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IOGCC Resolution Annual Business Meeting Oklahoma City, Oklahoma
RESOLUTION 18.051 - Expressing Support For Proposed Legislation To Grant Indemnity Selections For State Trust Lands In Federal Conservation Areas
RESOLUTION 18.052 - Supporting State Regulatory Programs for Underground Natural Gas Storage Well Safety
RESOLUTION 18.053 - Prioritizing Construction of the Appalachian Storage and Trading Hub
RESOLUTION 18.054 - Pertaining to the Delegation of Federal Regulatory Authority to State Government Agencies
Expressing Support For Proposed Legislation To Grant Indemnity Selections For State Trust Lands In Federal Conservation Areas
WHEREAS, at the Annual Business Meeting of the Interstate Oil and Gas Compact Commission (“IOGCC”) held in Salt Lake City, Utah in May 2015, a representative from a body of land commissioners known as the Western States Land Commissioners Association (“WSLCA”) made a presentation to the Public Lands Committee of IOGCC regarding State Trust Land Strategies and Opportunities for Collaboration; and
WHEREAS, the Public Lands Committee presentation discussed a key initiative of WSLCA to support federal legislation that would grant to states the right to select unappropriated federal public lands upon relinquishment to the United States of title to state trust lands located within federal conservation areas as a means of eliminating conflicts between state and federal land management within federal conservation areas; and
WHEREAS, lands transferred to state control could provide potential additional development areas for oil and gas development; and
WHEREAS, the need for additional legislative means for resolving problems created by the location of state trust lands inholdings inside federal conservation areas remains pressing; and
WHEREAS, there is pending legislation in Congress that has been developed through consultation and discussions with conservation groups, other governmental entities, and the public; and prior draft legislation proposals have been refined to take into account concerns and comments expressed by such groups; and
WHEREAS, IOGCC’s mission to promote efficient recovery of domestic oil and natural gas resources correlates with WSLCA’s initiative, and there is an opportunity to collaborate with WSCLA in support of legislative action to resolve the matter of state trust lands held within federal conservation areas; and
WHEREAS, IOGCC and its member states support legislative efforts to address this issue.
BE IT THEREFORE RESOLVED THAT the IOGCC does hereby support and endorse legislative actions by Congress to remove state trust lands from within federal areas and select unappropriated federal lands in lieu, and further requests that the members of the congressional delegations of each IOGCC state take action as necessary to achieve this objective.
Supporting State Regulatory Programs for Underground Natural Gas Storage Well Safety
WHEREAS, the citizens of the United States depend on a safe and reliable supply of natural gas for the safety and security of the economy and the homes in which they live; and
WHEREAS, the underground storage of natural gas within states is a vital process to ensure reliable delivery of natural gas and promote efficient development and production of domestic resources; and
WHEREAS, for decades public utilities and natural gas transportation companies have integrated underground natural gas storage into their interstate and intrastate pipeline operations to increase deliverability and decrease overall costs; and
WHEREAS, there are over 400 active underground storage facilities in 30 states, with a combined storage capacity of over nine trillion cubic feet, which is equivalent to about 35 percent of the annual natural gas consumption in the United States; and
WHEREAS, underground gas storage facilities are complex and require professional expertise across several disciplines that include pipeline safety, well bore integrity, and reservoir management; and
WHEREAS, the member states of the Interstate Oil and Gas Compact Commission have trained personnel to actively and effectively regulate natural gas storage wells for safe underground storage of natural gas; and
WHEREAS, many states have adopted rules and regulations regarding the safe operation of underground natural gas storage wells and these rules and regulations are currently implemented under state authority; and
WHEREAS, the Pipeline and Hazardous Materials Safety Agency (PHMSA) adopted an Interim Final Rule (IFR) to address safety issues at underground natural gas storage facilities, effective January 18, 2017; and
WHEREAS, the PHMSA IFR overlaps many state rules and regulations and creates compliance and enforcement obstacles for states; and
WHEREAS, the Interstate Oil and Gas Compact Commission will continue to coordinate with PHMSA on natural gas storage well safety issues; and
WHEREAS, the Interstate Oil and Gas Compact Commission and the Ground Water Protection Council, through the States First Initiative, formed a multi-constituency task force that published guidance on underground natural gas storage well safety regulations, titled “Underground Gas Storage Regulatory Considerations: A Guide for State and Federal Regulatory Agencies” in May, 2017; and
WHEREAS, while transportation of natural gas commonly involves interstate operations, most natural gas storage reservoirs do not cross state boundaries; and
WHEREAS, legislation by Congress would serve to clarify underground natural gas storage well safety responsibilities for the benefit of our national economy and the citizens of our states;
NOW, THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission hereby declares its support for amending federal legislation to provide greater flexibility for states to regulate underground natural gas storage wells, reservoirs, and associated facilities within their respective boundaries under state authority.
Prioritizing Construction of the Appalachian Storage and Trading Hub
WHEREAS, the Appalachian region contains world class supplies of natural gas and natural gas liquids and contributes to the Nation’s energy dominance; and
WHEREAS, harnessing those supplies by constructing an Appalachian Storage and Trading Hub constitutes a major infrastructure (storage caverns in rock formations, depleted oil and gas reservoirs or salt caverns and pipelines) investment and job program for residents of West Virginia, Ohio, Pennsylvania and Kentucky; and
WHEREAS, natural gas liquids are the major feedstock of the chemical industry and the region contains enough feedstock to attract $35 billion in new chemical industry investment; and
WHEREAS, chemical industry investments on this scale could create 100,000 new jobs in the region; and
WHEREAS, those investments could generate more than $28 billion in new economic output, more than $6 billion in new payroll and nearly $3 billion a year in new federal, state and local tax revenue; and
WHEREAS, the geologic attributes of the Appalachian Storage and Trading Hub have been assessed by West Virginia University and the economics have been assessed by the American Chemistry Council and these studies support the construction of the Hub; and
WHEREAS, a petrochemical feedstock storage hub located in the heart of the Appalachian Basin could support major energy, infrastructure and job creation objectives.
THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission urges federal and state policymakers and regulatory authorities to prioritize construction of the Appalachian Storage and Trading Hub
Pertaining to the Delegation of Federal Regulatory Authority to State Government Agencies
WHEREAS, United States oil and gas production has brought the country to the cusp of achieving energy independence from foreign powers, has saved hard-working families hundreds of dollars a year in energy costs, and has delivered safe and reliable energy to fuel the nation's economy; and
WHEREAS, the President issued Executive Order 13771 on January 30, 2017, enumerating executive policy that for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process; and
WHEREAS, the President issued Executive Order 13777 on February 24, 2017, enumerating executive policy that Federal agencies alleviate unnecessary regulatory burdens placed on the American people and require each agency to establish a Regulatory Reform Task Force to review regulations that eliminate jobs or inhibit job creation, are outdated, unnecessary, or ineffective; or impose costs that exceed benefits; and
WHEREAS, the President issued Executive Order 13783 on March 28, 2017, enumerating that it is in the national interest to promote clean and safe development of United States vast energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation and ensure the Nation’s geopolitical security.
NOW, THEREFORE, BE IT RESOLVED THAT, the IOGCC urges The President of the United States and the Congress, in consultation with the IOGCC member States, in the spirit of Cooperative Federalism, identify those federal regulations, especially those promulgated under the authority of the United States Environmental Protection Agency, the United States Department of the Interior, the United States Department of Energy, and the United States Department of Transportation, and determine whether any additional regulatory authorities should be delegated to states in an effort to improve regulatory efficiency and effectiveness.
IOGCC Resolution Annual Conference Coeur d'Alene, Idaho
Supporting Hydrocarbon Exploration and Development in a Limited Area of the ANILCA Authorized Coastal Plain of ANWR as Part of the National Energy Policy of the United States of America
WHEREAS, the oil and natural gas industry is a vital part of the United States’ economy, and increasing domestic energy production and avoiding dependence on foreign supplies are in the best interest of our nation’s strategic and economic wellbeing; and
WHEREAS, IOGCC supports conservation and use of alternative fuels but recognizes that, for the foreseeable future, increased domestic oil and gas production is needed to fuel the nation; and
WHEREAS, in Section 1002 of the Alaska National Interests Lands Conservation Act (ANILCA), the United States Congress reserved, for the purpose of further oil and gas exploration, development, and production, an area within the Coastal Plain of the Arctic National Wildlife Refuge, Alaska (ANWR); and
WHEREAS, the Section 1002 area has recently been opened for exploration and a lease sale within its boundaries is anticipated; and
WHEREAS, the 1,500,000-acre Coastal Plain makes up less than eight percent of the 19,000,000-acre ANWR refuge; and
WHEREAS, fewer than 2,000 acres of the Coastal Plain area will be affected by surface activity as contemplated in the provisions under section 1002 of ANILCA; and
WHEREAS, the Section 1002 area, is one of America’s best possibilities for the discovery of several new oil and gas accumulations; and
WHEREAS, the U.S. Department of the Interior estimates that the Coastal Plain contains between 5.6 and 16 billion barrels of technically recoverable oil, of which 100% could be economically produced under favorable economic conditions; and
WHEREAS, advanced technology has greatly reduced the “footprint” needed for Arctic oil and gas development, as demonstrated by the fact that wells drilled at Prudhoe Bay in the 1970s required well spacing of 160 feet or about two acres per well, while wells drilled today at the Alpine field require only 10 foot spacing or about one quarter acre each; and
WHEREAS, to date, North Slope oil field development expenditures for production activity have contributed well over $50 billion to the nation’s economy, directly impacting each state in the union; and
WHEREAS, various studies have indicated that exploration and development of hydrocarbons in the Coastal Plain of ANWR could lead to 61,000 new jobs or up to as many as 130,000 jobs; and
WHEREAS, the Trans-Alaska Oil Pipeline currently operates each day at approximately one fourth of its design capacity; and
WHEREAS, government studies suggest that new production from the Coastal Plain of ANWR could produce a 10-year sustained rate of 1 million barrels per day with production likely to continue for more than 25 years; and
WHEREAS, it will take at least 10 years to begin development after a discovery in the 1002 area of ANWR, necessitating timely action.
NOW, THEREFORE, BE IT RESOLVED, that the Interstate Oil and Gas Compact Commission, in the national interest, urges the President and Congress to continue on a path that will facilitate exploration and development of hydrocarbons in the Section 1002 area of the Coastal Plain of ANWR.