American Oil and Gas Reporter - January 2012 - 226

cess. New Mexico's oil and gas industry
believes these agreements are the most effective method to accomplish the dual goal
of access and habitat protection.
Against the backdrop of demonstrable
progress, the prospect looms for listing the
dunes sagebrush lizard under the federal
Endangered Species Act. The implications
of a listing for the industry are a matter of
hot debate both inside and outside the industry. Some in the environmental community assert that a listing would have minimal impact for operators. However, the
historical implementation of the ESA indicates otherwise.
A NMOGA study shows that 41 percent of oil wells drilled in New Mexico
from September 2010 to August 2011 were
in township/range locations that have
been identified as containing lizard habitat. With reasonable rules that allow for adjustments in locating drilling pads to protect dune complexes, this statistic could be
considered cause for optimism. However,
rules that provide for very large buffer
zones around dune complexes could complicate development.
No matter how the lizard listing process
plays out, fast on its heels will be the potential listing of the lesser prairie chicken.
Despite the fact that eastern New Mexico
appears to be only a transitory range for
the lesser prairie chicken, with other areas
of the great plains having sufficiently
large populations to allow for hunting, the
USFWS appears to be moving forward
with a possible listing.
A lesser prairie chicken listing poses a
large risk to the industry. This is because
the potential range of the chicken covers

an even larger portion of the Permian Basin
that overlaps areas of proven and potential oil production than does the dunes
sagebrush lizard's habitat.
My cause for hope in these species proceedings stems from the great work the industry continues to do under the CCA and
CCAA frameworks. The industry, in collaboration with the BLM and USFWS, has
shown itself to be a proactive force for protecting the dunes sagebrush lizard and lesser prairie chicken.
Outreach And Interaction
A final cause for optimism is New Mexico's increasing receptivity to discussing

and understanding the contributions oil and
gas make to the state's overall economy
and way of life.
NMOGA has made it a top priority to
better communicate the challenges and contributions of the oil and gas industry in areas far beyond the producing regions of the
San Juan and Permian basins. We have
been pleasantly surprised at the receptivity of political leaders, business leaders, educational leaders and private citizens when
we take the time to clearly and simply explain our industry. Expanding community engagement will be an area of continued
emphasis by both our member companies
and association staff.
❒

Oklahoma Independent
Petroleum Association

ROBERT J. SULLIVAN
Chairman and Principal
Sullivan & Co. LLC
Tulsa

from the chairman
For the past three years, the oil and natural gas industry has weathered a continuous attack from the Obama administration and the federal agencies under its direction.

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Hosted by the Oklahoma Commission on
Marginally Producing Oil and Gas Wells

October 4, 2012
9:00 a.m. - 4:00 p.m.
Cox Pavilion
Oklahoma State
Fairgrounds
226 THE AMERICAN OIL & GAS REPORTER

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Things will not improve in 2012.
And for that reason, this industry must
join forces to push back against jobs-destroying tax increases, burdensome and unnecessary regulatory mandates and the villainous stroke painted on us by the president and his compatriots.
With presidential
elections looming, the
oil and natural gas industry will be at the
forefront of the national debate about this country's future.
Despite the fact that independent oil and
natural gas producers have unlocked a century's worth of natural gas and the continental United States' largest new oil field
in the Bakken Shale, our nation's highest
elected official derides the industry, is a frequent critic of "big oil," and continuously has called for eliminating longstanding
tax provisions for the oil and natural gas
industry in order to fund alternative energy research.
Through the Oklahoma Independent
Petroleum Association's federal lobbying
efforts and its partnership with the Domestic Energy Producers Alliance, the
voice of Oklahoma's independent producers is being heard in Washington. In order for this industry to continue to prosper, the voice of independent producers
from all states must be heard.
In Oklahoma and other energy-producing states, lawmakers and citizens understand our industry's importance. Those
of us who live close to the wellhead understand and depend on the impact this industry has on jobs and the overall economy. As oil and natural gas production
moves into states that traditionally have
seen little to no energy exploration, mis-

American Oil and Gas Reporter - January 2012

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