American Oil and Gas Reporter - August 2016 - 32

Federal Legislation

Spending Bill Nixes Obama Regulations
WASHINGTON-Industry spokesmen
are singing the praises of the Department
of Interior, Environment and Related
Agencies Appropriations Act of 2017 for
a host of amendments that would roll back
pieces of the Obama administration's
regulatory agenda.
HR 5538, which passed the U.S. House
of Representatives 231-196 on July 14,
provides $32.1 billion in fiscal 2017 for
DOI, the Environmental Protection Agency
and U.S. Forest Service, which is $64 million below the FY 2016 enacted level and
$1.0 billion less than requested by President Obama (AOGR, July 2016, pg. 37).
"This appropriations bill undoes some
of the excessive regulations hurled at the
industry by the Obama administration during its final year in office," praises Independent Petroleum Association of America President and Chief Executive Officer
Barry Russell.
National Ocean Industries Association President Randall Luthi calls it "a
huge victory for our industry and indicative of the House's strong support for offshore energy development."
Louis Finkel, executive vice president
for government affairs at the American Petroleum Institute, adds, "This bill supports
the continued advancement of the U.S. energy renaissance and provides an alternative vision from the attempts by the administration to force the United States to take
a step backward on energy policy. Avoiding short-sighted, burdensome regulations will help the United States avoid
needless hurdles that could have serious
unintended consequences on safety, the

economy, and American consumers."
However, the prospects of the bill being enacted into law are doubtful. The
White House issued a statement complaining, "The bill underfunds core DOI programs as well as the EPA's operating budget. If the president (was) presented with
HR 5538, his senior advisers would recommend he veto the bill."
NOIA says it is more likely the House
and Senate will pass a continuing resolution in September to fund all government
services in FY 2017. "The good news," the
association allows, "is that these industryfriendly policies are now part of the bill
and will be considered during any future
negotiations on appropriation bills that include policy directives to DOI."
Key Priorities
Among the association's key priorities
contained in HR 5538 that IPAA hails are
amendments to block the Bureau of Land
Management's hydraulic fracturing regulations, prohibit enforcement of BLM's
proposed natural gas venting and flaring
rules, and delay until 2025 implementation
of the 70 parts-per-billion National Ambient Air Quality Standard announced last
October.
The New Mexico Oil & Gas Association credits the House Western Caucus for
helping to rein in a number of Obama administration species and land administration policies. Among the provisions NMOGA cites are:
* Preventing EPA from implementing
greenhouse gas regulations on new and existing coal plants, as well as its proposed

definition of "waters of the United States"
subject to Clean Water Act regulation;
* Slowing the keep-it-in-the-ground
campaign by time limiting the indefinite
federal moratorium on coal leasing, and
stopping efforts to increase taxes on federal coal, oil and gas production;
* Delaying BLM's "Planning 2.0"
rule to allow more public input into federal resource management plans (see
"IPAA and API Criticize BLM Planning
Proposal," AOGR, July 2016);
* Prohibiting DOI from conducting
mineral withdrawals in sage grouse focal
areas, conducting further sage grouse determinations under the Endangered Species
Act, and administering any RMP inconsistent with a state sage grouse plan;
* Preventing the U.S. Fish & Wildlife
Service from relisting the lesser prairie
chicken as threatened or endangered;
* Prohibiting the president from unilaterally designating national monuments
in counties where there is documented local opposition; and
* Denying funding for the so-called
social cost of carbon used by federal
agencies' cost/benefit analyses.
Those amendments and others "mark
a renewed effort to reinstate and reinforce
state and local stewardship of our land, water, energy and other natural resources,"
declares Western Caucus Chairwoman
Cynthia Lummis, R-Wy.
Adds Vice Chairman Scott Tipton, RCo., "The power of the purse is an effective way to send a message to all federal
agencies: 'Shape up or lose your funding.'
The House took a positive step in prevent-

FAA Bill Promotes Use Of Drones
WASHINGTON-The FAA Extension, Safety and Security Act of 2016
(HR 636), which was approved by Congress and signed by President Obama in
July, includes provisions to enable the use
of drones for pipeline and other energyfacility inspections, attorneys Babst
Calland point out.
On June 28, Babst Calland backgrounds, the Federal Aviation Administration published a final rule permitting
the operation of small unmanned aircraft
in the National Airspace System "for
many nonhobby, nonrecreational uses
without requiring an airworthiness certificate, exemption, or certificate of
32 THE AMERICAN OIL & GAS REPORTER

waiver or authorization."
"This final rule is critical for the energy industry because it provides an opportunity to use drones to conduct inspection and maintenance activities more
safely and efficiently," Babst Calland assesses.
However, the firm notes, FAA's rule
dictates that the pilot controlling the
drone "must be able to see, without the
aid of any device, the small drone at all
times during the flight."
One portion of HR 636, Babst Calland
says, requires FAA to allow a person to
operate a drone beyond his line of sight
so long as he is doing so to ensure com-

pliance with:
* Federal or state regulatory requirements, including surveys associated with permit applications for new
pipelines; and
* Pipeline safety regulations 49
CFR Parts 192 and 195.
Operators also may apply to operate
drones without visual line of sight if the
operation is related to inspection, construction, maintenance or repair activities after an incident at a pipeline or electric infrastructure facility, or in response
to or preparation for a natural disaster or
severe weather event, Babst Calland
adds.
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American Oil and Gas Reporter - August 2016

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