American Oil and Gas Reporter - January 2016 - 123

the Los Alamos National Laboratory.
Regulatory clarity is another priority,
and the report goes on to suggest that
local oil and gas regulation creates redundant and conflicting rules. It says the
state is better suited to regulate the industry
and better served if revenue benefits are
spread across the state, and indicates the
state needs a reputation for streamlined
regulatory processes and working partnerships.
It aims for cooperation between the
state and tribes, and notes the necessity
of access to mineral resources, considering
that 40 percent of Southeast New Mexico
oil production comes from federal lands,
so that BLM inaction or action significantly
impacts the state. The report indicates
the state should comment on proposed
resource management plans and work to
avoid regulatory redundancy.
Meanwhile, it continues, in Northwest
New Mexico, where Navajo lands are
seeing more oil and gas activity, the state
must work closely with tribes to sustain
regional economic development, which
includes seeking creative ways to decrease
backlogs and hire San Juan School of
Energy students.
Another goal is more infrastructure,
which will help prevent wellhead flaring,
increase pipeline capacity for gas and
water, and reduce road wear. More electricity infrastructure also is needed.
The report also seeks more efficient
public buildings, calling on the state to
institutionalize a program for energy performance in public buildings with phased
implementation that requires benchmark-

ing of energy and water use, establishing
targets and preserving energy savings.
HS&E And More
The energy policy report also features
public health, safety and environmental
stewardship as another goal. It acknowledges a number of public concerns, including those about groundwater contamination from oil and gas operations.
Even so, no links between hydraulic fracturing and groundwater contamination
ever have been confirmed. With regard
to air quality, some worry about venting
and flaring, and the report suggests that
with proper infrastructure, "green" or
"reduced emissions" completions can
capture gas that typically is vented or
flared.
The same section of the report also
calls on the New Mexico Oil Conservation
Division to explore the possibility of presumptive, temporary approvals when paperwork is submitted for green completions
and then end that approval if the paperwork
proves unsatisfactory. It also encourages
the EMNRD to commission scientific
studies of health and environmental effects
of oil and gas activity, uranium mining
and nuclear energy development, and advocates public safety regulations for the
oil trans-loading industry while assisting
affected towns and counties with technical
information.
Another goal is encouraging water
conservation and reuse, for which it suggests oil and gas companies should be
rewarded for using the technologies that
best save or reuse water. It goes on to

Kansas Independent Oil
& Gas Association
NICHOLAS K. POWELL
President
Colt Energy Inc.
Mission, Ks.

FROM THE CHAIRMAN
It is an honor to have been chosen to
lead the Kansas Independent Oil & Gas
Association for the next two years as its
chairman. In my 35 years in the Kansas
oil and gas business, I have witnessed
the importance of a strong state industry
association and members who volunteer
their time and talents to protect all Kansas
producers and the companies that serve
them from burdensome taxes and regu-

lations. I look forward to working with
KIOGA President Edward Cross and the
association's committee chairmen as we
tackle the many challenges we are facing,
both locally and nationally. In 2015, the
National Stripper Well Association awarded Ed its Distinguished Leadership Award.
The list of national issues facing our
industry is long, and many could threaten
our ability to stay in business. These in-

reason that it may prove beneficial for
the state to expand state water planning
to include water that lacks any associated
water rights, such as brackish water,
which may help address the oil and gas
sector's needs. Moreover, it continues,
the state should develop a best practices
approach that allows for the surface handling of all water utilized in conjunction
with oil and gas operations.
The report urges the state to develop
an education campaign to increase citizen
knowledge of oil and gas operations and
investment potential. County listening
sessions should be encouraged to allow
local citizens to express their concerns
about oil and gas development.
It recommendation on workforce training says New Mexico universities should
align their curricula with core energy
workforce needs, including support for
two-year programs, an oil and gas law
certification program at the University
of New Mexico School of Law, and a
regulatory engineering program at the
New Mexico Institute of Mining and
Technology. Students should be prepared
to choose energy careers by access to information about jobs, education and training opportunities in the energy industry,
while high school and college students
should be exposed to opportunities in oil
and gas.
As for the state's commitment to implementing its energy policy, the plan
calls on the EMNRD to review the energy
policy on a regular basis with public outreach and participation opportunities every
five years.
❒
clude regulations impacting hydraulic
fracturing; lower emission limits on
methane, carbon dioxide and ozone; an
expanded definition of waters of the
United States; stretching Endangered
Species Act protection to include the
greater sage grouse, lesser prairie chicken,
North American long-eared bat and now
the rusty-patched bumblebee; changing
tax provisions to remove percentage depletion and intangible drilling costs deductions; and easing federal prohibitions
on exporting oil. Kansas producers also
must address state issues ranging from
concerns about induced seismicity, well
abandonments and tax provisions.
As a small Kansas independent oil
and gas producer, it is reassuring to know
that KIOGA and all state and national
associations throughout the country are
working hard to fight the misguided push
to shut down our industry. It is vitally
important for all those involved with our
industry to support-both financially and
actively-not only their own state associJANUARY 2016 123
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