We share here the remarks from Ben Shepperd, President of the Permian Basin Petroleum Association, on the occasion of the Association’s Feb. 19 membership luncheon.
Ben Shepperd
As President of the Permian Basin Petroleum Association, I want to thank all of you for being here. This is our first luncheon of the year.
We kicked things off last month with a great Top Hand event honoring Travis Stice—it was a fantastic evening. While we’re on that subject, I’d also like to recognize a previous Top Hand who is with us today, Dennis Johnson. Thank you, Dennis.
I also want to thank our sponsors, ConocoPhillips and Priority Power. We truly appreciate your support today and throughout the year.
Most of you are familiar with PBPA, but as a reminder, we spend a significant amount of time working in Austin and Santa Fe with regulatory agencies and legislative bodies. We also dedicate considerable effort to federal issues.
A Busy Start to 2026
2026 has already been a busy—and exciting—year, even though we’re just getting started. I know many of you are already feeling the pace.
We’ve hosted several visits from Washington officials. In January and again earlier this month, representatives from the EPA’s Office of Water Management toured reuse and recycling facilities. We also welcomed U.S. Fish and Wildlife Director Brian Nesbitt, along with senior officials from Washington and several state wildlife directors.
We took them on rig and facility tours, and it’s safe to say that many of them had never been on a drilling site before. As many of you know, these tours are invaluable. They provide an eye-opening experience—especially when we demonstrate how modern operations minimize surface impact, even with something like a three-mile lateral. That left a strong impression.
Helping policymakers understand how we operate today is a critical part of what we do.
Key Focus Areas
We’ve also been working on our electricity reliability initiative. You can’t read the news today—if anyone still reads a physical newspaper—without seeing stories about electricity demand, growth, and the challenges surrounding it. We’re actively engaged in those discussions.
In New Mexico, the legislative session began in mid-January and is wrapping up today. I’ll touch on that shortly.
On the regulatory side, much of our work happens through our committees—ranging from regulatory and water to endangered species and electricity.
Recently, the federal administration announced plans to rescind the endangerment finding under the Clean Air Act. While this wasn’t a surprise to those of us following the issue, the details still need to be worked out. In the meantime, we’ll continue operating under current rules and maintaining compliance, while preparing for potential changes in emissions regulations.
Texas Regulatory Updates
The Railroad Commission has been busy developing rules around produced water pits and recycling. While this may sound straightforward, it’s quite complex. Progress has been made, and discussions are now focused on implementation.
They’ve also made improvements in technology, allowing more processes to move online—though that comes with challenges, such as integrating systems.
The Stop Theft Task Force, supported by PBPA and legislative partners, continues its work. Oilfield theft remains a widespread issue—something many of you have experienced.
The Commission is also working to streamline critical infrastructure processes, an effort that began after Winter Storm Uri in 2021.
Additionally, ERCOT recently announced transmission constraints in the Permian Basin, which could lead to load response measures. We’re working to ensure that critical operations are protected and to avoid the kind of cascading impacts we saw in 2021.
New Mexico Legislative Session
Turning to New Mexico, the session is just ending, and while final outcomes are still being confirmed, we have a good sense of what passed and what didn’t.
The environment in Santa Fe is unique. On any given day, you’ll encounter strong opposition to oil and gas development—often driven by deeply held beliefs. While that doesn’t represent everyone, it is a significant presence.
That said, we had some important successes.
- SB18 (Clear Horizons Act / “No Future Act”)
This bill would have imposed greenhouse gas limits and granted broad authority to regulators to create new rules and effectively implement a carbon tax without legislative oversight. It was defeated, thanks to bipartisan opposition. - Green Amendment
This proposal, introduced repeatedly over the years, would have created constitutional “environmental rights” and expanded legal avenues for lawsuits against the state and local governments. It failed again this session—earlier than in previous years. - House Bill 207 (Produced Water Rules)
We supported this bill, which aimed to push forward long-delayed produced water regulations. Unfortunately, it did not pass. This remains a critical issue, as clear rules are needed to advance research and pilot projects. - Oil and Gas Conservation Tax Reform
A positive development: funds originally intended for orphan well plugging and site remediation will now be redirected back to their intended purpose. This ensures existing tax revenue is used appropriately, rather than creating new taxes. - SB151 (Corporate Tax Changes)
This bill passed, though in a more moderate form than originally proposed. - SB21 (Oilfield Crime Task Force)
Despite strong efforts, this bill did not pass. However, progress was made, and we’re well positioned to revisit it in the future. - Microgrid Restrictions Bill
This proposal would have severely limited energy sources for microgrids, excluding traditional generation and restricting power imports. Fortunately, it did not pass.
Closing
New Mexico’s regulatory environment remains very active, and we expect a busy year ahead. I appreciate the many members who contribute their time through our committees—this work is essential and demanding.
The keynote speaker for the luncheon was Garrett Golding. Below is a link to his comments.
Related: Garrett Golding: On Energy, Economics, and More in the Permian Basin