News Archives

Photos from 2011 Top Hand Award Banquet

Posted by on Feb 17, 2012 in News Archives | 0 comments

Here are some photos from the 2011 Top Hand Award Banquet honoring Tim Leach of Concho Resources.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Annual Energy Symposium

Posted by on Jan 16, 2012 in News Archives | 0 comments

The Texas Wesleyan Law Review will host the Fourth Annual Energy Symposium on March 29 and 30, 2012. The event is sponsored by XTO Energy and will feature 20 speakers representing 9 different states. In addition, we will be distributing a first-of-its-kind 23-State Annual Survey on Oil & Gas free of charge with registration.

The symposium will offer 12 CLE credits for attorneys, and cost $75 for single day registration or $140 for both days. Please see the attached ad.

IPAA Announcement

Posted by on Dec 19, 2011 in News Archives | 0 comments

TO: All Permian Basin IPAA Member Companies

On December 6, the Independent Petroleum Association of America (IPAA) emailed important information to all IPAA members concerning the new EPA reporting requirements for Greenhouse Gases, requiring action by virtually all oil and natural gas producers by January 3, 2012 in order to avoid more stringent reporting requirements in future years.

 

Last Friday, the Permian Basin Petroleum Association, as part of its strong working relationship with IPAA, sent IPAA’s information to all its members, conveying the same urgency.

 

There is a lot of useful information attached to IPAA’s Dec.6 email on this subject, which can also be accessed through the PBPA’s recent email. Registering with EPA’s e-GGRT site is relatively straightforward. To access some of the other links requires right-clicking on individual items, then clicking on “open hyperlink.”

 

IPAA also has a link on its web site to help producers navigate through the recent changes in reporting and compliance with SPCC plans which were finalized this year.

 

It is practical information like this, together with the intensive lobbying that IPAA does in Washington to minimize the extent and ultimate financial impact of these regulations, that makes your investment in IPAA absolutely invaluable. The same can be said of PBPA and its efforts in both Austin and, increasingly, in Washington.

 

I am frequently baffled when I visit with independent producers who say they don’t see the benefits of paying as little as $450 a year for IPAA membership. What is described above only scratches the surface of what IPAA and PBPA provide in the way of value to their members.

 

So, next time your IPAA and/or PBPA membership renewal comes due, smile when you write the check, realizing that this is the biggest bargain you will get this year. You might even consider moving your membership to a higher level to help fight these never-ending regulatory and tax issues.

 

After eight years as Regional Director for IPAA- Texas Permian, I am term limited and have handed the reins over to Jeff Sparks with Discovery Operating Company. Discovery and the Sparks family have a long association with IPAA, and you’ll be in good hands.

 

Merry Christmas!

Lizard letter hits legislative dead end

Posted by on Nov 10, 2011 in News Archives | 0 comments

November 09, 2011 6:50 PM

Things have reached a legislative dead-end for opponents of the dunes sagebrush lizard’s endangered species listing.

“I’m not encouraged by where we are right now,” U.S. Rep. Mike Conaway (R-Midland) said.

He said he and area representatives submitted a letter Nov. 1 urging the Appropriations Committee to adopt an amendment bringing a temporary halt to the listing process. But that may not come to pass.

“It’s an uphill battle,” Conaway said.

There is support for an amendment, but it is unlikely that the committee will have an opportunity to vote on it, Conaway said.  The U.S. Fish and Wildlife’s final decision on the lizard is scheduled to be announced Dec. 14.

The letter, written by Conaway, and U.S. Representatives Steve Pearce (R-Hobbs), Francisco Canseco (R-San Antonio) and Randy Neugebauer (R-Lubbock), advised the Committee that a yearlong pause in the U.S. Fish and Wildlife’s regulatory action would allow additional scientific research to be conducted on the lizard.

Further research would prove that the listing is not warranted, Ben Shepperd of the Permian Basin Petroleum Association said in an email.

“The PBPA maintains the position that the listing of the (dunes sagebrush lizard) is not warranted due to a complete lack of any evidence of endangerment,” Shepperd said in an email.

The lizard has been a candidate for endangered species status since 2001, according to Odessa American records.

In the past, U.S. Fish and Wildlife said federal protection for the lizard was warranted, but its situation was precluded by species with a more urgent endangerment concern.

Then environmental group WildEarth Guardians stated that no animals had received protection under the Endangered Species Act in 2007 and informed U.S. Fish and Wildlife that they would sue the government for failing to enforce the Act, with the sagebrush lizard’s proposed listing coming subsequently.

While the extra year may not come to pass, Conaway encouraged West Texans to continue their own efforts at getting the issue out there.

For now, those in Washington D.C. are simply waiting for U. S. Fish and Wildlife’s verdict.

“We’ve run out of options at a legislative standpoint,” Conaway said.

@OAhealth

City of Midland Prepared to Sue Over Lizard Listing

Posted by on Nov 10, 2011 in News Archives | 0 comments

Nick Lawton
NewsWest 9

MIDLAND – A new pipeline project to the City of Midland’s well field at TBar Ranch in Winkler County could be on the chopping block, if the dunes sagebrush lizard is listed and the field is on its habitat.

If the lizard makes the list in December, and if the project is compromised, the Tall City could take legal action, suing the U.S. Fish and Wildlife Service.

“What we’ve heard, if that does come into play, that we won’t be able to build a water line to our TBar Ranch Field. That’s your worst case scenario,” City of Midland Mayor, Wes Perry, said. ”So, we’re preparing, if that does happen, then we’re going to have to get more proactive about how do we protect our water supply.”

The pipeline project is set to cost $140 million and will bring in 20 million gallons of water a day.

Perry said while the city doesn’t intentionally want to destroy the lizard, the future of their water supply has to be protected and they will ask other cities to join them in the suit if it happens.

“We’ll talk to CRMWD. We’d love to have them as partners,” Perry said. ”Abilene and San Angelo, we’re very close with them in developing a long-term, 100-year water plan.”

The cities of Odessa and Big Spring told NewsWest 9 they defer to the Colorado River Municipal Water District when it comes to a potential suit.

CRMWD Director John Grant told NewsWest 9 over the phone that the district has been hindered by the U.S. Fish and Wildlife Service in the past.

When the O.H. Ivie reservoir was constructed back in the 1980s, the district had to follow rules to protect the concho water snake, which ended up costing the district $3 million and delaying the project two years.

Grant told NewsWest 9 at the moment the district is watching and waiting to see if the lizard makes a negative impact.

Despite the lizard listing still not official yet, that TBar Ranch pipeline project is officially in the works.

Perry told NewsWest 9 the proposal was sent out on Wednesday to have companies approach the city with their offers to build it and the deadline for that is around Thanksgiving.

Big 2 Energy Exclusive: “The Fracing Facts”, Part 2

Posted by on Nov 4, 2011 in News Archives | 0 comments

Reported by: Mycah Glover
Thursday, November 03 2011
watch video

Midland – Hydraulic fracturing is a process that’s been under a lot of scrutiny here recently. But it’s been around for decades. The fact is that without it, oil wouldn’t be produced. All of this had me wanting to learn more. I followed Henry Resources and Pro-Petro to learn how the process works and to clear up any misunderstandings.

I started this series last week with the first step in the fracing process. It all begins in the office, where a team of geologists and engineers closely examine a log that’s obtained after the well has been drilled. They work together to identify intervals within the wellbore that they believe to be hydrocarbon productive. This is where they’ll set the perforations so the well can be fraced. Once these locations have been identified and their design is finalized, the frac job can begin.

For Henry Resources, a typical frac job lasts two days and begins with the frac crew setting up the equipment on location. Once everything is rigged up, tested, and ready to go, it’s time to turn the engineers’ red ink marks on the log into actual perforations.

They begin with the first stage which is the deepest in the well, and in this case, around 11,000 feet underground.

“There’s 40 explosive devices individually placed inside that steel container and then that fire shoots through the steel container into the casing and out into the formation,” says George Miles, Henry Resources frac specialist.

Next, it’s time to stimulate or “frac” stage one. But before the hydraulic fracturing process can begin, the crew concocts the perfect cocktail using a small amount of chemicals, a defined volume of water, and a very specific type of sand, which varies according to the depth of the stage.

“We pump the water from over there (frac pit near location) into the tanks on location,” says Miles.

Water is then pulled out of the tanks into a hydration unit where it’s mixed with gel.  After that, the gelled water is mixed with some chemicals and sand in the blender.

“That truck (the blender) pushes the mixture into the high pressure units (also known as the pump trucks).The high pressure units then pump it down the well,” says Miles. And by high pressure, he means 30 barrels a minute. That’s 1,260 gallons every 60 seconds.

The speed, resultant pressure and gel-like formula help to fracture the formation, propagate the fracture away from the wellbore and connect any natural fractures that may exist.

The next task is keeping the fractures open.

“What you got going on here is the sand-laden phase where we start introducing the proppant into the fluid that’s going down the hole and what that does is help propagate the formation. Helps it stay propped open after we stimulate the well,” says Adam Munoz, Pro-Petro District Technical Mgr.

In the end, “the gel will break from the sand (and) return to a water phase. The sand will stay in place and allow that porosity to increase from the wellbore all the way out to the tip of the frac,” says Miles.

This allows the oil, gas, and water to flow freely to the wellbore where it can be pumped to the surface.

Keep in mind, all of that is only stage one.

At this point, a bridge plug is set between the zone that is now complete and the entire process repeats itself until each stage is fraced. For Henry Resources, it’s usually anywhere from nine to eleven stages.

When all the zones are complete, the frac crew rigs down and leaves and a pulling unit is brought in. It’s main purpose is to drill out all of the bridge plugs that were used during the frac and install the tubing, rods, and pump needed for production.

After this, a flow line is used to connect the well-head to the appropriate tank battery so the oil, gas, and water can be separated, stored, and eventually sold or disposed.

And with that, production can finally begin.

We’ll continue this special series next Friday by addressing some of the hotter topics associated with hydraulic fracturing. For example, a lot of concerns have been raised over the chemicals that are used, and some even say they fear their water supply is being contaminated. We’ll talk through all of these issues and more and kill a lot of rumors next Thursday at 10pm on Big 2 News.

Big 2 Energy Exclusive: “The Fracing Facts”, Part 1

Posted by on Nov 4, 2011 in News Archives | 0 comments

Reported by: Mycah Glover
Friday, October 28 2011
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This is the first of four reports that take a look at the hydraulic fracturing process, how it works, and how local companies are doing it in a safe and environmentally friendly way. Join Mycah Glover Thursday nights at 10pm for each report. To view part 1, click on the video.

Big 2 EXCLUSIVE: Lizard Meeting w/ FWS

Posted by on Oct 25, 2011 in News Archives | 0 comments

Reported by: Mycah Glover
Monday, October 24 2011
 
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Midland – It was a big day for West Texas as the oil, gas, and agriculture industries continue to fight the listing of the Dunes Sagebrush lizard. Senator John Cornyn set up a meeting with U.S Fish and Wildlife. Director Dan Ashe traveled to Midland to hear from West Texans concerned about the possible listing. Although the meeting was closed to the public and the media, Big 2 caught up with several people, including Fish and Wildlife, to find out what was said and to get the latest information as we near the listing deadline of December 14.

“We had about 15 different stakeholders ranging from oil and gas operators to ag interest, farm bureau, local and county officials, all of which expressed deep concern about the proposed listing of the sand dune lizard,” says Ben Sheppard, PBPA president.

While economics are not taken into consideration when it comes to putting a species on the Endangered Species List, U.S. Fish and Wildlife says it’s important they hear these concerns. “The number one job of the administration right now and the number one concern of the whole country, Congress, the President’s office, is jobs. And we work for the administration, so we certainly are not going to do anything to threaten jobs and that’s never been our goal,” says Charna Lefton,  U.S. Fish & Wildlife spokesperson.

But the final decision will come down to science, and that was the main concern at today’s meeting.  Sheppard says, “Their science is erroneous and conflicts itself in many cases.”

“I think there was a major concern that the quality of science, the actual hard core experimental design and quality of the science was insufficient to a decision that has that much economic impact on this region and New Mexico,” says Dr. Robert Baker, TTU biological scientist.

Although Fish and Wildlife received two new scientific studies today, according to Dr. Baker, it would take years to determine whether or not drilling would impact the lizard’s habitat. “It’s a five year study or four year. It needs some multi-year thing that involves variables in rain and variables in environmental factors as well. That experimental design has not been done and is hard to do.”

Sheppard says the two studies that were submitted today refute claims that were made in the federal register. He thinks when Fish and Wildlife review this new science, the only decision they’ll have to make is to keep the lizard off the list.

Although we weren’t able to attend today’s meeting, we are working to get an audio link so you will be able to hear exactly what was said. When we receive that, we’ll post it on http://www.permianbasin360.com.

Senator Cornyn released the following statement:

“I want to thank Director Dan Ashe for accepting my invitation to come to Texas so he can hear directly from our landowners, employers, and local governments about the potential impact of the proposed Sand Dune Lizard listing as an Endangered Species. It’s essential that the job creators who will be directly impacted have the opportunity to have their concerns heard before this potentially devastating listing goes forward. I’m hopeful Director Ashe will take these concerns into consideration and allow for additional time for review before a final decision is reached.”

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ENDANGERED SPECIES: Cornyn urges more time before lizard listing (Tuesday, October 25, 2011)

Posted by on Oct 25, 2011 in News Archives | 0 comments

Phil Taylor, E&E reporter

Sen. John Cornyn (R-Texas) yesterday urged Interior Department officials to postpone their decision on whether to offer federal protections to a small Southwest lizard so the agency can consider potential impacts to landowners and oil and gas drillers.

Cornyn’s plea comes months before the Fish and Wildlife Service is expected to finalize a proposal to list the dunes sagebrush lizard as an endangered species. The move would require federal agencies to consult with FWS to ensure actions in west Texas and southeast New Mexico won’t lead to the species’ demise.

“It’s essential that the job creators who will be directly impacted have the opportunity to have their concerns heard before this potentially devastating listing goes forward,” Cornyn said through a spokesman.

Cornyn spoke by teleconference to a meeting yesterday in Midland, Texas, where FWS Director Dan Ashe and Southwest Region Director Benjamin Tuggle addressed about 40 industry and ranching representatives and local elected officials, according to those who attended.

Cornyn in June filed an amendment to stop FWS from offering Endangered Species Act protections for the 3-inch lizard, saying the move would cripple the oil and gas industry in West Texas (Greenwire, June 8). The chamber never voted on the measure.

“I’m hopeful Director Ashe will take these concerns into consideration and allow for additional time for review before a final decision is reached,” said Cornyn, who requested yesterday’s meeting.

Ben Shepperd, president of the Permian Basin Petroleum Association, said he fears some operators in the area will face delays of up to 18 months to drill on both public and private lands that could cost thousands of jobs. He estimated that 440 rigs — roughly one-fifth of all rigs on U.S. soil — were operating in the basin, which produces about 20 percent of domestic oil production.

He asked FWS to consider additional scientific studies, including from Texas Tech University and Texas A&M University, before finalizing its rule.

“They’re only required to use best available science, but we believe there is better science out there,” he said.

Conservationists balked at the suggestion and said the proposed rule was based on a peer-review scientific process that included public comment.

“The oil and gas industry and its representatives are putting an enormous amount of pressure on Fish and Wildlife Service here that threatens the integrity of the listing process,” said Taylor McKinnon, public lands campaign director for Center for Biological Diversity.

McKinnon said the meeting, which was closed to the media, appeared to be a “sneak attack” to influence the listing decision. He said his group was not aware of the meeting until asked about it yesterday afternoon.

A Cornyn aide said conservation interests were represented but did not provide any names.

The dunes sagebrush lizard was among more than 700 species for which FWS must address listing proposals under court-approved settlements with CBD and WildEarth Guardians.

Critics of the listing warn that the area in Texas that could become protected habitat for the lizard produces 300 million barrels of oil a year, nearly half of the state’s total production and 14 percent of total U.S. production.

FWS has said the blunt-nosed lizard, which has bright yellow eyes and brown, camouflaged skin, faces “immediate and significant threats due to oil and gas activities, and herbicide treatments” and should be listed as endangered.

Monahans Fights Sand Dune Lizard

Posted by on Oct 20, 2011 in News Archives | 0 comments

Reported by: Mycah Glover
Wednesday, October 19 2011
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Monahans – The West Texas economy is booming thanks to the oil and gas industry. In most booms, the main concern is that the price of crude will plummet. But those concerns have been pushed aside and fears over the possible listing of the sand dune lizard have taken center stage.

Today, the fight to keep the lizard off the endangered species list was taken to Monahans. The chamber of commerce hosted a summit with state, national and local leaders to discuss the issue.

Monahans has experienced more growth this year than they have in the past 25. It’s due to the increase in drilling thanks to continued advances in drilling technology. With more growth expected in Monahans, they’re fighting with everything they have to make sure a tiny lizard doesn’t stop their town from having a big future.

“We see several thousand jobs in the next few years in Monahans, Texas because this is kind of the center. The boom you’re talking about now, which is the fracking of the shale out here…Monahans is the center. So we’re ground zero out here,” says David Cutbirth, Mayor of Monahans.

That means that they have a lot to lose. Nathan Sawyer, president of the Monahans Chamber of Commerce says, “73 percent of the economy in Ward County is based to oil and gas and something like the dunes sagebrush lizard being listed could greatly effect the viability of this community.”

So today, the chamber hosted this summit to help Monahans residents understand exactly what is at stake.

“I’m worried for my job, my family, my neighbors. Our entire industry… everybody that lives out here will be effected by it. It’s worse than a drought,” says Richard Erwin, Monahans resident.

Unfortunately for people like Richard, the battle is far from over. Rep. Tryon Lewis says, “It will be a major battle. There are a lot of extremist environmental groups that want to use the Endangered Species Act to stop oil and gas drilling.”

Rep. Lewis says says it won’t be won without the help of West Texans. That’s why events like this are so important. Ben Sheppard, president of the Permian Basin Petroleum Association, agrees. “I think this is a fabulous example of what local communities can do and what they need to do when faced with such regulations from Washington, D.C..”

And Erwin is one of many West Texans ready for battle. “They need to go back home from wherever they came from ”

The Andrews Chamber of Commerce has also been proactive in fighting the listing of the lizard. They’ve started an online petition.  If they get enough signatures, the issue will be up for review by policy experts in Washington. They need 5,000 signatures by October 28 to make that happen. If you would like to sign that petition, you can click on the following link.