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Vol. 6, Issue No. 11

Members,

 

What a year 2023 has been! We hope that you enjoy the upcoming holidays and spending time with loved ones. In this version of The Standard, we provide several pertinent updates from New Mexico, Texas, and the Federal level. 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 find a recap from the December 12th meeting in Midland with the PUC of Texas, news regarding the EPA's ruling on methane testing and inspection performance standards, and other important information. As always, we also provide details on upcoming PBPA events and other relevant community activities:


Important Updates


  • 2024 Top Hand Award Banquet (less than 1 month to go!)
  • PUC Midland Meeting
  • New Mexico Legislative Session
  • EPA’s Methane Testing and Inspection Performance Standards Final Rule
  • Q4 New Members
  • Save the Dates for 2024
  • Committee Meetings


Community Events


  • Midland College PPDC Training Courses
  • Additional events can be found on the calendar in the Member-Only Center!


Regards,


Ben Shepperd

PBPA President

2024 Top Hand Award Banquet

Join us on January 18th for an evening honoring our esteemed 2023 Top Hand, C. Richard "Dick" Sivalls of Sivalls, Inc.

 

The PBPA Top Hand Award is the highest award bestowed by the members of the PBPA, and one of the highest honors given to an energy professional in the Permian Basin. Being a Top Hand means that you exemplify all of the best qualities of professional and community service.


The deadline to reserve a table is January 5th, but individual tickets will remain available until January 12th! Email the PBPA team to reserve yours today. 

Register

New Mexico Update

2024 Legislative Session


While PBPA has a number of issues that we are focused on in New Mexico as we come to the end of 2023 (Oil & Gas Act, PFAS, and the Atencio case, for example), one of the top priorities in the state in the first quarter of 2024 will be the Legislative Session, which starts on January 16. 


PBPA’s New Mexico Legislative Committee held its first meeting regarding this session on December 14. We will continue to hold weekly meetings during the session, based in person in Santa Fe, and look forward to working with all of our friends to make sure this is another successful session for the Permian Basin oil and gas industry. If you are not a member of PBPA’s New Mexico Legislative Committee but would like to participate and support the cause, please reach out to Stephen Robertson (stephen@pbpa.info) for more information.

Texas Update

PUC Midland Meeting


Last week, the Texas Public Utilities Commission (PUC), through the efforts of Commissioner Lori Cobos and with the support of Chairwoman Kathleen Jackson and Commissioners Will McAdams and Jimmy Glotfelty, directed the Electric Reliability Council of Texas (ERCOT) to develop a first of its kind “Permian Basin Reliability Plan” in order to address transmission infrastructure needs in the world’s largest oil and gas region.


Pursuant to House Bill 5066, authored by Rep. Charlie Geren and sponsored by Sen. Charles Schwertner, the PUC was tasked with directing ERCOT to establish this reliability plan to identify regions where transmission capacity is insufficient to meet existing and forecasted load as well as develop a plan, in a timely manner, to address these needs.


After inviting the PUC to participate in a unique workshop in Midland, Texas earlier this week, PBPA President Ben Shepperd noted, “We are thankful for the work of the Public Utilities Commission and their staff in directing ERCOT to develop this Permian Basin-specific plan that will aid our efforts at electrifying our existing industrial load as well as the forecasted load that will exist in the region.”


The instruction by the PUC requires ERCOT to develop a plan by July 2024 and will allow for public and stakeholder engagement to refine this plan, which the PUC may adopt as early as this summer.


“Under the leadership of Governor Abbott and Commissioner Cobos, ERCOT will develop a plan that ensures that the state’s and nation’s most vital energy sector can continue to innovate in the Permian Basin and that the industry will continue to serve demand that exists for Americans and our allies abroad,” Shepperd continued.


The PUC workshop, which was pivotal for the adoption of this plan, was a result of ongoing efforts by PBPA and its members. A packed house greeted those attending the workshop at the Henry Auditorium, made available through the gracious support of the University of Texas Permian Basin.


“This is the first step in an effort that will yield benefits to the industry, as well as the communities that the Permian Basin Petroleum Association members call home. These efforts will assist in providing affordable and reliable electricity to those that live, work, create jobs, and raise their families right here in the Permian Basin.” 


For more information on these efforts or to get directly involved with PBPA’s Electrical Coalition, please contact Michael Lozano (michael@pbpa.info). 

Federal Update

EPA’s Methane Testing and Inspection Performance Standards Final Rule

 

As our members know all too well, actions by the Environmental Protection Agency (EPA) that impact oil and gas operations in the United States, very much impact operations in the Permian Basin and are closely tracked by PBPA. Indeed, for the past three years, PBPA has been engaged with, and closely monitoring, the EPA’s multiple regulatory proposals regarding operations in the oil and gas industry. Among our greatest concerns have been the regulations focused on methane.


On Saturday, December 2, 2023, the EPA announced a regulatory rulemaking package intended to reduce and, to the maximum extent possible, eliminate emissions from oil and natural gas operations and delivery systems in the U.S. Specifically, EPA released a pre-publication version of the final Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review.


However, as of December 20, the rules package had yet to be formally published in the Federal Register (we could see this happen in January), leaving an incomplete picture for the public of the full regulatory impact of the package. This is because several supporting documents related to the rule have yet to be released.


The methane rule is comprised of four separate elements proposed under sections 111(b) and 111(d) of the Clean Air Act (CAA). Those statutory provisions are the basis for EPA’s authority to regulate emissions of volatile organic compounds (VOCs) and methane from oil and natural gas facilities under 40 C.F.R. Part 60 Subparts OOOO and OOOOa. 

 

The key components of the rule:

 

First, EPA will regulate oil and natural gas facilities constructed, modified, or reconstructed after December 6, 2022, under a new Subpart OOOOb. The requirements in OOOOb will apply to affected facilities 60 days after the rule is published in the Federal Register. 

 

Second, under a new Subpart OOOOc, EPA finalized emissions guidelines that are intended to inform states in the development, submittal, and implementation of state plans to establish standards of performance for greenhouse gases (in the form of limitations on methane) from sources existing on or before December 6, 2022

 

States and tribes must submit plans to EPA for review within 24 months of the publication of the final rule in the Federal Register, with a compliance deadline for existing sources that is no later than 36 months after the deadline to submit the plan to EPA. 

 

Third, the Final Rule amends OOOOa in response to Congress’ June 2021 revocation of regulatory amendments made by EPA under the Trump administration.

 

Fourth, the Final Rule also includes an “Appendix K,” a protocol for determining leaks using Optical Gas Imaging (OGI) that EPA now requires at natural gas processing plants regulated by OOOOb or OOOOc.

 

The Final Rule comes more than two years after EPA published its initial proposal on November 15, 2021 – which included only explanatory, not actual regulatory, text and a supplemental” proposal on December 6, 2022. According to EPA, the agency received over one million comments on the Proposals. 

 

While PBPA continues our review of the nearly 1,700-page rule and is in favor of effective and efficient regulation of emissions with beneficial results, our initial sense is the new OOOOb/c follows the harmful contours and effects of the proposed rule. It is yet another example of the draconian approach to methane emissions which reflects the Biden Administration’s continued use of the bureaucracy to weaponize the federal regulatory process against oil and gas.

 

This looming regulatory morass of complex mandates and requirements regarding methane emissions from every operator no matter the size, type of operation, or location of operation – with little or no measurable benefit to the environment – will bring costly burdens throughout the energy production and delivery system in such a way as to all but guarantee a loss of jobs, increased prices to consumers, expanded dependence on foreign energy sources, further upward pressures on inflation, with a decreased reliability for power delivery in this country.

 

For a more detailed analysis of some of the issues in the Final Rule that have initially caught PBPA’s attention, please reach out to Stephen Robertson (stephen@pbpa.info).

Winter Readiness

Although temperatures in the Permian Basin are relatively mild for this time of year, this is traditionally when temperatures are dropping across the country. We know that even when winter weather events begin to roll into our region, the Permian Basin oil and gas industry will still be hard at work ensuring that reliable natural gas is available to heat everyone’s homes and provide electricity to millions. 


Some of the measures being taken to ensure the production and distribution of natural gas, regardless of the weather conditions, include:


  • Weatherization and inspection of equipment and infrastructure.
  • Comprehensive winter preparedness plans that engage both industry and state agencies.
  • Storage of natural gas in preparation for fluctuations in demand.
  • Improved and transparent communications between industry, regulators, and consumers.
  • And much more!


Thank you to all those who are working to make sure our homes and lives are protected during the holidays and beyond by Permian Basin produced natural gas.

Membership News

Refer a Potential New Member

PBPA Events

Save the Dates for 2024!

Our 2024 event dates have been scheduled. Save these to your calendar so you are available to attend!*


All events listed below also offer sponsorship opportunities. If you are interested in supporting the PBPA and putting your organization's brand in front of the membership, let our team know!


  • February Membership Luncheon: February 15th
  • March Membership Luncheon: March 21st
  • Spring Swing Golf Tournament: April 8th
  • Permian Basin Environmental Regulatory Seminar: May 9th
  • Clay Shoot & Pit King Challenge: June 7th
  • Annual Meeting: September 11th & 12th


*Dates are subject to change.

View Sponsorship Opportunities

Committee Meetings

  • Regulatory Practices Committee: 1/16/2024
  • Water Committee: 1/16/2024


For more information on these or any of our other committees, please contact Stephen Robertson at stephen@pbpa.info or (432) 684-6345.

Community Events

PPDC Programs

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

Full Course Schedule

Methane Detection and Measurement Technology Developers and Users: A workshop on developing a shared framework for data interpretation and reporting

Jan. 31, 2024: 1:00 - 4:00 PM

Feb. 1, 2024: 9:00 AM - 4:30 PM


UT Austin, PRC

Commons Conference Center

(Lil Tex Auditorium & Atrium)

2901 Read Granberry Trail

Austin, TX 78758


You're invited to join UT Austin's Center for Energy and Environmental Resources for a workshop on developing a shared framework for data interpretation and reporting. Workshop goals include capacity building, relationship building, and reporting framework development.


Vendor opportunities will also be available. For more information, visit the link below.

RSVP
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