The Standard
Vol. 5, Issue No. 3
Members,

The New Mexico Legislature has passed the mid-way point of its budgetary session with plenty of work still to do before they adjourn. Along with efforts in Santa Fe, PBPA has also been working on regulatory issues in Washington, D.C., infrastructure monitoring and reporting in Texas because of severe weather conditions, and preparing for our upcoming Membership Luncheon! In this edition of The Standard, you'll learn more about each of these efforts, as well as a few other events going on that could impact your operations in the Permian Basin:

Upcoming PBPA Events

  • Committee Meetings
  • February Membership Luncheon
  • Annual Spring Swing

PBPA Activity Updates

  • Winter Weather Activity
  • New Mexico Legislative Session
  • Comments: EPA Methane Rules

Other News

  • OCD Notice Form C-115B
  • Permian Basin Water in Energy Conference
  • Midland College PPDC Training Courses
  • Rotary Club Benefit for Midland College

Regards,

Ben Shepperd
Upcoming PBPA Committee Meetings

  • New Mexico Legislative Committee Meeting, February 9, 2022
  • Species, Habitat and Operations Committee (SHOC) Meeting, February 9, 2022
  • Regulatory Practices Committee (RPC) Meeting, February 15, 2022

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

You are invited to join us for the PBPA February Membership Luncheon on Thursday, February 24, 2022, at 12:00-1:30 PM. PBPA is honored to continue a tradition of holding our February Membership Luncheon in concert with the UTPB Permian Basin Water in Energy Conference (PBWIEC) at the Midland County Horseshoe Pavilion, which this year runs from February 22-24. PBPA members who aren't already attending the conference have an exclusive invitation to join us for our Membership Luncheon as part of the conference's programing.

On the 24th, PBPA and the PBWIEC welcome PBPA President Ben Shepperd as the keynote luncheon speaker who will provide updates on PBPA and industry activities in Austin, Santa Fe, and Washington, D.C. that could impact your operations. Whether it's the grid, seismicity, or new legislation and regulations being considered in our states' and national capitals, come to learn everything you need to know!

While we strongly encourage our members to attend the full conference, we know not everyone's schedule provides for that opportunity. If you're able, however, please plan to join us at least for lunch on February 24, 12:00 to 1:30 PM.
Registration for PBPA's annual Spring Swing Golf Tournament is now open and Sponsorships are available. Join us to see old friends, make new ones and forget about your worries for a day. While it is still a bit cold outside now, we know you'll be ready to hit the course come April. Make sure you don't miss out and reserve your spot today!

To learn more about the tournament or to inquire about volunteer opportunities, please contact Jamie Ramirez at jamie@pbpa.info or (432) 684-6345.
Winter Weather

Over the last week, PBPA worked diligently across various levels of state and local government to communicate about the challenges that existed as a result of strong winter weather. These included multiple calls a day with the Railroad Commission of Texas, the Public Utility Commission, the Electric Reliability Council of Texas, the Texas Division of Emergency Management, the Texas Department of Public Safety, and the Texas Department of Transportation representatives, in addition to the many other agency and elected officials in the Permian Basin. PBPA also visited with other trade associations, collaborating on issues that were important to operators throughout the oil and gas stream to better understand what challenges existed throughout the chain.

We are committed to serving our members in every capacity and as Texas continues to make changes to the electricity market, as well as works to map the electrical supply chain and determine weatherization standards later this year, PBPA will use the knowledge gathered from our members and other stakeholders to ensure a reliable and robust natural gas market for generations to come.
 
Additionally, PBPA members will be asked to gather together in the near future, to review the actions taken by agencies and other parties during the most recent winter weather event, and gather input from our members that will help us all chart a better path forward. If you are interested in being part of these conversations, please reach out to Michael Lozano (michael@pbpa.info).
Weeks 2 and 3 in Santa Fe saw a good bit of activity. Week 4 is trending the same way as we head into the final stretch (the Section Session of the 55th New Mexico Legislature ends on February 17). However, this report will largely focus on what has already happened and not make predictions on what could happen in the next few days.

In week 2 activity was particularly seen in the House Energy, Environment and Natural Resources Committee (HENRC). In week 3, floor debates in both chambers began and committee hearings began to run longer as we passed the half way point of the session.
 
On Thursday, January 27, HENRC took up the Governor’s Hydrogen Hub Development Act (HB 4), by House Appropriations Chairman Rep. Patty Lundstrom (D), Gallup. Many in the environmental community oppose HB 4 because it calls for the use of natural gas to produce hydrogen. The debate lasted six hours before the bill was tabled 6-4, with two Democrats voting with the four Republicans committee members. One Democrat was excused from the committee. The excused Democrat resigned from the Legislature later in the day and has since been replaced by former Bernalillo County Commissioner Art De La Cruz. Rep. Lundstrom attempted to use another vehicle to move the Governor’s Hydrogen Hub plan forward, but this bill, HB 227, was placed on the “Speaker’s Table” with the note that it would “not be heard” this session.
 
HENRC met again on Saturday, January 29, for seven hours to take up two bills, The Green Amendment (HJR 2) and The Clean Future Act (HB 6). HJR 2 is a constitutional amendment that would make a clean environment, air, water and scenery a fundamental right of all individuals. It is nearly identical to an SJR that was taken up, but not passed, by the legislature in 2020. Because the committee was still only 10 members instead of the customary 11, the vote to pass HJR 2 tied 5-5 so it is in purgatory for the time being until an 11th member is appointed to the committee or someone decides to flip their vote. (PBPA testified in opposition to this resolution).
 
The Clean Futures Act (HB 6), also heard on January 29, would set timelines for economy-wide emissions reductions (to include the oil and gas industry) and is presented as codifying the Governor’s 2019 Executive Order on Climate. The bill received quite a bit of opposition from various industry advocates arguing it goes well beyond the scope of the Executive Order, but surprisingly many environmentalists also spoke against the bill because the bill did not go “far” enough in protecting the environment. After nearly 4 hours of debate the bill passed out of committee with a “No Recommendation” vote on a 5-4 vote down party lines (one democrat was present for the committee hearing, but absent for the vote). As of February 8, we've heard a committee substitute for HB 6 could be heard as soon as February 9 in House Government, Elections and Indian Affairs.

At the moment, with less than ten days left in the session, the status of bills (or ideas amended to other legislation that is moving) is changing by the minute.

The PBPA New Mexico Legislative Committee has been meeting on a weekly basis during session (both in person and with a virtual option). During the week of January 31, Stephen Robertson joined those in Santa Fe to continue to advocate on behalf of the PBPA membership and to help host our weekly meeting. If you are interested in being part of these meetings, please reach out to Stephen at stephen@pbpa.info.
On January 31, PBPA submitted comments regarding the U.S. Environmental Protection Agency's (EPA) proposed new rules on Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources in the oil and gas sector. These comments were compiled with the help of several PBPA members who formed a commenting work group. We could not undertake these types of regulatory reviews and develop such legal and technical comments without the help of our members and we hope the rest of you join us in thanking the members of that work group for their time, effort and dedication.

Also concerning the EPA's proposed new rules on methane, Rep. August Pfluger and Rep. Jodey Arrington joined several other colleagues in sending a bicameral letter to the EPA urging a full withdrawal of the proposal. We also extend our thanks to both of these Congressman for their representation of the Permian Basin in Washington, D.C.
OCD NOTICE FINAL FORM C-115B/QUARTERLY REPORTS

In accordance with 19.15.27 and 19.15.28 NMAC, beginning on February 15, 2022, for each well or facility, Operators in New Mexico will be required to separately report the volume of vented natural gas and volume of flared natural gas in the categories specified in 19.15.27.8.G(2) and 19.15.28.8.F(2). Operators are required to submit the two quarterly reports and then begin monthly reporting beginning in April, 2022 using the New Mexico Oil Conservation Division (OCD) Permitting website.

OCD has developed electronic C-115B forms that is now live and reportedly ready for Operators to use to report their quarterly and monthly venting and flaring volumes.

Operators can login using the same Username and Password from the OCD Permitting website. Operators have a choice to enter each facility or well manually or submit a "fixed-width text file” following the approved data format to load wells/facilities in bulk.

The OCD Permitting website can be found at the following link:


A user guide for submitting C-115B can be found here.

OCD encourages operators to submit early to avoid potential last minute complications with submissions. OCD also continues to encourage operators to reach out if having any issues with submissions or with questions and feedback to EMNRD.Wasterule@state.nm.us.

The new C-115B forms can be found in submissions section, illustrated below:
The Permian Basin Petroleum Association is proud to support the 2022 Permian Basin Water In Energy Conference!
 
The Permian Basin Water In Energy Conference (PBWIEC) connects industry leaders, experts, and professionals to exchange best practices and cutting-edge approaches for the use of water in oil and gas production. Its mission is to facilitate collaboration and innovative strategy development for the improved use, recovery, and recycling of water in the oil industry. I recently shared our support for this event in the Odessa American and the Midland Reporter Telegram.
 
The PBWIEC is a program of The University of Texas Permian Basin (UTPB). The UTPB College of Business Advisory Council initiated the conference idea in 2017. Since then, the PBWIEC has grown into a sought-after networking event and annual marketplace of ideas. UTPB’s Shepperd Leadership Institute is now home to the PBWIEC, allowing students at UTPB to directly benefit from the conference proceeds.
 
We hope you will join us for the 2022 Permian Basin Water In Energy Conference from February 22-24, 2022.
 
VIP Welcome Reception
Tuesday, February 22, 2022 | 6 p.m. – 9 p.m.
The Petroleum Museum
 
Conference Sessions – Day 1
Wednesday, February 23 | 8:30 a.m. – 4:30 p.m.
Midland County Horseshoe Arena
 
Dinner with Keynote Speaker
Wednesday, February 23, 2022 | 6 p.m. – 9 p.m.
The Petroleum Club
 
Conference Sessions – Day 2
Thursday, February 24, 2022 | 8:30 a.m. – 4:30 p.m.
Midland County Horseshoe Arena
 
Continuing education credits are available for professional engineers and landmen.
2022 PB Environmental Regulatory Seminar

The Midland College Petroleum Professional Development Center (PPDC) and the Permian Basin Petroleum Association (PBPA) proudly present the annual Permian Basin Environmental Regulatory Seminar (PBERS). 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 will focus on the latest state & federal regulatory updates and their operational impacts on the petroleum industry. A highlight of the event will be the presentation of the Bruno Hanson Midland College Environmental Excellence Award to a Permian Basin operator.

The 2022 PBERS will be held on Thursday, May 19, 2022, at the Midland College Carrasco Room. To register for the event, please go to this website https://mcce.midland.edu; for information on sponsorships, please contact Erin Van Evera-Welch with the PPDC at (432) 683-2832, evaneverawelch@midland.edu.


Other 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 below links for upcoming classes being offered by the MC PPDC in the coming months.

Please take special notice of a relatively new class being offered on Environmental, Social, and Corporate Governance (ESG). ESG has major business implications, while also causing the need for long-term financial sustainability and operational transparency planning. It is better for our industry to be pro-active in their reporting and telling their own story instead of being on the defense.  For too long oil & gas has been the “guy in the black hat” and we need to be aggressive in sharing our environmental and community accomplishments instead of meekly announcing our accolades. 
 
All classes are held in-person at the PPDC unless designated “online” in the course description.
The Midland West Rotary Club will hold its second annual clay shoot on March 11, 2022. Information for the shoot can be found at  https://givebutter.com/MWRClayShoot .
The funds raised at this event are used to fund scholarships in the Applied Technology department at Midland College, through which many students are trained to enter into the oil & gas sector.