American Oil and Gas Reporter - September 2024 - 33

ConventionSec tion: Texas Alliance of Energy Producers
the board, but especially to smaller independent
operators who, as always,
would have been disproportionately negatively
affected, " it says. " The result
would have been fewer wells drilled,
especially conventional activity, around
the state; would have reduced the number
of workovers; and ultimately would mean
lower activity levels and less product
brought to market. "
Herrick praises the RRC's desire to
manage long-term pits while protecting
water sources as well as the commission's
recognition that its first draft needed extensive
improvement. " When the first
draft came out, it was overly broad, put
everything into the same bucket and imposed
unnecessary burdens, " he describes.
" I doubt that was the intent, and so the
Alliance made a real effort to work closely
with the RRC. "
According to Ingham, the new version
virtually eliminates all the Alliance's
previous concerns. " That is another example
of a commission that rightly believes
its role is to properly regulate the
state's oil and gas industry to make sure
that it operates safely and within the
rules while ensuring that activity is maximized, "
he reflects. " Had the earlier version
of those rules become law, it would
have dramatically increased the expense
of drilling and working over wells, which
would have discouraged those activities,
especially for smaller independents. "
Herrick suggests the revisions offer a
prime example of the Alliance's importance.
" Providing feedback on the rule
has been an opportunity for us to consider
what the commission is seeking, take a
step back, and make sure everything is
correctly defined, " he relates. " It looks
like the revision will work well for operators
while protecting water sources. "
2025 Legislature
As the 2025 Texas Legislature approaches,
Herrick emphasizes that the
Alliance wants to avoid setting its game
plan for the session without first obtaining
plenty of member input. For that to
happen, members must take time to
express their concerns, something the Alliance
strives to make as easy as possible.
" That means listening to them at regional
meetings in places such as Abilene, Graham,
Tyler and Amarillo so we can take those
matters to Austin, " he considers. " It is
about meeting members where they are. "
Another way the Alliance receives
member input is through its Legislative
Committee's virtual roundtable meetings,
Ingham reports, and a recurring theme in
those discussions deals with matters of
electricity, especially in the Permian
Basin. " There are real constraints to continued
growth there, one of which is the
availability of electric power, " he describes.
" This is top of mind for some of our
larger members. "
better understanding of the industry's
positive economic contributions than
ones in many states. "
Annual Convention
The Alliance will hold its 2024 annual
convention Oct. 3-4 at the Crescent Hotel
in Fort Worth. According to Ingham, subjects
likely to appear on the schedule in " This
is a relationship business, and you don't want the first
time that you ever talk with folks to be when you need
something from them. You need ongoing conversations. "
- Karr Ingham
Texas Alliance President
And while the Alliance is likely to
support bills to encourage more power
generation, he says, it also will be on the
lookout for wrongheaded proposals. Winter
Storm Uri in 2021 demonstrated how the
industry can be unfairly faulted for power
shortages instead of recognized for its
critical role in maintaining generation,
Ingham recalls.
" We do not want blame for things
that are not our fault, nor do we want to
be brought under an additional, unwarranted
regulatory regime simply because
of a high-profile event, " he characterizes.
" It does not take long for a few groups to
start pointing fingers and put natural gas
on the defensive. "
A second issue for which Ingham says
producers have caught some undeserved
blame deals with wildfires in the Texas
Panhandle, which some media reports
have attributed to production sites' power
lines. " The House formed an interim committee
to study that issue, from which
emerged a notion of greater regulation
for oil and gas facilities, " he mentions.
" It was only a single sentence that did not
define anything, but it is our job to resist
punitive and harmful regulatory actions. "
Nevertheless, he expresses confidence
that Lone Star State policymakers will
gravitate toward sensible laws and regulations.
That is not merely attributable
to Republicans' control of the state's
House of Representatives, Senate and
governorship, Ingham says, but also a
likely impact of the fact that 85% of
Texas counties produce oil and/or gas.
" It is truly a statewide industry, " he observes.
" Our policymakers have a much
clude electric power and federal methane
policies. " This meeting will offer a good
combination of practical benefits for operators
of all sizes and our legacy of
looking out for their interests, " he outlines.
" We are going to let members know how
much we appreciate them. "
" We specifically picked Fort Worth because
it puts us in the middle of the state
and allows a lot of people to participate, "
Herrick mentions. " Folks who come will
see we are honing our focus on giving
members as much benefit as possible, with
a lot of practical information about best
practices in our state. I hope attendees
leave with a few nuggets to run their businesses
better and more efficiently. "
According to Ingham, events will begin
on the afternoon of Thursday, Oct. 3 with
a Board of Directors meeting, followed
by an opening reception and a private
Board of Directors dinner. Friday, Oct. 4
opens with a keynote breakfast, followed
by morning sessions and a keynote luncheon
that will feature Karl Rove, who served as
White House deputy chief of staff for
President George W. Bush.
" We will have great food, fellowship
and opportunities to see old friends, " Ingham
says. " I am looking forward to this
and hope we have fantastic attendance.
This meeting is going to be worthy of it. "
" I always love it when we bring in
true industry voices, " Herrick concludes.
" It is interesting to hear from politicians,
but I am more interested hearing from
people on the ground, conducting transactions
and operations or trying to interpret
regulations. Hearing their stories really
moves the needle for me. "
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SEPTEMBER 2024 33
American Oil and Gas Reporter - September 2024

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