American Oil and Gas Reporter - July 2020 - 66

IssuesUpdate: Texas Independent Producers & Royalty Owners
the devastating economic impact of the
coronavirus, we will see a strong resurgence in global demand. Arbitrary government mandates, such as a proration
policy, would lead to an unstable and unpredictable environment for members of
TIPRO and the industry as a whole."

According to Longanecker, TIPRO understands any production cuts will not
fully alleviate the market challenges. He
notes that requiring Texas operators to
anticipate other nations or states adhering
to reduction agreements will have increased
market volatility and uncertainty, and is

likely to unduly impact the state's small
and independent producers.
"TIPRO remains vigilant of the fact
that a one-size-fits-all approach does not
affect all proportionately and we should
continue to promote free market principles," he says.
❒

Texas Grants Some Regulatory Relief
AUSTIN, TX.-Texas regulators are
helping operators mitigate the impacts
of low commodity prices and decreased
energy demands because of the COVID19 virus. The shock of the unexpected
and unprecedented pandemic is compounded by the market upheaval caused
by Saudi Arabia and Russia increasing
oil supplies right as the pandemic hit,
describes Ryan Paylor, director of government and regulatory affairs for the
Texas Independent Producers & Royalty
Owners Association.
"The Texas Railroad Commission has
relaxed some regulatory requirements
specific to fees and immediate reporting
requirements. For instance, if a company's
workforce is depleted and it can't have
workers on a site within 15 days, maybe
that requirement now has a 30-day response requirement. TIPRO has been
working with the commission on these
relief issues," he says.
TIPRO President Ed Longanecker says
the association applauds the RRC's decision to also establish a task force supporting recovery of the state's oil and
gas industry. Its plans include fee relief,
relaxed reporting requirements, additional
deadline extensions and other mechanisms
to expand storage capacity in Texas.
"Navigating an uncharted and everchanging economic oil and gas landscape
suggests the need for less regulatory red
tape, reduced expenses and the ability to
make business decisions based on market
principles; not operation schedules and increased fines on businesses struggling to
stay afloat," he asserts. "The implementation
and advocacy of these recommendations
will help to alleviate burdens that will positively influence the business decisions of
all small and independent producers."
Longanecker adds that TIPRO has
played a leading role on the task force.
Its recommendations are designed to provide small producers with regulatory
relief, though when possible, he notes
the task force encourages relief be granted
66 THE AMERICAN OIL & GAS REPORTER

to all operators, regardless of size.
Eugene Garcia, TIPRO's chairman,
asserts the association's focus remains
on ensuring agencies such as the RRC
balance regulatory obligations with helping
oil and gas operators regain their economic
health. "The RRC has taken some good
steps in terms of making sure various
permitting processes are expedited and
facilitated so that we can continue to be
effective as an industry," he applauds.
"Overall, the oil and gas industry has
had a positive and dynamic relationship
with state regulators," notes Garcia, president of Hurd Enterprises IncLtd. in San
Antonio. "There always is healthy discord
between industry and regulators, in terms
of funding or discussing specific policy
items. That is par for the course, and that
is a healthy and positive debate. TIPRO
is at the forefront of ensuring that dialogue
takes place in a productive manner."
Flaring
One of TIPRO's strengths is its ability
to form coalitions with other agencies
and organizations to bring about positive
change for the oil and natural gas industry,
Garcia says. He points to the association's
efforts on flaring reductions as one example
of that effort.
"In terms of specifically addressing
methane and other volatile organic compounds in the issue of clean air, which is
very vital to us, the industry has improved
its processes," he says. "During the past
decade, emission controls have improved
considerably, and on this issue TIPRO is
taking an active stance."
Longanecker reports the association
joined the Texas Methane & Flaring
Coalition, an initiative that aims to minimize emissions and flaring in the state
by promoting innovations and sharing
industry best practices.
"This new industry-led coalition reaffirms the commitment of domestic oil
and gas producers who are proactively
taking action, on a voluntary basis, to

further decrease energy-related emissions.
The coalition joins other important industry-led initiatives designed to advance
sustainability and environmental stewardship, and provide a platform for collaboration amongst energy producers in
Texas and across America," he describes.
The United States continues to be a
global leader in environmental success,
Longanecker applauds, citing data showing
total U.S. greenhouse gas emissions have
dropped 12% since 2005. He points out
every one of the countries signing the
Paris Accord trails the United States in
overall emissions reductions.
He attributes these positive energy
emission trends in large part to voluntary
actions taken by U.S. operators, including
an investment of more than $300 billion
in GHG mitigating technologies by U.S.
oil and natural gas companies during the
past 20 years. "Through the flaring coalition and other industry-backed partnerships and programs, we look forward to
helping Texas producers share best practices and further collaborate on responsibly
developing our nation's energy resources,"
he maintains.
TIPRO continues to work on federal
regulatory issues as well as state priorities,
Paylor says. He points to the association's
collaboration with the U.S. Environmental
Protection Agency on updating emission
standards for new, reconstructed and modified sources for the oil and natural gas
sector. The agency is expected to issue a
final rule this summer.
"In that rule, the agency will adopt
long-overdue policy corrections that promulgate reasonable air quality regulations.
That is something that TIPRO has been
working on since EPA first proposed its
new source performance standards in August 2011," Paylor says. "The association
also has submitted comments to federal
regulators expressing support of policy
improvements proposed by the Trump
administration that would modify methane
requirements for oil and gas producers."

American Oil and Gas Reporter - July 2020

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