2006 Resolutions
Interstate Oil and Gas Compact Commission

Midyear Meeting Resolutions    06.051    06.052    06.053
Annual Meeting Resolutions    06.101    06.102    06.103    06.104

IOGCC Resolutions
2006 Annual Meeting
Austin, Texas

RESOLUTION 06.101

URGING THE CONTINUED DEVELOPMENT OF AN EFFECTIVE NATIONAL ENERGY POLICY

WHEREAS, the United States of America is dependent on adequate, affordable energy supplies from diverse sources for continued economic stability and growth, national security, and maintenance and enhancement of its citizens' quality of life; and 

WHEREAS, domestically produced natural gas and oil are critical parts of the nation's energy needs; and 

WHEREAS, according to the Energy Information Administration's latest estimate, the demand for clean-burning natural gas is projected to increase 60% by the year 2020; and 

WHEREAS, volatile energy prices, as well as our nation's dependence on more than 65% of our oil from foreign sources have a detrimental effect on the U.S. economy and security; and 

WHEREAS, funding for oil and natural gas research and development has been greatly reduced and, in some cases, eliminated, in both the private and governmental sectors, thereby curtailing activities and initiatives that lead to new technologies that positively impact domestic oil and natural gas exploration and production activities and result in additional supply and reserves; and 

WHEREAS, presently inaccessible federal lands in the United States, including large portions of the Outer Continental Shelf, are estimated to contain more than 65% of the undiscovered onshore oil reserves and 40% of the undiscovered gas reserves potentially available to meet our nation's energy needs; and 

WHEREAS, the infrastructure necessary for the transportation of oil and natural gas from remote sources to the areas in which it is consumed is desperately lacking and needs federal support and funding, 

NOW,THEREFORE, BE IT FURTHER RESOLVED, that the Interstate Oil and Gas Compact Commission urges the President and Congress to continue to develop and adequately fund an enhanced national energy policy that will:

  1. Provide access to federal lands, as appropriate under protocols of wise stewardship and compatible use, for the development of oil and gas resources utilizing technologies proven to be environmentally sound,
  2. Support and encourage research and development of new technologies that benefit efficient and effective exploration and development for oil and natural gas resources,
  3. Support enhancement of the infrastructure for the transportation of oil and natural gas in the United States,
  4. Streamline, to the degree possible, the process used to approve oil and gas permitting in all federal agencies having authority to grant permits and approvals, and
  5. Support each state's rights to oversee the oil and natural gas regulatory process.

RESOLUTION 06.102

CONTINUING POLICY ON THE ISSUE OF CARBON CAPTURE AND STORAGE IN UNDERGROUND GEOLOGIC FORMATIONS

WHEREAS, although the science of climate change is evolving, there is growing interest both within industry and government in the potential for the capture and storage of carbon dioxide (CO2); and 

WHEREAS, one of the means by which to store CO2 is to inject it into underground geologic formations; and 

WHEREAS, in many states CO2 is currently being injected for purposes of enhanced recovery of oil and natural gas (EOR); and 

WHEREAS, states regulate the injection of CO2 and other substances into underground reservoirs for purposes of EOR; and 

WHEREAS, current state regulations governing CO2 injection for EOR purposes may need to be expanded upon in order to meet the requirements for CO2 storage; and 

WHEREAS, the Interstate Oil and Gas Compact Commission (IOGCC) has taken a lead role in the coordination of an effort to develop regulatory guidelines and/or guidance documents on carbon capture and storage; and 

WHEREAS, IOGCC recognizes recent legislation in California that mandates emission reductions in California; and 

WHEREAS, the long-term geological storage of CO2 is a solution that would provide California and other states a mechanism for reducing greenhouse gas emissions to the atmosphere; and 

WHEREAS, the IOGCC in December 2002 established a Geological Sequestration Task Force and in October 2004 created the follow-up IOGCC Carbon Capture and Storage Task Force to examine the technical, policy, and regulatory issues related to safe and effective CO2 storage in the subsurface, whether for enhanced hydrocarbon recovery or for storage, and to prepare model regulatory guidelines concerning geologic storage to assist member states in regulating the injection and underground storage of CO2; and  

WHEREAS, states in amending their regulations to cover CO2 storage will benefit from the involvement of the IOGCC in ongoing development and refinement of regulatory guidelines and/or guidance documents on CO2 storage; and 

WHEREAS, the IOGCC will continue to expand efforts of the IOGCC Carbon Capture and Storage Task Force, the purpose of which will be to continue to facilitate coordination and cooperation among IOGCC member states, the U.S. Department of Energy, the Association of American State Geologists, and other organizations with an interest in injection of CO2 into underground geologic formations, to further develop and refine public policy and the regulatory framework for geologic carbon capture and storage; 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC:

  • Urges the U.S. Department of Energy through its Carbon Sequestration Program, which has been instrumental in funding previous and current IOGCC regulatory projects on this subject, to continue to provide future support for continued initiatives promoting the development of rational and experienced-based regulatory frameworks, which enable development of safe CO2 storage projects.
  • Urges the EPA through its Geologic Sequestration Workgroup to collaborate and coordinate with the IOGCC in using geologic storage to address carbon sequestration.

RESOLUTION 06.103

Identifying and Promoting Energy Manpower Needs

WHEREAS, the Interstate Oil and Gas Compact Commission (IOGCC) is recognized as a national leader in identifying petroleum manpower needs through the Petroleum Professionals Blue Ribbon Task Force convened by Governor John Hoeven; and 

WHEREAS, the work of the Task Force includes recommendations for state, federal and industry actions; and 

WHEREAS, the Interstate Oil and Gas Compact Commission (IOGCC) publication Employment Growth: Oil Industry Focus, a step by step guide on how North Dakota state government and industry collaboration under the leadership of Governor John Hoeven found blue collar workers to fill vital energy industry positions; and 

WHEREAS, a stable and adequate domestic petroleum workforce is critical to continued, environmentally sound development of natural gas and oil resources in the United States; and 

WHEREAS, a stable and skilled domestic petroleum workforce is a key challenge to the industry at present and for the foreseeable future; and 

WHEREAS, the need for an abundant, well trained workforce of professional and blue collar members has also been recognized by industry groups, educational institutions, and the states, 

NOW, THEREFORE, BE IT FURTHER RESOLVED, that the IOGCC will continue the effort identified by the Petroleum Professionals Blue Ribbon Task Force to include:

  • Development of strategies to further the recommendations of the Blue Ribbon Task Force;
  • Leadership and support for proposals to promote attention to the blue collar job needs of the domestic oil and gas industry; and
  • Encouraging the President, Vice President, and appropriate Cabinet Secretaries to work with the IOGCC in adopting solutions to the identified manpower problems.

RESOLUTION 06.104

Encouraging Funding for the Reclamation of Orphaned Well Sites

WHEREAS, The Interstate Oil and Gas Compact Commission continues as a national leader in exploring the role of government in the issue of orphaned wells and environmental protection; and 

WHEREAS, the organization has thoroughly studied the issues associated with these wells, publishing its results in a publication entitled "Produce or Plug: The Dilemma over the Nation's Idle Oil and Natural Gas Wells;" and 

WHEREAS, an unplugged abandoned well and its associated facilities can be a hazard to the health and safety of people, or it can cause pollution; and 

WHEREAS, the plugging of the nation's orphaned wells is a large financial burden on the states, which have excellent programs to address the problem and there is currently no federal financial support; and 

WHEREAS, there are further efforts the IOGCC can take to address the problems associated with orphaned wells, including encouragement and support of efforts by the federal government; 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC expresses its support of Congressional actions that encourage the plugging reclamation of orphaned oil and gas well sites;

NOW, THEREFORE, BE IT FURTHER RESOLVED, that the IOGCC and its member states urge Congress to provide funds for the reclamation of orphaned well sites.

IOGCC Resolutions
2006 Midyear Meeting
Billings, Montana

RESOLUTION 06.051

Supporting Congressional Appropriation for Geological and Geophysical Data Preservation under Provisions of the Energy Policy Act of 2005

WHEREAS, geological and geophysical data, such as rock cores, cuttings, samples, geophysical well logs, seismic records and other data, provide the basic framework information necessary to discover and develop the oil and gas and other energy resources of the United States; and 

WHEREAS, geological and geophysical data are used extensively in domestic exploration and production activities to develop prospects and design development programs; understand geologic and engineering characteristics and conditions of hydrocarbon reservoir rocks, source rocks, and related strata; and for other applications and purposes, and; 

WHEREAS, there is significant long term benefit to the Nation and the states in the preservation of these data, as well as in ensuring that they are accessible for examination and study in support of discovery and development of the United States' domestic oil and gas resources, thereby helping to ensure that American consumers have reliable and affordable supplies of oil and natural gas; and, 

WHEREAS,nationwide, geological and geophysical data are in jeopardy owing to the general lack of adequate resources and facilities to catalog, document, archive, and make these important data available for use and study; and, 

WHEREAS, most states, including the member states of the Interstate Oil and Gas Compact Commission (IOGCC), have state agencies or entities, such as state geological surveys, that serve, or potentially serve, as repositories for geological and geophysical data; and, 

WHEREAS, the Energy Policy Act of 2005 authorizes an appropriation of $30 million per year directed toward geological and geophysical data preservation by Federal government entities and the states; and, WHEREAS, the Association of American State Geologists (AASG), along with other entities and organizations, is providing leadership in an effort to secure appropriations for the U.S. Congress to fund the Geological and Geophysical Data Preservation initiative at the authorized level; and, 

WHEREAS, the IOGCC desires to express its strong support for the Geological and Geophysical Data Preservation initiative and to join the AASG and other entities and organizations in the effort to obtain Federal appropriations for this effort; 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC urges the Congress of the United States of America to appropriate funds to support the Geological and Geophysical Data Preservation initiative at its authorized level;

NOW,THEREFORE, BE IT FURTHER RESOLVED, that the IOGCC will support and assist the AASG and others in efforts to promote the Geological and Geophysical Data Preservation initiative and secure Congressional appropriations to fund the program.

History:       Approved May 23, 2006

RESOLUTION 06.052

Oil and Gas Policy Evaluation for Energy Security

WHEREAS, America is blessed with a vast abundance of natural energy resources that have been critical to accommodating substantial population growth and fueling a dynamic economy. Oil and gas resources have been a key component to meeting the nation's energy needs for decades. Much of those resources are located in and developed throughout much of the western United States, but are also located throughout the nation; and, 

WHEREAS, notwithstanding our rich domestic energy resource, our nation imports approximately 60 percent of our oil and approximately 3 percent of liquid natural gas from foreign countries. Americans are 5 percent of the world's population and consume 25 percent of the world's oil. Some of the regions from which we import these resources are at times politically unstable, creating unstable supplies, and volatile prices. Additionally, importing foreign oil and gas contributes enormously to our balance of trade deficit, which now exceeds $750 billion annually. Oil and natural gas imports represent approximately one third of the trade deficit; and, 

WHEREAS, much of the United States economy and infrastructure is founded upon the use of oil and gas resources. The nation recognizes the need to diversify our energy supply, which will increase stability of the supply and price of our energy resources. Continued use and reliance upon oil and gas as a major part of the American landscape is likely for the coming decade, until new energy resources, technologies, infrastructures and strategies can be employed; and, 

WHEREAS, 40 percent of America's energy needs are dedicated toward, or used in the transportation sector, much of which is supplied by crude oil; and, 

WHEREAS, in recent years, we have seen a decline in the domestic oil and gas industry. In the downturn of the 1980s nearly 500,000 domestic jobs were lost. Likewise, experienced personnel throughout industry who remain are now approaching retirement age, and the industry is expected to loose nearly 50 percent of the domestic work force within the next decade; and, 

WHEREAS, in 2005 hurricanes crippled much of the Gulf Coast drilling capacity and refining capacity, causing record high gasoline prices to exceed $3.00 per gallon; and, 

WHEREAS, public reaction to recent gasoline and natural gas price spikes has been mixed, ranging from informed understanding regarding our nation's energy situation, to angry reaction toward the industry calling for investigations of alleged price gouging, to public policy changes that would negatively impact the industry; and, 

WHEREAS, 35 states produce oil and gas in the United States, 34 of whom belong to the Interstate Oil and Gas Compact Commission, which is dedicated to the preservation of the state's rights and the development of oil and gas resources in an environmentally sound manner; and,  

WHEREAS, many governors of the Western Governors Association (WGA) have served as Chairmen of the IOGCC, forging a relationship between the two organizations; and, 

WHEREAS, oil and gas resources remains a topic in need of public policy development by the nation's governors. In recent years, oil prices have exceeded $70 per barrel and gasoline prices now approach or exceed $3.00 per gallon; and, 

WHEREAS, although the market has responded to higher prices in some parts of the West, resulting in increased production of domestic resources through the use of new technology and new discoveries, infrastructure constraints limit the transportation and refining of new production. These constraints have resulted in artificially threatening continued new investment and development of new discoveries and also require solutions as part of our nation's energy needs. 

NOW, THEREFORE, BE IT RESOLVED, that the IOGCC believes that a national forum for oil and gas issues, is essential for a well-informed public that understands the nation's current energy situation, potential solutions in the near term and those that will occur in years to come, and to avoid public policy choices that will exacerbate our nation's energy situation by discouraging domestic production;

AND BE IT FURTHER RESOLVED, that an inventory of the nation's current needs, trends and policies be conducted to provide for more efficient use of our oil and gas resources, conservation practices of the resources, and policy changes that are necessary to develop and maintain the nations' oil and gas industry that will help provide a stable environment for the development and use of our nation's rich oil and gas resources.

AND BE IT FURTHER RESOLVED,that a joint project should be conducted between the WGA and IOGCC to:

  • Conduct several regional forums throughout the West and the nation to hear from and provide information to the public on oil and gas issues.
  • Convene a team of experts on oil and gas issues, including conservation and efficiency to provide the governors with recommendations for conservation, and development of the nation's oil and gas resources in an environmentally responsible manner.
  • Provide the Governors with policy and other recommendations by December 2006.

History:       Approved May 23, 2006

RESOLUTION 06.053

Supporting PTTC Appropriation Effort

WHEREAS, The Petroleum Technology Transfer Council (PTTC) is a national not-for-profit organization established in 1994 by producers, state organizations and educational institutions, and the U.S. Department of Energy (DOE), with support from the Interstate Oil and Gas Compact Commission (IOGCC), created to transfer exploration and production technology to U.S. producers, and  

WHEREAS, by accelerating the application of profitable technologies in the oil and gas industry, the PTTC enhances domestic oil and natural gas production, and  

WHEREAS, it is critical to the nation's interests and security that exploration and development of our domestic oil and gas energy resources continue and that these resources are produced in the most efficient, economic and environmentally sound manner possible, and 

WHEREAS, the PTTC benefits the nation by assisting small U.S. independent oil and natural gas producers make timely and informed decisions about relevant technologies and innovations to assist in exploration and production of America's vital energy resources, and  

WHEREAS, the PTTC provides a critical network that connects producers, particularly independent oil and natural gas producers, technology providers and innovators, and research and development activities from academia and government in a manner that allows for the transfer of timely, relevant, unbiased technical information, including newly developing and under-applied technologies, and 

WHEREAS, technology transfer and other activities of the PTTC significantly impact the exploration for, and development of, the nation's domestic energy supply through reducing costs and increasing recovery in existing mature fields, expanding recovery from unconventional reservoirs, profitably developing ever-smaller domestic production and reserves, and increasing environmental stewardship, and 

WHEREAS, the PTTC has been funded primarily through DOE Fossil Energy Oil and Gas Research and Development programs, programs that are now in jeopardy of elimination from the Federal budget and, therefore, jeopardizes the future of the critically needed programs and activities of the PTTC, and 

WHEREAS, the PTTC Executive Committee will seek funding through a direct Federal appropriation to continue critical technology transfer activities for domestic production, including identification and transfer of upstream technologies that enhance environmental compliance, improve operating efficiency, increase ultimate oil and gas recovery , and add new oil and natural gas reserves to help ensure the Nation's energy and economic security, and 

WHEREAS, the IOGCC has long recognized the critical role of PTTC in the exploration for and development of the nation's domestic oil and natural gas resources and, particularly, the beneficial impacts of the PTTC programs and activities for U.S. independent oil and gas producers, and desires that PTTC programs and activities not only continue, but, in fact, are further enhanced, 

Be it therefore resolvedthat the Interstate Oil and Gas Compact Commission supports the efforts of the PTTC Executive Committee to obtain a Federal appropriation to sustain and enhance PTTC programs and activities, and that Commission acting through its member states and professional staff will undertake appropriate actions to assist in the procurement of funding for the PTTC.

History:           Approved May 23, 2006