American Oil and Gas Reporter - July 2016 - 105

Summer Convention
According to Burd, IOGAWV meets
Aug. 7-9 at The Greenbrier Resort, with
a golf tournament on tap the morning of
Sunday, Aug. 7, and an evening welcome
reception that historically has drawn West
Virginia legislators and members of the

state's congressional delegation.
In addition to morning recreational activities scheduled for Monday, Aug. 8,
events also include an educational session
set for 2:30 p.m., and will include updates
on pipeline issues, legislation and pipeline
safety.

A round table discussion scheduled for
2:30 p.m. Tuesday, Aug. 9, includes state
and industry representatives discussing severance and property tax issues, complying
with AST rules, and a look at the 2017 legislative agenda, Burd says.
❒

WGA Seeks Authority Over Fracturing
DENVER-The federal government
should leave regulation of hydraulic fracturing to the states, and should engage
states more in endangered species decisions and management, according to the
Western Governors Association (WGA).
Energy and endangered species were at
the heart of two resolutions adopted by
WGA members at their 2016 annual
meeting in June in Jackson Hole, Wy. Other WGA resolutions deal with federal/state
land exchanges, combating invasive
species, fire management, abandoned
mines, and national parks.
WGA's resolution on energy and transmission points out that "states, territories
and flag islands have regulated the practice of hydraulic fracturing for decades, and
redundant federal regulation is not required
where sufficient state regulations exist."
The resolution also notes that WGA has
published a 10-year energy vision for the
West that has among its goals:
* A balanced portfolio of renewable,
nontraditional and traditional resources;
* Increased energy productivity associated with electricity and natural gas;
* Establishing an energy distribution
infrastructure (electricity transmission
and pipelines) siting and permitting system that facilitates development while
maintaining wildlife, natural resource and
environmental protection; and
* Protecting wildlife, natural resources, and the environment.
WGA's energy resolution also contends
the Merchant Marine Act of 1920 "has prevented certain noncontiguous states, territories and U.S. flag islands from being
supplied with domestically produced energy commodities," and asks the federal
government to "allow those jurisdictions
(that desire it) to receive energy commodities . . . transported by foreign vessels."
Endangered Species
WGA's resolution on species conservation and the Endangered Species Act generally calls for greater state involvement
in species management and for reforming
the ESA.
The resolution observes that "species
listings and associated prohibitions can im-

pact Western states' abilities to promote
economic development, accommodate
population growth, and maintain and expand infrastructure," adding that the costs
of ESA compliance fall disproportionately on Western states and communities.
Consequently, the Western governors
hold that "states should be provided the opportunity to be full partners in administering and implementing the ESA."
Their resolution calls on the U.S. Fish
& Wildlife Service and the National Marine Fisheries Service to:
* Define a clear methodology for
delisting recovered species;
* Establish a comprehensive system of
incentives for state and local governments to develop water, land-use and development plans that meet both their
needs and those of the ESA;
* Provide tools and incentives for
landowners to preserve habitat; and
* Address ways to discourage litigation.
The WGA resolution also decries using climate change as a factor in assessing the need to list a species.
It states, "States are concerned about the
use of the precautionary principle in services' listing regulations and recovery planning processes. This principle, coupled
with overreliance on predictive models that
have not been validated with independent
observational data can have the effect of

removing species from state jurisdiction
and extending critical habitat into areas requiring extensive ground-truthing."
The governors object to the services expanding the definition of critical habitat to
unoccupied areas that merely have the potential to become habitat in the future. They
argue, "This overly broad reading can add
unnecessary and uncompensated regulatory burdens and costs," and "runs counter to statutory guidance and adds unnecessary regulatory burdens."
The resolution maintains that state
and multistate conservation plans "should
give rise to a regulatory presumption that
an ESA listing is not warranted so long as
resources and mechanisms are in place to
implement such plans."
Finally, WGA calls on Congress to
reauthorize and reform the ESA based on
seven broad goals. Among them are:
* Requiring clear recovery goals for
species and actively pursuing delisting of
recovered species;
* Ensuring the use of sound science in
ESA decisions;
* Providing a clear definition of "foreseeable future;" and
* Enhancing the role of state governments in recovering species, as well as in
making listing, critical habitat, recovery
planning, and delisting decisions.
❒

Iowa Regulators Approve Portion Of Dakota Access
DES MOINES, IA.-The Iowa Utilities
Board has approved conditionally the
Iowa portion of the Dakota Access
Pipeline, a 1,168-mile system to move
Bakken Shale crude from Stanley, N.D.,
to an oil terminal hub near Pakota, Il.
According to Energy Transfer Partners
Dakota Access LLC, the 30-inch pipeline
will initially transport 450,000 barrels a
day through four states, and has the potential to grow to 570,000 bbl/d, about half
the Bakken's current daily crude oil production.
North Dakota, South Dakota and Illinois regulators approved the project earlier. Construction is expected to begin later in 2016, the company says.

Iowa regulators say Dakota Access will
be granted the required permit only after
it meets several conditions. Those involve
implementing an involuntary easement
policy, land mitigation plan and parent
company guarantees. In addition, the
board states the company must maintain
a general liability insurance policy of at
least $25 million, and must file unconditional and irrevocable guarantees from its
parent companies for remediation of damages from a leak or spill.
Under Iowa law, a permit issuance includes the right of eminent domain across
parcels where Dakota Access has been unable to negotiate voluntary easements, the
board notes.
❒
JULY 2016 105



American Oil and Gas Reporter - July 2016

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