American Oil and Gas Reporter - December 2016 - 31

Election 2016

Ballot Measures Yield Mixed Results
By Del Torkelson
After November's votes were counted
on questions dealing directly with oil
and gas production, industry advocates
won one local ballot measure and lost another. However, a wider view that also
takes in measures likely to affect the industry suggests that oil and gas advocates
probably won more than they lost.
The industry's most straightforward defeat came with a ballot measure in Monterey County, Ca., which banned new oil
and gas development within its boundaries.
The text of Measure Z bans hydraulic fracturing, acid stimulation and other well
stimulations, while banning new operations
and implementing a five-year phaseout of
existing oil and gas wastewater injection,
and oil and gas wastewater impoundment facilities.
According to press accounts Measure
Z received 55 percent of the county's votes,
and was portrayed by its supporters as a
method to protect water quality. Although
there has been a dearth of recent activity,
oil and gas production has a history in

Monterey County of nearly seven decades,
and media reports cite California Department of Conservation statistics showing
that the county's San Ardo Field produced
an average of 21,900 barrels of oil a day
in 2016.
Published reports also assert that Monterey County is the first locality with significant production to ban fracturing, and
that the measure probably will face a court
challenge.
Conversely, as was the case in the municipality's five preceding elections, antifracturing measures did not carry the day
in Youngstown, Oh. According to Mahoning County, voters opposed a Youngstown
charter amendment characterized as a
community bill of rights by a count of 5545 percent. Press accounts indicate the
measure would have curtailed operations
related to hydraulic fracturing. They also
indicate that a coalition dedicated to defeating the measure was organized by the
Youngstown-Warren Regional Chamber,
and included both business and labor
groups.
"We once again celebrate the defeat of

a radical agenda that would kill the jobs
of hard-working men and women in the
skilled trades," Plumbers and Pipefitters
Local 396 Business Manager Tim Callion
is quoted.
Also quoted is Susie Beiersdorfer, a
member of the Community Bill of Rights
Committee, who vows to keep pushing the
measure even as she acknowledges surprise at the measure's margin of defeat.
"We are shocked," she admits. "It's really disheartening, but we will be gathering
signatures for the (2017) primary."
Other Contests
A vote that drew the attention of Colorado's oil and gas industry centered on
the outcome for Amendment 71. According to published reports, in a 56-44 percent vote, Coloradans approved a measure
that:
* Requires initiative petitioners to
spread their signature gathering efforts
across all of the state's 35 Senate districts,
making it more difficult to collect enough
signatures to qualify a constitutional
amendment for the ballot; and

IPAA Positioned To Advise Trump Transition
WASHINGTON-The Independent
Petroleum Association of America is
well positioned to advise President-elect
Donald Trump on energy and environmental issues as the new administration
prepares to take office.
IPAA President and Chief Executive
Officer Barry Russell says three of
Trump's energy and environment transition team members have worked closely with IPAA. According to Russell:
* Myron Ebell, who is the Environmental Protection Agency transition
chief, has worked at the Competitive Enterprise Institute, which has been a working partner with IPAA on a number of environmental issues.
* David Bernhardt, with attorneys
Brownstein Hyatt, was IPAA counsel on
endangered species issues for several
years. Bernhardt will lead the Department
of Interior transition.
* Mike Catanzaro, formerly of FTI
Consulting, is leading the energy policy
transition. Catanzaro worked with IPAA
on its Energy in Depth project and on endangered species issues.
"Additionally, IPAA has contacted

Mike McKenna, who is in charge of the
Department of Energy's transition, to
open discussions on key independent producer energy and environmental issues,"
Russell says.
Russell says IPAA is asking the Trump
transition team to provide relief from
onerous and excessive regulatory burdens
enacted by the Obama administration.
This includes rescinding executive orders
and administrative guidance; terminating
or reconstructing proposed regulations
such as the Pipeline and Hazardous Materials Safety Administration's pipeline
safety regulations, which could extend
federal rules to gathering and production
operations; and opening opportunities to
address regulatory actions the industry is
litigating.
Russell says a good example of Obama administration guidance being targeted by IPAA is its requirement that federal agencies consider upstream and downstream environmental impacts during
National Environmental Policy Act reviews, which "creates opportunities for
federal agencies to reject energy projects
based on issues that have nothing to do

with them, such as stopping a pipeline because it would mean more production
emissions."
Russell also mentions that IPAA has
filed court challenges against a number
of regulations such as EPA's methane
emissions rule, and the Bureau of Land
Management's hydraulic fracturing and
venting and flaring regulations, "where
the incoming Trump administration could
offer opportunities to address the excesses of these actions."
"Beyond these issues, there are numerous other actions in an administration that
influence policy, such as memorandums
and decisions on responding to the frequent petitions from environmental
groups to push for action. IPAA will be
scoping these approaches as well," Russell advises.
He adds, "IPAA is preparing evaluations and recommendations for the Trump
transition team to identify opportunities
to lift the oppressive Obama administration regulatory burden and allow for
American oil and natural gas development
in a sound and cost effective environmental regulatory framework."
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DECEMBER 2016 31
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