A New Day at IPANM

 

 

information & issues

Welcome to IPANM’s Information & Issues webpage!

IPANM is not afraid to take strong stances on many current issues threatening our industry. We have to! Seemingly minor changes to regulations or rules can have a major impact on the financial solvency of our small oil & gas producers. While we will never compromise on our duties to protect human health, fresh water and the environment in our daily activities, we will fight unnecessary government overreach when new regulatory proposals are not based on sound science and do little to protect the environment.

Below, we’ve identified serious issues facing our producers. Please click on the corresponding button to learn more about each issue and IPANM’s stance on the issue. (Note: Some of this content may be restricted for members only. To access this exclusive content, please join our association!)

RECENT NEWS: All Issues

NM Oil Conservation Division (Nov. 29, 2022) - Oil Conservation Division Director Adrienne Sandoval has accepted the position of Air
IPANM (Nov. 20, 2022) - Dr. Dan Fine, a renowned oil & gas expert who resided in New Mexico, passed
IPANM (November 11, 2022) – In response to the EPA's revisions to the Federal Methane Rule, IPANM releases the following
Forbes (November 11, 2022) -- Stumping for embattled New York Gov. Kathy Hochul at Sarah Lawrence College in Yonkers Sunday,
Real Clear Investigations (Oct. 27, 2022) - As California, New York, and other states move to phase out the sale of gasoline-powered cars, public officials routinely
Carlsbad Current Argus (Oct. 21, 2022) - Southeast New Mexico saw some of is highest oil production in the last
Carlsbad Current Argus (Oct. 20, 2022) - Oil and gas industry leaders in New Mexico and the Permian Basin said
The Center Square (Oct. 6, 2022) — Business leaders across the country have joined together to call on the Biden
Power The Future (Oct. 4, 2022) -  After the Biden Administration took a victory lap over gas prices, America’s families
Corpus Christi Caller Times (Sept. 14, 2022) - Texas' largest oil lobby is mounting a grassroots effort designed to pressure

NM Oil Conservation Division (Nov. 29, 2022) – Oil Conservation Division Director Adrienne Sandoval has accepted the position of Air and Radiation Director for the US Environmental Protection Agency’s (EPA) Region 8 Office in Denver. December 31 is her last day with EMNRD. She has been OCD director since April of 2019.

Also on December 31, Mining and Minerals Division Director Jerry Schoeppner heads into retirement,
wrapping up a 26-year state government career. He has led MMD since February 2020.

“We are saying goodbye to two accomplished professionals who through their work in this agency have
had a major positive impact on the State of New Mexico,” said EMNRD Secretary Sarah Cottrell Propst.
“We are sorry to see them go, but we wish them all the best in their future endeavors.”

NM OCD Director To Leave At End of 2022

 

 

 

IPANM (Nov. 20, 2022) – Dr. Dan Fine, a renowned oil & gas expert who resided in New Mexico, passed away last month. IPANM members affectionately referred to him as “Dr. Dan” due to his longtime friendship and support of IPANM and IPANM members. Fine died in Miami on Sept. 26, following complications from surgery. He was 88-years old, and still active in his advocacy and work throughout the industry.

IPANM Executive Director Jim Winchester offered the following statement:  “Dr. Dan was deeply involved in many issues that impacted independent oil & gas producers. He was a tireless advocate, and you could always count on him to show up for oil & gas hearings to support or present fact-based analysis on the the importance of our industry to the state, the country, and the world.”

Former IPANM Board President T. Greg Merrion praised Fine for his efforts in the state’s northwest region, where he advocated for the importance of the state’s San Juan Basin, helped organize the still running San Juan Energy Conference, and was active in the Four Corners Economic Development.“He traveled around the state and met with all kinds of people from many different sectors,” Merrion told The Farmington Daily News. “He would talk about everything, from the war in Ukraine to oil and gas prices and elections.”

Fine has been a resident of New Mexico since 2004, and served as the director of the Center for Energy Policy at the Institute of Mining and Technology in Socorro. Fine later worked a lead researcher and author on the State of New Mexico’s Energy Policy and Implementation Plan adopted during the Martinez Administration in 2015.

“I first worked with Dr. Dan during his time developing New Mexico’s Energy Plan during the Martinez administration,” IPANM’s Jim Winchester said. “He was someone who taught myself and many others in the state about the importance of safe and responsible fossil-fuel production as part of an ‘all of the above’ approach to energy development. He was especially a strong advocate for the Navajo Allottees in the San Juan Basin and his efforts helped draw attention to the many positive impacts of oil & gas development to the Navajo people. There was both passion and compassion in his many efforts.”

Outside of New Mexico, Fine was known as an expert on energy markets and geopolitics. Fine served as a lifelong Harvard fellow and research associate with the Massachusetts Institute of Technology and providing expert guidance on energy issues and international relations among the top echelons of public and private agencies. He kept a pulse on the activities of foreign entities, governments, and OPEC+, and frequently offered analysis to local media on the impact of foreign energy policies on New Mexicans.

IPANM offers our condolences to Fine’s family and is indebted to him for his service to the New Mexico oil & gas industry.

Albuquerque Journal: Internationally renowned energy expert dies

IPANM (November 11, 2022) – In response to the EPA’s revisions to the Federal Methane Rule, IPANM releases the following statement:

“IPANM recognizes the need for cost-effective regulations to manage emissions, and shares in the commitment to utilize new technologies at facilities and wellsites across New Mexico. Unfortunately, for this updated revision of the Federal Methane Rule, the EPA has once again chosen to ignore industry input in favor of environmental groups who share President Biden’s goal of ending all oil & gas production immediately without consideration of the impacts on New Mexicans.

IPANM’s specific concerns with the new revisions lie with overreaching pneumatic equipment restrictions that will stifle development in areas like the San Juan Basin, and shutter thousands of still-productive marginal wells throughout the Permian. IPANM also believes increased frequency of inspections are unnecessary, redundant, and a significant burden on small, independent operators.

IPANM members have and will continue to implement both the new state and federal regulations, but will also continue to challenge those parts of new rules that will put small operators out of business and cripple existing producers who already operate in a safe, environmentally-responsible manner.”

–Jim Winchester
Executive Director, Independent Petroleum Association of New Mexico

 

Forbes (November 11, 2022) — Stumping for embattled New York Gov. Kathy Hochul at Sarah Lawrence College in Yonkers Sunday, the President responded to a shouted question from an audience member about his longstanding promises to shut down fracking and new drilling on federal lands and waters by saying “no more drilling…there is no more drilling…I haven’t formed any new drilling.” The Biden administration has not just approved more drilling for oil and gas on federal lands and waters, it has boasted about how many new permits it has issued for such operations whenever the moment was convenient for its purposes, including a recent claim it has issued 9,000 new drilling permits during its 22 months in office. But the President’s responses to these questions, while not accurate, do betray his mindset on the matter, which he has expressed repeatedly from the beginning of his presidential campaign in mid-2019. Simply put, the regulatory and legislative agenda of the Biden administration has pushed to restrict and, where possible, eliminate drilling for oil and natural gas in the United States.

Lunacy: Biden Promises “No More Drilling” One Day After Demanding More Drilling

 

Real Clear Investigations (Oct. 27, 2022) – As CaliforniaNew York, and other states move to phase out the sale of gasoline-powered cars, public officials routinely echo the Biden administration’s claim that electric vehicles are a “zero emissions” solution that can significantly mitigate the effects of climate change. 

Car and energy experts, however, say there is no such thing as a zero-emissions vehicle: For now and the foreseeable future, the energy required to manufacture and power electric cars will leave a sizable carbon footprint. In some cases hybrids can be cleaner alternatives in states that depend on coal to generate electricity, and some suggest that it may be too rash to write off all internal combustion vehicles just yet. 

“I said, ‘If you care about the environment, keep the Kia,’” Nunes said. 

Electric Vehicles Worse For Environment Than Gasoline Cars

 

 

Carlsbad Current Argus (Oct. 21, 2022) – Southeast New Mexico saw some of is highest oil production in the last decade, with the most barrels of crude oil reported produced in 2021 in the history of the region, said Hanson Yates, president of Artesia-based Santo Petroleum.

Santo is drilling two new wells in the Carlsbad area, Yates said, and planned to continue targeting the region for future growth.

At the Carlsbad Mayor’s Energy Summit Thursday, Yates rallied for fossil fuel production in the region encompassing parts of Eddy, Lea, Chaves and Roosevelt counties, calling for expanded domestic operations centered on the Permian and the western Delaware sub-basin.

He said heightened growth in the Delaware, which covers southeast New Mexico’s portion of the Permian, began in the 2010s when horizontal wells were half of about 11,000 new wells drilled that decade.

“In the 2010s, southeast New Mexico began a time of increased growth in oil and gas,” Yates said. “It’s really a golden age.”

Two years into the 2020s, Yates said growth was expected to continue and could even overtake the “golden age.”

The last eight years were the eighth most productive in southeast New Mexico’s history, Yates said, and 2022 could already be considered the fourth-most productive year with more than two months left.

Permian Growth Could Be Blocked By State Policy

Carlsbad Current Argus (Oct. 20, 2022) – Oil and gas industry leaders in New Mexico and the Permian Basin said they were fighting to defend fossil fuels during a shifting political landscape and government agendas seeking to transition to lower-polluting forms of energy.

The State recently tightened requirements on oil and gas operations at both the New Mexico Environment Department and its Energy, Minerals and Natural Resources Department intending to curtail air-polluting emissions like methane from extraction activities throughout the state.

These rulemakings were part of an overall push by the administration of Gov. Michelle Lujan Grisham to reduce environmental impacts and transition away from oil and gas – an industry that makes up about a third of New Mexico’s budget.

Jim Winchester, president of the Independent Petroleum of New Mexico said the environmentalist agenda of the state imposed “prohibitive” costs on New Mexico’s operators.

His comments came during a panel discussion as part of the annual Mayor’s Energy Summit, a gathering of oil and gas executives and industry supporters held Thursday in Carlsbad, and amid the Association’s lawsuit against the NMED’s rules which Winchester said were unfair to the small producers his group represents.

He said the industry must make its case for continued oil and gas production to state lawmakers, with the 2023 Legislative Session in Santa Fe planned to begin in January.

“The rules go a little further than they need to with respect to small producers,” Winchester said. “We support good environmental regulation. What we are seeking is a good, level playing field.”

Full Article:  Oil and Gas Industry Defends Itself Against ‘Prohibitive’ Policy in New Mexico

The Center Square (Oct. 6, 2022) — Business leaders across the country have joined together to call on the Biden administration to boost domestic energy production and to abandon a proposal to ban new offshore lease sales.

More than 200 local chambers of commerce in 47 states and 14 national associations penned a letter to President Joe Biden to urge him “to strengthen our energy security by removing impediments to greater domestic energy production.”

“High energy prices remain a major concern for businesses throughout the United States and are a leading cause of inflation,” the letter read. “Businesses of all sizes are facing burdens from increased costs for goods, services, and transportation, which combined with tight labor markets, presents major headwinds for the U.S. economy.”

The letter argued that addressing climate change and energy security “are not mutually exclusive” and increasing domestic oil and natural gas production can “accelerate the energy transition” while simultaneously curbing cash to Russia and improving the lives of Americans.

“Also, Russian oil is among the dirtiest in the world, so displacing it with cleaner, less carbon intensive U.S. production would bring obvious environmental benefits,” the letter read.

Businesses Urge Biden To Boost Domestic Energy Production

 

Power The Future (Oct. 4, 2022) –  After the Biden Administration took a victory lap over gas prices, America’s families are once again witnessing increased pain at the pump. The retail price of gas is heading up just as leaders of OPEC will meet to discuss cutting production which will further squeeze supply and drive prices even higher. Meanwhile, President Biden has drained the United States Strategic Petroleum Reserve more than all previous presidents combined and it now sits at the lowest level since 1984.

The Wall Street Journal editorial board writes, “Oil prices rose Monday on news that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree on Wednesday to cut production. The Saudis and Russia are underscoring the folly of President Biden’s limits on oil and gas production, and his non-emergency release of oil from the national petroleum stockpile.”

The Biden administration’s punishing regulations and lack of permits is crushing American producers and hurting American consumers. The Journal continues, “Producers normally respond to rising prices by raising output. That was true in the past in the U.S., especially from 2016 to 2019 when production increased by about three million barrels a day. But U.S. producers haven’t responded to higher prices during the Biden Presidency as much as those in other countries, including Russia, Canada and Norway.” 

“This is a man-made energy crisis brought on by failed leadership,” said Larry Behrens, communications director for Power The Future. “Thanks to Joe Biden surrendering American energy independence and draining our strategic reserve, we find ourselves at the mercy of hostile foreign actors. Not only are families paying Biden’s massive inflation tax with every purchase, but our strategic reserve is at its weakest point in a generation.”

Americans are watching closely as gas prices rise and our energy independence falls.

Gas Prices on the Rise as OPEC Conspires & Biden Administration Surrenders American Energy Independence

Corpus Christi Caller Times (Sept. 14, 2022) – Texas’ largest oil lobby is mounting a grassroots effort designed to pressure the Environmental Protection Agency from implementing new air pollution regulations in the Texas-New Mexico Permian Basin, where 40% of the nation’s traditional energy sources are mined.

The Texas Oil and Gas Association, or TXOGA, on Tuesday distributed an electronic pamphlet titled “Keep drilling in the Permian” warning of a proposal that would require the state to develop a federally approved plan for meeting air quality standards in portions of the nation’s most productive region for oil and gas production. The pamphlet urges Texans to contact the EPA to raise objections to the planned action in the Permian Basin.

Editor’s Note:  IPANM stands with industry against EPA designation of the Permian as a non-attainment area.

Industry Fights Against EPA Permian Action