American Oil and Gas Reporter - December 2017 - 98

the proposed rules are extremely proscriptive and limit the industry's ability
to implement operational efficiencies developed through technological advances
and hands-on experience. Overregulation
and restrictive rules only add cost to
those who follow the rules and limit the

ability of those with the most expertise
to develop effective solutions."
In addition to the initial comments
submitted, NDPC says it also has provided
supplemental comments suggesting including the qualifier "if available" to several regulatory provisions. These include

requiring providing oil and gas metering
systems' serial numbers and detailed
schematics of flowlines and transfer lines
during a bond and transfer of wells. In
many circumstances, NDPC argues, this
information is not available to well owners.
r

Agencies Reduce Regulatory Burdens
WASHINGTON-Among federal agencies that have released their responses to
President Donald Trump's order to curb
regulatory burdens, the Environmental
Protection Agency and the departments
of Interior and Energy all say their plans
promote domestic energy development
while protecting the environment.
In May 2016, then-candidate Trump
promoted a test for any regulation before
it was enforced by his administration:
"Is this regulation good for the American
worker? If it doesn't pass this test, this
rule will not be under any circumstances
approved. In a Trump administration, political activists with extreme agendas will
no longer write the rules, because that is
what is happening now."
Trump signed Executive Order 13783
on March 28. According to the document,
it is in the national interest to promote
clean and safe energy development while
"avoiding regulatory burdens that unnecessarily encumber energy production,
constrain economic growth and prevent
job creation." The order directs federal
agencies to immediately review regulations
that present potential burdens to developing
and using domestically produced energy
resources, and suspend, revise or rescind
those that unduly burden that development.
Environmental Protection Agency
Comments received on the EPA's "Final
Report on Review of Agency Actions
that Potentially Burden the Safe, Efficient
Development of Domestic Energy Resources under Executive Order 13783"
center on specific rule makings, the agency
says. Those themes include streamlining
complex permitting programs, restoring
EPA's co-regulatory relationship with the
states, increasing transparency regarding
the economic impacts of agency actions,
and enhancing EPA's understanding of
the entities it regulates.
To meet the requirements of EO 13783,
EPA says it has identified four initiatives
it believes will help reduce regulatory
burdens on domestic energy sources:
* Comprehensive New Source Review
reform;
* National Ambient Air Quality Stan98 THE AMERICAN OIL & GAS REPORTER

dards reform;
* Robust evaluations of the employment effects of EPA regulations; and
* A sector-based outreach program.
In its analysis of the Clean Air Act's
preconstruction permitting program, the
New Source Review, EPA notes the potential costs, complexities and delays that
may arise from that permitting process
may discourage facility construction or
modifications. The agency says it has received numerous public comments stating
the NSR permitting process is unduly
lengthy and complex, and the application
and construction costs to meet its provisions are exceedingly high. Commenters
complain the program often discourages
industry from modernizing facilities for
fear of triggering NSR obligations, while
others suggest EPA defer to state decisions
on applying NSR requirements.
To conform with EO 13783, EPA says
Administrator Scott Pruitt has asked courts
to delay acting on lawsuits while the
agency reviews the contested regulations.
EPA reports among the affected legal actions are suits involving the Clean Power
Plan and its "Standards of Performance
for Greenhouse Gas Emissions from New,
Modified and Reconstructed Stationary
Sources." According to the agency, it also
plans to review its final rule "Oil and
Natural Gas Sector: Emission Standards
for New, Reconstructed and Modified
Sources, including amendments to Subpart
OOOO, and its proposed "Federal Plan
Requirements from Greenhouse Gas Emissions from Electric Utility Generating
Units Constructed on or before Jan. 8,
2014."
Interior Department
In its report, "Review of the Department
of Interior Actions that Potentially Burden
Domestic Energy," the Department of Interior affirms it is committed to an America-first energy strategy that fosters domestic production to keep energy prices
low for American families, businesses
and manufacturers. Interior Secretary Ron
Zinke issued seven secretarial orders to
achieve that goal, and established a staff
position to coordinate the department's
energy policy, including promoting energy

development on public lands and developing strategies to minimize regulatory
burdens.
One of the secretarial orders, "American
Energy Independence," revokes Secretarial
Order 3330, governing mitigation policies,
DOI says. It also directs all bureaus and
offices to review actions taken regarding
rescinded executive orders related to climate change, and orders reviews of department regulations concerning:
* The Bureau of Land Management's
hydraulic fracturing rule;
* BLM's waste prevention, production
subject to royalties, and resource conservation rule;
* The National Park Service's federal
oil and gas rights rule; and
* The U.S. Fish & Wildlife Services'
management of nonfederal oil and gas
rights.
Another of Zinke's orders promotes
opportunities for offshore energy exploration, leasing and development on the
Outer Continental Shelf. It implements
reviews of regulatory actions ranging
from the Bureau of Ocean Energy Management's Notice to Lessees No. 2016N01 on OCS leases and rights of way;
BOEM's air quality control, reporting
and compliance rule; and the Bureau of
Safety & Environmental Enforcement's
OSC blowout preventer rules.
The department also is establishing a
sage grouse review team to examine the
agency's 2015 sage grouse plans and associated policies, "giving appropriate
weight to the value of energy and other
development on public lands within BLM's
overall multiple-use mission." Zinke also
ordered a review of the offshore oil and
gas leasing program, with the goal of ensuring quarterly lease sales are held consistently, and to identify ways to promote
exploration and development of federal
offshore resources, including improving
the permitting process.
Energy Department
Among its action items, the "Final
Report on Regulatory Review under Executive Order 13783" from the Department
of Energy aims to streamline natural gas
exports and plans to review National En-
American Oil and Gas Reporter - December 2017

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