American Oil and Gas Reporter - January 2012 - 238

The Presidential Papers
and potentially backs out Middle Eastern
and Venezuelan imports.
It is purely a common sense project
funded by private enterprise that is of a
magnitude to make a difference in the energy future of our nation.
The Alliance believes industry collaboration is essential for any future success.
That is why we have and will continue to
reach out to our colleagues at the Independent Petroleum Association of America, Domestic Energy Producers Alliance,
America's Natural Gas Alliance, American Petroleum Institute, and all the other
state and regional associations. We applaud
the work of the Ground Water Protection
Council and the Interstate Oil & Gas
Compact Commission, particularly in
creating FracFocus, the hydraulic fracturing national registry.
Leader In Texas
On a state legislative and regulatory level, the Alliance is proud to have been a
leader in supporting disclosure of chem-

icals used in hydraulic fracturing before the
Texas Legislature. Working with our
members and others in the industry, this
disclosure to the Texas Railroad Commission and uploaded onto FracFocus.org
will allow the public needed transparency as we continue to develop our shale resources.
The Alliance also led in uniting the
Texas industry in working to modify
RRC governance, providing it with more
adequate funding, and restoring some
stability to the agency. We are appreciative
of state Representative Jim Keffer, R-Eastland, who chairs the House Energy Resources Committee, for his leadership in
this effort, as well as the chemical disclosure legislation.
In 2012, Texas will be looking at its water resources, spotlighting industry use,
reuse and disposal practices. The Alliance will be involved in dispelling the
myths of water degradation from hydraulic fracturing, encouraging new water
technologies, and working to fund the state

Texas Independent
Producers & Royalty
Owners Association
state revenue and royalty payments.

STEPHEN N. CASTLE
President
Cowboys Resources Corp.
Midland, Tx.

from the chairman
As we begin a new year, the oil and gas
industry offers huge potential to lift the national economy and put Americans to
work. Opportunities from shale plays are
sparking a drilling boom across the nation,
providing new hope while our country
struggles to overcome the latest economic recession.
In 2010 alone, independent oil and gas
producers operating onshore accounted for
nearly 400,000 direct jobs, according to an
IHS Global Insight study. Producers also
generated $263 billion in gross economic output and $69.2 billion in federal and

Unnecessary Regulation
America has more natural gas than Saudi Arabia has oil, and the long-term supply outlook is bright. However, without the
right policies in place
and legislation that encourages exploration
and production, employment opportunities will dwindle, government revenue will
decline, and energy
production will plummet.
Federal agencies such as the U.S. Environmental Protection Agency and the
U.S. Fish & Wildlife Service continue to
propose and implement regulations that unnecessarily impede operations, threaten to
halt future production, and prevent drilling
in key areas of the country. There are no
signs of this regulatory assault slowing, either, with additional burdensome regulation for the oil and gas industry on the way

238 THE AMERICAN OIL & GAS REPORTER

★
water plan for the upcoming half century.
The Alliance Board of Directors voted in
October to support creating a statewide water quality database to provide a base line
for future aquifer management.
This effort will be led the Texas Institute of Applied Environmental Research
at Tarleton State University.
Come join us this year as the Alliance
continues its work to promote and support
the independent producers of Texas. Come
join us in Dallas, Fort Worth, San Antonio, Longview, Corpus Christi and Houston for our Texas energy and environmental
compliance conferences. Join us for our regional membership meetings in Abilene,
Graham and San Antonio, Tx. And particularly, join us on April 22-24 in Wichita
Falls, Tx., for the Alliance annual meeting and exposition.
This is a vibrant organization that
wants your participation to help build a
stronger domestic independent industry,
and to produce more Texas oil and natural gas.
❒
in the coming years.
Our industry continues to be targeted.
EPA is working to adopt air quality regulations for emissions at wells and production facilities. If adopted, the agency's
rules will establish New Source Performance Standards for volatile organic
compounds and sulfur dioxide, and air toxic standards both for oil and natural gas
production and natural gas transmission
and storage. The new requirements will
cause unnecessary burdens, particularly
considering there is a shortage of gathering capacity for captured emissions and
more than 20,000 annual well completions
that potentially could be subject to the
rules.
The EPA's risk assessment shows the
level of risk to public health from oil and
gas drilling and transmission emissions is
low enough to be classified as acceptable
by the agency's standards. Therefore,
logic demands that no additional regulation should be required at this time, and
industry should be allowed to continue
business without further government interference.
Emissions standards are reviewed
every eight years, and until one of these
reviews produces data proving it is necessary to add protections, the EPA should
not propose any. To move forward with

American Oil and Gas Reporter - January 2012

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