American Oil and Gas Reporter - November 2017 - 25

Texas Alliance Ready For The Future
By Erin Hudson
WICHITA FALLS, TX.-To say the
least, 2016 and 2017 have been pivotal
years for the Texas Alliance of Energy
Producers.
In 2016, as this industry downturn
dragged into its second year, leaders of
oil and gas associations across the nation
began to wonder how they would continue
to weather the storm.
The industry had to switch rapidly
from growth mode to preservation mode,
and the Alliance was no exception. It was
time for us to double down on implementing
the fiscally responsible type of leadership
we expected from our elected officials.
We always have recognized that our
most important function as an association
was making ourselves a fixture in the
halls of government-creating and preserving a policy climate that would enable
our members to do business within both
an environmentally conscious and economically stable regulatory framework.
Thus, in 2016, even as we were getting
leaner, we redirected as much of our resources as possible to fight the midnight
regulatory onslaught visited on the industry
by the previous federal administration.
Thanks to the Alliance's seasoned government relations team, we studied each
new rule, determining and detailing its
impact on our members.
We turned that knowledge into action
by submitting comments to the various
agencies responsible for implementing
rules, by educating our members on the
particulars of compliance, by joining lawsuits brought by our partner associations,
and by identifying opportunities to adjust
and update state regulations rather than
"reinvent the wheel" at the federal level.
In 2017, we began the challenge of
preparing for what we all knew would be
an embattled Texas legislative session
amid a challenging industrywide financial
climate. We did a lot of walking (and
talking), and wrapped up the 85th session
of the Texas Legislature with all our key
initiatives marked in the "win" column.
The Alliance dates back to the 1930s,
and as this challenging price climate
drags on, we remind ourselves that we
have been here before, and we will be
here still when this is over.
Leadership Transition
Through every crest and valley since
1994, there has been one constant: Pres-

ident Alex Mills. Through his incredible
work ethic, an almost sixth sense for
navigating politically charged environments, and a knack for hiring and empowering the right people for each job,
Mills grew the Alliance to be the largest
statewide oil and gas trade association in
the nation. The value of his contribution
cannot be overstated.
Though he still will be working with
the Alliance as a consultant, Mills has
decided to begin enjoying semiretirement
with his wife, Colleen, and we are preparing for the departure of the man who
made us what we are today.
Executive Vice President John Tintera
was expected to be elected Alliance president
on Nov. 8 at the annual fall Board of Directors meeting in Fort Worth. As former
executive director of the Texas Railroad
Commission and a licensed professional
geologist, Tintera brings both "from the
ground up" regulatory expertise and a thorough understanding of this state's resources
to his new leadership role at the Alliance.
For the past few years, Mills and
Tintera have worked together closely on
a number of key Alliance initiatives:
* They created the Alliance's student
membership program, which bridges the
gap between students who are planning
careers in oil and gas and the regulatory
competence those young professionals
need to succeed in their fields.
* They launched the "I am Texas
Oil" campaign, which connects new media
technology with tenured oil and gas professionals to communicate the security,
jobs, and socially-inclusive economic
prosperity that hydrocarbon development
brings to our society.
* They formed the Federal Regulatory
Energy Delegation (FRED) Committee,
uniting the Texas Legislature in passing
Senate Concurrent Resolution 26: a measure that recognizes the need to return oil
and gas regulatory authority to the states
where drilling takes place, and urges the
federal government to help Texas lawmakers unravel the unnecessary and burdensome regulations implemented under
the previous administration.
* They spearheaded the Alliance internship program, which gives high performing, upper-division college students
concentrating in petroleum engineering,
geology and related fields an opportunity
to shadow our government relations team
and learn more about the industry's regulatory climate.

Federal Tax Reform
Even while rolling out these initiatives,
Mills and Tintera kept the Alliance's support of small, independent Texas oil and
gas producers at the center of its efforts,
and rebooted the fight in Washington to
preserve members' vital tax incentives.
Federal tax reform continues to be a
hot topic, and percentage depletion frequently is placed on the chopping block.
Because percentage depletion can be
claimed only by producers with fewer
than 1,000 barrels of production a day, it
is one of very few pen strokes enabling
small oil and gas companies to compete
in a high-cost, risky venture for the longterm benefit of the entire nation.
Though the wells that qualify for percentage depletion are sometimes termed
marginal, their contribution to American
energy security is anything but. Marginal
wells account for nearly 20 percent of
total U.S. crude oil production.
As the Alliance moves once more into
growth mode alongside our fellow industry
men and women, thanks to Mills' legacy
and Tintera's vision, we will never get
too big for "the little guys."
We hope you will join us in protecting
this most vital industry. Working as a team,
continued success is on the horizon. r

ERIN
HUDSON

Erin Hudson is the digital marketing
manager at the Texas Alliance of Energy Producers, and a graduate of
Midwestern State University with a
B.B.A. in marketing. She began working
with the Alliance in February 2013,
where her responsibilities include managing website content, social media
marketing, database development, industry research, publication editing
and content writing, and graphic design. Hudson is a member of the Desk
& Derrick and Young Professionals
in Energy organizations. Her academic
honors include National Merit Commended Student, Texas Scholar, and
AP Scholar with Distinction.
NOVEMBER 2017 25

American Oil and Gas Reporter - November 2017

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