American Oil and Gas Reporter - October 2019 - 95

filing some legislation about it."
Despite industry differences over
potential changes, Warmington emphasizes the Alliance wants to play a key
role in bringing the sides together. "Our
members include the state's largest producer and the longtime, smaller vertical
well operators, so we have the ability
to get the right people in the room to
continue working on those issues together," he says.
While Le Norman notes the Alliance
remains confident in the OCC's evenhandedness, regulatory judgment and appropriate environmental oversight, the
Alliance also has formed task forces to
thoroughly investigate any potentially
pivotal regulatory issues that could prove
divisive among members. "Part of the
goal is to find consensus," he describes.
"We are off to a great start."
On the regulatory front, Warmington
predicts this fall may see further discussion
at the OCC regarding temporary water
line notifications, and requirements for
disposal well placement and depths in an
effort to avoid induced seismicity.
"Seismic occurrences are down more
than 80% from the high levels of a few
years ago due to a proactive industry
working in unison with the OCC," he

says. "The commission has a lot of good
data and has been successful in the process
it put in place to determine the issues
and devise a regulatory response. The
commission also has done a good job of
dealing with smaller, more manageable
seismic issues related to completions,
and got on top of that before it became
an issue."
Some Good News
The Alliance is welcoming the U.S.
Environmental Protection Agency's Aug.
29 announcement that it plans to roll
back duplicative regulations under the
2016 New Source Performance Standards
for the oil and gas industry and rescind
emissions limits for methane from the
production and processing segments.
"Look at the data: As our production
has increased and our country becomes
energy independent, our methane emissions have dropped," Le Norman observes.
"The industry is policing itself without
any regulatory demands."
"Our members, and the industry as a
whole, have done a really good job of reducing methane through more efficient
use and development of technologies in
exploration, production and transportation
of natural gas," Warmington explains.

"We have reduced methane emissions.
It's not that we have a problem with
smart approaches. EPA used an impermissible process, and I think the agency
now recognizes that. It is untrue to say
the industry does not want to be responsible for methane emissions."
Fall Conference
A pollster who will discuss the outlook
for 2020's elections is among the highlights
attendees will see at the 2019 fall conference, Warmington says. Other speakers
will cover regulatory issues, the price
environment and financial market conditions, including how economic valuations
have changed with the infusion of private
equity money and how rate of return has
become the ultimate barometer for many
producers, he relates.
"In a lot of ways, it now is more important to compare ourselves with other
industries in terms of what the market-
instead of our peer companies-thinks of
us," he considers.
While prices largely have driven Oklahoma's rig contraction, Warmington
acknowledges, return considerations are
becoming more crucial. U.S. producers'
efficiency and effectiveness arguably
has made them victims of their own

OCTOBER 2019 95

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American Oil and Gas Reporter - October 2019

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