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

IPANM (Jan. 30, 2023) - Today IPANM filed comprehensive comments on BLM's proposed Federal Waste Prevention Methane Rule. In its
Carlsbad Current Argus (January 17, 2023) - In written public comments submitted Jan. 4 by industry trade group the Independent
Santa Fe New Mexican (January 15, 2023) - Within today’s political arena, New Mexico’s progressive policymakers and advocates are constantly
Lea County Tops 1-Million Barrels of Oil/Day Hobbs Sun News (Jan. 10, 2023) - Keeping the No. 1 spot among
IPANM Releases Statement on EPA Decision Regarding Permian Basin's Air Quality IPANM (January 6, 2023) – In response to Wednesday's EPA's
Biden administration defers plan to tackle smog from oil drillers in Permian Basin Jennifer A Dlouhy Bloomberg (Jan. 6, 2023)
IPANM (Dec. 12, 2022) - The state’s projected revenue for the 2024 fiscal year is close to $12 billion —
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

IPANM (Jan. 30, 2023) – Today IPANM filed comprehensive comments on BLM’s proposed Federal Waste Prevention Methane Rule. In its filing, IPANM fully endorses the joint comments filed by Western Energy Alliance (WEA) and the Independent Petroleum Association of America (IPAA). Furthermore, IPANM highlights three areas of major concerns as expressed in our filing:

Duplicative Regulation

The BLM is proposing regulations addressing oil storage controls in Section 3179.203, pneumatic controllers in Section 3179.201 and Section 3179.303 Leak Detection and Repair.   These aspects are already addressed by either the EPA or the state air quality agencies.   BLM’s regulation of air quality aspects, particularly those which are under the jurisdiction of the EPA or state agencies is duplicative and should not be included in the final rule.

Provisions for Unavoidably Lost 

Section 3179.4(b) provides a list of “unavoidably lost” gas.   IPANM is concerned that the BLM has thoroughly evaluated the different types of hydraulic fracturing techniques being used by operators.  In some cases, during flowback after hydraulic fracturing, depending upon the technique used, some gas may have impurities that make it not salable to the gas gatherer.   Such an example would be when nitrogen foam fracs are performed.  In these cases the flowback gas will have more nitrogen making it not possible for the gas gatherer to accept it.  In these cases, the gas must be flared until it can meet pipeline specifications.   For this reason, IPANM suggests an additional category in this subsection (b) which allows “Flaring of gas due to impurities in the gas that make it non-saleable to a pipeline”.

Well Completion and Related Operations 

In Section 3179.102 the BLM is proposing that only 10,000 Mcf of gas that reaches the surface may be flared royalty free for new completions.  This is far too low a volume.  IPANM recommends this volume be doubled to 20,000 Mcf which was in the BLM proposal in which was proposed by BLM in the 2016 rule.   This volume threshold is much more equitable and provides the necessary flexibility for higher volume wells.

A copy of IPANM’s full filing can be found below.

IPANM Files Comments on BLM’s Waste Rule

 

Carlsbad Current Argus (January 17, 2023) – In written public comments submitted Jan. 4 by industry trade group the Independent Petroleum Association of New Mexico, Executive Director Jim Winchester warned new oil and gas regulations could unduly burden producers in New Mexico – part of an industry credited with accounting for about a third of the state’s budget.

He requested the public comment period for the EPA’s methane rules be expanded beyond the Feb. 13 due date.

“The regulatory and administrative burden on state authorities and small business across the county cannot be overstated,” Winchester wrote. “There is no rush or there is certainly no justification to prematurely promulgating regulations that have the potential to so adversely impact the energy sector of United States.”

Federal Oil & Gas Reforms Debated By Enviros & Industry
IPANM’s Letter Requesting Extension To Comment on EPA Methane Rules

 

Santa Fe New Mexican (January 15, 2023) – Within today’s political arena, New Mexico’s progressive policymakers and advocates are constantly saying how necessary it is to diversify our state’s economy. These statements are related to the budgetary and economic dilemma progressives are creating by continuing their “long game” of destroying New Mexico’s oil and natural gas industry, while also ultimately eliminating billions of dollars in state revenues this industry generates.

Of course, progressives are more than happy to spend these revenues to push New Mexico toward their socialist nirvana. Therefore, to solve this inevitable budget predicament, progressives have to champion the diversification message to justify the worthiness of their efforts to eliminate New Mexico’s fossil fuel industry, yet still have state money to spend in the future.

Unfortunately, the reality of this diversification mantra is that it is a complete fallacy. There is simply no reasonable economic growth strategy that will be able to replace the magnitude of state revenues created by the oil and natural gas industry. These revenues now account for about 45% of state government’s operating budget — approximately $4.5 billion per year — and there is no industry or economic miracle looming on the horizon that can come close to generating this amount of money annually.

Further, when consideration is given to New Mexico having the worst public education system in the nation and a long-standing reputation of being anti-business, there is no reason a future Bill Gates or Elon Musk is going to locate their high-tech business in our state. Nor can progressives enact enough tax increases in the future to replace all of the oil and natural gas revenues currently being collected. For example, to produce an additional $4.5 billion each year, taxes would have to be increased the equivalent of more than $2,100 for each man, woman and child in New Mexico year after year.

Of course, progressives will argue the successful diversification of our economy is already underway with the growing presence of the movie industry and the recent legalization of cannabis. However, what these progressives will not say is that taxpayers already subsidize the movie industry to the tune of $110 million per year, and where will these millions come from once oil and natural gas revenues dry up? Will the movie industry stay in New Mexico if subsidies are eliminated? In regards to cannabis, progressives will likely not point out recent revenue estimates are showing the cannabis excise tax will generate only $34.8 million in state revenue by fiscal year 2027. That’s right, the great revenue generator rationale for legalizing cannabis will result in nothing more than a preverbal “drop in the bucket” of future state revenues.

New Mexicans need to ask progressive policymakers and advocates how this future $4.5 billion (and growing) budget hole is going to be filled. Not surprisingly, they have no real answers to this question, except wishful dreams of offering more government subsidies to somehow lure businesses to our state. Yet, they are marching in lockstep deciding how to spend every penny of the newly estimated $3.6 billion in surplus money the oil and natural gas industry has helped provide for next year’s state budget. Apparently, making promises of free child care, free school lunches for every student, free college educations, and more government spending for health care, housing and anti-poverty programs is a lot more fun than being honest with the people as to who is going to pay for all of these new government benefits once the oil and natural gas industry is shut down.

State Rep. Greg Nibert is a Republican from Roswell.

Nibert: Economic Diversity Won’t Replace Oil & Gas Dollars

 

Lea County Tops 1-Million Barrels of Oil/Day

Hobbs Sun News (Jan. 10, 2023) – Keeping the No. 1 spot among the nation’s counties, Lea County hit the record books again, logging almost 32 million barrels of crude oil in October. That’s a little more than a million barrels a day. With a lion’s share of county revenue coming from the oil and gas industry, County Finance Director Chip Low tracks the data.

“As far as I can tell, Lea and Eddy (counties) are the top two oil and gas producing counties,” Low told the News-Sun. “Midland, Texas, is at only 17 million in October.”

After adjustments to data reported in October, Low found that Lea County actually topped 30 million for the first time in September at 30,016,695.

Lea County Tops 1-Million Barrels of Oil/Day

IPANM Releases Statement on EPA Decision Regarding Permian Basin’s Air Quality

IPANM (January 6, 2023) – In response to Wednesday’s EPA’s decision to omit a non-attainment ozone designation for the Permian Basin, IPANM offers the following statement:

“New Mexico’s oil and gas industry’s ingenuity and stewardship has made the production from the Permian among the cleanest in the world and achieved substantial emissions declines the past few years even with increasing production. The Independent Petroleum Association of New Mexico (IPANM) believes the Environmental Protection Agency (EPA) made a correct decision to remove a non-attainment designation for the Permian Basin regarding the ozone standard. IPANM is hopeful that this is an indication that regulators are finally beginning to acknowledge the enormous strides industry has made to improve air quality in the region.

With yesterday’s decision, IPANM calls on both state and federal administrations to reevaluate recent, excessive air regulations that have used a non-attainment designation as justification for their efforts to stifle further production. IPANM strongly argued that such a designation is unfounded and would have been devastating to millions of people who rely on Permian production for heat, food, and countless other life-sustaining resources. ”

–Jim Winchester
Executive Director
Independent Petroleum Association of New Mexico

Due to pending litigation by IPANM against the State of New Mexico’s Ozone Precursor rule, IPANM will not be further commenting on Wednesday’s EPA decision.

 

IPANM Releases Statement on EPA Decision Regarding Permian Basin’s Air Quality

 

 

Biden administration defers plan to tackle smog from oil drillers in Permian Basin

Jennifer A Dlouhy

The Environmental Protection Agency had been considering formally labeling parts of the region as violating federal air quality standards for ozone — a designation that would have spurred new pollution curbs and potentially deterred drilling in the world’s biggest oil field.

But the administration omitted the policy from an agenda of planned regulations and instead deemed the measure “inactive,” indicating it’s not expected to be finalized in the next six to 12 months.

The move comes after President Joe Biden exhorted oil companies to produce more crude in a bid to keep gasoline prices in check and a spate of industry lobbying against the plan. New Mexico officials also were concerned the designation effort would dovetail with a state legislative session that runs through late March.

In an emailed statement, the EPA confirmed the potential Permian Basin designation is no longer considered an active issue but signaled it could be revived later.

“If EPA decides to advance this action, EPA would initiate the redesignations process by sending a notification letter to the appropriate state governors soliciting their input and recommendations,” the agency said in the emailed statement. “As part of a potential redesignations effort, EPA would also provide an opportunity for public comment on the action.”

Smog Levels

The deferral is a blow to conservationists who have called for urgent action to stem surging ground-level ozone in the oil-drilling hotbeds that straddle the Texas-New Mexico border. The key ingredient of smog, ozone forms when volatile organic compounds and other air pollution from smokestacks, tailpipes and oil wells react with sunlight. Even at low levels, it can worsen asthma, emphysema and other respiratory illnesses.

“The agency seems to be backing down from this critical initiative to safeguard clean air and public health in the Permian Basin,” said Jeremy Nichols, climate and energy program director for WildEarth Guardians. “While the Biden administration talks a good talk on public health and environmental justice, the reality is they’re bending over backward to let the oil and gas industry trash air quality and communities.”

Oil industry heavyweights had lobbied Biden administration officials to abandon course or at least move more slowly on the policy, arguing that any move to redesignate parts of the Permian Basin as violating ozone air quality standards posed grave risks to US energy and economic security.

Previously, the administration had anticipated action on the ozone nonattainment designation by September last year.

New Mexico Environment Secretary James Kenney said he’d recently spoken with a regional EPA official and verified the agency was not likely to start the redesignation process until after the state’s legislative session concludes in late March. “We’d rather have the certainty of knowing that the process has begun and that we can focus on it with all our intention and effort, and that’s not possible for us to do during the legislative session,” Kenney said.

New Mexico has not opposed the redesignation, he said, and the state has left open the possibility of filing its own petition with the EPA asking the agency to regulate contributing pollution from the Texas side of the Permian.

Federal law and air monitoring data “suggest we should be going down this path, and that means tougher rules, tougher permits and more enforcement,” Kenney said. “Those are all aspects of necessary regulation when air quality degrades as it has in the Permian Basin.”

Biden administration defers plan to tackle smog from oil drillers in Permian Basin

IPANM Issues Statement on EPA Decision Not To Pursue Non-Attainment

 

IPANM (Dec. 12, 2022) – The state’s projected revenue for the 2024 fiscal year is close to $12 billion — including $3.6 billion in “new money”.  Revenue growth estimates for fiscal year 2024 are 42.7 percent greater than the roughly $8.5 billion budget for the current year.

The new money surge is directly linked to the boom in oil & gas production in New Mexico according to a Legislative Finance Committee report released to the Legislative Finance Committee on Dec. 12, 2022.

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