American Oil and Gas Reporter - November 2022 - 14
IndustryDigest
visually and culturally rich landscape.
However, preempting development on
all the monument's 53,804 acres may
undermine conservation efforts, some
oil and gas advocates warn.
Agriculture Secretary Tom Vilsack
calls the designation a way to respect
cultural heritage and preserve the land.
" Camp Hale and the 10th Mountain
Division are unique in our military
history. The men and women who
served and trained in this beautiful but
punishing landscape made sacrifices for
our country and made their mark on the
history of the free world, " he relates.
" The stunning Camp Hale and Tenmile
landscape is a recreation mecca where
visitors enjoy alpine hiking,
snowmobiling, skiing, camping and
more-it is an honored obligation for us
to protect this treasured piece of our
national heritage. "
Nevertheless, cautions Western
Energy Alliance Vice President of
Public Affairs Aaron Johnson in a piece
for the Denver Post, the move imperils
funding for the National Parks and
Public Lands Legacy Restoration Fund.
The fund provides $1.9 billion annually
for projects in national parks and other
public lands, as well as $900 million a
year to the Land and Water
Conservation Fund.
" The combined $2.8 billion is the
largest investment in public lands in our
nation's history, " Johnson observes.
" That is, if the Biden administration
doesn't spoil it. "
He notes that The Legacy
Restoration Fund is paid for by federal
royalties from energy produced on
nonpark, nonwilderness public lands,
with oil and natural gas providing 91%
of the program's available dollars. Coal
accounts for 8%, he continues, while
wind provides 0.1% and solar zero. The
Land and Water Conservation Fund
receives 100% of its funding from
offshore oil and natural gas production,
he adds.
" Compounding the problem, the
maintenance backlog for public lands
under President Biden has ballooned
Do You Have Yours?
AOGR's 2023 Media File
14 THE AMERICAN OIL & GAS REPORTER
from between $12 billion to $13 billion
when he took office to $21.8 billion
today, according to the U.S. Department
of the Interior, " Johnson writes.
He attributes the problem to federal
inefficiency, and rising costs to
administer conservation programs and
complete projects. " Money that should
be spent on protecting our treasured
spaces like Camp Hale is being
squandered in Washington on
paperwork and bureaucracy, " Johnson
assesses. " Between threats to
conservation funding and bureaucratic
mismanagement, Biden's conservation
policies have created a double whammy
for public lands. " ❒
FERC OKs Extensions
For Freeport, Port Arthur
Gulf Coast LNG Projects
WASHINGTON-Media reports
indicate that the Federal Energy
Regulatory Commission has approved
construction extensions for a pair of
Gulf Coast liquefied natural gas
export facilities.
According to published reports,
FERC at its Oct. 13 meeting extended
by 26 months to Aug. 1, 2028, the time
by which Freeport LNG Inc. must
complete its Train 4 project at its
operating three-train facility. The
agency also approved a 50-month
extension to Port Arthur LNG, giving it
until June 18, 2028 to construct its
LNG facility and two companion
pipeline projects.
Freeport originally was ordered to be
in service by May 2023, which already
was extended to May 2026, press
accounts note, while Port Arthur LNG
was to be in service by April 2024. Both
projects attributed the delays to
pandemic-related contractor and supply
chain challenges. ❒
New Mexico, Texas
Define Path Forward
For Cross-Border Wells
SANTA FE, N.M.-The Oil
Conservation Division of the New
Mexico Energy, Minerals and Natural
Resources Department and the Texas
Railroad Commission have finalized a
memorandum of agreement governing
the development, operation and
maintenance of oil and gas wells that
cross the border between New Mexico
and Texas and produce minerals from
both states using the same wellbore.
According to OCD, the MOA arose
out of a case before the New Mexico
Oil Conservation Commission, which
sought to permit a cross-border well in
September 2021. Determining that the
proposal was consistent with its
obligation to prevent waste of oil and
gas resources and protect correlative
rights, the OCC issued a conditional
approval for the well. Before the well
could be drilled, it stipulated that OCD
and the RRC had to enter into an MOA
governing how cross-border wells could
be developed.
The division says the MOA satisfies
all the requirements of OCC's order and
is intended to facilitate the collaboration
and coordination necessary between the
OCD and RRC to properly oversee their
respective authority over drilling,
completing and producing cross-border
wells. The MOA addresses the
allocation of production from such
wells, as well as applicable reporting,
permitting and operational requirements
for each state.
In one example, the MOU's article
on permitting and operations maintains
that compliance related to surface
activities, surface operations, well
testing, monitoring, and plugging and
abandonment shall be subject to the
rules and regulations applicable to the
surface location of any covered well.
Likewise, environmental compliance
issues, such as releases, shall be subject
to the location of the area those issues
affect. The MOU also requires an
operator to separately maintain and file
the appropriate financial assurance
independently required by each state.
" This agreement is a landmark
development between the two states
holding the Permian Basin, America's
largest and most productive onshore oil
basin, " affirms OCD Director Adrienne
Sandoval. " It effectively responds to
unique development scenarios that have
arisen due to modern drilling practices
and the cross-border nature of the
resource. We appreciate the partnership
from our colleagues in Texas in reaching
this agreement and want to emphasize
that it includes appropriate safeguards to
ensure that New Mexico resources are
not wasted regardless of where
producing facilities are located. " ❒
American Oil and Gas Reporter - November 2022
Table of Contents for the Digital Edition of American Oil and Gas Reporter - November 2022
Contents
American Oil and Gas Reporter - November 2022 - Intro
American Oil and Gas Reporter - November 2022 - Cover1
American Oil and Gas Reporter - November 2022 - Cover2
American Oil and Gas Reporter - November 2022 - Contents
American Oil and Gas Reporter - November 2022 - 4
American Oil and Gas Reporter - November 2022 - 5
American Oil and Gas Reporter - November 2022 - 6
American Oil and Gas Reporter - November 2022 - 7
American Oil and Gas Reporter - November 2022 - 8
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American Oil and Gas Reporter - November 2022 - Cover3
American Oil and Gas Reporter - November 2022 - Cover4
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