American Oil and Gas Reporter - May 2016 - 16

IndustryDigest
says the agencies propose to modify the
2015 proposal to simplify the way
petitioners coordinate with states,
remove a requirement that petitioners
certify they have provided all relevant
information, and clarify a proposed
limit of one species per petition.
The Independent Petroleum
Association of America was still
reviewing the new proposal, but at first
glance, Director of Government Relations
Samantha McDonald expresses
disappointment that "some of the changes
appear to water down the significance of
what was proposed previously."
In a proposal published in the April 21
Federal Register, USFWS and NMFS say:
* They are replacing the original
proposed requirement that petitioners solicit and include in their listing petitions
information obtained from state wildlife
agencies with a requirement that petitioners simply notify each state wildlife
agency in which a species occurs at least
30 days before submitting a petition.
* They are removing a proposed requirement that a petitioner certify it
gathered all relevant information on the
petitioned species as too difficult.
* They are clarifying that their proposal to limit petitions to a single
species applies to taxonomic species,
meaning that a petition may include
multiple subspecies. For vertebrates,
this includes multiple distinct population segments, USFWS explains.
McDonald says IPAA "believes
improvements to both the ESA and its
administration could be made that would
do a far better job in recovering species
than the status quo. Increasing
transparency, elevating the engagement
of the states, and minimizing the extent
to which litigation takes priority over
species recovery all would be
meaningful and important
improvements. We continue to stand
ready to work with the administration
and Congress toward improving the act."
The revised proposal may be found at
http://federalregister.gov/a2016-09200.❒

PPROA Calls For Limit
To Crude Oil Imports
As A 'Line In The Sand'
AMARILLO, TX.-Following the
failure of 18 oil-producing countries
inside and outside of the Organization
of Petroleum Exporting Countries to
16 THE AMERICAN OIL & GAS REPORTER

reach an agreement to freeze oil
production at an April 17 meeting in
Doha, Qatar, the Panhandle Producers
& Royalty Owners Association is
supporting limits to foreign oil imports.
PPROA says the "Panhandle Import
Reduction Initiative" is a "line in the
sand against further price and supply
wars against oil communities, working
families and producers not only in
Texas and the Southwest, but across the
entire United States. The United States
should no longer allow Saudi Arabia
and the Middle East to manipulate our
economy by crippling our ability to
produce and use our own natural
resources."
The association explains that the
movement grew out of a meeting of
about 60 Texas Panhandle producers
under the direction of Daniel Fine, a
Saudi Aramco economist and strategist,
and Tom Cambridge of Cambridge
Production in Amarillo. "PPROA did
not start the organization and has not
contributed to the initiative, although
we do support it," the association
clarifies.
PPROA says the group's plan is to
revive the 1959 quota system imposed
by President Dwight Eisenhower, which
it says "worked for 14 years to keep
domestic oil from going out of
business."
The initiative seeks a total ban on
light, tight oil imports within the first 60
days of the new American president's
term beginning in 2017. Also similar to
the Eisenhower quota, PPROA says the
initiative would limit imports of sour oil
to 10-12 percent of yearly American
demand, which it says is enough to
accommodate Canada's current exports
to the United States.
PPROA points out that the lower oil
prices fall and the longer they languish,
the higher they will go and the longer
they will remain high when demand
inevitably surpasses oil supply. But, the
association warns, "That could be too
late for the United States because U.S.
operators and other international
companies are not investing in
exploration. The oil we will need in five
to 10 years is not being discovered and
developed today.
"OPEC cannot supply all the world's
needs," PPROA continues. "When
demand outpaces supply, the price will
skyrocket and stay there until the oil
operations that are curtailed now can

ramp back up. That may take years
because of all the layoffs taking place.
All consumers will be hurt by the high
prices. That would not happen if we had
reasonable prices today to let us keep
exploring for and developing new oil
reserves for our future needs." ❒

Louisiana Governor, AG
Seeking To Intervene In
Parish Coastal Lawsuits
BATON ROUGE, LA.-Louisiana's
governor has filed a petition seeking to
intervene in 39 coastal damage lawsuits
filed by three parishes, saying he wants
to ensure the state's interests are
protected and that any money recovered
will be spent on coastal restoration.
Over the past three years,
Plaquemines, Jefferson and Cameron
parishes have sued several oil and gas
companies, alleging their exploration
and production efforts have caused
damage to coastal lands and water
bodies, Governor John Bel Edwards
office says. The governor's order to the
Louisiana Department of Natural
Resources follows the intervention of
Louisiana Attorney General Jeff Landry
in the same cases.
"While we need to require that all
follow the law and meet their
obligations, any solution of these suits
has to be focused on working with the
industry to restore Louisiana's coast,"
Edwards says.
Landry adds that the state could
balance the benefits provided by the oil
and gas industry with mitigation
projects to protect the coastal region.
The Louisiana Oil & Gas
Association cautions that it remains
unclear what impact the state's moves
could have on the lawsuits. In joint
comments submitted to parish officials,
LOGA, the Louisiana Association of
Business and Industry, and the Louisiana
Mid-Continent Oil & Gas Association
say they are committed to working with
state officials on the coastal issue.
The Louisiana Department of
Natural Resources regulates the oil and
gas industry through a rigorous
administrative process to ensure all
coastal use permits comply with the
Coastal Zone Management Act, the
groups say. "Any issues or concerns
regarding permit compliance can be
addressed through the administrative
review process without the excessive
American Oil and Gas Reporter - May 2016

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