AAPL Governmental Affairs Weekly Report - 5/13/19

  • 1.  AAPL Governmental Affairs Weekly Report - 5/13/19

    Posted 4 days ago
      |   view attached
    Following please find highlights from the AAPL Governmental Affairs Weekly Report for the week of May 13, 2019. The full report is attached to this post.

    STATE - LEGISLATIVE: Hydraulic Fracturing – Florida. On May 3, SB 146 died in the Senate Environment and Natural Resources Committee with the adjournment of the legislative session. The bill, sponsored by Sen. Linda Stewart (D), would have banned hydraulic fracturing in the state and provided that permits for drilling or well operations do not authorize the use of hydraulic fracturing. The House version, HB 239, also died in committee, as did a number of related hydraulic fracturing prohibition bills, HB 7029, SB 314, and SB 7064. Read more.

    STATE - LEGISLATIVE: Production Tax Credits – Texas. (Update to 4/15/19 Weekly Report) On May 8, SB 925 was sent to Gov. Greg Abbott. The governor must sign or veto legislation within 10 days of transmittal (excluding Sunday), or it becomes law without his signature. The bill, sponsored by Sen. Pete Flores (R), amends the qualifications for low-producing oil and gas well production tax credits to specify that the production per day would be calculated based on the greater of monthly production from the well as reported in the well production reports made to the Railroad Commission or the monthly production in the producer's reports made to the comptroller including any amendments. If enacted, the bill would take effect September 1, 2019. The House companion bill, HB 3865, was set aside in favor of this version of the bill. Read more.

    INDUSTRY NEWS: BLM posts record year from oil and gas lease sales. According to the BLM, thanks in part to streamlined permitting processes, the U.S. produced more than 214 million barrels of oil on federally managed public lands while utilizing the smallest acreage footprint of leases since 1985. "Demonstrating the marvel of technology and innovation, our production numbers are unprecedented, even though we have the fewest acres under lease in almost four decades," said Interior Secretary David Bernhardt. "President Trump has ensured that America's great energy renaissance includes federal lands while delivering high paying jobs and low cost fuel." For example, "Along with reduced drilling times and an increase in the total number of APDs approved, FY 2018 saw an increase in the number of wells spudded or started. In 2018, 1,919 wells were spudded, an increase of over 1,000 wells and a 127 percent increase compared to 2016 (847 spudded wells)," according to a BLM statement. Read more.

    Russell Cohen
    AAPL Governmental Affairs