American Oil and Gas Reporter - January 2016 - 134

The Presidential Papers
PERMIAN BASIN
PETROLEUM ASSOCIATION
DANNY CAMPBELL
PRESIDENT
HENRY RESOURCES
MIDLAND, TX.

FROM THE CHAIRMAN
Thomas Jefferson is credited with saying, "Do you want to know who you are?
Don't ask. Act. Action will delineate and
define you."
The actions of the Permian Basin's
oil and gas companies during 2015 most
certainly delineated and defined who we
are. We are an innovative, resilient and
persistent bunch who, undeterred by adversity, have taken and will continue to
take action.

We find ourselves in an economic environment none of us would choose.
However, the Permian Basin Petroleum
Association's membership has not thrown
in the towel. Through the use of technological refinement and advances, operators
and service companies have increased
performance and lowered costs. We are
taking action and doing what we must to
brave the storm.
When costs can drop no lower, companies will make-as some already have-
the necessary reductions in capital programs to protect longer-term projects.
We all are well aware that the oil and gas
industry is a rate-of-return business. If
our rate-of-return competes well with
other industries on a risk-weighted basis,
capital will flow into the industry and
hopefully limit, if not prevent, those reductions. That is one of the free market's
balancing mechanisms.
Whether we are perfecting processes,
developing and using technologies, or reducing capital programs, those of us in
the industry are taking actions to continue

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134 THE AMERICAN OIL & GAS REPORTER

operations even in the face of tough economic conditions. Those conditions, however, are not the only threat to our livelihood.
Feather In The Cap
I once was advised that no matter how
bad things are, you always can make them
worse. Increased federal regulations on
methane and carbon emissions, limitations
on the markets for our production and
efforts to restrict the lands on which we
can operate are only a few of the impediments government has imposed on our
operations. Maybe the advice should have
been, "No matter how bad things are, the
government always can make them worse."
Thankfully, this is where PBPA's staff
has proven its worth with actions to rein
in federal overreach.
A campaign to provide factual, scientific and legally backed comments on the
Environmental Protection Agency's proposed methane regulations was spearheaded by our staff and bolstered by research and comments submitted by several
members. Of top concern among PBPA
members is EPA's proposed source determination rule. Also of particular concern
is the reduced emission completion requirements for oil wells, the portion of
the proposed rules pertaining to leak detection and repair, and EPA's general
cost/benefit analysis, especially with
regard to small producers.
Meanwhile, our staff has worked tirelessly to educate and contribute to the
congressional efforts to remove the ban
on U.S. crude oil exports. I would be
remiss not to mention the great work of
our region's own Congressman Mike
Conaway, R-Tx., chairman of the House
Agricultural Committee, who not only
offers legislation in his own committee,
but has backed the efforts of others. One
of the most recent examples was an amendment offered by Congressman Joe Barton,
R-Tx., as part of the North American Energy Security and Infrastructure Act, which
passed out of the House on Dec. 3.
But the feather in our cap has been
the association's fight against the U.S.
Fish & Wildlife Service's decision to list
the lesser prairie chicken under the Endangered Species Act. In our suit against
USFWS and the Department of the Interior
in federal court, PBPA has received a
ruling that revokes the USFWS's original
listing. The victory would have been impossible without the hard work and ded-

American Oil and Gas Reporter - January 2016

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