American Oil and Gas Reporter - January 2015 - 206

The Presidential Papers
New And Amended Rules
In addition, PAW has been working
diligently to counter a proposal that asks
the WOGCC to mandate a quarter-mile
drilling and production setback from buildings. A local environmental group offered
the proposal and, through hard work and
diligence by PAW member companies,
its terms were adjusted to be more realistic.
Now, the commission seeks to increase
the setback requirement from 350 to 500
feet for occupied structures, and includes
an information component. The information component is included to inform
owners of occupied structures within
1,000 feet of a proposed operation about
the project's process, expected timelines,
operator's contact information, and mitigation measures.
The proposed rule seeks to better inform adjacent landowners and homeowners of the operations that will take place
within a 1,000-foot radius of their properties. The mitigation measures likely to
be implemented include options for sound
and light abatement as well as actions to
reduce dust. PAW has worked extensively
on the proposed rule and expects WOGCC
to hear it in February, but as of early December, a hearing date had not been set.
More wells and growing production
prompt agencies other than WOGCC to
offer additional proposals to regulate
Wyoming's industry. PAW member companies also are engaging in matters of air
quality regulation and lawsuits.
Air quality regulations are being proposed for sources in the western portion
of our state in an attempt to relieve some
of the pressure associated with a nonattainment designation for ozone under the
Clean Air Act. WDEQ is crafting the existing source rule amid much debate from
both industry and environmentalists, and
the proposal has seen several revisions
already. We expect the rule to be finalized
in 2015, most likely in the first quarter.
PAW is concerned about implications
for the WDEQ proposal as EPA considers
tightening ozone standards to a limit as
low as 60 parts per billion. If EPA drops
the ozone standard far enough, many
Wyoming communities-and perhaps even
Yellowstone National Park-will be deemed
in nonattainment. How the EPA rule influences the WDEQ rule remains to be
seen, but rest assured PAW staff and
member companies will be engaged in
the process.

Meanwhile, environmental groups have
filed a lawsuit against EPA because they
want the agency to include oil and gas
processes in Wyoming's regional haze
calculations. Wyoming's very specific
regulations regarding oil and gas emissions
and required controls have been created
to ensure precise compatibility with the
state's varying topography, climate differences and production areas. PAW member companies have joined the fight to
prevent oil and gas operations from falling
under EPA's regional haze requirements,
and plan to file an amicus brief in coordination with the state asking EPA to
reject the notion that oil and gas operations
belong in regional haze calculations, es-

pecially when specific regulations already
address such emissions.
More than ever, oil and gas companies
working in Wyoming need to support
PAW and its efforts to represent the industry.
PAW's staff and various member committees do an excellent job providing issue
expertise and a united voice. Throughout
my career, I have never experienced a
time in which our industry has been under
attack from so many directions, but that
helps demonstrate the value PAW offers
its membership as the association fights
for balance and fairness at every turn. No
doubt 2015 will be a challenging year in
Wyoming.
Ì

South Carolina Oil &
Gas Association
JUSTIN SUTTON
Director
Green Energy Fuels
Pawleys Island, S.C.

FROM THE DIRECTOR
When people think of industry in
South Carolina, what comes to mind may
include agriculture, fishing, tourism,
chemicals, automobiles, and textiles. All
of these business segments, along with
others, are greatly appreciated and extremely important to the economic wellbeing of our state.
But a new industry is set to emerge
that will create jobs; add needed tax revenues to South Carolina's state government, schools, universities and municipalities; and assist the United States in
its quest to become truly energy independent: the oil and gas industry.
In the past two years, South Carolina
has been in the unique position of having
potential reserves identified both onshore
and offshore. Although drilling hasn't
begun yet, issues of overall environmental
stewardship, royalty revenue sharing,
mineral rights, hydraulic fracturing and
protecting offshore marine life have become topics of conversation throughout
the Palmetto State.
In response to our state's potential as

206 THE AMERICAN OIL & GAS REPORTER

an oil and gas producer, SCOGA was
formed to foster positive growth for the
energy industry, provide public education
outreaches to inform South Carolinians
about the industry, and help demonstrate
that oil and gas development and environmental stewardship are mutually
achievable ends.
Indeed, we at SCOGA place a premium
on environmental stewardship to protect
the economic and aesthetic interests and
features that make South Carolina so special to ourselves and our visitors. We believe energy production and conservation
are fully compatible, and together can
help drive economic growth, generate
needed tax revenues in a low-revenue
state, and protect our natural resources at
the same time.
Our association is in a unique position.
Normally, oil and gas reserves have been
discovered and developed, and industry
participants and affiliated businesses have
formed an association to help promote
and direct industry efforts in a particular
region. However, its directors and initial

American Oil and Gas Reporter - January 2015

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