politics and the permian basin in 2017 - weaver and the permian... · midland, texas austin, texas...
TRANSCRIPT
Who is the PBPA
Our Mission…
To advocate for safe and responsible oil and gas development and to provide education on safety, legislation, regulation, and support services for the industry.
The Permian Basin
Has the largest rig count of any basin in N. America at 267, which is more than all other major producing basins combined.
71% of all rigs in Texas
98% of all rigs in New Mexico
40% of all rigs in U.S.A.
80% Horizontal Rigs in U.S.A.
Reeves County – 40 Rigs
Midland County – 35 Rigs
Permian Basin A&D Market (as of Sept. ’16)
$6.4
$3.5
$3.9
$2.1
$12.8
$0.0 $5.0 $10.0 $15.0
Other
Rockies
Appalachia
MidContinent
Permian
2016 A&D Activity by Area
TTV ($Bn)
74%
26%
Transactions
Delaware Midland
80%
10%
10%
In-Basin New Entrant Other
Recent Legislative and Regulatory Work
At the Federal Level
Endangered Species Act (ESA)
Ending the Export Ban
2015 Omnibus Bill
Environmental Protection Agency (EPA)
Comments on Regulations
Recent Legislative and Regulatory Work
At the State Level Texas
Legislature: HB 40 – Preemption Bill
Railroad Commission of Texas (RRC): SWR 15 – Inactive Wells
SWR 28 – Eliminate G-10 Testing
SWR 32 – Flaring and Venting
SWR 46 – Injection Wells
SWR 86 – Unconventional Fracture Treated (UFT) Field Rules
Texas Commission on Environmental Quality (TCEQ)
New Mexico Oil Conservation Division (OCD)
Developing Horizontal Field Rules
Bureau of Land Management Waste Prevention…but really Venting and Flaring
81 Fed. Reg. 6616
Federal Focus in 2017
Overview: What will the new administration bring?
Federal Drilling/Production Regulations
Air Emissions Regulations
Endangered Species Act Process/Listings
Tax Reform
Financial Issues
Federal Focus in 2017
Executive Orders, Memorandums, Guidance
Final Guidance for Federal Departments and Agencies on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews
Social Cost of Carbon for Regulatory Impact Analysis –Under Executive Order 12866
Presidential Memorandum: Mitigating Impacts on Natural Resources from Development and Encouraging Related Private Investment
OSHA – Severe Violator Enforcement Program
FWS – Habitat Conservation Plan Handbook
FWS – Listing Decision Process
FWS – Monarch Butterfly – Center for Biological Diversity Lawsuit
FWS – Lesser Prairie Chicken – “Emergency” Petition to list Distinct Population Segments
Policies
BLM – Mitigation Policy
DOI – Extractive Industries Transparency Initiative
FEMA – Limits on Subsurface Uses of Hazard Mitigation Assistance Acquired Lands
FWS – Umbrella Mitigation Policy
FWS – Candidate Conservation Agreement with Assurances Policy
SEC – Climate Related Investigations
USFS – Mitigation Policy
Federal Focus in 2017
Potential Regulations
EPA – Methane Emissions – Nationwide Existing Sources
EPA – Exempted Aquifers
EPA – RCRA – Subtitle D
FWS – MBTA – Incidental Take Permits
FWS – ESA Listing Decisions
OSHA – Process Safety Management
PHMSA – Gas Gathering Lines
Regulations in Place
BLM – Onshore Orders 3, 4, and 5
EPA – Subpart OOOO – Enforcement Actions
FWS – Critical Habitat Final Rules
FWS – Compensatory Mitigation Policy for ESA
OSHA – Silica
PHMSA – Crude Oil Testing – Trucking
SEC/CFTC – Dodd-Frank/SEC Section
Regulations in Litigation
BLM – Drilling Regulations
BLM – Venting and Flaring
BLM – Increased Onshore Royalties (included in Venting and Flaring Rule)
BLM – Drilling Permitting
Corps/EPA – WOTUS
EPA – Methane Emissions
EPA – Ozone NAAQS
Federal Focus in 2017
Nominations of Interest Oklahoma AG Scott Pruitt
nominated to lead the EPA
CEO of ExxonMobil Rex Tillersonnominated to be SOS
Former Governor of Texas Rick Perrynominated to lead Dept. of Energy
Congressman Ryan Zinke, Montana,nominated to lead Dept. of Interior
State Focus in 2017
Texas Legislature Started January 10, 2017
Bill filing started November 15, 2016
Tracking around 30 bills currently
Ends May 29, 2017
New Mexico Legislature Starts January 17, 2017
Bill filing started December 15, 2016
Tracking around 15 bills currently
Ends March 18, 2017
State Focus in 2017
Texas Legislation – introduced so far
HB 237 – Anchia – Rename the RRC
HB 247 – Anchia – Posting of enforcement info. on RRC website
SB 177 – Taylor – forced pooling during secondary or tertiary recovery
SJR 11 – Huffines – Const. Amendment limiting RRC to two terms.
Several real property valuation bills
More possibilities to come…
State Focus in 2017
New Mexico Legislation – introduced so far
HB 30 & SB 3 – an appropriation to the Oil Conservation Division for the Carlsbad Brine Well Cavern
Bills on or effecting
Infrastructure Development (SB 24)
Oil and Gas Ad Valorem Production Tax (SB 30)
And more possibilities to come…
Railroad Commission of Texas
RRC Sunset Review All state agencies under go sunset review
8, 10, or 12 year “renewal”
Third time in the last four sessions
Clean reauthorization bill?
RRC Budget
Enforcement
Orphan Wells
Seismicity
Why Allocation?
Pooling Everyone must grant
right to pool
Production Sharing Agreements 65% of working and royalty
interest owners must agree
Allocation Wells 2015 – HB 1552
2017 ?
County Road Funding
History of County Authority to Create a Tax-Increment Reinvestment Zone
2011 – Constitutional Amendment, Rejected
2013 – SB 1747, Passed & Signed into Law
2015 – HB 4025, Vetoed
2016 – Briscoe Ranch, Inc. et al v. Dimmit County et al
2017 - ???