American Oil and Gas Reporter - December 2017 - 83

ConventionCoverage: Permian Basin Petroleum Association

Lizard's ESA Status
Again An Issue
By Del Torkelson
MIDLAND-Although it typically poses no mortal danger to anything larger
than a cricket, the dunes sagebrush lizard
again is threatening Permian Basin oil
and gas activity.
On the second day of the Permian
Basin Petroleum Association's 2017 annual
convention, held Oct. 25-26 at the Midland
Petroleum Club, PBPA President Ben
Shepperd confirmed that a week before
the conference a pair of anti-development
groups had notified the Texas Comptroller's office of intent to sue to force a
listing for the lizard under the federal
Endangered Species Act.
PBPA and its allies helped stave off
the threat first in summer 2012, when
the U.S. Fish & Wildlife Service decided
not to list the lizard, and again in autumn
2014, when a federal court struck down
an environmentalists' lawsuit that challenged that determination. But, Shepperd
advised, the proliferation of Permian
Basin sand mines-which have helped satisfy the local industry's voracious appetite
for proppant-had changed the equation.
"We have reason to believe that the
main reason we are on the enviros' radar
again-after thinking the issues had been
put to bed-is the sand mining," he reported.
"We benefit from local sources of sand,
and we encourage the development of
these resources. Unfortunately, the lizard
also likes the same areas where the sand
mines are likely to locate, so there is a
conflict."
Shepperd indicated that PBPA was
working with the comptroller's office and
private sector stakeholders to try to reach
an arrangement. "Most have agreed, many
are still at the table negotiating, some-I
am sure they do not really want to-have
agreed to move out of the highest-quality
habitat."
Shepperd indicated that green groups'
methods had grown increasingly sophisticated, but, he suggested, their evidence
of the dunes sagebrush lizard's peril was
not compelling. "They use satellite imagery
and are showing the impact on the ground
in recent times," he reported. "We are

seeing all the evidence they are looking
at and are fairly optimistic that the Interior
secretary, the president and the rest of
his administration are not looking to list
any species in the Permian Basin."
Stakeholders' and policymakers' cooperation was progressing in efforts to
minimize impacts on the lizard's habitat
while also allowing sand mines to continue
operation, he said. However, Shepperd
allowed, the litigation constituted a wild
card. "Our fear is some judge in Washington or California-not from West Texas-
may not see it that way."
Species Of Sand
The subject of sand mines also arose
during the meeting's legislative panel.
According to Senator Kel Seliger, RAmarillo, the Permian Basin benefits
from local fracturing sand, which helps
operators avoid costs associated with
long-distance rail or truck transport. "That
creates tremendous opportunities," he reflected.
However, he acknowledged, the emergence of a Permian Basin sand mining

industry seemed to have outpaced accompanying regulatory oversight. "That
can mean potential problems," he warned.
With much of the sand mining activity
going on in the heart of his district, Representative Brooks Landgraf, R-Odessa,
told the association he was paying close
attention to the issue.
"Ground zero for the sand mining activity is in Winkler County, Tx., and I
have had a lot of conversations with some
of the operators there," he related. "I
have been doing my part to encourage
them to be very mindful of the work
PBPA has done to broker important agreements. Obviously, the sand mining industry
can be in a very symbiotic relationship
with the oil and gas industry, but we
have to be careful that it remains positive
and that we are not taking one step backwards as we take two steps forward, especially as we consider ESA listings."
House Energy Resources Chairman
Drew Darby, R-San Angelo, noted that
sand mining was among the subjects his
committee was tackling in the legislative
interim, and he encouraged PBPA mem-

Lawmakers participating in the legislative forum at PBPA's annual convention are, from
left, House Energy Resources Chairman Drew Darby, R-San Angelo, Senator Kel Seliger,
R-Amarillo, Representative Brooks Landgraf, R-Odessa, and Senate Agriculture, Water
and Rural Affairs Committee Chairman Charles Perry, R-Lubbock. PBPA President Ben
Shepperd moderated the panel, which took place on the second day of the association's
annual meeting, held Oct. 25-26 at the Midland Petroleum Club.

DECEMBER 2017 83

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