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

Artesia Daily Press (June 16, 2024) - Martin Yates’ company first struck oil 100 years ago 15miles southeast the small-town
Carlsbad Current Argus (June 11, 2024) - Oil and gas generated more than $15 billion in income for New Mexico
IPANM (May 16, 2024) -- Yesterday, the Independent Petroleum Association of New Mexico (IPANM) joined a coalition of oil &
IPANM (May 2, 2024) - IPANM's Legal Challenge to New Mexico's Ozone Precursor Rule will move forward after the New
IPANM (April 13, 2024) - In response to the April 12, 2024 formal release of the new Fluid Mineral Leases
IPANM & SF New Mexican (April 12, 2024) - State officials asked a District Court judge in Santa Fe on
Carlsbad Current Argus (April 2, 2024) - Recently announced federal air pollution restrictions drew the ire of New Mexico oil
EXACT INFO ON WHAT MEMBERS NEED TO KNOW ON THE SEC CLIMATE DISCLOSURE LAW:  HERE - Courtesy of Baker Hostetler
IPANM (March 29, 2024) - On Friday, Judge Matthew Wilson of the 1st Judicial District Court granted IPANM's official Motion
New York Times (March 22, 2024) - President Biden halted approvals for new exports of liquefied natural gas to study

Artesia Daily Press (June 16, 2024) – Martin Yates’ company first struck oil 100 years ago 15miles southeast the small-town of Artesia in southeast New Mexico, paving the way for what became known as the “shale revolution” decades later as fossil fuel production boomed in the Permian Basin.

The industry’s growth created thousands of jobs, drove state revenue by about $15 billion in the last fiscal year, and today is the region’s defining industry.

Author Alex Epstein said the growth in American oil and gas could continue, centered in southeast New Mexico, well beyond the next decade despite predictions that peak oil demand could hit by 2033. He said the main impediment to the ongoing oil boom were policies at the state and federal level aiming to mitigate environmental impacts but also impacting economic growth.

Epstein’s comments came during a ceremony June 14 at the Artesia Country Club marking the 100th anniversary of the Illinois #3 well, the first that produced oil in southeast New Mexico in 1924, along with the first state oil royalty check of $135 – the equivalent in 2024 of $2,394.

100 Year Celebration of Production in New Mexico Permian A Big Success!

Carlsbad Current Argus (June 11, 2024) – Oil and gas generated more than $15 billion in income for New Mexico in the last fiscal year, according to a state economic report presented to lawmakers during a recent meeting in Carlsbad.

Jennifer Faubion, economist with the Legislative Finance Committee said oil and gas brought in $6.6 billion to the State in taxes, and another $8.6 billion from land income in Fiscal Year 2023.

She said the influx in revenue was driven by increased oil and gas production in the southeast Permian Basin.

Faubion said in the last five years, since FY 2018, oil and gas revenues quadrupled. The General Fund more than doubled in the last two years, she said, benefitting several statewide programs and services like education and infrastructure. Faubion said the General Fund, used to develop New Mexico’s budget was 35 percent reliant on oil and gas in FY 2023.

“It’s been exceeding our expectations for a number of years,” Faubion said of oil and gas revenue during the June 11 meeting at the Pecos River Village Conference Center. “And it just keeps growing.”

But the reliance would soon trend downward, she said, as the state invests the oil money, considered non-recurring revenue and viewed as volatile and dependent on commodity markets worldwide, moving it out of the General Fund and into funds that could appreciate over time. Oil money was also ideal for spending on one-time projects like roads or water systems, she said, addressing needs in local communities.

The LFC’s forecast showed a near-term increase in General Fund’s oil and gas reliance from 35 percent in FY 2023 to almost 40 percent in FY 2024, but then gradually declining back to about 35 percent in FY 2028. Faubion said this projected decrease was attributable to legislative spending and investment of the “windfall” income brought in an ongoing upswing in production.

“We can start to compare long-term impacts of putting dollars away, especially when our reserve levels are so high and our new money levels are so high,” Faubion said. “You can do a little of both.”

Rep. Gail Armstrong (R-49) asked Faubion during the meeting how proposed statewide oil and gas setbacks, defining the required distance between oil and gas facilities and sensitive areas like homes or schools, would impact revenue from the industry.

Faubion said the Legislative Finance Committee was unsure the exact dollar amount that would be affected, but said preliminary research showed about 10 percent of New Mexico’s oil and gas wells would be impacted if the setback proposal took effect.

“Oil production will come down naturally over time,” Armstrong said. “If we push it down before we’ve diversified our economy, how are we going to pay for things like schools and roads?”

Carlsbad Mayor Rick Lopez said oil and gas revenue was necessary to support growth in his community and statewide. He said the work done in the southeast corner of the state to extract fossil fuels must be supported by lawmakers in the “long-term.”

“As everyone knows the oil and gas processes in the southeast are vital to the state’s finances. This industry has not only fueled our homes and businesses but played a vital role in building our communities,” Lopez said. “Our oil and gas partners in the area have been great to work with. I want to highlight the importance of long-term oil and gas production.”

Lopez admitted that the influx of the oil and gas industry, and its workers flocking into communities in the southeast like Carlsbad and Hobbs, led to concerns like higher housing prices and more traffic. He said the industry was working closely with local leaders to address the impacts of its growth.

“We understand oil and gas has brought hardships to our communities. But rest assured, the oil and gas companies remain transparent and diligent partners in addressing these concerns,” Lopez said. “We must avoid overregulating this sector.”

Chair of the Eddy County Board of Commissioners Bo Bowen pointed to contributions by the industry to the county’s infrastructure like roads. He said Eddy County was able to invest about $150 million into its roads recently, which was made possible, Bowen said, by the fossil fuel industry’s growth.

“These are projects we’ve been able to fund ourselves due to conservative fiscal responsibility and oil and gas,” Bowen said. “It’s safe to say industry is here in New Mexico and it’s thriving. For the last couple of decades, oil and gas has been the backbone of our economy.”

Demand for oil and gas could peak by 2033, according to a report last year presented to the Legislative Finance Committee during a July 2023 meeting. Despite this prediction that demand for fossil fuels, thus oil and gas prices and production, could begin to decline within the decade, Bowen said he was confident the industry would continue its strong support of southeast New Mexico and the entire state.

“We’re sitting in the Delaware Basin which has one of the largest oil deposits in the world. Oil is not going anywhere,” he said. “We’re thankful for the booming economy we have, and proud to be one of the biggest supporters of the state economy.”

Oil & Gas Contributes Record $15.2 Billion To New Mexico

Legislative Finance Committee Revenue Report – June 2024

 

IPANM (May 16, 2024) — Yesterday, the Independent Petroleum Association of New Mexico (IPANM) joined a coalition of oil & gas trade associations across the country led by Western Energy Alliance in filing a lawsuit challenging the Bureau of Land Management (BLM) Fluid Mineral Leases and Leasing Process Rule that was pushed out last month. The new rule ignores extensive technical comments provided by IPANM and other industry groups that demonstrate how small, independent producers will be severely restricted in acquiring federal leases in the future. The coalition’s lawsuit was filed in U.S. District Court in the District of Wyoming.

Regarding yesterday’s filing, IPANM Executive Director Jim Winchester offered the following statement:

“IPANM believes this legal action is necessary to preserve the foundational intent of the BLM to promote fair and equal public land use. IPANM is disappointed Secretary Haaland fails to consider the negative economic ramifications of this overreaching rule to those already in poverty in her home state.”

Additional provisions of the new rule will greatly restrict eligible federal land from leasing, which runs contrary to BLM’s stated mission to promote mixed land use, including the development of available mineral rights through federal oil & gas leasing. The impact of leasing restrictions will diminish revenues through lost royalty payments and substantially reduce bonus payments to New Mexico that provide critical funds for education, public safety, and assistance to impoverished communities. The lawsuit asks the court to invalidate and vacate the new BLM leasing rule on the grounds that it runs contrary to existing law.

Additional trade associations joining the lawsuit include the New Mexico Oil & Gas Association (NMOGA), North Dakota Petroleum Council, Petroleum Association of Wyoming, and Utah Petroleum Association. The associations are represented by Alexander K. Obrecht, Mark S. Barron, and L. Poe Leggette of Baker & Hostetler LLP.

IPANM Joins Legal Fight Against BLM Leasing Rule

IPANM (May 2, 2024) – IPANM’s Legal Challenge to New Mexico’s Ozone Precursor Rule will move forward after the New Mexico State Court of Appeals announced a three-judge panel has been assigned to rule on the case. The Court announced the decision on Wednesday, May 1, 2024 with the publication of the announcement of the three judges assigned to the ruling panel. The case now enters a new phase, with the court taking action on IPANM’s full briefing of the case that was submitted in 2023. IPANM is arguing that the New Mexico Ozone Precursor rule was established without merit or science-based facts on the levels of methane emitted from smaller production wells.

IPANM (April 13, 2024) – In response to the April 12, 2024 formal release of the new Fluid Mineral Leases and Leasing Rule, IPANM released the following statement:

“The Biden administration has created new leasing rules that are unreasonable and go beyond the the existing authority granted to the BLM. The new anti-oil and gas development policies will substantially handcuff production opportunities for small producers. The ultimate goal is clear, bureaucrats in Washington D.C. want to use this rule to prohibit oil and gas development on federal lands. As IPANM made clear in our prior comments, the new rule purposefully allows the administration to deny future leasing without adequate justification or explanation.”

–Jim Winchester, Executive Director, IPANM

IPANM & SF New Mexican (April 12, 2024) – State officials asked a District Court judge in Santa Fe on Friday to dismiss a lawsuit claiming they have violated a 1971 provision in the state constitution calling for the Legislature to control pollution and protect New Mexico’s “beautiful and healthful environment.”

Attorneys for the Legislature and Governor’s Office contend if the court intervenes, as the lawsuit requests, it would undercut lawmakers’ authority to determine environmental laws and, thus, violate the “separation of powers.”

“This would involve the court legislating in major areas of policy, both oil and gas regulation and pollution control, forever,” said attorney Elizabeth Radosevich, who represents the governor. “It is clear that the court, in doing so, would be sitting at the heart of legislative authority.”

A coalition of Indigenous people, youth, frontline community members and environmental groups filed the lawsuit in May 2023. Although the constitutional amendment has been around for a half-century, this is the first lawsuit based on this provision.

IPANM: Judge To Rule On Motion To Dismiss On A Later Date
SF New Mexican: Atencio v NM: Motion To Dismiss Hearing Concludes; No Ruling Yet

 

Carlsbad Current Argus (April 2, 2024) – Recently announced federal air pollution restrictions drew the ire of New Mexico oil and gas leaders arguing intensifying regulations intended to address climate change were unduly burdening fossil fuel producers.

 The Environmental Protection Agency proposed its “waste emissions charge” rulemaking in January, and the New Mexico Oil and Gas Association joined onto a letter led by the American Petroleum Institute opposing the rule it described as a “tax on American energy.”

The proposal was intended to follow provisions of the 2022 Inflation Reduction Act to charge “high emitting” oil and gas facilities $900 per metric ton of methane emitting in 2024, increasing to $1,200 per ton in 2025 and $1,500 per ton in 2026, according to fact sheet published by the EPA.

In the March 26 letter to the EPA, NMOGA and API argued the rule would create regulations problematic to continued fossil fuel production in the U.S.

New Mexico shared the world’s most active oilfield the Permian Basin with Texas, producing about half of the U.S.’ crude oil at about 6.1 million barrels of oil per day (bopd), records show. That production could be put a risk, read the letter, through federal action driving up costs for oil companies.

And oil companies are taking steps to reduce emissions, the letter read, but higher costs would “disincentivize” such technologies.

More:EIA report: Permian Basin will produce 6.1 million barrels of oil per day by April

“This tax on American energy is a serious misstep that could jeopardize our nation’s energy advantage and weaken our energy security,” said API Senior Vice President Dustin Meyer. “U.S. oil and natural gas is innovating throughout its operations to reduce methane emissions while meeting growing energy demand. Yet this proposal creates an incoherent, confusing regulatory regime that will only stifle technology advancements and hamper energy development.”

Oil and gas restrictions coming from other federal agencies

Meanwhile, the Bureau of Land Management published the final version of its methane waste rule March 27, drawing support from conservation groups but similar concerns from energy industry leaders.

That rule added requirements for operators on federal and tribal land to adopt certain technologies to limit methane emissions, targeting capture of 100 percent of produced natural gas. Royalties would be charged for any waste gas, according to the new rule, and companies will be required to reduce gas flaring or venting except in emergencies.

The BLM said it could deny permits to drill for any company that does not comply with the rule. The agency estimated the rule will generate more than $50 million a year in royalty payments to the federal government.

“Strong Interior Department methane waste rules are integral for the United States to protect taxpayers from wasted energy resources,” said Jon Goldstein at the Environmental Defense Fund. “Taking action to limit methane waste on public lands offers a win-win-win for taxpayers, producers and communities harmed by this waste and associated pollution.”

President of the Western Energy Alliance Kathleen Sgamma said the industry does plan to reduce air pollution from operations. She said the BLM’s latest rule improved upon similar regulations during the administration of former-President Barrack Obama by add language to determine if gas is “unavoidably lost” and thus exempt from royalty payments.

“The oil and natural gas industry and the BLM share the goal of reducing waste of natural gas through venting, flaring, and leaks,” Sgamma said. “Western Energy Alliance appreciates that with the waste prevention rule, BLM is attempting to achieve clarity on how to classify waste gas as avoidably and unavoidably lost, and hence whether it bears royalties or not.”

The Obama-era rule was overturned by a Wyoming District Court, and Sgamma said the alliance was reviewing the new regulation to ensure they adjusted previously issues satisfactorily to the industry.

“Even without the rule, companies have joined together to reduce methane emissions, venting, and flaring, with every major basin showing significant declines,” Sgamma said. “Our industry is proud to continue that work with or without new rules.”

Industry defends feds permitting oil and gas drilling

The proposed rules came as more federal land was being leased by the BLM to the oil and gas industry in New Mexico and throughout the American West. Most recently, the agency announced a sale in June 2024, offering 19 parcels of land totaling in 3,128 acres in New Mexico and Kansas.

Federal oil and gas leases came under fire after the administration of President Joe Biden resumed the practice in 2022 following a halt on news leases imposed when Biden took office in January 2021. The first lease sale of the administration, including federal lands in New Mexico, was challenged in court but upheld in a March 22 verdict from the U.S. Court for the District of Columbia.

The court deemed the June 22 sale, including 520 acres in New Mexico, saw the BLM conduct proper environmental reviews, and found the impacts of oil production on the offered lands were within federal standards. The court also said the conservation groups challenging the leases could raise additional concerns when companies apply for drilling permits on the leased lands.

“Accordingly, the Court concludes that BLM did not violate its duty under the (Federal Land Policy and Management Act) to avoid “unnecessary and undue degradation” when authorizing the challenged lease sale,” read the decision.

Sgamma said the Western Energy Alliance successfully argued in court to support the leases, and that oil and gas production on federal land undergoes rigorous oversight to prevent damage to the environment.

“Oil and natural gas developed on federal lands is some of the most sustainably produced in the world, subject to many more environmental protections than nonfederal lands and especially in comparison to other major producing countries,” she said.

New Mexico oil and gas industry criticizes Biden ‘tax’ on oil drilling air emissions

 

EXACT INFO ON WHAT MEMBERS NEED TO KNOW ON THE SEC CLIMATE DISCLOSURE LAW:  HERE – Courtesy of Baker Hostetler & HERE – Courtesy of the National Review

DEPA (April 1, 2024) – LATEST UPDATE

On March 21, nine lawsuits against the SEC on this rule, filed in six different circuits were consolidated and reassigned by lottery to the 8th Circuit in St. Louis, MO. This meant the 5th Circuit ruling in favor of Liberty Energy and Nomad Proppant Services request for a stay was vacated. Liberty Energy and Nomad Proppant Services have filed in the 8th Circuit already asking again for injunctive relief. Working with the Pacific Legal Foundation DEPA and The Texas Alliance of Energy Producers will also be filing suit again in the 8th Circuit over the damage the rule will do to domestic energy producers. At this time, while litigation gets sorted out, reporting will begin in 2026 for fiscal year 2025.

DEPA Driller Newsletter

GREENWIRE (March 24, 2025)| The Biden administration’s landmark climate reporting rule is back in effect.

Judges of the 5th U.S. Circuit Court of Appeals dissolved their stay against the Securities and Exchange Commission corporate disclosure requirements now that litigation over the regulation has been assigned to a different court.

The decision comes a week after the Louisiana-based 5th Circuit sided with two fracking companies that had asked for an emergency stay of the rule that aims to detail the risks U.S. corporations and their investors face from rising global temperatures. On Thursday, the Judicial Panel on Multidistrict Litigation determined through a lottery process that multiple lawsuits against the SEC rule will instead be consolidated in the 8th U.S. Circuit Court of Appeals in Missouri.

One 5th Circuit judge disagreed with the decision to revive the SEC rule. The court noted that Judge Edith Jones, a Reagan appointee, “believes the docket should stay as is pending transfer.”

____________________

The Hill (March 15, 2024) – A federal court on Friday halted a new federal rule that would require publicly traded companies to reveal climate change-related information.

A panel of Fifth Circuit Court of Appeals judges issued an order that pauses the rule as litigation against it plays out.

The order, from Judges Edith Jones, Stephen Higginson, and Cory Wilson — appointed by former Presidents Reagan, Obama and Trump respectively — did not detail the reasons for the pause.

It came after fracking companies Liberty Energy and Nomad Proppant Services sued over the rule. They asked the court to halt the rule in the meantime, arguing that they are likely to ultimately prevail and in the meantime, would face compliance costs.

The pause does not necessarily mean that their case will ultimately succeed or that the rule will be overturned — but, it is an indication that the judges are at least somewhat receptive to the arguments of its opponents.

The rule in question, from the Securities and Exchange Commission (SEC), requires companies to disclose what risks, if any, the changing climate poses for their business.

 

Court halts SEC climate disclosure rule

IPANM (March 29, 2024) – On Friday, Judge Matthew Wilson of the 1st Judicial District Court granted IPANM’s official Motion to Intervene in the Atencio vs. New Mexico lawsuit. This was a critical ruling that ensures IPANM will have a direct “seat at the table” throughout the lawsuit.

In addition to granting IPANM’s Motion to Intervene, Judge Wilson also granted a Motion to Intervene by the New Mexico Chamber of Commerce.

Due to the ongoing nature of the litigation, IPANM will not be commenting formally on today’s hearing. However, IPANM’s Legal Team will now move forward on the next phase of the case.

Additional motion hearings are set to resume in April.

IPANM Granted Motion To Intervene in Atencio vs. New Mexico

IPANM continues to fundraise for this major legal effort.  To donate, please see IPANM’s Legal Fund Update.

 

 

 

New York Times (March 22, 2024) – President Biden halted approvals for new exports of liquefied natural gas to study its effect on the climate, national security and the economy. Major oil- and gas-producing states are angry.

Louisiana and 15 other Republican-led states sued the Biden administration on Thursday over its decision to temporarily stop approving new permits for facilities that export liquefied natural gas.

The lawsuit contends that the Biden administration acted illegally when it decided in January to pause the approvals so it could study how gas exports affect climate change, the economy and national security.

Filed in the United States District Court for the Western District of Louisiana, the lawsuit asks a judge to end the pause, arguing that the White House had flouted the regulatory process and instead taken action “by fiat.”

“There is no legal basis for the pause,” Elizabeth B. Murrill, the attorney general of Louisiana, which led the legal challenge, said in an interview.

Ms. Murrill, who referred to the pause as a ban, said halting permits for any amount of time would hurt states’ economies and would have significant long-term consequences abroad by restricting supplies of gas from the United States to Europe.

The United States is the world’s top exporter of natural gas. Liquefied natural gas is a gas that has been cooled to a liquid state to allow for shipping and storage. Even with the pause, the country is still on track to nearly double its export capacity by 2027 because of projects already permitted and under construction. But any expansions beyond that are now in doubt.

“I’m not sure the American people feel the pain of this particular decision yet, but it is part of a larger plan by this administration to destroy the fossil fuel industry,” Ms. Murrill said.

More: Sixteen States Sue Biden Administration Over Gas Permit Pause