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

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
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

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

 

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