American Oil and Gas Reporter - July 2023 - 52
ConventionSec tion: Kansas Independent Oil & Gas Association
Worries From Washington
Are Reaching Kansas
By Del Torkelson
TOPEKA, KS.-As they interact with
members in advance of the Kansas Independent
Oil & Gas Association's 2023 Annual
Convention, scheduled for Aug. 2022
in Wichita, Ks., the group's leaders say
they keep hearing about two key issues.
" The lesser prairie chicken is one, and
the other is methane, " reports KIOGA
President Edward Cross.
The U.S. Fish and Wildlife Service's
decision to list the LPC-which has
habitat in Kansas and four other states-
under the federal Endangered Species
Act is a clear and present danger to the
oil and gas industry, assesses Andrea
Krauss, who has chaired KIOGA since
August 2021 and who works as the secretary/treasurer
of John O. Farmer Inc.
The U.S. Environmental Protection
Agency's proposed regulations governing
methane and volatile organic compound
emissions at oil and gas sites also represents
an immediate danger, she adds.
Although President Biden's administration
continues to introduce harmful rulemakings-including
proposals this spring
to push automakers away from internal
combustion engines and to dissuade power
plants from burning fossil fuels-those
proposals are only in the early stages of
the rulemaking process, she reasons. " Meanwhile,
the LPC and methane monitoring
have a greater possibility of impacting our
companies much sooner, " Krauss warns.
While most voters probably value affordable
automobiles and electricity
enough to fight for them when they recognize
they are at risk, Krauss reflects,
Americans without ties to oil and gas
know little or nothing about industryspecific
requirements and problematic
ESA listings. " The average person does
not know or care if John O. Farmer Inc.
suddenly has to monitor methane at a
well producing half a barrel of oil a day,
or-because they don't understand-they
think it's a good idea, " Krauss considers.
Costly And Questionable
The LPC listing looms particularly large
in the areas that contain the bird's habitat,
52 THE AMERICAN OIL & GAS REPORTER
" Wells producing several hundred barrels a
day can easily absorb the cost of the methane
rule. However, for stripper wells-which
predominate in Kansas-such monitoring is
cost prohibitive. "
-Andrea Krauss
KIOGA Chairman
Krauss indicates. Meanwhile, she observes,
" the methane requirement is going to affect
every producer in the state, and the associated
cost will be astronomical. "
KIOGA, the Petroleum Alliance of
Oklahoma, as well as rancher groups in
Texas, Oklahoma, Kansas and New Mexico,
have joined litigation filed by the
Permian Basin Petroleum Association
against the LPC listing. The states of
Texas, Kansas and Oklahoma have filed
a separate suit against USFWS on the
matter (AOGR, April 2023, pg. 18).
Cross notes that a couple anti-oil-andgas
groups have said they will intervene
in both lawsuits to support the listing,
but he also indicates that the USFWS
has not sought to have the case dismissed
or its venue transferred. " The USFWS
response to the states' amended complaint
is basically a nonanswer answer that it
can neither confirm nor deny most of the
allegations, " he recounts. " However, it is
a big deal that there has been no motion
for transfer of venue from the West Texas
District Court. The industry's arguments
prevailed there last time, so we figured
there would be efforts to move it to the
District of Columbia. "
Aside from a few symbolic measures,
such as backing SCR 1602, a resolution
of disapproval for the LPC listing that
passed the 2023 Kansas Legislature, Cross
says KIOGA's efforts on the issue largely
will remain in the legal arena, where the
gears of justice are not renowned for
turning swiftly. " Progress is slow, " he
acknowledges. " It takes a while for legal
processes to play out. "
Regarding the methane rule, Cross
says KIOGA and its allies have met with
EPA staff repeatedly to discuss simple
fixes that would address the rule's flaws
and make it more feasible for low-producing
wells.
" The meetings always seem productive,
but the next draft always ignores our points, "
he laments. " We are trying to convince
EPA the rule needs an exemption for marginal
wells. We back up that reasoning
with U.S. Department of Energy data showing
that wells producing six barrels equivalent
a day or less fall below the rule's
emissions threshold of less than three tons
a year. Unfortunately, EPA wants each
well to prove that, which will entail all
sorts of expensive measurements. "
Requiring such measurements turns the
threshold into an exemption in name only,
Krauss suggests. " Wells producing several
hundred barrels a day can easily absorb
the cost. However, for stripper wells-
which predominate in Kansas-such monitoring
is cost prohibitive, " she explains.
It's possible EPA has ignored this
point because the input it receives from
anti-development groups asserts that
marginal wells are particularly problematic
" super-emitters, " Cross considers.
" Their claims about smaller wells skew
the data in a misleading way, " he describes.
" I don't know why EPA goes
along with logic so weak that it downplays
the actual emissions. "
American Oil and Gas Reporter - July 2023
Table of Contents for the Digital Edition of American Oil and Gas Reporter - July 2023
Contents
American Oil and Gas Reporter - July 2023 - Intro
American Oil and Gas Reporter - July 2023 - Cover1
American Oil and Gas Reporter - July 2023 - Cover2
American Oil and Gas Reporter - July 2023 - Contents
American Oil and Gas Reporter - July 2023 - 4
American Oil and Gas Reporter - July 2023 - 5
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