Gov. Abbott challenges Biden, EPA on new restrictions of critical Texas oil basin

Texas Gov. Greg Abbott sent a letter to President Joe Biden Tuesday reiterating how tightening environmental regulations and air restrictions in a critical oil and gas drilling area would negatively impact the nation’s gasoline supply.

The Texan land strip, known as the Permian Basin, is a sedimentary basin located in Western Texas and Southeast New Mexico, which contains the Mid-Continent Oil Field, and contains one of the world’s thickest deposits of rock from the Permian geological era. It has also enabled the oil and gas industry to drill for billions of barrels of oil.

In early 2020, the more than four million barrels of oil were being pumped from the basin each day, according to industry journals. That number has increased to 5.2 million barrels per day, which can be processed into roughly 95 million gallons of gasoline daily.

Abbott first addressed the Biden administration’s concerns about ozone air quality in a June 27 letter, requesting the administration stand down and restrain itself from escalating regulatory requirements.

“While you express concern about out-of-control gas prices, your Environmental Protection Agency (EPA) is threatening to increase them even further,” Abbott wrote in the June 27 letter. “The EPA has begun a process that, if finalized, would jeopardize the production of 95,000,000 gallons of gasoline per day—25 percent of our nation’s supply. The EPA’s process could interfere in the production of oil in Texas which could lead to skyrocketing prices at the pump by reducing production, increase the cost of that production, or do both.”

Abbott slammed the administration by pointing out that it’s actions were not required under law, but rather discretionary.

“Your administration’s announced action is completely discretionary. Thus, you have the power to stop it. If you do not, this action alone might serve as a catalyst for economic harm leading to an even deeper reliance on imported foreign energy and a faster economic decline into the pending recession by forcing even more pain for American consumers to pay at the pump.”

EPA Administrator Michael Regan responded to the governor’s letter on July 27, stating that the natural gas emitting from the Permian Basin region contains volatile amounts of nitrogen oxides and organic compounds that can cause ozone pollution.

“Ozone can cause a number of health problems including coughing, breathing difficulty and lung damage,” Regan wrote. “Ozone pollution levels that exceed national ambient air quality standards (NAAQS) for ozone have been recorded for more than 4 years in the Permian basin… to protect public health, the EPA is considering a redesignation to nonattainment for areas afflicted by and contributing to ozone levels that exceed the NAAQS which could include portions of New Mexico as well as neighboring parts of Texas.”

Abbott fired back in his Tuesday letter by focusing on the economic impact those changes could have on the Texan job economy.

“The Texas oil and gas industry directly employs more than 422,000 Texans and supports 1.37 million total direct and indirect Texas jobs,” Abbott wrote. “Based on your surrogate’s response, it is clear that your administration is bound and determined to move forward, regardless of the lasting adverse impacts of this policy on Americans who are struggling against inflation and high gas prices.”

The Texas governor also said that the president had ignored appropriate federal designation processes and procedures and said Texas will challenge the order, as being “arbitrary and capricious.”

“We will begin by challenging the accelerated timelines that your agency uses to rush through its policies,” the Texas governor said. “Because your administration has very little (time) remaining, you refuse to deliberate or halt this ‘discretionary’ action despite the adverse impacts on Americans.”

The EPA’s current timeline for redesignation is September.

Abbott argued that the EPA lacks the supported data for a resignation because there are no ozone monitors located in the Texas Permian Basin. The EPA is basing its results off of readings that are picked up from ozone monitors in Carlsbad, New Mexico.

An ozone monitor at Hobbs Generating Station in Hobbs, New Mexico, which is located approximately 18 miles from the Texas border, reportedly registered compliant design values in 2020, 2021 and 2022 by National Ambient Air Quality Standards.

“The EPA lacks the supporting data to redesignate the Texas Permian Basin,” Abbott said. “Yet your administration seems eager to ignore Hobbs and leapfrog to Carlsbad to supply the support for such redesignation.”

Today’s letter further reiterated the impact of losing 25% of the nation’s oil supply on Americans, who have already been struggling with high inflation and gas prices. Abbott promised to challenge the president and the EPA on the issue.

“If those impacts are irrelevant to your administration, be honest and tell us. Don’t send us your surrogate,” Abbott said of the response he received from the EPA. “Americans have the right to know if their president puts politics over people.”