American Oil and Gas Reporter - December 2022 - 37

With the 2022 elections in the rearview
mirror, does the outlook for a permitting
reform bill appear any better? " As long as
there is bipartisan participation in the
Senate, passing that remains a real possibility, "
Burd assesses. " Not only did Senator
Manchin craft a pipeline infrastructure
bill, but so did Senator Capito. Is it possible
to merge those two pieces of legislation
together to move it out of the Senate, and
also find success in the House? Maybe. "
Anderson acknowledges she has no
clear read on the prospects for such a bill,
but assures that GO-WV will do its part.
" We are watching that very closely, " she
relates. " Senators Manchin and Capito are
staunch supporters of permitting reform. "
Narrow Margins
Not only does the outlook for pipeline
permitting reform seem uncertain in Washington,
but so does almost everything
else after the country's midterm election
results, Burd reflects.
" The federal results are certainly interesting, "
he comments. " Many people believed
Republicans would gain a lot more
seats than they did, but we are moving
forward with the cards we are dealt. "
The GOP has gained control of the
U.S. House of Representatives with one
of the slimmest majorities in U.S. history,
while Democrats have retained control of
the Senate with their own razor-thin advantage,
Anderson observes. During the
previous Congress, she notes, the close
margins conferred significant influence
on swing-vote lawmakers such as Manchin.
" Does Congress return to a situation
where all eyes are on Joe Manchin? " Anderson
poses. " He has been a solid advocate
for the industry, but he may have to
fight back against many things. "
That fight already may be underway
for the Senate Energy and Natural Resources
Committee chairman. Only weeks
after President Biden publicly pledged
to replace coal-fired plants with renewable
energy, Manchin told the media he had
decided against scheduling a confirmation
hearing for FERC Chairman Richard
Glick. Press accounts quoted Manchin
as responding to Biden's remarks by
saying that " his words matter and have
consequences. "
Although he declines to predict what
else Manchin may do, Burd says West
Virginia's senior senator continues to
demonstrate independence. " His approach
to legislative matters has been very centrist, "
Burd assesses. " The president's comments
have given him reason for pause, as they
have for Senator Kyrsten Sinema, D-Az.,
and maybe a few others. "
While Republicans failed in their quest
to regain the Senate and win a sizable
House majority, Anderson says even a
miniscule majority in one Congressional
chamber claws back an important advantage
from the Democrats, who in the first
two years of Biden's presidency have enjoyed
unified control of the federal legislative
and executive branches.
The return of divided government is
likely to bring legislative gridlocks that
may stymie many onerous bills, Burd predicts.
However, he cautions that Democrats'
ongoing control of the Senate will give
Biden's appointments a better chance of
confirmation, a concern given how many
of the industry's federal headaches originate
not from Congress but from the judiciary
and executive branches.
" What may happen with the court or
other such activities is still a bit frightening, "
Burd acknowledges.
State Legislature
Republicans' midterm gains may
amount to little more than a figurative
" red mist " across much of the country,
but Anderson points out that the GOP
made out much better in the Mountain
State. " West Virginia had a red wave,
with Republicans gaining seats, " she reports.
" That generally is pretty positive
for oil and gas development. "
" In the House of Delegates, Republicans
picked up seats to increase their
majority to 88-12, " Burd details. " That
is the highest number of Republicans
ever elected in that chamber. "
The GOP also flipped some seats in the
West Virginia Senate, and now outnumbers
Democrats 30-4. " There were not any
major surprises, " Burd relates. " The races
all panned out much as expected. "
The 2023 West Virginia Legislature
is not scheduled to begin until Jan. 11,
but Anderson and Burd agree that downstream
natural gas use will constitute a
key theme for GO-WV's session agenda.
Electric utility Competitive Power Ventures
announced in September that it had selected
West Virginia for the site of its
planned 1,800 megawatt combined-cycle
natural gas power station, Burd notes,
and the potential is great for many more
such undertakings.
" That project is encouraging, as are
other major investments in West Virginia
that will use natural gas, " he affirms.
" We always want to support legislation
that encourages use of natural gas and
natural gas liquids. Thanks to a legislature
that understands how important those resources
are to our state, we have had
success with that type of legislation during
the last three years. A couple neighboring
states have about 60 gas-fired power
plants, collectively. Does West Virginia
need to change its regulatory scheme so
that more of those facilities will be constructed
here? "
" Pennsylvania and Ohio have had
great success with natural gas power generation, "
Anderson describes. " West Virginia
has not been able to crack that code
and has virtually none. Expect GO-WV
to see if there is anything the legislature
can do to encourage some of that investment.
With the number of jobs those big
construction projects create, I expect there
will be discussion around that matter. "
Despite Republicans' success in state
elections, Burd indicates that GO-WV's
work in the next legislative session will
include keeping watch for initiatives that
threaten the industry. He points out that
the state's budget surplus is approaching
$1 billion, and suggests that policymakers
may seek to gain favor with voters by
shifting even more of the state's tax
burden to extractive industries.
" The vast majority of that surplus has
been generated through severance taxes,
and almost 65% of the state's severance
tax revenue comes from oil, gas and
NGLs, " he details. " The legislature may
not be poised to increase our taxes, but
we always have to be cognizant that such
an effort can take shape. "
❒
Survey Finds West Virginians
Overwhelmingly Back Industry
CHARLESTON, W.V.-Even in a
state where hydrocarbons fuel so much
of the economy, hard numbers really
make a point. Sure, policymakers and
candidates for elective office generally
understand that most of their fellow citizens
support development, but to what
extent? Do 60% of West Virginians support
new natural gas and oil drilling in their
state, or is it closer to 70%?
According to a survey commissioned
and released this summer by the Gas and
Oil Association of West Virginia, those
numbers are mere lowball estimates: 81%
of respondents back more drilling.
GO-WV President Maribeth Anderson
calls such resounding support eye-opening,
even for the association. " We were a
little surprised by the strength of our
support, " she admits. " Four years ago,
the same type of survey found a similarly
strong number, but it's natural to wonder
DECEMBER 2022 37
American Oil and Gas Reporter - December 2022

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