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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!)

Methane
Infrastructure
Hydraulic Fracturing
Produced Water
Cultural Properties
Royalties
Industry Benefits
Setbacks & Chaco Canyon
Administrative Penalties
Injection Wells
Endangered Species
Horizontal Drilling Rule
Drilling & Leasing
Spill Rule
Financial Assurance
Seismicity
Endangered Plants
Anti-Industry Politics

RECENT NEWS: All Issues

BLM Releases IM for Potash Area
The linked informationbelow was released by the BLM last month and is currently being implemented.
Lesser Prairie Chicken Designation as Threatened is Vacated
On September 1 Chief Robert Junell, Senior United State District Judge of the Western District of Texas, granted summary judgement
IM issued by BLM
This is the Instruction Memorandum (IM) issued by the BLM last month to "establish a streamlined process for adjudication and
New EPA Definition Affecting Green Completions and Storage Vessels
On August 12th the EPA finalized amendments to new source performance standards (NSPS) for the Oil and Natural Gas Sector
EMNRD Secretary addresses produced water updates at IPANM Annual Meeting
IPANM - EMNRD Secretary David Martin's 2015 address to IPANM on August 7, 2015, focused on new policies that encourage
HF Rule Delayed
We were informed by our friends at WEA that the U.S. District Court for Wyoming has granted the government’s request
ONRR Updates Indian Valuation Amendments and Reporting
Effective July 1, 2015, ONRR will have new reporting requirements associated with oil production on Indian Lands.
BLM to Hold Outreach Meetings on HF Rule
Next week, June 18 and 22, the BLM will hold outreach meetings for industry on the new BLM Hydraulic Fracturing
Texas Preemption Bill on its way to Governor's Desk
Yesterday, HB 40, a bill to clarify the authority of the state of Texas to regulate oil and gas drilling,
BLM to Hold HF Workshops - Santa Fe, Denver and Houston
With the new BLM HF rule coming into effect on June 24th, industry is scrambling to determine its effect and
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Hot Topics

Wildlife in the Oilfield
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Sign Up for Updates

 

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Join IPANM
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Password Reset

 

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Independent Petroleum Association of New Mexico

IPANM Administrative Offices
P.O. Box 6101, Roswell, New Mexico, 88202
Bus. - 575-622-2566 | Fax. - 575-622-2566

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Natural Gas (NG)
WTI Crude Oil (CL)

 

Independent Petroleum Association of New Mexico

IPANM Administrative Offices
P.O. Box 6101, Roswell, New Mexico, 88202
Phone 575-622-2566

Search

Website designed by Siarza Social Digital

Natural Gas

WTI Crude Oil

On September 1 Chief Robert Junell, Senior United State District Judge of the Western District of Texas, granted summary judgement for plaintiffs in the lesser Prairie Chicken case. Congratulations to the Permian Basin Petroleum Association, Chaves, Roosevelt, Eddy and Lea Counties. Judge Junell found that while the US Fish and Wildlife Service did conduct an analysis for all 15 criteria required under the agency’s policy for evaluation of conservation efforts (PECE), this analysis was neither “rigorous nor valid” as the FWS failed to consider important questions and material information necessary to make a proper evaluation. Accordingly, the court found the FWS acted “arbitrarily and capriciously” which resulted in an unwarranted final rule listing the Lesser Prairie Chicken as a threatened species. Thus, the court VACATED the final rule and listing decision. The FWS will have 60 days to appeal the decision to the Fifth Circuit.

This is the Instruction Memorandum (IM) issued by the BLM last month to “establish a streamlined process for adjudication and approval” of Communitization Agreements (CA). Please feel free to call your local field office with any questions or comments.

CA Process IM.pdf (337 KB)

On August 12th the EPA finalized amendments to new source performance standards (NSPS) for the Oil and Natural Gas Sector under 40 CFR part 60, subpart OOOO. See 80 FR 48262 (Volume 80, Number 155 | Pages 48262–48268). The rule is effective 8/12/2015. Specifically, the new rule changes the definitions of low pressure gas well and storage vessel.

Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission, and Distribution

Section 60.5365(e)(4) is revised to read as follows:

60.5365(e)(4) For each new, reconstructed, or modified storage vessel with startup, startup of production, or which is returned to service, affected facility status is determined as follows: If a storage vessel is reconnected to the original source of liquids or is used to replace any storage vessel affected facility, it is a storage vessel affected facility subject to the same requirements as before being removed from service, or applicable to the storage vessel affected facility being replaced, immediately upon startup, startup of production, or return to service.

Low pressure gas well means a well with reservoir pressure and vertical well depth such that 0.445 times the reservoir pressure (in psia) minus 0.038 times the true vertical well depth (in feet) minus 67.578 psia is less than the flow line pressure at the sales meter.

Returned to service means that a Group 1 or Group 2 storage vessel affected facility that was removed from service has been:

(1) Reconnected to the original source of liquids or has been used to replace any storage vessel affected facility; or

(2) Installed in any location covered by this subpart and introduced with crude oil, condensate, intermediate hydrocarbon liquids or produced water.

Storage vessel means a tank or other vessel that contains an accumulation of crude oil, condensate, intermediate hydrocarbon liquids, or produced water, and that is constructed primarily of nonearthen materials (such as wood, concrete, steel, fiberglass, or plastic) which provide structural support. A well completion vessel that receives recovered liquids from a well after startup of production following flowback for a period which exceeds 60 days is considered a storage vessel under this subpart. A tank or other vessel shall not be considered a storage vessel if it has been removed from service in accordance with the requirements of 60.5395(f) until such time as such tank or other vessel has been returned to service.

This content is for members only.

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

We were informed by our friends at WEA that the U.S. District Court for Wyoming has granted the government’s request for an extension of time to file the administrative record on the BLM hydraulic fracturing rule until August 28. The industry plaintiffs will then have one week after the 28th to respond. It is expected that the judge will make a determination on the industry application for a preliminary injunction in mid-September. This extension request pushes the possible implementation date back at least another month from the July 22nd date the court had originally set.

If the judge denies the industry request for an injunction, a new timetable would be set by BLM for compliance of the rule. Note that the BLM could decide to have the rule go into effect the day after the judge makes his final decision against an injunction. If he decides in our favor, then the implementation dates obviously would be pushed back depending on how long it takes the court to decide the case on merits.

In light of this good news, IPANM has decided NOT to hold a workshop in August on the Hydraulic Fracturing rule. We will keep watching the court case and keep you informed. If and when the rule comes into place, if there is still interest in a workshop, IPANM will put one on for industry. In the meantime, please let me know if you are not getting any permits, as we and WEA are monitoring BLM closely to make sure that they’re not stopping the processing of APDs while they wait for the rule to go into effect.

Effective July 1, 2015, ONRR will have new reporting requirements associated with oil production on Indian Lands.

This final rule was posted in the Federal register on May 1, 2015. The simplified impact of this rule is an increase in the effective royalty value that will be paid on oil production produced on Indian lands by approximately 3.82 percent to 3.93 percent, or collectively about $ 20 million annually on Indian lands.

If you are an operator or reporter to ONRR related to Indian Lands, you should review this important rule change to ensure your compliance on reporting and valuation going forward. A link to the final ONRR rule can be accessed at this web address:

http://www.onrr.gov/laws_r_d/FRNotices/AA15.htm

Next week, June 18 and 22, the BLM will hold outreach meetings for industry on the new BLM Hydraulic Fracturing rule that becomes effective June 24. The meeting on June 18 will be at the Walter Gerrells Exhibition Center in Carlsbad, and the meeting on the 22nd will be at San Juan College, Little Theater. Each meeting will be from 9am to noon and will include question and answer sessions on implementation of the new rule. Please see the links below for the agendas.

In the meantime, to prepare for both the meeting and the June 24th implementation date, we have taken the actual rule provisionm which is only six pages, out of the 299 page federal register submission (see link below). In addition, the BLM has been working with representatives of IPANM, PBPA and NMOGA to develop a flowchart of relevant dates for operators (linked here in draft form). Prior to the BLM presentations, a powerpoint, answers to questions asked and templates will also be provided. The task force is also working on a template affidavit to address the trade secret issues raised in section 3162.3-3(j). When these documents become available, we will notify our membership.

We also hope to have a three hour workshop on the ins and outs of implementation of the HF rule on the Wednesday before the IPANM annual meeting so that we can more fully discuss how the BLM is moving forward with permitting and approving the HF permits.

2015 BLM HF rule
BLM HF Rule Outreach Agenda – Carlsbad
BLM HF Rule Outreach Agenda – Farmington
Draft HF Applicability Flow Chart

Yesterday, HB 40, a bill to clarify the authority of the state of Texas to regulate oil and gas drilling, passed the Senate on a 25 to 6 vote. On April 20th, the Texas House passed the bill on a 125 to 20 vote and the bill is now on its way to Governor Abbott’s desk.

The Texas bill, which is very similar to NM HB 366, drafted by IPANM and sponsored by House Majority Whip Gentry, has provisions to allow municipalities and local governments to continue to regulate noise, dust and traditional zoning issues. In fact, the Texas bill seems to give surface owners a bit more latitude in discussing surface locations. However, HB 40 has a limitation of ‘commercial reasonableness’ which requires that “a reasonably prudent operator is allowed to fully, effectively and economically exploit, develop, produce, process and transport oil and gas, as determined based on the objective standard of a reasonably prudent operator and not on an individual assessment of an actual operator’s capacity to act.” The bill further states that only the State has the exclusive jurisdiction to regulate oil and gas operations and although the local government may enact ordinances regarding surface issues, it is limited to the commercial reasonableness standard and may not effectually prohibit any activity.

With the new BLM HF rule coming into effect on June 24th, industry is scrambling to determine its effect and how best to comply. IPANM members are invited to attend a meeting in Santa Fe on April 29th from 1 to 5pm at the Santa Fe Marriott on Cerrillos Road. The BLM will be present to answer questions, to discuss the rule and steps moving forward. A conference call number will also be available. Please see the flyer linked below for details.

NM BLM Agenda