Independent petroleum association testifies on role of independent oil, natural gas producers in onshore development

Dan Naatz, senior vice president of government relations and public affairs at the Independent Petroleum Association of America (IPAA), recently testified before the U.S. House Subcommittee on Energy and Mineral Resources on the role of U.S. independent oil and natural gas producers in onshore oil and gas development.

Naatz gave the testimony at a legislative hearing on a discussion draft of the Opportunities for the Nation and States to Harness Onshore Resources (ONSHORE) Act. The bill would allow states with established regulatory programs to pursue primacy for the execution of permitting responsibilities for oil and gas development on federal lands.

“The states and tribes have a proven track record of safely and effectively regulating hydraulic fracturing operations,” Naatz, IPAA’s senior vice president of Government Relations and Political Affairs, said. “States and tribes understand the geology and hydrology of their regions far better than federal officials in Washington, D.C. Rather than establishing a duplicative, ‘one-size-fits-all’ regulatory regime governing hydraulic fracturing, we commend the committee for deferring to state and tribal regulations, permitting and guidance for all activities related to hydraulic fracturing.”

Naatz told the subcommittee that while U.S. oil and natural gas production increased significantly in recent years, most of the growth occurred on private and state lands. Production from onshore federal leases, he noted, has stayed flat or declined.

“Oil and natural gas projects on federal lands face months of delay due to regulatory obstacles from the federal government that require a given producer to face countless challenges and slow the process to a crawl,” Naatz said. “Significant federal delays only deter companies from wanting to operate on federal lands, translating into lost federal revenue from the royalties generated. This is critical funding for Western states who rely on oil and gas revenues to fulfill budget priorities for local communities.”