Testimony

Taxes, Testimony Apr 27, 2021

IPAA submitted testimony for the Senate Committee on Finance April 27, 2021 hearing titled “Climate Challenges: The Tax Code’s Role in Creating American Jobs, Achieving Energy Independence, and Providing Consumers with Affordable, Clean Energy.

“…Oil and natural gas tax policies will continue to draw attacks from those anti-oil and natural gas factions that want to cripple American production. Much of the rhetoric surrounding these attacks will hide behind the red herring of “tax subsidies for Big Oil” when the reality is that the tax provisions are not “subsidies’ but normal business deductions. The impact of changing the provisions will fall on independent oil and natural gas producers, substantially on small businesses, and on royalty owners such as retirees, ranchers and farmers who own oil and natural gas mineral resources underlying their properties…”

Taxes, Testimony Apr 22, 2021

For an April 22nd Oversight and Government Reform Committee Subcommittee on the Environment hearing, IPAA submitted testimony on the tax treatment of the natural gas and oil production industry.

“… a troubling undercurrent of effort to suppress American oil and natural gas production appears directed at numerous factors that affect production. Among these is a false claim of “tax subsidies” for oil and natural gas production that are, in fact, normal business deductions…

“One path [supported by anti-oil and natural gas interests] to reducing American oil and natural gas production involves restricting its capital investment. Because all oil and natural gas production declines – or depletes – over time, new production must replace the lost production. New wells must be drilled. Existing wells must be maintained even as their production diminishes. For independent producers, most of its capital comes through the well head. That is, the revenue it receives from selling its production becomes the capital it needs to drill and maintain wells. Clearly, tax policy then plays a significant role. Taxes remove capital.

“Oil and natural gas tax policies will continue to draw attacks from those anti-oil and natural gas factions that want to cripple American production. Much of the rhetoric surrounding these attacks will hide behind the red herring of “tax subsidies for Big Oil” when the reality is that the tax provisions are not “subsidies’ but normal business deductions. The impact of changing the provisions will fall on independent oil and natural gas producers, substantially on small businesses, and on royalty owners such as retirees, ranchers and farmers who own oil and natural gas mineral resources underlying their properties.

“Two of the most targeted tax provisions are the treatment of intangible drilling and development costs (IDC) and percentage depletion…

“If new policies reduce American demand for oil and natural gas, production and imports will diminish. However, artificial politic efforts to suppress American supply will not reduce demand; it will only lead to a return to an import dependent energy structure with attendant energy security risks.

“False attacks on “tax subsidies” targeting American oil and natural gas producers and royalty owners will reduce supply while hurting independent producers, particularly small businesses, and royalty owners. They will not reduce greenhouse gas emissions. The ultimate beneficiaries of these actions would be foreign national oil companies producing with less emissions management than those in the United States. Congress should oppose these adverse policies.”

Testimony Apr 15, 2021

IPAA submitted testimony on the CLEAN Future Act, a 981-page bill described by the Democratic leadership of the House Energy and Commerce and Committee as “ambitious new climate legislation that ensures the United States acts aggressively to tackle the climate crisis this decade and achieve net zero greenhouse gas pollution.” The bill is far reaching, with decarbonization efforts spanning from infrastructure modernization to funds for workers.

In the testimony, IPAA addresses a number of provisions in the CLEAN Future Act that directly affect oil and natural gas production, many of which have no relationship to reducing greenhouse gases. IPAA has been at the forefront of advocating on these issues for many years and will continue to lead the industry in the fight against the misguided policies outlined in this legislation.
The testimony comments break down:
  • Sections of the legislation unrelated to the state objective of the CLEAN Future Act – These include changes to the carbon dioxide enhanced oil recovery (EOR) process without an evident environmental benefit; expanding the Safe Water Drinking Act (SWDA); changes to the Clean Air Act that expand regulated pollutants; and expand Resource Conservation and Recovery Act (RCRA) waste definitions. In his testimony, IPAA EVP Dan Naatz details how taken together, these sections do not comport with the objectives of the CLEAN Future Act. Instead, they are wedged into the bill solely to reduce or prevent the development of American oil and natural gas. “Sections 621 and 623 create unnecessary burdens on state programs to implement new requirements without any justification. Sections 624 and 625 regurgitate the same stale, unjustified proposals that have been shopped by ardent anti-oil and natural gas environmentalists for years. The Committee, the House and the Congress should reject all of them.”
  • Super Pollutant Provisions – The CLEAN Future Act contains provisions that address methane or carbon dioxide emissions from oil and natural gas production operations that generate unworkable outcomes. These sections of the legislation create an unrealistic burden on states and set technology requirements that may or may not result in desired emissions reductions.
  • Carbon Dioxide Geologic Sequestration – IPAA supports the funding authority in Section 502 to provide for state permitting of Class VI underground injection wells.

 

Testimony Feb 11, 2020

Good afternoon.

My name is Will Allison and I’m here representing the Independent Petroleum Association of America.

Thank you to the Council on Environmental Quality for holding this public hearing.

The thousands of oil and natural gas operators represented by the IPAA commend the Trump Administration for proposing this much-needed reform of the National Environmental Policy Act.

NEPA underwent its last MAJOR update in 1978 and it’s well past time for a modernization of the law to help spur economic development, innovation, and improved environmental protections.

Unfortunately, opponents of this proposed reform say its only intention is to weaken environmental protections.

But the reality is that NEPA has become so outdated and burdensome that it actually makes environmental outcomes worse…

Testimony Jul 12, 2018

The Independent Petroleum Association of America (IPAA) appreciates the opportunity to discuss this draft legislation and looks forward to working with the Caucus to enact this important legislation that will restore the Endangered Species Act toward its original goal of protecting imperiled species on the brink of extinction. IPAA represents thousands of independent oil and natural gas explorers and producers across the country, as well as the service and supply industries that support their efforts. IPAA’s members are the face of small business in the oil and natural gas industry and support millions of direct and indirect jobs across the United States.

Testimony Oct 13, 2017

IPAA Senior Vice President of Government Relations and Political Affairs Dan Naatz testified at a legislative hearing before the U.S. House Natural Resources Subcommittee on Energy and Mineral Resources on the important role U.S. independent producers play in the safe and responsible development of onshore oil and natural gas to grow America’s economy, create well-paying jobs, and strengthen the nation’s energy security.

Testimony Apr 25, 2017

Small businesses are a key part of the industry because oil and natural gas wells naturally deplete over time. Correspondingly, the industry is a “food chain” industry. As large companies want more capital, they sell their lower producing properties to smaller companies that are the primary owners of marginal wells. While many EPA regulations can impact small businesses, these oral comments will address some recent air and waste water regulations. IPAA’s written comments include other regulations.

Testimony Jun 21, 2016

API and IPAA provide this statement regarding Bureau of Land Management (BLM) management of public lands, in particular BLM’s proposed rule entitled “Resource Management Planning,” 81 Fed. Reg. 9673 (Feb. 25, 2016) (the “Proposed Planning Rule”). Many of API’s and IPAA’s member companies have a direct interest in how BLM plans to manage public lands. These companies hold valid existing leases and are interested in future oil and natural gas leasing, exploration, and production activities in areas that will be directly affected by BLM’s management decisions. These companies are also dedicated to meeting environmental requirements, while economically developing and supplying affordable energy to consumers. Issues raised by the Proposed Planning Rule will have a direct impact on the future viability of oil and natural gas development on public lands throughout the United States.

Testimony Jun 29, 2014

IPAA submitted testimony for the record in support of S. 2440, the “BLM Permit Processing Improvement Act of 2014” at the U.S. Senate Committee on Energy and Natural Resources oversight hearing on “Breaking the Logjam at BLM: Examining Ways to More Efficiently Process Permits for Energy Production on Federal Lands.”