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

The BLM has announced four public meetings on their proposed rule to reduce waste from venting, flaring and leaks, and
IPANM 2016 Legislative Bills
If you currently have Rights of Way (ROW) on Federal Lands, the Federal Government has updated the fees associated with
As you are aware from the many emails IPANM has sent over the years, our membership is very concerned about
Today, IPANM's executive director, Karin Foster, testified before the US House Natural Resources Committee subcommittee on Energy and Mineral resources
Over the past several years, IPANM has been at the forefront of working on the ONRR unbundling issue. Many, if
Yesterday, IPANM attended the BLM stakeholder meeting for revisions to OnShore Orders #3, #4 and #5. The revisions are very
The New Mexico Environment Department will be hosting Public Listening Sessions for U.S. Environmental Protection Agency’s SIP Call for Startup,
Earlier this month, IPANM commented on the proposed revisions to OnShore Order #3. As a result of the many comments
On September 16, 2015, the Office of Natural Resource Revenue (ONRR) sent out an email that the Yscloskey Gas Plant

The BLM has announced four public meetings on their proposed rule to reduce waste from venting, flaring and leaks, and to clarify when produced gas lost through venting, flaring or leaks is subject to royalties. The first of the four meetings will be held February 16 in Farmington at the San Juan College Room 7103 at 1:00 p.m.

Please see the linked notice for RSVP information and additional dates and locations. A call-in number is also provided for those who cannot attend. The proposed rule can be found at . The attached also provides contact information if you have further questions.

If you currently have Rights of Way (ROW) on Federal Lands, the Federal Government has updated the fees associated with ROW annual payments beginning for years 2016 to 2025.

Please see the attached letter which was sent to current ROW holders in December 2015.

Updated information on Federal ROW rental fee schedules (cost recovery) can be found at this website.

If you have questions, please contact Stephen Fusilier, BLM Rights-of-Way Branch Chief, at (202.912.7148) or sfusilie@blm.gov

As you are aware from the many emails IPANM has sent over the years, our membership is very concerned about both the Sand Dune Lizard and the Lesser Prairie Chicken potential listing decisions. In 2008, IPANM was at the forefront of the litigation on the chicken, our former IPANM President Greg Nibert was instrumental in the 2012 litigation with the Counties against the USFWS. Likewise, on the Sand Dune Lizard, IPANM has worked with Congressman Pearce’s office to speak at rallies, issue comments and support litigants. Industry has won a reprieve on the Lizard with a ‘no-listing’ decision and an injunction in West Texas Federal District Court on the Chicken. In both instances, Industry has contested the science behind the USFWS actions.

Therefore, it is disappointing when, in October 2015, our very own New Mexico Department of Game and Fish released a State Wildlife Action Plan (SWAP) which lists both the Sand Dune Lizard and the Lesser Prairie Chicken as ‘Tier 1 species of greatest concern’. IPANM looked behind the agency’s science on both species and discovered that not only did the reporters rely on data 1991 and 2005 respectively, but they relied on sources from subscription only environmental websites! The purpose of the report was to inflate the number of species of ‘concern’ in New Mexico in order to receive more USFWS funding through a grant. But it also made some very conclusory and poor assumptions such as; the cause of climate change in New Mexico is a direct result of the Oil and Gas Industry and the Agricultural industry; That there are 1200 species who are in peril in New Mexico without additional regulations to manage human impacts on habitats; that there is no industry funding to study the Lizard and inaccessible funding to study the Chicken. The tone of the report was anti-business in general and made conclusions clearly based on the reporter’s biases. Given that the Martinez Administration has positioned itself as ‘pro-business’ this report was disappointing at best.

On November 19th, IPANM sent lengthy comments to each New Mexico Game and Fish Commissioner regarding the faulty assumptions made in the SWAP. At the Commission meeting held in Roswell, it was obvious that the members had read our comments. They also listened to the many commenters, including IPANM, Representative Candy Ezzell and the New Mexico Cattle Growers and made excellent arguments and points regarding the validity of the report. The Commission unanimously voted to order the Department back to the drawing table to submit a report based on accurate science. THIS WAS A NICE WIN FOR INDUSTRY! Please especially thank Commissioner Ryan who did an excellent job in summarizing the arguments and representing our industry on the Commission. Thank you!!

This content is for members only.

Please login here! If you have any questions about your membership, please email megan@ipanm.org.

This content is for members only.

Please login here! If you have any questions about your membership, please email megan@ipanm.org.

Yesterday, IPANM attended the BLM stakeholder meeting for revisions to OnShore Orders #3, #4 and #5. The revisions are very technical in nature and will severely impact ANY COMPANY THAT OPERATES ON FEDERAL LANDS. Comments are due by December 14th. IPANM has already commented on OSO #3. We will update those comments and will prepare comments for OSO#4 and #5. We will also sign on to those prepared by Western Energy Alliance and IPAA. Comments are due December 14th.

Due to multiple requests from IPANM as well as others, the BLM has established a call in line for the meeting tomorrow in Oklahoma city. From the BLM, I received the following notice:
“Individuals who want to take part via telephone may call 1-800-857-2889, and when prompted, enter the passcode 4111819. The phone number and passcode is the same for both meetings. — The Bureau of Land Management”

The meetings will be:

• Dec. 3 at 1:00 p.m. CST. It is being held at the Renaissance Oklahoma City Convention Center Hotel, 10 N Broadway Avenue, Oklahoma City, OK 73102.

• Dec. 8 at 1:00 p.m. MST. This meeting is taking place at the Astoria Hotel and Event Center, 363 15th St W., Dickinson, ND 58601.

Copies of the Powerpoint presentations about the proposed regulations are available at . Also posted on the site are copies of the proposed regulations.

Order 3 establishes standards to ensure that oil and gas are properly and securely handled to prevent theft and loss and to enable accurate measurement and production accountability. Orders 4 and 5 establish minimum standards for the accurate measurement of all oil and gas, respectively. Like the existing orders, the purpose of the proposed rules is to ensure that the oil and gas produced from Federal and Indian leases (except Osage Tribe) are accurately measured and accounted for, so that the proper royalties due are paid. Royalties are split between the Federal treasury and the State where the production occurs. Indian tribes and individual Indian allotment owners keep 100 percent of the royalties collected from leases on their lands.

These rulemakings are underway because Onshore Orders 3, 4, and 5 were put in place in 1989 and have not been updated since. As a result, they do not reflect modern measurement techniques. The requirements contained in the proposed rules reflect advances in technology, as well as critical updates in industry standards and practices. These proposals also respond directly to concerns from the Government Accountability Office, the Department of the Interior’s Office of Inspector General, and the Secretary’s Subcommittee on Royalty Management.

In addition to accepting comments at the meetings, comments are also being accepted through December 14 by any of the following means:

• Mail to U.S. Department of the Interior, Director (630), Bureau of Land Management, Mail Stop 2134LM, 1849 C Street, NW, Washington, DC 20240,
o Attention: 1004-AE15 (for Site Security),
o 1004-AE16 (for Oil Measurement), or
o 1004-AE17 (for Gas Measurement), or

• Via the Internet at http://www.regulations.gov. Follow the instructions at this website.

The New Mexico Environment Department will be hosting Public Listening Sessions for U.S. Environmental Protection Agency’s SIP Call for Startup, Shutdown and Malfunction (SSM) Operations.

On May 22, 2015, the U.S. Environmental Protection Agency (EPA) issued a final action to ensure states have plans in place that are fully consistent with the Clean Air Act and recent court decisions concerning startup, shutdown and malfunction (SSM) operations.

In response to this final action, the New Mexico Environment Department Air Quality Bureau will be required to revise 20.2.7 NMAC – Excess Emissions during Malfunction, Startup, Shutdown, or Scheduled Maintenance. The Air Quality Bureau will host a series of listening sessions to provide the opportunity for interested citizens and industry representatives to provide input to the Air Quality Bureau and to ask questions regarding the final action. The locations and times are as follows:

December 2, 2015 – 1:00 PM to 3:00 PM at the Roswell Public Library, 301 N Pennsylvania Ave, Roswell, NM 88201

December 10, 2015 – 1:00 PM to 3:00 PM at the Farmington Museum at Gateway Park, 3041 East Main St, Farmington, NM 87402

December 15, 2015 – 4:00 PM – 6:00 PM at the NMED Air Quality Bureau, 525 Camino de los Marquez, Suite 1, Santa Fe, NM 87505

Please RSVP for the December 15th meeting in Santa Fe due to limited seating.

For more information and to RSVP please contact Robert Spillers at 505-476-4324 or email at robert.spillers@state.nm.us.

Earlier this month, IPANM commented on the proposed revisions to OnShore Order #3. As a result of the many comments and extension requests for commenting on OnShore Orders #4 and #5, the BLM has extended the deadline to December 14th. The BLM has also opted to have stakeholder meetings on the proposals. As a reminder to the invitation that was sent out last week, the first meeting will be tomorrow at 1pm in Durango at the Double Tree Hotel. The next meeting will be December 3, at 1pm at the Oklahoma City Convention Center Renaissance Hotel. The final meeting will be December 8 at 1pm at the Astoria Hotel in Dickinson, North Dakota. Please note that although the BLM has provided a contact named Mike Wade at phone 303-239-3737, Mr. Wade will be out of the office until December 10th.

In addition, the BLM has provided the linked powerpoint presentation on their website in preparation for the meeting.

On September 16, 2015, the Office of Natural Resource Revenue (ONRR) sent out an email that the Yscloskey Gas Plant (Targa, Louisiana) operators must amend their reporting as to the allowable portion of contractual processing fees for the years 2008 – 2012. See Onrr.gov/unbundling. Note that the Yscloskey plant ceased operations in 2012.

Operators who have already filed reports and paid royalties to the federal government based on those reports must go back to change their calculations for gas that came through that plant seven years ago. You must change the four years of reports that have been filed monthly in order to comply with this change. Note that operators must change those numbers even if they have been audited and cleared already. In addition, the ONRR includes the following statement at the end of their email, “This message serves as guidance for determining value for royalties and is not an appealable decision or order under 30 CFR Part 1290, Subpart B. If ONRR issues you an order to pay additional royalties or assesses civil penalties under 30 CFR Part 1241 at a later date based on this guidance, your appeal rights will be provided at that time. While this message is not appealable, ONRR may use this guidance in conducting audits and as a basis for demanding additional royalties.”

From a due process perspective how can the federal government change the rules on something that happened seven years ago, send out an email notice and then claim that;
1) industry had notice of this change, and;
2) must suffer the additional costs of changing hundreds of reports, and
3) that addition liability can now be imposed if those reports are not changed even if there had been an intervening audit.

IPANM has contacted and had meetings with several members of the New Mexico Congressional delegation and the Colorado delegation who are in the natural gas development areas, but there has been little interest in reducing the regulatory burdens on industry on this issue. Maybe now that operators in Louisiana are involved, the national trades and other state legislators may be interested…