American Oil and Gas Reporter - March 2020 - 81

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ConventionSection: Texas Independent Producers & Royalty Owners
Meanwhile, every signatory of the
Paris Climate Accord lags behind America
in emissions reduction, he notes. "The
United States continues to dominate as a
global leader in oil and natural gas production and environmental stewardship,"
Longanecker describes. "Only through a
fair, stable regulatory environment has
the country been able to accomplish such
major achievements, leading to cleaner
air and water and record oil and gas production. Unfortunately, unbalanced policies
such as the so-called 'Green New Deal'
would not only devastate our economy
and undermine national security, but also
hinder important advancements and innovations pursued by U.S. companies to
help the environment."
More Regulations
TIPRO is celebrating EPA's shift on a
rule it had issued that defined waters of
the United States for purposes of Clean
Water Act oversight. The latest WOTUS

definition, announced in late January,
will offer clarity, predictability and consistency so the industry can understand
the proper application of federal law,
Longanecker says.
On the state level, TIPRO weighed
in on RRC revisions that became effective
Jan. 6 to Rule 70 on pipeline permit
fees and Chapter 8 on pipeline safety
regulations, he reviews. The revisions
include regulation of all natural gas and
hazardous liquids gathering pipelines
located in Class 1 locations, Longanecker
observes.
Accordingly, the adopted version of
the rule requires operators of Class 1
rural gathering lines to operate pipelines
in a reasonably prudent manner to promote
safe operation and report incidents and
accidents to the RRC.
Operators will investigate incidents
and cooperate with RRC investigators,
he says. The RRC may require the operator
to submit a corrective plan of action to

remediate an accident, incident, threat to
the public or complaint, Longanecker
says.
Proposed reporting, investigation and
corrective action requirements will allow
the RRC to gather accurate data and analyze trends in occurrences and assess any
public safety risks associated with rural
gathering systems in Class 1 locations.
In February, the RRC revised Statewide
Rule 40 on assignment of acreage, Longanecker adds. While TIPRO generally
supports the changes, the association has
offered minor amendments to ensure operators can fully develop Texas mineral
resources, he says.
TIPRO's suggested amendments seek
to alleviate excessive and unnecessary
administrative burdens on applicants,
allow the RRC to grant specific exceptions
in extenuating circumstances, and allow
an operator to have a hearing instead of
having a case handled administratively,
he concludes.
❒

Industry Remains A Major Employer
AUSTIN, TX.-Texas operators produced 1.8 billion barrels of oil in 2019,
surpassing 2018's record output, while
2019 gas production also reached new
levels, topping 10.1 trillion cubic feet,
indicates a "State of Energy" report the
Texas Independent Producers & Royalty
Owners Association issued at the end of
January.
TIPRO points to several policy developments in the report's fifth edition,
including the new United States-Mexico-Canada Agreement, signing of the
first phase of a trade deal with China,
and a revised Waters of the United States
rule, all of which the association predicts
will benefit U.S. oil and natural gas
producers.
TIPRO notes that the 1.8 billion barrels
coming out of Texas surpasses production
from North Dakota (507 million barrels),
New Mexico (316 MMbbl), Oklahoma
(213 MMbbl) and Colorado (188 MMbbl),
while the Lone Star State's gas production,
in addition to exceeding the previous
record of 9.6 Tcf set in 1972, tops the
6.8 Tcf Pennsylvania produced in 2019,
as well gas coming out of Alaska (3.3
Tcf), Louisiana (3.1 Tcf) and Oklahoma
(3.0 Tcf).
According to the association, it developed the report series to help quantify

and track the economic impact of domestic
oil and natural gas production, with an
emphasis on Texas' contribution. The reports analyze national and state trends in
oil and gas employment, wages and other
key economic factors.
The TIPRO report says the U.S. oil
and gas industry employed 895,629 professionals, an increase of 8,454 jobs compared with 2018. The industry paid a national annual average of $114,745 in 2019,
more than double average private sector
wages, TIPRO recounts. It adds total U.S.
goods and services purchased in 2019 by
the industry exceeded $528 billion from
more than 900 business sectors.
According to TIPRO, Texas accounted
for 40% of all U.S. oil and gas jobs, supporting 361,271 direct jobs. That was a
net increase of 5,550 jobs over the 2018
total, and came about despite a downturn
in oil and gas employment in the second
half of 2019. The "State of Energy Report"
also notes during 2019, Oklahoma added
398 industry jobs for a total of 68,468,
while New Mexico's industry employment
increased 758, to 24,720 jobs in the same
time frame.
"A reduction in available capital led
to a slowdown in industry activity and a
decline in employment during the second
half of the year in 2019, with further

cuts expected in the first quarter of 2020,"
relates Eugene Garcia, TIPRO chairman
and president of Hurd Enterprises LLC.
"Despite numerous challenges that faced
domestic producers in 2019, the Texas
oil and gas industry has remained a cornerstone of the economy, providing highpaying career opportunities, as well as
significant taxes and royalty payments
made to state, local and federal government entities."
Between 2010-19, TIPRO says, total
state taxes and state royalty payments
paid by the industry in Texas exceeded
$116 billion, including a record $16.3
billion in 2019.
"TIPRO remains focused on supporting
a targeted federal policy agenda, while
protecting and strengthening an already
robust business and regulatory environment
in Texas," says association President Ed
Longanecker. "Key priorities for TIPRO
at the state level during the next legislative
cycle will include a long-term solution
to funding transportation investment in
energy-producing areas, workforce development, and a balanced approach to
critical infrastructure needs that recognize
the dominance of the mineral estate, existing laws and regulations, and private
property rights."
❒
MARCH 2020 81



American Oil and Gas Reporter - March 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - March 2020

Contents
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