A presentation from Susan Ginsberg, with the Independent Petroleum Association of America.

1. Arkansas Independent
Producers & Royalty
Owners Annual Meeting
October 11, 2018
National Regulatory Update
And Election Analysis
Susan Ginsberg
Vice President, Crude Oil &
Natural Gas Regulatory Affairs

2. House Likely to Flip
Energy and environment Issues Scenario
• Pass legislation to restore environmental and public
health protections
• Protect public lands and disallow the killing of animals on
wildlife refuges
• Repeal tax breaks to multi-national oil companies and
invest in clean energy jobs
• Resume commitment to the Obama-era pledge to cut
carbon pollution by 30% by 2030

3. Look Who Could Be Back…
• Nancy Pelosi (D-CA)
• Minority Leader – No. 1 House Democrat
• Previous experience as speaker
• Largest Dem. fundraiser
• Has led House Dems since 2003

5. Regardless of Party Control…
- Gridlock will remain
- Focus will continue at agency levels

6. Agencies of Interest to Independent
Producers
–Environmental Protection Agency
–Pipeline and Hazardous Materials
Safety Administration
–Federal Energy Regulatory
Commission

7. EPA -- OOOOa
– EPA issued 2016 New Source Performance
Standards for the Oil & Natural Gas Industry
(40 CFR Part 60, Subpart OOOOa)
– Final rule targeted low-production wells,
based on specious study
– Independent producers challenged rule
– On September 11, 2018, EPA proposed
targeted improvements to the 2016 Standards

8. EPA OOOOa—Issues for Independent
Producers
– Fugitive Emissions Program
• Support for annual, not semi-annual monitoring
• Need for alternative or state programs to allow for
technological improvements
• Off ramp for marginal wells
• Clarification of what storage tanks would be
subject to rule

9. EPA OOOOa—Issues for Independent
Producers
– Proposed changes are positive development
– Overall, changes keep standards as methane
proposal
– Comments due 60 day after FR publication
– Potential to change to a Volatile Organic
Compounds (VOC) proposal
• Would open up path to nationwide existing source
problems
• Compliance likely to be too costly for marginal
wells

10. PHMSA Gas Pipeline Safety
– NOPR issued April 2016 for regulation of
natural gas gathering & transmission pipelines
– Numerous comments and meetings held
– Gathering eventually separated out from
transmission issues
– Gathering lines regulation to be discussed at
January meeting of Gas Pipeline Advisory
Committee

11. Regulation of Gas Gathering Lines
– At PHMSA’s urging, industry has been
working on new recommended practice, to
update and replace API’s RP80
– Draft RP did not obtain sufficient votes to
move forward
• Concern that it was overly complicated
• Concern that it created too many loopholes that
would preclude support from other sectors
– New effort underway

12. Federal Energy Regulatory Commission
– Key agency for approval of interstate gas
pipelines
– Recent certificate approvals sharply divided
along party lines—3 R votes to 2 D votes
– FERC now has only 4 commissioners
– Trump nominated Bernard McNamee, now
head of DOE’s Office of Policy

13. Other Impediments to Infrastructure
– Overall, growing opposition to fossil fuels:
Keep It in the Ground
– Concerns with grant of Eminent Domain
– Administration efforts to prop up coal, nuclear
– Use by some states of CWA Sec. 401
permitting to stop interstate gas pipelines
• Legislative interest to stop its misuse
• Industry to focus will be on regulatory interpretation

14. Keep on Keepin’ On
– Industry
• Maintain an active litigation role to resolve existing
litigation and respond to new environmentalist actions
• Expand presence in regulatory arena to support reform
actions and provide information to regulation dockets
• Support state delegation requests and both federal and
state funding
• Develop grassroots responses to counter aggressive
environmental efforts to increase state regulation and
opposition to permits

15. Energy In Depth
To stay informed and to get access to the facts,
www.EnergyInDepth.org

16. Questions
Contact Susan Ginsberg at sginsberg@ipaa.org