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



Table of Contents for the Digital Edition of Upstream Texas - Fall/Winter 2016

Chairman’s Message
President’s Message
Courts Slow Federal Regulatory Push Against Producers
Industry Outlook: Hard Data Suggest Low Oil Prices on Borrowed Time
Special Infograph: 2016 Texas Oil and Gas Production at a Glance
Legislative Profile: Texas State Representative Larry Gonzales
Regulatory Profile: Kimberly Corley, executive director of the Railroad Commission of Texas
Member Profile: Eugene Garcia, president of Hurd Enterprises, Ltd.
New Members
Calendar of Events
Advertiser Index
Upstream Texas - Fall/Winter 2016 - cover1
Upstream Texas - Fall/Winter 2016 - cover2
Upstream Texas - Fall/Winter 2016 - 3
Upstream Texas - Fall/Winter 2016 - 4
Upstream Texas - Fall/Winter 2016 - 5
Upstream Texas - Fall/Winter 2016 - 6
Upstream Texas - Fall/Winter 2016 - 7
Upstream Texas - Fall/Winter 2016 - Chairman’s Message
Upstream Texas - Fall/Winter 2016 - President’s Message
Upstream Texas - Fall/Winter 2016 - Courts Slow Federal Regulatory Push Against Producers
Upstream Texas - Fall/Winter 2016 - 11
Upstream Texas - Fall/Winter 2016 - 12
Upstream Texas - Fall/Winter 2016 - Industry Outlook: Hard Data Suggest Low Oil Prices on Borrowed Time
Upstream Texas - Fall/Winter 2016 - 14
Upstream Texas - Fall/Winter 2016 - 15
Upstream Texas - Fall/Winter 2016 - Special Infograph: 2016 Texas Oil and Gas Production at a Glance
Upstream Texas - Fall/Winter 2016 - Legislative Profile: Texas State Representative Larry Gonzales
Upstream Texas - Fall/Winter 2016 - Regulatory Profile: Kimberly Corley, executive director of the Railroad Commission of Texas
Upstream Texas - Fall/Winter 2016 - Member Profile: Eugene Garcia, president of Hurd Enterprises, Ltd.
Upstream Texas - Fall/Winter 2016 - New Members
Upstream Texas - Fall/Winter 2016 - Calendar of Events
Upstream Texas - Fall/Winter 2016 - Advertiser Index
Upstream Texas - Fall/Winter 2016 - cover3
Upstream Texas - Fall/Winter 2016 - cover4
http://www.nxtbook.com/naylor/TIPB/TIPB0217
http://www.nxtbook.com/naylor/TIPB/TIPB0117
http://www.nxtbook.com/naylor/TIPB/TIPB0216
http://www.nxtbook.com/naylor/TIPB/TIPB0116
http://www.nxtbook.com/naylor/TIPB/TIPB0215
http://www.nxtbook.com/naylor/TIPB/TIPB0115
http://www.nxtbook.com/naylor/TIPB/TIBP0214
http://www.nxtbook.com/naylor/TIPB/TIPB0114
http://www.nxtbook.com/naylor/TIPB/TIPB0213
http://www.nxtbook.com/naylor/TIPB/TIPB0113
http://www.nxtbook.com/nxtbooks/naylor/TIPB0212
http://www.nxtbook.com/nxtbooks/naylor/TIPB0112
http://www.nxtbook.com/nxtbooks/naylor/TIPB0211
http://www.nxtbook.com/nxtbooks/naylor/TIPB0111
http://www.nxtbook.com/nxtbooks/naylor/TIPB0210
http://www.nxtbookMEDIA.com