American Oil and Gas Reporter - March 2024 - 29

ConventionSec tion: Oklahoma Energy Producers Alliance
Federal Methane Moves
Imperil Small Wells
By Del Torkelson
ARDMORE, OK.-The metaphors
conjure stark differences when Oklahoma
Energy Producers Alliance Chairman
David Little ponders how each administration
treats the oil and natural gas industry.
" It is black and white, " describes
Little, president of Kingery Energy in
Ardmore. " It is night and day. "
That sums up the contrast between
President Joe Biden's administration and
that of Oklahoma Governor Kevin Stitt,
Little suggests. Although Oklahoma policymakers
often incorporate industry input
into their initiatives, he indicates, the U.S.
Environmental Protection Agency's
methane rulemakings are only the latest
example of how little federal regulators
listen to feedback from oil and gas voices.
" The EPA's methane mandates have
the lion's share of our attention because
the monitoring and reporting expenses can
be pretty burdensome for a smaller operator
with wells that make three or four barrels
a day, " he relates. " If you keep hitting
them with more expenses, at some point
they will not make any money. "
OEPA members will discuss how to
respond to those mandates and more when
the group gathers for its convention, scheduled
for March 21-22 in Oklahoma City.
" I hate to keep harping on what EPA is
doing, but the situation is right in front of
us and we are going to talk about it at the
annual meeting, " Little says. " It is important
to educate our members about it, because
none of us can get away with sticking our
heads in the sand and claiming ignorance. "
Small Wells, Heavy Burdens
Little offers a straightforward interpretation
of the actions taken by EPA
and the rest of the Biden administration.
" They intend to run us out of business, "
he assesses. " They want us to plug our
wells and do something else. That message
comes not only from President Biden,
but also from so many in Congress who
talk and think like he does. "
Methane and other greenhouse gases
should not be ignored, Little insists, but
hydrocarbons' indispensable place in
" I am sure our country needs to work on
methane and carbon emissions, but the pace
some people are setting is crazy. "
-David Little
OEPA Chairman
modern life makes it reckless for policymakers
to act as if there are no downsides
to impairing their production. Noting that
California authorities urged electric automobile
owners to stop charging their
vehicles during summer heat waves, Little
says he wishes more Americans would
recognize the costs of undermining traditional
energy.
" I am sure our country needs to work
on methane and carbon emissions, but
the pace some people are setting is crazy, "
he says. " It's not like batteries and windmills
are bad, but people need to know
the truth about the big picture. "
That big picture not only reveals that
small producers are a significant source
of American energy, Little says, but also
shows that they are especially vulnerable
to EPA's methane requirements. He points
out that many of his wells are equipped
with diesel engines and pneumatic controllers,
which are targeted by the agency's
OOOOb and OOOOc standards. Moreover,
he adds, even if some small facilities
slip below EPA's regulatory thresholds,
they are unlikely to escape the agency's
forthcoming methane tax.
" If production is inspected and falls
under the guidelines, you may be okay,
but even if you are exempt from reporting,
you still may have to pay the tax, " he
muses. " And even if you are exempt at
first, the threshold will fall in coming
years, meaning companies that did not
have to file before will have to file later. "
Considering small wells' minuscule
methane emissions, Little suggests the
focus should be on shrinking those emissions
instead of shrinking the number of
productive oil and gas wells. " Companies
like ours are concerned about cash flow,
net income and taking care of our employees, "
he describes. " Most producers
just want to do our thing, but we are conscientious
about doing what is right. "
State Issues
Although Oklahoma's policymakers
tend to give oil and gas perspectives a
much better hearing than they get in
Washington, Little observes that the industry's
message will not disseminate itself.
With the 2024 Oklahoma Legislature
underway, the group's outreach to lawmakers
has included the energy briefing
OEPA held on Jan. 30 in the Capitol, at
which the association shared its thoughts
on oil and gas issues in the session.
Such events are effective largely because
they are supported by less visible work,
Little reports. Ultimately, he emphasizes,
a viewpoint carries weight with lawmakers
and regulators only if it comes from a
trusted source. " Relationships are extremely
important, " he reflects. " That is why we
work on our relationships with legislators,
Oklahoma Corporation commissioners
and OCC staff. It has gone pretty well. "
Well plugging is one issue on which
OEPA is lending its voice, Little mentions.
Since the state is devoting considerable
attention to the matter, Little says OEPA
wants to make sure Oklahoma does not
MARCH 2024 29
American Oil and Gas Reporter - March 2024

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