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OKOGA WEEKLY HIGHLIGHTS | WEEK OF 11/6/15
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PRESIDENT OBAMA REJECTS KEYSTONE XL PIPELINE


Oklahoma Oil & Gas Association's Executive Vice President commented today on President Obama's rejection of the Keystone pipeline.  Click the graphic to see where pipelines are already located in the US.

ANNUAL MEETING - REGISTER NOW

The Oklahoma Oil & Gas Association’s Annual Meeting will be held on Friday, November 20.  In 2016, Oklahoma’s oil and natural gas industry faces a number of obstacles.  The goal of the Oklahoma Oil & Gas Association is to turn these obstacles into opportunities for a stronger energy industry.  The general session will include the following topics: What Obstacles Face the Oil & Gas Industry in 2016? | Panel Discussion:  Impact of Seismic Activity on Industry | Pipeline Safety | Economic Impact of Long Laterals | Panel Discussion:  Long Laterals – Missed Opportunity for Oklahoma | and | Facing the Fracktivists.  The luncheon keynote speaker will be U.S. Senator James Lankford.  (Registration)

INTERIM STUDY UPDATES

 
eCap:  Budget-only sessions were once again the topic of discussion among legislators during an interim study requested by Senate President Pro Tempore Brian Bingman, the primary author of SJR0030 which proposes a vote of the people on a constitutional amendment that allows the Legislature to prepare the budget every year and consider all other types of legislation in odd-numbered years. (NewsOK also reports)
 
eCap:  Members of the Oklahoma House heard both studies and proposals Monday regarding issues brought about by possible drought conditions. The combined interim studies discussed, H15-021 and H15-005, both examined drought conditions in Oklahoma as well as possible ways to address the issue. These studies come at the request of Reps. Doug Cox, R-Grove, and Leslie Osborn, R-Mustang.  They heard from The Chickasaw Nations, the Oklahoma Farm Bureau and Oklahoma Water Resources Board (OWRB).    Rep. Cox spoke to House members, mainly about making use of excess water and the various ways of transporting it across the state. He reminded members that water is the most important resource in his district. His proposal largely dealt with moving water across the state via existing pipelines and storing it via tanks farms similar to the ones used for oil. (StateImpact also reports)
 
eCap:  Senate General Government Committee members heard presentations Wednesday concerning expansion the role of the governor in the appointment of agency directors.  Sen. Kim David, R-Porter, said the idea of expanding the authority to the governor to appoint agency directors had been discussed for several years, particularly since voters approved a state question that eliminated the Commission on Human Services and gave the governor the authority to appoint the director of the Department of Human Services. That led her to request Interim Study S15-047, concerning the gubernatorial appointment of agency directors.  (NewsOK also reports)
 

SENATE DISTRICT 34 PRIMARY

 
On Tuesday, November 10, 2015, there will be a primary election held for the Senate District 34 seat.  Because this is a special election, there will not be a runoff.  The winner from each party will face each other in the general election on January 12, 2016. 
 

REVENUES CONTINUE DECLINE

 
NewsOK: Oklahoma revenue declines for sixth straight month.  Oklahoma Treasurer Ken Miller said Tuesday that all of the state's major sources for revenue were down in October as oil price declines continued to hamper the energy sector.  (October Economic Report)

SEISMIC NEWS

 

SIERRA CLUB THREATENS TO SUE

 
This week the Oklahoma chapter of the Sierra Club, along with Public Justice and representing law firm, Weitz & Luxenberg have served four Oklahoma energy companies, with a Notice of Intent to Sue for violations of the federal Resource Conservation and Recovery Act (RCRA). The notice demanded the companies, Chesapeake Energy, Devon Energy, New Dominion, and SandRridge Energy, take specific actions within 90 days or face further legal action. (EcoWatch, StateImpact, KOSU, E & E reports)
 
In response, OKOGA President Chad Warmington issued this statement.  Following are reports where Chad Warmington was quoted:  Oklahoman,  KFOR (Video), News 9 (Video), eCap

 
JOINT INTERIM STUDY ON SEISMIC ACTIVITY

 
Additionally, on Friday, following the joint Oklahoma House & Senate interim study meeting on seismic activity, OKOGA issued this statement. (Tulsa World, NewsOK.com reports)
 
More coverage from Friday’s interim study:
  • eCap:  Corporation Commission believes it has jurisdiction over state’s disposal wells
  • Journal Record:  Murphy says Corporation Commission has clear authority to regulate disposal wells (sub req’d)
  • eCap:  OGS to research recent decline in earthquake frequency.
Coverage of reduction in seismic activity:
  • KOCO: Oklahoma earthquake numbers fall for the first time
  • Fuelfix (AP): Expert says Oklahoma earthquakes easing over last 3 month 
 

PSTD PROPOSED RULES

 
On Thursday, November 5, the Oklahoma Corporation Commission held a technical conference regarding Proposed Rulemaking (NOPR) for the Oklahoma Corporation Commission’s Chapter 15 Fuel Inspection, Chapter 25 Underground Storage Tanks, Chapter 26 Aboveground Storage Tanks, Chapter 27 Indemnity Fund, and Chapter 29 Corrective Action of Petroleum Storage Tank Releases. 
 
OKOGA submitted comments to the PSTD proposing a change to their Chapter 15 Fuel Inspection, specifically 165:15-7-5 to address concerns on the deletion of the ASTM D975 reference. Bud Ground attended the technical conference to explain the requested change to staff and their General Counsel. The staff and General Counsel all agreed that the ASTM D975 reference should be added back in. We’ve linked a copy of the change that will be included in the next revision which will be sent out prior to the next technical conference scheduled for December 2, 2015.
 
The proposed rules accessible on the Commission’s website at www.occeweb.com (under the Conducting Business tab) and may be downloaded at no cost.
 

DEQ PROPOSED RULEMAKING

 
The DEQ Environmental Quality Board will meet on November 10th to take up a number of issues including rulemaking to amend OAC 252:100 Subchapter 9 (Excess Emission Reporting Requirements During Periods of Startup, Shutdown and Malfunction [SSM]) to comply with the State Implementation Plan (SIP) Call as published in the Federal Register by EPA on June 12, 2015 (80 FR 33840) and to conform with EPA’s restated and updated SSM policy applicable to SIPs.  ODEQ proposes to remove Affirmative Defense provisions for excess emissions during malfunctions and start up and shutdown events from the rules and temporarily rely on mitigation determinations until November 22, 2018 or upon the effective date of the federal approval of the provision of Subchapter 9 in the SIP, whichever is later.  Alternative means of compliance can be approved by the DEQ & included in a facility’s permits for excess emissions during start up and shutdown.
 
9:30 a.m., Tuesday, November 10, 2015
Canadian Valley Technology Center
Helen Ward Seminar Center, Building 200
1401 W. Michigan Avenue
Chickasha, Oklahoma
 

CVTC TRAINING FACILITY

 
Canadian Valley Technology Center is building a “hands on” training facility in El Reno, OK.  They are building a facility that will show every aspect of the oil and gas industry, to give workers “hands on” experience.  They are looking for companies who would be interested in donating money and equipment towards this project.  They have provided a newsletter talking about the project.
 

EPA CLEAN WATER RULES

 
NewsOK:  Despite White House objections, the Senate voted for a resolution Wednesday to scrap new federal rules to protect smaller streams, tributaries and wetlands from development and pollution.  Senators voted 53-44 in favor of a "resolution of disapproval," a measure that would void the regulations if also passed by the House and signed by the president. The White House has already said it would veto the resolution.
 

ESA

 
Obama order requires agencies to offset environmental impacts of development. USA Today. Federal agencies will be required to take additional steps to offset the environmental impacts of development under a presidential memorandum signed by President Obama Tuesday. The new policy expands on the federal government's 26-year-old "no net loss" wetlands policy, first established under President George H.W. Bush, which requires that any wetlands that are destroyed by human development be replaced somewhere else. The Obama policy applies that concept to any natural resource — not just wetlands — and also encourages agencies to replace those resources even before they're destroyed. For example, the memorandum would require oil and gas producers, loggers and others who deplete natural resources to pay other companies to restore those resources nearby. Note: E&E News (sub req’d) also reports and Nature Conservancy has issued a press release. (See the Federal Register story below as well)
 
Mitigating Impacts on Natural Resources From Development and Encouraging Related Private Investment (Memorandum of November 3, 2015). The President signed a memorandum that addresses mitigating Impacts on Natural Resources From Development and Encouraging Related Private Investment to avoid and then minimize harmful effects to land, water, wildlife, and other ecological resources (natural resources) caused by land- or water-disturbing activities, and to ensure that any remaining harmful effects are effectively addressed, consistent with existing mission and legal authorities. Agencies shall each adopt a clear and consistent approach for avoidance and minimization of, and compensatory mitigation for, the impacts of their activities and the projects they approve.
 

FEDERAL REGISTER NOTICES

 
Public Water System Supervision Programs:  Oklahoma, Revision.  The State of Oklahoma is revising its approved Public Water System Supervision program. Oklahoma has adopted the Revised Total Coliform Rule by reference under Title 252 Chapter 631 Subchapters 1–3 of the Oklahoma Administrative Code Pertaining to the Oklahoma Department of Environmental Quality Pubic Water Supply Operation.
 
Environmental Protection Agency, Oklahoma State Implementation Plan.  The Environmental Protection Agency is approving revisions to the Oklahoma State Implementation Plan submitted by the State of Oklahoma designee. The revisions are administrative in nature and modify redundant or erroneous text within the SIP. The revisions also incorporate new definitions and the current national ambient air quality standards for four criteria pollutants; delete a subchapter that addresses motor vehicle pollution control devices; and add requirements for certain incinerators.  This rule is effective on January 4, 2016.
 
Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category.  This final rule, promulgated under the Clean Water Act, protects public health and the environment from toxic metals and other harmful pollutants, including nutrients, by strengthening the technology-based effluent limitations guidelines and standards for the steam electric power generating industry.
 
Incidental Take Permit Applications: Oil and Gas Industry Conservation Plan for the American Burying Beetle in Oklahoma.  The U.S. Fish and Wildlife Service, invites the public to comment on incidental take permit applications for take of the federally listed American burying beetle resulting from activities associated with the geophysical exploration (seismic) and construction, maintenance, operation, repair, and decommissioning of oil and gas well field infrastructure within Oklahoma.
 
Standards of Performance for Stationary Compression Ignition Internal Combustion Engines.  The Environmental Protection Agency is proposing amendments to the standards of performance for stationary compression ignition internal combustion engines to allow manufacturers to design the engines so that operators can temporarily override performance inducements related to the emission control system for stationary CI internal combustion engines operating during emergency situations where the operation of the engine or equipment is needed to protect human life, and to require compliance with Tier 1 emission standards during such emergencies. Comments are due by December 21, 2015. 
 

ARTICLES OF INTEREST

 
API:  Gerard: American voters are overwhelmingly pro-energy
Journal Record: Tough topics: New OGS director not afraid of radioactive projects (sub req’d)
Journal Record:  Quakes attract new insurance companies (sub req’d)
Journal Record:  Geological Survey's OU affiliation not enough to avoid budget cuts (sub req’d)
Journal Record:  Worst is yet to come, economist says at forecasting event (sub req’d)

 

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