It’s not just a local or regional voice anymore. PBPA’s reach extends across the country.
By Julie Anderson
One has to wonder if, some 55 years ago, the inaugural members of the Permian Basin Petroleum Association—fewer than 20 in number—could have predicted the heights their fledgling organization would reach and the breadth of influence it would embrace. For example, could the original gathering of oilmen have foreseen the Permian Basin Petroleum Association (PBPA or Association) filing a lawsuit against a federal agency? Equally important, could they have predicted a win?
On Sept. 1, in PBPA et al. v. Department of Interior et al, the U.S. District Court for the Western District of Texas granted summary judgment in favor of the PBPA and vacated the U.S. Fish and Wildlife Service rule listing the Lesser Prairie Chicken (LPC) as threatened under the Endangered Species Act (ESA). The listing would have hampered oil production in Texas and New Mexico and been a “slap in the face” to the many companies that had already agreed to voluntarily conserve the bird, declared PBPA President Ben Shepperd.
While Shepperd and the organization he leads do have an unwavering focus on the Permian Basin, their efforts extend well beyond the Basin borders. For example, the LPC battle was not merely a defensive stand, but doubled as an endeavor to “change the conversation” when it comes to federal policy.
“One benefit of the decision is that it may help promote the discussions in Washington, D.C., about enacting reasonable, programmatic reforms of the ESA,” Shepperd shared. “Like so many laws in America, the ESA is based on noble intentions,” he continued. “The Bison and the Bald Eagle are two animals that were nearly extinct and saved by prudent and appropriate public mandates.” However, in the cases of the lizard, chicken, and other proposed listings, “the ESA in its current form is being exploited by activist groups by circumventing the logical and democratic process that allows for those affected to have a timely voice.”
While the PBPA is composed of companies and individuals who operate in the Permian Basin, PBPA members develop a resource that “benefits the entire nation if not the entire world,” stated Stephen M. Robertson, PBPA executive vice president. “Since the influence of our members spreads beyond the borders of the Permian Basin, our impact must and does spread beyond those borders, as well.”
Robertson also cited the LPC as a prime example of this sphere of influence.
“Not only does the habitat of the LPC reach beyond the borders of the Permian Basin into Oklahoma, Kansas, and Colorado, but the conclusions of the suit could have a lasting impact on how the ESA is implemented across the nation,” Robertson explained.
Litany of Success
Over the years, the PBPA has been involved in many key legislative and regulatory victories:
- Successfully challenged the Fish and Wildlife Commission in its effort to list the Sagebrush Lizard as a “threatened species.”
- Successfully lobbied against legislation in New Mexico designed to reduce or eliminate the dominance of the mineral estate.
- Successfully defeated a Texas Legislative initiative in 2007 that would have given landowners the ability to take any grievances directly to local courthouses, bypassing the Railroad Commission of Texas.
- Successfully lobbied against legislation that would have allowed county appraisers to increase taxes on mineral interest owners.
- Was instrumental in the drafting of House Bill 2259, the “Inactive Well Bill.”
- Helped stop surface-developer-driven efforts to halt drilling in the city of Midland.
- Lobbied Washington against the Obama Administration’s proposed Cap and Trade legislation.
“The most recent example of PBPA’s involvement with the legislative process on a national level has been their contributions to the fight to lift the antiquated oil export ban,” said U.S. Rep. Mike Conaway, R-Midland. “No matter what is affecting the industry, whether it is tax issues, fighting proposed burdensome regulations, or reversing policies that just aren’t working, the PBPA has continually taken an active role in advocating for the Permian Basin.”
So how did a small collection of individuals develop such a strong voice, one that has earned them name recognition within state and national capitols and a seat at the table where state and federal policy are discussed and debated?
From Whence We Came
The PBPA was formed in 1961 by a group of oilmen concerned about the federal government’s growing regulatory role. The roster continues to increase, with 1,000-plus members as of press time. In fact, the PBPA is currently the biggest regional oil and gas association in the United States.
From a geologic standpoint, the Permian Basin is the largest inland oil and gas reservoir in the lower 48 states and is the No.1 crude oil producing region in the No.1 oil producing state in the nation. The PBPA, comprised of more than 50 counties in Texas and New Mexico and headquartered in Midland, has taken on the task of representing and advocating for this region that is so important to the nation’s energy supply.
The PBPA membership consists of some of the biggest operators as well as some of the smallest in the oil and gas industry and includes geologists, attorneys, accountants, doctors, editors, bankers, and retailers.
Along with its office in Midland, the PBPA has established satellite offices in Austin and Santa Fe, N.M.
The PBPA Austin office is strategically located right next to the Texas Capitol.
“This close proximity allows for our Austin staff to be in nearly constant communication with Texas legislators and decision-makers alike,” offered Brianne Adkins, PBPA membership director. “Our presence in Austin enables the PBPA to maintain a strong voice for oil and gas during both legislative sessions and interim years.”
The PBPA opened its Santa Fe location in 2014. The Permian Basin extends into Chaves, Eddy, Lea, and Roosevelt counties, and more than two-thirds of PBPA members are either domiciled in New Mexico or have some type of operations in the state.
PBPA stays involved in all of New Mexico’s industry-related issues, from testifying at legislative hearings to working with state and federal agencies to help shape energy policy.
“This office is strategically located, similarly to our Austin office, right across the street from the New Mexico Capitol,” Adkins remarked. “This intentional closeness to the Capitol allows for PBPA representatives to be just a quick walk from New Mexico legislators during legislative sessions.”
Mike Miller has been representing the PBPA as a lobbyist in Santa Fe since 2009 and has staffed the Santa Fe PBPA office since its opening.
“We have a presence in Santa Fe with regard to laws that are being proposed,” Miller emphasized, “and my main function with the Association is to be a legislative advocate.”
In fact, the PBPA lists legislative relations on the local, state, and federal levels as one of its key membership benefits.
“The PBPA is a great resource for anyone in the oil and gas industry,” declared Rosalind Redfern Grover, CEO of Redfern & Grover Resources LLC and current PBPA director. “We represent the views of our members before the legislative and regulatory bodies at the state [Texas and New Mexico] and federal levels, providing those bodies with input on industry best practices and the impact of laws and regulations on oil and gas production.”
Along with legislative representation, PBPA membership benefits include monthly information meetings, a monthly magazine, and special educational seminars on regulatory, legislative, and technical issues.
“PBPA aims to offer many different mediums for networking opportunities such as membership luncheons, black tie events, fundraising events, and committee meetings,” Adkins said. “Our members enjoy exchanging insights, making business connections, and sharing best practices in these types of forums.”
The Association hosts a variety of activities both annual and impromptu that provide members with opportunities to expand their network of key industry professionals, elected officials, and business leaders. One of the most notable events is the PBPA Top Hand Award banquet hosted in Midland every January. The Top Hand Award is given annually to an industry honoree in recognition of that person’s contributions to the oil and gas industry in the Permian Basin as well as his or her community involvement.
The PBPA hosts its Annual Meeting each October in Midland, where the membership is joined by elected officials and industry leaders.
“We are important to oil and gas producers, large and small,” Redfern Grover asserted. “Everyone with a stake in the oil and gas industry should join the PBPA.”
Rolling Up Our Sleeves
“Our mission is to be an advocate for the industry by gathering, deciphering, and distributing information from our members to legislative, regulatory, and support services, and vice versa,” Robertson detailed. “There are times when we can best accomplish that mission by education, and other times by action.”
The PBPA harnesses the talents and expertise of its members through a committee structure including regulatory, legislative, infrastructure (power and water), endangered species, nominating, executive and strategic planning committees. The PBPA leadership calls upon its members to join committees where they can leverage their expertise.
“Our committees are sort of the ‘bread and butter,’ the place where we roll up our sleeves,” Shepperd offered.
Through these committees and other Association activities, the PBPA has ingrained itself into the industry fabric and earned the respect of lawmakers along the way.
Name Recognition
“You would be hard pressed to find someone in the oil and gas industry, especially in the Permian Basin and Panhandle areas, who is not familiar with PBPA and the work that they do,” maintained State Sen. Kel Seliger, R-Amarillo. “I have worked with the PBPA in many capacities over the years, first as a business owner, then as a mayor, and now as state senator. This is an important distinction because it shows the wide variety of clientele PBPA serves.
“Building on their diverse membership, PBPA has been very successful at providing a strong, unified message to the Texas Legislature,” Seliger continued. “As a result, PBPA’s resourcefulness on policy issues has been invaluable.”
The PBPA has not only earned a “seat at the table,” but they come to the table with facts, figures, and solutions on hand, noted State Rep. Tom Craddick, R-Midland.
Labeling the PBPA as “one of the real leaders, if not the leader, of all oil and gas associations,” Craddick lauded the PBPA for consistently showing up and offering widespread expertise. For example, the PBPA has addressed everything from proration and unitization to redistricting and endangered listings. The PBPA takes the time to educate its members, and then sends members to Austin to help educate lawmakers.
“People know who they are, and they know what the PBPA is about,” Craddick summarized. “When the PBPA walks into the Capitol, they are recognized.”
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Julie Anderson is well known to readers of Permian Basin Oil and Gas Magazine as the previous editor of this publication. She currently serves as editor of County Progress Magazine.