petroleum Alliance of Oklahoma, the Colorado Oil & Gas Association, and the West Slope Colorado Oil & Gas Association, we provided official comment on this proposed rule early this month. In our comments, we argued that BLM’s proposed rulemaking on Conservation and Landscape Health (Proposed Rule) codifying conservation as a multiple use under the Federal Land and Policy Management Act (FLPMA) unlawfully expands the original intent of FLPMA and revises the priorities and focus of land use management. While FLPMA calls for the protection of the environment, water, and cultural resources, it does not identify conservation as a use. Certainly, conservation is a goal and land use action that we as an industry fully support. We argued that while our members are committed to environmentally responsible operations, we are concerned that the Proposed Rule impermissibly exceeds BLM’s directive to manage multiple uses of public lands. You can see a copy of PBPA’s comments here.
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The EPA has released its proposed update of GHG Reporting Regulations and Implementation of the IRA Methane Tax. In response, PBPA is regrouping our GHGRP working group to review this proposal and work on official comments.
If you are interested in participating in this endeavor, reach out to our team.
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For more information about committee participation, please contact Stephen Robertson at stephen@pbpa.info or (432) 684-6345. | |
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Members are encouraged to publicize their affiliation with PBPA by adding the Proud Member logo on their website, social media, or other relevant mediums!
If you would like to show your support, please review the Member Logo Usage Guidelines in the document below and then download the Proud Member Logo.
Use code PbpaMember to initiate the download.
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Friday, August 11th | Jake's Clays
Sponsorship Deadline: August 2nd
Registration Deadline: August 7th
Don't miss out on participating in PBPA'a annual Sporting Clay Shoot & Oil Patch Pit King Challenge!
This annual event takes place at Jake's Clays in Midland, TX, and features a morning sporting clay shoot followed by a delicious open grill cook-off lunch. PBPA's Clay Shoot is a great way to meet fellow industry leaders or treat your team to a day of fun and fellowship.
Volunteers are also needed for the day from 8 - 10 AM, 10 - 2 PM, or 8 - 2 PM! Volunteers receive lunch, event merch, and have the opportunity to help with:
- Registration
- Selling Squares on the Gun Board
- Afternoon Awards
This is a great way to network with PBPA members and also receive recognition for your company! Let our team know if you are interested.
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Sponsor | Register | Volunteer
NOW AVAILABLE: Sponsorships and Registrations are now open for the 2023 PBPA Annual Meeting.
The 61st Annual Meeting will feature an evening reception on the 27th followed by a full day of informational speakers, panels, and networking.
The official agenda and speaker information will be available soon, but we encourage you to reserve your spot early for this event!
More details and information will be shared as the event nears. Check our website for updates as they become available.
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For more information on these events, please contact Jamie Ramirez at jamie@pbpa.info or (432) 684-6345. | |
- Regulatory Practices Committee: August 15, 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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RRC Regulatory Conference | |
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The RRC is hosting this conference to inform and train industry representatives on the applicable laws, rules, and procedures for hydrocarbon production in Texas. Plus, it will feature over 50 sessions covering a variety of topics.
In addition to RRC presenters, the conference will feature presenters from Entrust Solutions Group, Groundwater Protection Council, National Association of Pipeline Safety Representatives, National Transportation Safety Board, Pipeline and Hazardous Materials Safety Administration, RCP Inc., RegSafe, and Texas811.
The conference will be held July 31-August 2 in Austin at the AT&T Hotel and Conference Center. Registration is $550 per person and will close TODAY (7/27).
For additional conference information and to register, visit the RRC’s website.
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West Texas Legislative Summit | |
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The San Angelo Chamber of Commerce's West Texas Legislative Summit will focus on federal issues with the overarching theme of “Food, Fuel, and Enforcement: West Texas Securing the Nation.”
Moreover, the 2023 Summit will highlight Agriculture, Energy, Economics, and National Security. The Honorary Co-Hosts each year are Congressman August Pfluger, Senator Charles Perry, and State Representative Drew Darby. Joni Ernst, a junior senator from Iowa whose career included service in the U.S. Army and the Iowa Army National Guard, will be the keynote speaker.
This year's summit kicks off with the Summit Soiree on the evening of Monday, July 31st at 6:00 pm. You will have the opportunity to meet with various legislators, agency leaders, panelists, sponsors, and other attendees. The Chamber anticipates an attendance of more than 400 people from across the state and country. They have scheduled a full day of panel discussions to begin on Tuesday, August 1st from 7:45 am-4:00 pm, where Senator Ernst will deliver the keynote speech.
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PRSC Road Safety Luncheon | |
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Tuesday, August 15, 2023
OXY Headquarters
1600 Gehrig Dr
Midland, Texas
The event will be held at OXY's Permian Headquarters Community Room. Doors open at 10:00 AM with a "Meet and Greet," networking, and pre-program exhibitors.
The luncheon program will begin at 11:00 AM and conclude by 1:00 PM. The event is free of charge and advanced registration is requested to assist with the lunch count.
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GHG Study "Less Capitalized Operator" Workshop | |
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Wednesday, August 23, 2023
The National Petroleum Council (NPC) will hold a workshop for the NPC study on GHG Reductions in the Natural Gas Supply Chain in Midland. This is the second of four workshops, with the first being hosted in Houston on Wednesday, August 9.
NPC has asked us to extend an invitation to our members regarding this workshop. These workshops are meant to ensure that the voice of the “less capitalized operator” community is included in the study. As background, this study is being undertaken by the NPC at the request of the Secretary of Energy. The Secretary’s request letter along with background information on the NPC and this study can be found on the NPC’s website.
Linked below is a one-page summary of the workshops, and logistics information for the August 9th Houston Workshop. Once logistics information for the Midland Workshop is available, we will circulate that with everyone. The NPC will be holding the following additional workshops:
- September 12th in Denver, Colorado
- September 27th in Pittsburgh, Pennsylvania
Please feel free to attend any of the workshops and register for one or more workshops at this link. Information and details about the Houston, Midland, Denver, and Pittsburgh workshops will be sent to those who register.
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