Upstream Texas - Fall/Winter 2016 - 9
PRESIDENT'S MESSAGE INDUSTRY PUSHES BACK AGAINST STIFLING REGULATIONS FROM THE FEDERAL GOVERNMENT Ed Longanecker PRESIDENT - TEXAS INDEPENDENT PRODUCERS & ROYALTY OWNERS ASSOCIATION OVER THE PAST SEVERAL years, America's oil and natural gas industry has continued to be inundated with new overbearing regulations developed by the federal government. Collectively, our industry currently faces more than 40 onerous and unnecessary federal regulations in the pipeline, including the U.S. Environmental Protection Agency's (EPA) carbon emissions regulations that could total nearly $300 billion in compliance costs from 2022-2033. These anti-oil and natural gas policies that are being advanced by politically biased agencies offer few, if any, true environmental benefits, but could very well threaten the success of our nation's energy industry, especially at a time when producers are struggling with depressed commodity prices and ongoing market volatility. The sheer number of new energy regulations and drilling restrictions by the federal government is a serious point of contention. Research has shown that since 2009, under the Obama Administration, the EPA alone has published over 3,900 final rules in the Federal Register, amounting to nearly 33,000 pages in length. This includes promulgation of more than 100 rules specifically relating to greenhouse gas (GHG) emissions, which will have economic impacts measured in the billions of dollars. Beyond the quantity and questionable purpose of expanding regulatory policies on the federal level, there are also real concerns that the EPA and other federal entities have been exceeding statutory authority as provided by Congress when developing these extensive regulations for the oil and gas industry. Consequently, as many as 15 states-including the state of Texas- are in the midst of legally challenging the regulatory overreach by the executive branch. Similarly, the oil and gas industry is also taking the fight to the courtroom to stop the implementation of undue federal regulations. TIPRO is also increasing our level of involvement in the judicial arena to combat frivolous and overreaching lawsuits targeting the oil and natural gas industry. As an example, TIPRO has joined a coalition of industry trade organizations, led by the Independent Petroleum Association of America (IPAA), in taking legal action against the EPA and its new regulations governing methane emissions for the oil and natural gas industry. The industry coalition maintains that significant elements of the EPA's new regulatory scheme are excessive, uneconomic, and could in fact be detrimental to the long-term production of oil and natural gas in the United States without corresponding environmental benefits. Moreover, in a separate case, lawyers with Haynes and Boone, LLP representing TIPRO filed a motion in mid-August in a Washington, D.C. federal court seeking to intervene in a lawsuit brought by a group of environmental organizations that would force the EPA to adopt stricter oil and gas waste regulations. The motion argues that environmental groups are trying to compel the EPA to exceed its authority and that current Texas programs to manage oil and gas waste disposal are the most robust in the entire country. Unfortunately in many of these cases, it appears that the EPA is operating in cooperation with environmental activist groups at the detriment of our industry. The popular "sue-and-settle" tactics used by anti-oil and natural gas organizations is an example of a larger effort to slow or stop the development of hydrocarbons in our country. The ultimate goal of these groups is often to reach a settlement to fuel additional activist campaigns or to advance more overbearing regulations, all at the expense of taxpayers. In recent years, the EPA has chosen not to defend itself in dozens of lawsuits from special interest advocacy groups. These cases have resulted in settlement agreements and EPA publishing more than 100 new regulations, including the Clean Power Plan. The challenges facing our industry from a regulatory standpoint have never been more prevalent. We must defend our industry from these ideological attacks by expanding and strengthening the advocacy efforts and resources of TIPRO. Our association's track record and influence from a policy standpoint is among the strongest in the industry and your continued support is critical to that process and the future of oil and natural gas development in our state and country. On behalf of the association's membership, TIPRO remains engaged on these important regulatory matters and will continue to elevate our activity as necessary to address cases of extreme regulatory overreach. ■ The challenges facing our industry from a regulatory standpoint have never been more prevalent. We must defend the oil and gas industry from ideological attacks by expanding and strengthening the advocacy efforts and resources of TIPRO. Our association's track record and influence is among the strongest in the industry, and your continued support is critical to that process and the future of oil and natural gas development in our state and country. U P S T RE A M T E X A S F A L L | W I N T E R 2 0 16 -17 9