David Porter: Obama a ‘Mouthpiece for Propaganda’

RRC’s Porter Challenges Clean Air Act

RRC’s Porter Challenges Clean Air Act

Railroad Commission Chairman David Porter joined officials from several energy states to voice their opposition to the EPA’s clean air act.

Related: EPA: Tougher Methane Emissions Approved

Porter testified before the U.S. House Committee on Energy and Commerce last week, strongly urging lawmakers to prevent the Obama administration from continuing to assume unconstitutional powers and adding obtrusive regulations on the states.

Porter made a case that the constrictions of the Clean Air Act are onerous, unnecessary and overreaching.

The underlying themes in EPA rulemaking under the Obama Administration have been the consolidation of increased regulatory power in the Federal Government to the detriment of State authority, and the circumvention of the regulatory authority granted to EPA by Congress.” He went on to say that “The President disregards the Constitutional limits of his office and public opinion to forward his own liberal agenda that combats fossil fuels and favors unreliable and costly alternative energy sources. In promoting this agenda, he has allowed EPA to become the mouthpiece for ideological propaganda.
— David Porter

Last summer, President Obama revealed a plan designed to cut greenhouse gas emissions 40 – 45 percent by 2025. After almost a year, the EPA finalized the new rule in May that sets standards for methane leaks along the natural gas production line.

The new standards are stronger than those proposed last summer and look to reduce 520,000 short tons of methane in 2025 instead of 400,000 in the original proposal. This is equivalent of 11 million metric tons of carbon dioxide.

In his testimony, David Porter shared his concerns about the how the Clean Air Act was conceived, claiming:

  • Minimal interaction and consultation with Texas and other State regulatory authorities
  • Underestimated or ignored compliance costs
  • Overestimated, unjustified and exaggerated regulatory and environmental benefits
  • Increased regulatory and economic burden on operating companies, particularly the smaller operators who make up an overwhelming majority of the industry in Texas
  • Creation of “one-size-fits-all” regulations that ignore the significant differences in regional operating conditions and State regulatory systems

Others who testified included Lynn Helms, director of the Oil and Gas Division of the North Dakota Department of Mineral Resources and Travis Kavulla, Vice-Chairman of the Montana Public Service Commission.

Read Porter’s full testimony here.

Eagle Ford Midstream Deal Worth $44 Million

$44 Million Midstream Deal

$44 Million Midstream Deal

Sanchez Production Partners has announced their intention to purchase Eagle Ford midstream assets.

Related: Natural Gas Will be a Boom for Eagle Ford Companies

Sanchez Production Partners (SPP) has initiated a transaction with Sanchez Energy to acquire 50% interest in Carnero Gathering, LLC. The company expects that the $44 million deal will increase their midstream revenue and adjusted EBITDA to approximately $7 million.

The Carnero Gathering System will ultimately connect45 miles of high pressure natural gas gathering pipelines from the Western Catarina Midstream system to a new plant in La Salle County.

The Catarina asset is core to Sanchez Energy’s asset base and plans for future development. Since acquiring the asset in 2014, Sanchez Energy has reported strong results from its drilling program at Catarina, where the company has identified between 1,200 and 1,300 net drilling locations. We look forward to capitalizing on opportunities to grow alongside this leading Eagle Ford operator over time.
— SPP Website

Other details include:

  • An initial payment of approximately $37 million in cash
  • Sanchez Energy will assume remaining capital commitments of approximately $7.4 million
  • SPP has amended its $500 million credit facility to stipulate conditions for investments in joint ventures
  • The processing plant is expected to be operational in early 2017

Read more at SanchezEnergyCorp.com

Sitton: Frack Ruling Right Decision

Recent fracking ruling is a ‘landmark’ case, according to Texas Railroad Commissioner Ryan Sitton.

Related: Bakken Officials Applaud Court ruling on Fracking

State officials from oil and gas producing regions are lauding the recent ruling that struck down new regulations for fracking in public lands. Even state that aren’t specifically affected are saying the ruling affirms their power to oversee their own state’s oil and gas activity.

After the Bureau of Land Management (BLM) proposed tougher fracking regulations last year, industry groups joined with several states to form a massive case that was heard in Judge Scott Skavdahl’s court. The argued that fracking rules aren’t necessary because the EPA has already granted authority to the states to monitor and protect underground water sources. Last month, Stavdahl affirmed that the BLM had overstepped their authority and affirmed that the states have an interest to regulate hydraulic fracturing.

Texas Railroad Commissioner Ryan Sitton spoke to Midland Reporter about the decision, hailing it as a landmark case where constitutional issues trump politics. He said that the Railroad Commission’s expertise is far superior to that of far-off bureaucrats, which makes them the best agency to monitor environmental rulings in Texas.

I really applaud the judge. He seemed to steer very clear of politics in this decision and talked very clearly about what powers were enumerated to the executive branch, that Congress had not given this power to the executive branch. He talked about activities that were going on the states, and I think that this sends a very broad message that states have been regulating this and have a very good track record at regulation.
— Ryan Sitton

Texas officials currently faces environmental issues around the state as more and more people express concerns over the impact of oil and gas activity. In April the U.S. Army Corp of Engineers (USACE) tightened fracking regulations near a North Texas Dam after concerns over the proximity of oil and gas activity.

Related: Fracking Rules Tightened in North Texas

Marathon Fined for Eagle Ford Infractions

Map Showing Threat of Harmful Gas Exposure in Eagle Ford

Map Showing Threat of Harmful Gas Exposure in Eagle Ford

Marathon Oil admits to air quality violations in the Eagle Ford.

Related: Oil & Gas ‘Threat Map’ Pinpoints Millions at Risk in Texas

Marathon Oil will pay $7320 after failing to conduct performance tests and for exceeding the natural gas production rates by 5.43 million standard cubic feet per day at the company’s Live Oak facility.

The Texas Commission on Environmental Quality issued a fine of $11,000 originally, but was reduced based on Marathon’s compliance history and for good faith since the company self-reported the incidents. After paying $3,000 in fines, the company will make a donation to a tire cleanup program through the Texas Association of Resource Conservation and Development Areas.

Marathon Oil is committed to safety and environmental stewardship. Updated and streamlined procedures, checks and balances have been implemented since these self-reported items were identified.
— A spokeswoman for the company, Briana Lyssy

Earlier this month, environmental groups released a “threat map’ that showed Eagle Ford counties are at the highest risk for exposure to dangerous gas and air pollution of any area in the state. The map of Texas details the 398,787 active oil and natural gas wells currently in use in the state with over 2.3 million people within the 1/2 mile radius of risk. The map highlights counties in the Eagle Ford as having the highest risk of exposure to methane and carcinogens including DeWitt, Karnes, McMullen, Frio and Zavala Counties.