American Oil and Gas Reporter - December 2024 - 28

starved off leasing, and the situation
cannot be corrected overnight. "
Regulatory determinations and other
discretionary moves are another way in
which presidential administrations exercise
considerable influence, Longanecker notes.
He cites the example of the Biden administration's
hints about plans to designate
the Permian Basin as failing to attain
Clean Air Act standards for ozone. Such
a move would trigger stricter regulatory
and leasing requirements in the basin.
" EPA's current leadership has said
pursuing nonattainment in the Permian
Basin is not a matter of if, but when, "
Longanecker cautions. " That would be
massively impactful to our industry. Under
new leadership, I do not think nonattainment
will be on the table any longer. "
He also highlights that the incoming
administration also has discretion on matters
such as a petition for review filed by
a coalition of 25 trade associations and
many large and small operators, regarding
OOOOb/c and Subpart W. The petitions'
national applicability under the CAA requires
them to be filed with the U.S.
Court of Appeals for the District of Columbia
Circuit, Longanecker explains,
which he says is a forum that tends to
side with the EPA over industry.
Requests and petitions for reconsideration
of both rules also have been filed
with the EPA, Longanecker continues.
Depending on the issue, if EPA denies
the petition, that decision can be appealed
to the DC Circuit. Opening briefs for
the appellants were due on Nov. 25, he
notes, and EPA's response is due in January.
The new administration is likely
to seek more time and work to put the
litigation in abeyance, pending action
on the reconsideration requests, Longanecker
predicts.
Trade Troubles
Even if oil and gas advocates generally
are encouraged by Trump's election, the
executive branch's influence over U.S.
trade policy is one area that elicits expressions
of wariness about the incoming
administration's plans.
" It is going to be an issue, " Naatz acknowledges.
" The president-elect has
been very clear about his desire for new
tariffs, which concerns many of our members.
We will have to talk with the administration
about it, because we believe
free trade is important. "
Watts predicts Americans will be skeptical
of any tariff that elevates consumer
costs, whether at the gasoline pump or
the grocery store. " President Trump has
to be very careful with how he sells that
to the American public, " he advises. " I
would like to see free trade without the
tariffs, but I understand other countries
need to know they cannot take advantage
of America. Hopefully the tariffs will be
a great bluff, but their use is a president's
prerogative. "
Burd suggests that strategic tariffs and
other trade policies may help the United
States compete better and depend less on
foreign imports for materials such as rare
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American Oil and Gas Reporter - December 2024

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