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Letters & Comments

Letters and Comments, Offshore Nov 1, 2023

The American Petroleum Institute (API), Energeo Alliance (Energeo), Independent Petroleum Association of America (IPAA), and Louisiana Mid-Continent Oil & Gas Association (LMOGA) (collectively, the Associations) offer the following comments on the Bureau of Ocean Energy Management’s (BOEM) call for information and nominations (Call) for lease sales in the Gulf of Mexico (GOM) Eastern, Central and Western Planning Areas scheduled as part of the 2024-2029 Five-Year Outer Continental Shelf (OCS) Leasing Program. Many of our members operate on the OCS and on federal lands onshore. For many years, the Associations and our members have worked collaboratively with the Department of the Interior (DOI) and its agencies (including BOEM) in support of the continued safety of industry workers and protection of the environment. At the same time, our members rely heavily on Congress’ statutory mandates (repeatedly recognized by the courts) that DOI make the OCS available for leasing and expeditious development. Our members are involved in exploring for and developing oil and natural gas resources in the GOM and we support holding all lease sales as scheduled in the 2024-2029 Proposed Final Program and offering all unleased acreage not subject to moratorium in those lease sales. …

The Associations reiterate their request that BOEM duly finalize its Five-Year Leasing Program, hold all GOM lease sales as scheduled during the 2024-2029 timeframe, and in those lease sales offer on a Region-wide basis all unleased acreage not subject to moratorium.

Letters and Comments, Regulations Oct 31, 2023

IPAA joined with over 70 other trade groups representing diverse businesses across the economy in urging the Biden administration to maintain the existing National Ambient Air Quality Standards (NAAQS) for fine particulate matter (PM2.5). In a letter to White House Chief of Staff Jeff Zients, the organizations warned that moving forward with the Environmental Protection Agency’s (EPA) proposed revisions would jeopardize American jobs and risk substantial economic harm.

The proposed revisions to the standard “would risk jobs and livelihoods by making it even more difficult to obtain permits for new factories, facilities, and infrastructure to power economic growth,” the groups wrote. “This proposal would also threaten successful implementation of the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the important clean energy provisions of the Inflation Reduction Act. Our members have innovated and worked with regulators to significantly lower PM2.5 emissions and further progress is being made as part of the energy transition investments.”

Endangered Species, Letters and Comments, Offshore Oct 6, 2023

“… National Marine Fisheries Service (NMFS) must withdraw the Proposed Rule and reissue a critical habitat proposal that identifies for designation only those “specific areas within” areas of the Gulf of Mexico (GOMx) actually occupied by Rice’s whales that qualify as habitat and on which are “found” the “essential features” of Rice’s whale habitat that require special management. NMFS must consider the material economic, national security, and other relevant impacts of such a designation, including from “adverse modification” findings, as well as the revenue implications for the federal and state governments. Should NMFS move forward with designation of Rice’s whale critical habitat, it should exclude from such designation the central and northwestern GOMx where the impact of a designation would far outweigh any potential benefits to Rice’s whales.”

Endangered Species, Letters and Comments Oct 2, 2023
IPAA submitted comments to the record for the Fish and Wildlife Service’s proposed listing of the Dunes Sagebrush Lizard, whose habitat is primarily the Permian basin. Teaming up with the U.S. Chamber of Commerce, the comments focus heavily on F&WS’s lack of consideration for voluntary conservation measures as well as F&WS’s failure to demonstrate why a listing decision is warranted.
 IPAA is committed to reasonable species conservation but many of the recent listing decision by the Biden Administration are a politically motivated shot directly at the oil and natural gas industry.

Letters and Comments, Methane Oct 2, 2023

Re: Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems; Docket No. EPA-HQ-OAR-2023-0234

The American Petroleum Institute, the American Exploration & Production Council, Independent Petroleum Association of America, The Petroleum Alliance of Oklahoma, and the American Fuel and Petrochemical Manufacturers (collectively “Industry Trades”) appreciate the opportunity to offer comments to the U.S. Environmental Protection Agency (EPA) on the proposed “Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems” (proposed on August 1, 2023). For perspectives of offshore operators, the Industry Trades encourage EPA to also review the Offshore Operators Committee (OOC) letter and incorporate them by reference herein. With this submittal, the Industry Trades seek to continue our participation in the rulemaking process as a collaborative stakeholder by providing meaningful solutions to simultaneously address EPA’s goals while addressing the burden of data collection (and identifying potential unintended consequences) that could result if the rulemaking is finalized as proposed.

The oil and natural gas industry has participated as key collaborative stakeholders, advancing the EPA Greenhouse Gas Reporting Program (GHGRP) since its inception by contributing expertise and proposing alternatives that reflect the reality of the industry and its evolving day-to-day operating practices. The Industry Trades have focused on providing information that will help inform decision makers and the public about various challenges to data collection and reporting required by the rule, which includes safety, accuracy, and feasibility concerns, as well as the need to protect sensitive information and to ensure that reporting requirements are placed on the correct reporters.

These comments on EPA’s proposed revisions to Subpart W reflect our continued interest in the evolution of the GHGRP to provide an accurate accounting of greenhouse gas (GHG) emissions from facilities across the full value chain of the oil and natural gas industry. Our comments cover concerns and recommendations in the wide range of sectors that relate to the operations of our collective members.

Letters and Comments, Methane Sep 30, 2023

Re: Greenhouse Gas Reporting Rule: Revisions and Confidentiality Determinations for Petroleum and Natural Gas Systems

These comments are filed on behalf of the Independent Petroleum Association of America (IPAA). IPAA represents the thousands of independent oil and natural gas explorers and producers, as well as the service and supply industries that support their efforts, that will be significantly affected by the actions resulting from this regulatory proposal. Independent producers drill about 91 percent of American oil and natural gas wells, produce 83 percent of American oil and produce 90 percent of American natural gas.

In addition to the specific comments made herein, IPAA has joined comments submitted separately by the American Petroleum Institute (API).

These comments address proposals by the Environmental Protection Agency (EPA) to revise reporting requirements for Petroleum and Natural Gas Systems for the Greenhouse Gas Reporting Program (GHGRP) under Subpart W.

…

The task mandated to EPA by Congress requires the agency to comprehensively review, revise and validate its Subpart W regulations to make them accurate and reliable because of the role their implementation will play in the MERP, defining exposure and calculating its methane tax. Congress’ deadline of EPA’s action failed to reflect the reality of the task. EPA, faced with the choice of meeting a deadline or meeting its mandate to comprehensively revise Subpart W, chose the deadline and produced a wholly inadequate compendium of emissions calculations. At its best, the Subpart W proposal collects revisions to the current calculation process that EPA failed to validate as either accurate or appropriate. At its worst, the Subpart W proposal is a thinly disguised effort to raise the MERP methane tax rates through careful selection of higher emissions factors and unworkable calculation procedures. EPA should withdraw the current Subpart W proposal and execute its mandate to make it accurate, including taking the necessary steps to validate the emissions factors or emissions calculation procedures that it ultimately puts in place.

Infrastructure, Letters and Comments, Uncategorized Sep 29, 2023

Re: Notice of Proposed Rulemaking, Council on Environmental Quality; National Environmental Policy Act Implementing Regulations Revisions Phase 2 (88 Fed. Reg. 49,924, July 31, 2023)

Dear Chair Mallory:

The undersigned associations (collectively, the “Coalition”) offer the following comments in response to the Council on Environmental Quality’s (“CEQ’s”) proposed National Environmental Policy Act (“NEPA”) Implementing Regulations Revisions Phase 2 (“Proposed Rule”).1 Our organizations represent a diverse set of economic sectors that form the backbone of the American economy – agriculture, energy, construction, mining, forestry, manufacturing, transportation, and other sectors. …

CEQ should withdraw the Proposed Rule and modify it in accordance with these comments before considering promulgating a new proposed rule for additional public review and comment. These comments address four central flaws in the Proposed Rule:

  • The Proposed Rule is written to drive policy outcomes. In so doing, the Proposed Rule exceeds the bounds of the letter and intent of NEPA.
  • The Proposed Rule fails to fulfill the specific requirements and overall purpose of the Fiscal Responsibility Act. The FRA amended NEPA to address permitting delays. The Proposed Rule would only exacerbate delays and complexity driven by new requirements that would inevitably be followed by litigation.
  • The Proposed Rule would add new requirements that would further delay and complicate reviews, including requirements that are outside the permissible bounds of the statute itself. In addition, the Proposed Rule adds a new global dimension to required environmental analysis, improperly stepping away from the statute’s focus on “present and future generations of Americans.”
  • The Proposed Rule would remove key process improvements from the 2020 NEPA rule. If made final, the Proposed Rule would not fix the widely acknowledged project delays caused by federal NEPA reviews, delays that continue to plague critical projects, including projects needed to fulfill Congress’ recent investments in energy and infrastructure.

Letters and Comments, Regulations Sep 22, 2023

IPAA joined with the American Petroleum Institute and 12 other energy trade associations in calling on the Biden administration to prioritize the energy needs of the American people by developing fair and consistent federal leasing regulations. In comments submitted to the Department of the Interior’s Bureau of Land Management (BLM), the associations reiterated the oil and natural gas industry’s longstanding record of responsible development of the United States’ vast natural resources but expressed concern over the damaging impact this rule could have on American energy security. 

“Our nation and the world will continue to need reliable, affordable oil and natural gas to grow our economy, power our communities and serve as the foundation for broader opportunities for decades to come. Oil and natural gas production on public lands is a crucial part of the nation’s program for energy security and economic strength,” said API Vice President of Upstream Policy Holly Hopkins. “Because of the vital importance of energy production on public lands, overreaching land management regulations place our domestic energy supply at risk.” 

In the comments, the associations raised concerns that the proposed rule overreaches BLM’s statutory authority, disregards Congress’s intent to preserve federal leasing programs and rejects existing robust planning and environmental review processes, allowing BLM to constrain onshore energy development on a case-by-case basis. The Associations urged BLM to revise the proposed rulemaking to ensure the American people can continue to reap the economic, energy security and environmental benefits of continued domestic energy production.

Letters and Comments, Offshore Sep 7, 2023

Dear Ms. Spence:

The Gulf Energy Alliance (“GEA”), the Independent Petroleum Association of America (“IPAA”), the U.S. Oil and Gas Association (“USOGA”), the Southeast Oil and Gas Association (“SOGA”), the Mississippi Energy Institute (“MEI”), and the Louisiana Oil and Gas Association (“LOGA”) respectfully submit the following comments on the Bureau of Ocean Energy Management’s (“BOEM”) proposed rule entitled The Risk Management and Financial Assurance for OCS Lease and Grant Obligations1 (the “Proposed Rule”). …

We are deeply concerned that BOEM failed to consider or adequately address the devastating financial impacts the Proposed Rule will have on the U.S. economy and the domestic oil and gas industry, the environment, national security interests, and the American people. The Proposed Rule ignores the feasibility of securing further financial assurance in the current struggling surety market and marks a radical shift from the reliance on the bedrock joint and several liability framework, which holds both predecessors and current lessees in the chain of title accountable for decommissioning obligations.

The Proposed Rule aims to solve a problem that does not exist. Although the agency claims to undertake this rulemaking for to benefit the American taxpayer, the Proposed Rule ignores how the longstanding joint and several liability system has successfully shielded taxpayers from decommissioning costs. Although the liability that American taxpayers have actually absorbed from decommissioning is quite minimal, in its wake, the Proposed Rule will impose significant burdens on the current lessees who are largely independent oil companies. Which will, in turn, delay decommissioning activity and harm the environment, weaken domestic oil and natural gas production, strengthen the positioning of other oil producing countries who pose national security risks to the U.S., increase oil prices and related consumer costs, and ultimately damage the U.S. economy and the American people. …

 

Letters and Comments Aug 21, 2023

Re: Proposed Rule, Council on Environmental Quality, “National Environmental Policy Act Implementing Regulations Revisions Phase 2,” 88 Fed. Reg. 49924 (July 31, 2023)

Dear Ms. Coyle:

The undersigned organizations respectfully urge a comment period extension of at least 45 days on the Council on Environmental Quality’s (“CEQ’s”) proposed rule to amend the procedural provisions of the National Environmental Policy Act (“NEPA”), including the implementation of the Fiscal Responsibility Act’s significant amendments to NEPA.

The undersigned organizations represent many sectors of our economy. Our industries drive economic growth, from telecom to ports, airlines to automakers, energy, construction and labor, real estate, mining, trucking, manufacturing and more. We are grateful that Congress and the Administration have made the most significant infrastructure investments in a generation, from the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act. We are ready to go to work. But without positive reforms to make our permitting process more efficient, transparent, and predictable, the nearly $2 trillion of projected public and private sector investments spurred by these bills may not come to fruition.

CEQ has proposed a complex rule that would impact the federal review process for multitudes of projects and activities, large and small. It is vital that the Agency gets it right…

IPAA is the industry's strongest presence in the nation's capital and these are important times. The entire oil and gas industry remains under fire from anti-development groups; but with these challenges arise unique opportunities that IPAA is seizing for our members.