American Oil and Gas Reporter - January 2012 - 239

rules regardless of verifiable need is regulation for regulation's sake, and that is a
dangerous path.
EPA has announced that in the coming
year it also will attempt to develop new national standards for disposing of produced water from hydraulic fracturing operations. Additionally, we will watch for
the Department of Interior to propose regulations for hydraulic fracturing in 2012.
Endangered Species
Meanwhile, the USFWS is working to
determine whether to list an ever-growing
number of species as endangered or
threatened under the Endangered Species
Act. This carries a real risk of limiting oil
and gas operations and hurting the Texas
economy.
There are 111 species waiting on a USFWS endangerment determination in
Texas, many of which can be found in the
heart of Texas' shale plays. One creature,
the dunes sagebrush lizard, could have a
significant impact on the Permian Basin,
if listed as endangered.
The Permian Basin produces more
than 1 million barrels of oil each day, accounting for 20 percent of lower-48 production in addition to 68 percent of
Texas' oil production. However, if the
dunes sagebrush lizard is designated as endangered, the resulting regulatory protections will limit or halt industry activity in and around its habitat.
In efforts to prevent the stifling impacts
of an endangerment listing, industry representatives and Texas elected officials
have been working hard to establish a conservation plan that will allow operations
in Texas to continue while simultaneously reducing threats to the species.
In all cases, regardless of the agency,
regulations should be backed by verifiable
data and proven necessity. Rather than submitting to overreaching, onerous federal
regulations, industry groups must work together to urge officials to enact pro-development policies that encourage increased domestic production of oil and natural gas. With proper support and a prudent regulatory environment, the industry
will continue to spur U.S. economic
growth and dramatically improve the
country's energy security.
Develop Infrastructure
As the shale revolution continues, additional infrastructure will be needed to efficiently transport resources to market.
From the Eagle Ford Shale here in Texas
to the Utica Shale in the Northeast, the potential supply from these plays is enormous,
and we will need the proper take-away ca-

pacity to be able to market the oil and natural gas. Several pipelines are in the works
that will help with effectively transporting
oil and natural gas to Texas refineries, but
more will be needed in the future.
Moreover, as we begin to see robust
growth in natural gas used as a transportation fuel, more fueling stations will
need to be built to support increased use
of compressed natural gas. Currently,
there are about 960 stations nationwide,
with more than 100 in the works.
Here in Texas, our state government is
providing incentives to develop additional infrastructure. During their 82nd legislative session, Texas lawmakers passed
SB 20, which created the Natural Gas Vehicle Program to encourage companies to
replace their on-road, heavy-duty vehicles
with natural gas vehicles or to repower
them with natural gas engines. The new
law also established the Texas Clean
Transportation Triangle to provide grants
for constructing natural gas fueling facilities along the interstate highways connecting Houston, San Antonio, Dallas and
Fort Worth.
Texas, Colorado, Oklahoma, Pennsylvania, Wyoming and other states are offering incentives to promote increased use
of NGVs. In November, governors for
these states announced plans to replace
thousands of vehicles in their state fleets
with NGVs, helping to drive demand for
more fueling stations and cars that run on
this clean-burning alternative fuel.
Lifeline For Economy
With 2012 being an important election
year, we can make positive changes at the
ballot box. We must continue to elect officials who support and protect the oil and
natural gas industry, since it is the lifeline
for our economy. Every day, American
families with dwindling employment
prospects are finding a new lease on life
through the steady job creation resulting
from simply developing resources in our
own country.
To continue being a bright spot in
these dark economic times, we need to return to a state of normalcy, establishing a
predictable regulatory environment that encourages growth rather than stifling it. Doing so will spur business and generate more
positive activity in the years to come.
Day in and day out, the Texas Independent Producers & Royalty Owners Association will continue to serve its membership, as well as the entire industry, by
advocating to preserve the ability to explore
for and produce crude oil and natural gas,
and by fighting to ensure the industry continues to thrive and prosper.
❒

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JANUARY 2012 239

American Oil and Gas Reporter - January 2012

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