American Oil and Gas Reporter - February 2017 - 32

intent to quickly get to work to stop WOTUS in its tracks once the new administration takes office."
Adds Senator Ernst, "I have heard
from farmers, manufacturers and small
business owners across Iowa about the
confusion and burdensome red tape the expanded WOTUS rule creates. It is imperative we relieve hardworking Americans
from this power grab."
In two other January legislative devel-

opments:
* Alaska Republicans Lisa Murkowski and Dan Sullivan introduced S 49, the
Alaska Oil and Gas Production Act,
which they say would allow limited oil and
natural gas development within the nonWilderness portion of the Arctic National Wildlife Refuge.
* Democrats Dianne Feinstein and
Kamala Harris of California, Ron Wyden
and Jeff Merkley of Oregon, and Maria

Cantwell and Patty Murray of Washington
introduced S 31, the West Coast Ocean Protection Expansion Act, which would amend
the Outer Continental Shelf Lands Act to
permanently prohibit drilling offshore
California, Oregon and Washington.
According to congress.gov, a companion bill, HR 169, was introduced by 19
Democratic representatives from California, Washington and Oregon, led by
Jared Huffman of California.
r

API Seeks Fair, Reasonable Treatment
By Bill Campbell
WASHINGTON-Smart, necessary,
common-sense regulation and equal treatment under the tax laws are two of the
American Petroleum Institute's goals for
the new Trump administration and 115th
Congress.
President and Chief Executive Officer
Jack Gerard outlined API's lobbying priorities in an early January "State of American Energy 2017" webinar and press conference.
At the core of API's agenda, Gerard indicated, is government recognition of
how the 21st Century energy renaissance
brought about by advances in horizontal
drilling and fracturing technology can benefit America.
"We have a once in a generation opportunity to find solutions for many of today's
most pressing issues, including creating
middle class jobs, tackling income inequality, ensuring sustained affordable energy
for consumers, and enhancing our national security," he extolled.
"The question we face is not whether
the United States has the natural resources, talent and technology to produce
and refine the energy we need to grow and
prosper," Gerard posed. "But we need
smart, pro-growth energy policies that promote safe and responsible energy development, and that recognize the central role
fossil fuels will play in meeting future energy demand.
"We hope the new Congress and Trump
administration will choose collaboration
with industry, and a market-based approach that is always focused on what is
best for consumers as their guiding principles," he added.
Near-Term Agenda
Looking at specific issues, Gerard cited a "regulatory onslaught" over the past
several years that seemed "designed more
to stifle domestic fossil fuel development
than to benefit the American consumer."
He said API would ask Congress and
32 THE AMERICAN OIL & GAS REPORTER

President Trump to focus initially on regulatory activities that were unnecessary and
frequently overlapped state regulations. He
called much of the previous administration's regulatory agenda "redundant, conflicting and confusing."
Among their roles, he mentioned the
Environmental Protection Agency's New
Source Performance Standard for methane
emissions, calling it an attempt to regulate
"an activity that we are demonstrating is
improving on a day-to-day basis."
Another example, Gerard continued, is
the Bureau of Ocean Energy Management's proposed air quality controls targeting emissions of volatile organic compounds, oxides of nitrogen, sulfur oxide,
carbon monoxide and particulate matter on
the Outer Continental Shelf. He pointed
out that BOEM had announced the proposed rules even though a study to determine whether there was any onshore impact from offshore emissions had not yet
been completed, and called them "wholly unnecessary."
Also on the list, Gerard said, is the Bureau of Land Management's venting and
flaring regulations. He noted that states already regulated venting and flaring, and
should remain the primary authorities.
Turning to federal income tax reform,
Gerard said, "People should be treated
equally, equitably and fairly."
He recalled proposals by the Obama administration that specifically targeted oil
and gas industry tax provisions, and suggested "the approach offered in (the
House of Representatives' "better way" tax
reform blueprint) has leveled that playing
field, but most importantly, we believe, recognizes the capital intensive nature of the
oil and gas industry."
Observing that "94 percent of federal
offshore acreage is off limits to energy production," Gerard called for greater access.
He also emphasized energy infrastructure. The United States has become a world
leader in crude oil and natural gas production, he reflected, "but we have to be able
to move that product efficiently, so infra-

structure is a priority. I think President
Trump is focused on that already, and I am
hopeful he will turn his attention very
quickly to some of those projects that could
be approved and immediately put thousands of people back to work."
Consumer Oriented
Longer term, Gerard said API hoped
the government would re-examine its underlying regulatory regimes such as the Endangered Species and National Environmental Policy acts "to determine what
needs to be done to regulate smartly and
with common sense, but yet achieve our
potential as a world energy superpower."
Recalling election-night polling that
found 80 percent of American voters
supported increased domestic energy production and refining, and 81 percent supported increased development of the country's energy infrastructure, Gerard said all
of API's long-term agenda came under the
umbrella of providing affordable and reliable energy supplies.
"It is our hope," he said, "that the incoming administration and Congress will
embrace our nation's potential as a global energy leader, and work with the industry to ensure consumer demand is met and
that America's (energy) renaissance will
continue."
He concluded, "The very foundational nature of oil and natural gas as a
source of electricity, fuel and feedstock for
everyday products makes the national
energy policy discussion more than a
collection of abstract policy positions. It's
about what is best for American workers,
consumers, families and the environment;
truly energy is everything."
r

Coming In March
Best practices for well placement,
lateral length, frac stage density, and
proppant/fluid volumes in resource
plays.
http://www.congress.gov
American Oil and Gas Reporter - February 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - February 2017
