Meetings and Announcements

Update on CLEAR Act: Progress made, but concerns remain

For several weeks, Western Energy Alliance has been closely monitoring energy legislation making its way through Congress. This legislation began as an attempt by Congress to address the tragic accident in the Gulf, but in typical Washington fashion, was poisoned with punitive measures targeting onshore producers as well. Together, the “CLEAR Act” and the “Blowout Prevention Act” would have had detrimental consequences for onshore production.

Western Energy Alliance has been the lead voice objecting to the incorporation of harmful onshore provisions. Thanks to the diligence and the hard work of our members, staff and friends in state and local government, as of today much of the onerous onshore language, including the completion disclosure requirement, has been removed from the bill!

Concerning provisions do still remain in the bill, including:

A conservation fee of ($2 per barrel of oil or 20 cents per million Btu of natural gas) on all U.S. oil and natural gas production on federal leases. Essentially, this is a $22 billion dollar energy tax.

Ending Royalty in Kind program (RIK)

Establishing new Interior agencies to manage different aspects of federal land development, a complete reorganization of MMS

Changing how leases are offered

Repealing the Storm water exemption included in EPACT 2005 (Section 728).

For a more detailed description, click here to read Western Energy Alliance’s analysis sent to House leadership.

Western Energy Alliance will continue working closely with state and local governments, allied trades, business and conservation groups, and members of Congress to ensure that these harmful provisions do not become law. In the meantime, if you have not done so already, I encourage you to contact your congressional representatives and ask them to oppose this legislation. Click here to ask Congress to oppose the CLEAR Act.

Click here to read the entire update on the CLEAR Act.

In the Senate, Harry Reid introduced an the “Clean Energy Jobs and Oil Company Accountability Act of 2010” which now includes Disclosure of Hydraulic Fracturing Chemicals (Title XLIII). Western Energy Alliance, along with other industry trades strongly oppose this language and are working with our Western Delegation to have it removed. For more details, see Politico’s article, “Hydro-fracking fight hijacks spill bill”.

Events Update

For those who attended the recent Annual Meeting and Summer Conference, we’d like your feedback! A survey was sent out via email to all attendees and is also available by clicking here. This survey is designed to help us make more informed decisions for upcoming conferences and facilitate the continued success of the Western Energy Alliance member events. We appreciate your input. Completed surveys can be returned to Becca Ness.

Membership Update

Western Energy Alliance welcomes the following new member:

Pioneer Member

Energy Operating Company, Inc.

We look forward to an improved online experience for our entire membership and apologize in advance for any inconvenience this brief downtime might cause. Should you have membership questions or concerns, please contact Susan Fakharzadeh, Director of Membership and Events.

Events Update

Western Energy Alliance will soon be announcing speakers and dates for our fall speaking series. The Distinguished Speaker Series along with some special engagements will offer compelling topics and speakers from all over the country. The Western Energy Alliance speaker events offer a great networking and exposure opportunities for our members to develop business, reconnect and share important news with the organization at large. Key sponsorship opportunities are available today, please contact Becca Ness.

Western Energy in the News

EPA Reviewing Air Pollution Rules for Oil, Gas

published in: Associated Press on: 07/28/2010 by: Catherine Tsai

The oil and gas industry continues to be one of the heaviest regulated industries, said Kathleen Sgamma, the Western Energy Alliance’s director of government affairs. The group’s members already are working with the Western Regional Air Partnership — an effort of tribal and state governments and federal agencies — in voluntarily providing detailed emissions data to state regulators. “We want to make sure to reduce emissions from oil and gas production,” she said. Sgamma said the industry accounts for only a small percentage of emissions of specific pollutants… Sgamma said there is no one-size-fits-all solution, since conditions can vary for exploratory wells and production wells and from basin to basin. “A lot of variables go into deciding what controls and technologies can be used,” she said.

Environmentalists: Don’t overlook onshore drilling

published in: Associated Press on: 07/23/2010 by: Mead Gruver

Giving more oversight to the federal regulators who failed to prevent the Gulf disaster would be a bad idea, said an industry group, the Western Energy Alliance.”It doesn’t make sense to take more control away from state oil and gas regulators and give it to the federal agency that just oversaw the worst environmental catastrophe in the history of our nation,” Marc Smith, executive director of the alliance, said Friday. He pointed out that 17 Democratic representatives wrote to Pelosi and House Majority Leader Steny Hoyer on Wednesday, urging the leaders not to have a “knee-jerk” reaction by passing “extraneous proposals” restricting onshore energy development. What Congress really should do, Smith said, is pass a more predictable process for oil, gas and renewable energy development on public land, one that helps companies be more certain about whether their plans can move ahead. “That’s the real reform that’s needed,” he said.

Western Energy Alliance Survey Discussed on Floor of U.S. House of Representatives

Western Energy Alliance did a survey to find out what would be taking place in the West, these areas that I’m saying are heavily hit. 74% of the respondents to the survey by the Western Energy Alliance said their companies are downsizing capital investment in the Rocky Mountain Area.

Click here to watch the debate on the House Floor.

Other Upcoming Meetings

Legislative, Legal and Regulatory Committee – August 4th, 1:30 p.m.

Utah Basin Advisors Network – August 10th, 10:00 a.m.

Colorado Basin Advisors Network – August 12th, 10:00 a.m.

Joint Air Quality/Natural Gas Committee – August 24th, 11:30 – 1:00 p.m.

Visit westernenergyalliance.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources.

The West

Western Climate Initiative offers cap-and-trade

published in: Associated Press on: 07/27/2010 by: Jeff Bernard

A coalition of seven western states and three Canadian provinces on Tuesday offered its most detailed strategy yet for controlling greenhouse gas emissions blamed for climate change, saying they hope it will stand as a model for national systems in the United States and Canada.

Western Election News

Democratic Senate hopeful Andrew Romanoff sells his home, loans money to his underdog campaign

published in: Denver Post on: 07/27/2010 by: Michael Booth

Andrew Romanoff has officially gone all-in for his U.S. Senate bid, selling his Washington Park house and loaning his campaign $325,000.

Senate candidates sound off with divided views on energy bill’s death

published in: Denver Post on: 07/26/2010 by: Michael Booth

Hot weather, oil blowouts and a wiped-clean agenda in Congress gave all four U.S. Senate candidates the chance to showcase their climate and energy policies in the past week.

Tancredo will run for governor as American Constitution Party candidate

published in: Denver Post on: 07/26/2010 by: Karen Crummy

Former Congressman Tom Tancredo is in the race for Colorado governor, he said this morning. “I will officially announce at noon that I will seek the nomination of the constitution party,” Tancredo told The Denver Post.

Colorado

Colorado improves, but still lags in survey of oil, gas investment

published in: Grand Junction Daily Sentinel on: 07/28/2010 by: Dennis Webb

Colorado has rebounded somewhat from last year’s last-place standing among oil- and gas-producing states in an annual survey measuring attractiveness for investment by that industry.

BLM considers field manager applicants in Moffat County

published in: Craig Daily Press on: 07/28/2010 by: Brian Smith

The Bureau of Land Management is getting closer to naming a replacement field manager for its Little Snake Field Office in Craig.

Club 20 tries to reverse Vermillion drilling ban

published in: Grand Junction Daily Sentinel on: 07/27/2010 by: Gary Harmon

The decision by the Bureau of Land Management to cordon off the Vermillion Basin in northwest Colorado against drilling runs contrary to Interior Secretary Ken Salazar’s history in Colorado, Club 20 says.

Applications for drilling permits rise

published in: Glenwood Springs Post Independent on: 07/23/2010 by: John Colson

Piceance Basin oil and gas drilling activities continue to be well below levels reached before the Great Recession and a drop in gas prices put local activities into a tailspin, according to the Garfield County oil and gas liaison Judy Jordan.

Montana

Montana company vies for helping clean up oil

published in: Billings Gazette on: 07/23/2010 by: Tom Howard

Sen. Jon Tester, D-Mont., says he’ll do what he can to help a Montana company that is vying to play a role in cleaning up the oil released after the explosion of the Deepwater Horizon well in the Gulf of Mexico.

New Mexico

New Mexico Apache tribe wins natural gas appeal

published in: Associated Press on: 07/22/2010 by: Sue Major Holmes

An appellate court in Washington, D.C., has ruled in favor of northern New Mexico’s Jicarilla Apache Nation in a dispute over natural gas royalties dating from more than 20 years ago.

North Dakota

ND counties rich in energy tops in annual wages

published in: Associated Press on: 07/28/2010 by: James MacPherson

North Dakota counties that produce either coal or crude oil held seven of the top 10 spots in a statewide survey of average annual wages.

ND oil patch produces 300K barrels per day in May, new monthly production record

published in: Associated Press on: 07/27/2010 by: James MacPherson

North Dakota’s oil patch is turning out about 300,000 barrels of crude per day, or double the state’s production two years ago.

Shutting Down the Bakken?

published in: KFYR-TV on: 07/23/2010 by: Jacob Kaucher

It may not look like much, but hydraulic fracturing is what makes drilling in North Dakota possible.

Utah

Decision on leases expected

published in: Vernal Express on: 07/28/2010 by: Mary Bernard

U.S. District Court Judge Dee Benson told attorneys last week that he would decide within a month on the issue of the 77 leases withdrawn by Interior Secretary Ken Salazar after the December 2008 oil and gas lease sale.

Navajos, politicians split over control of oil money

published in: Salt Lake Tribune on: 07/28/2010 by: Matt Canham

The state of Utah has washed its hands of a Navajo trust fund that benefits tribal members living in San Juan County.

Energy Startup Defends Oil-Sands Project in Utah

published in: Associated Press on: 07/27/2010 by: Paul Foy

An energy startup from Canada on Tuesday defended its plan to launch the first significant U.S. oil sands project in eastern Utah, after opponents argued it would dig up fragile topsoil and pollute groundwater.

Wyoming

Wyoming gov urges Pelosi to stall drilling regs

published in: Associated Press on: 07/28/2010 by: Staff

Wyoming Gov. Dave Freudenthal has urged House Speaker Nancy Pelosi to delay action on pending federal legislation he says would reduce states’ authority to oversee energy development.

Washington Watch

Reid US Senate energy bill pleases NGV advocates, upsets drillers

published in: Platts on: 07/28/2010 by: Rodney White

Natural gas vehicle advocates on Wednesday praised the energy bill introduced Tuesday by US Senate Majority Leader Harry Reid, but a pro-drilling group complained that the Nevada Democrat is trying to sneak in language to regulate hydraulic fracturing.

Obama says will keep pushing for climate bill

published in: Reuters on: 07/27/2010 by: Jeff Mason

President Barack Obama pledged on Tuesday to keep pushing for legislation to fight climate change despite a move in the U.S. Senate to focus energy reform more narrowly on offshore drilling.

Regional and state interests may dominate future climate and energy policy

published in: New York Times/E&E ClimateWire on: 07/26/2010 by: Peter Behr and Christa Marshall

The failure of climate legislation in the Senate last week is a blunt reminder of a basic truth, experts say: The nation’s energy policies are historically driven by state and regional interests that will trump national agendas in all but the most compelling circumstances.

Activists frustrated at Obama’s environmental record

published in: Christian Science Monitor on: 07/25/2010 by: Brad Knickerbocker

When Barack Obama took over the White House from George W. Bush, environmental activists breathed a collective sigh of relief.

Salazar pledges to limit Interior’s revolving door

published in: Washington Post on: 07/23/2010 by: Kimberly Kindy

Interior Secretary Ken Salazar told lawmakers Thursday that he will use his regulatory authority to impose strict new rules to remedy the revolving-door problems in his department.

Media Watch

Editorial: CLEAR thinking on energy issues

published in: Denver Post on: 07/29/2010 by: Editorial Staff

Democrats have abandoned their effort to dramatically cut the nation’s greenhouse gases and instead have rolled a few minor carbon-reduction measures into a bill that would reform regulations on oil and gas drilling.

Carroll: Wheeling and dealing with the PUC

published in: Denver Post on: 07/28/2010 by: Vincent Carroll

Last winter and spring, state officials quietly hammered out the details of a bill benefiting natural gas producers and Xcel Energy with representatives from those industries.

Editorial: Rep. Henry Waxman seems obsessed by fracturing concerns

published in: The Oklahoman on: 07/26/2010 by: Editorial Staff

Energy industry executives knew the Obama administration would play havoc with their ability to supply oil and natural gas. And this was before the Gulf oil disaster that led to the petty pace of offshore drilling moratorium edicts.

Editorial: New safety alliance has right priorities

published in: Casper Star-Tribune on: 07/25/2010 by: Editorial Staff

We’re glad to see that an oil and gas industry group is continuing the efforts of the governor’s task force on workplace safety.

Environment and Wildlife

In Wyoming, a Careful Balance Between Wind Power and Sage Grouse

published in: KUNC Radi on: 07/28/2010 by: Molly Messick
Wyoming is a prime place for wind development. Some of the best quality winds in the country blow across its miles of sagebrush and range land.

BLM unveils new sage grouse maps

published in: Casper Star-Tribune on: 07/22/2010 by: Jeff Gearino

Bureau of Land Management officials unveiled their proposed new maps of sage grouse core areas at a statewide open house kickoff Monday night.

Technology, Alternative & Renewables

Montana lagging when it comes to wind power

published in: Missoulian on: 07/26/2010 by: Mike Dennison

When it comes to wind power in Montana, there’s plenty of talk of the coming boom – but as Montana talks, nearby states have sprinted ahead in actual development of wind projects.

Feds snatch counties’ geothermal revenue

published in: RGJ/Las Vegas Sun on: 07/25/2010 by: Stephanie Tavare

Ten months ago, the U.S. Interior Department, in its annual budget request to Congress, commandeered counties’ share of revenue generated from geothermal energy rent and royalties.

Markets

Tulsa-Based ONEOK Plans North Dakota Pipeline

published in: Associated Press on: 07/28/2010 by: Staff

An Oklahoma company plans a pipeline pegged at about $500 million to move natural gas liquids from North Dakota’s oil patch.

U.S. Decision on Pipeline Is Delayed

published in: New York Times on: 07/27/2010 by: Tom Zeller, Jr.

The State Department said it would delay its decision on a permit for a contentious $7 billion pipeline project intended to deliver crude oil from the oil sands of the province of Alberta in Canada, to refineries on the Texas Gulf Coast.

Industry News and Events

Energy Development on Public Lands Conference

August 16-17, 2010 in Denver, CO

Western Energy Alliance will be speaking at the Law Seminars International Energy Development on Public Lands conference on August 16th & 17th in Denver. Click here for more information.

Geothermal in the Oil Field Symposium

August 18-19, 2010 in Casper, WY

The U.S. Department of Energy’s Rocky Mountain Oilfield Testing Center (RMOTC), the National Renewable Energy Laboratory (NREL), and Southern Methodist University (SMU) Geothermal Laboratory are partnering to host a two-day geothermal symposium in Casper, Wyoming. The symposium will highlight the application of low-temperature geothermal power production in oil and gas operations and other settings in the western United States.

This first-of-its-kind symposium will cover low-temperature projects throughout the western U.S. and provide an opportunity for participants to learn of the remarkable potential for power generation using co-produced fluids from existing oil, gas, and industrial infrastructure with minimal additional environmental impacts.

Click here to register or call (888) 599-2200 or talk@rmotc.doe.gov.

Front Range Energy Career Expo and Forum

September 24, 2010

The 2010 Front Range Energy Career Expo and Forum, which takes place at Red Rocks Community College, is designed as an educational event for high school students in the Denver Metro area to bring college representatives, energy companies, and students together in one location, to present information about college options and career opportunities to the future generation of leaders. This year’s event will be co-hosted by High Plains Communications, LLC and Red Rocks Community College.

Lunch will be provided for all attendees, and we will have separate break-out sessions for teachers and counselors. Please contact Jaime Gardner or (970) 597-0696 for more information. Click here to download the registration form. Click here to download the sponsor form.