Ranger Energy Services, Inc.
−Removed: is a provider of onshore high specification (“high-spec”) well service rigs, wireline completion services and additional complementary services in the United States.
+Added: (the “Company,”“Ranger,” “we,” “us” or “our”) is a provider of onshore high specification (“high-spec”) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States.
We provide an extensive range of well site services to leading U.S.
2 unchanged sentences
E&P companies that require completion and production services.
−Removed: Our service offerings consist of well completion support, workover, well maintenance, wireline, fluid management, other complementary services, as well as installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows:
+Added: Our service offerings consist of well completion and maintenance support and wireline, which includes other complementary services, conducted in three reportable segments, as follows:
• High Specification Rigs .
Provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.
−Removed: • Completion and Other Services .
−Removed: Provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with our high-spec rig services to enhance the production of a well.
−Removed: • Processing Solutions .
−Removed: Provides proprietary, modular equipment for the processing of natural gas.
+Added: • Wireline Services .
+Added: Provides services necessary to bring and maintain a well on production and consists of our wireline completion, wireline production and pump down lines of business.
+Added: • Processing Solutions and Ancillary Services .
+Added: Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments.
+Added: These services include equipment rentals, plug and abandonment, logistics hauling, processing solutions, as well as snubbing and coil tubing.
We operate in most of the active oil and natural gas basins in the United States, including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays.
4 unchanged sentences
was incorporated as a Delaware corporation in February 2017.
−Removed: In conjunction with the Offering of Class A Common Stock, par value $0.01 per share (“Class A Common Stock”), which closed on August 16, 2017, and the corporate reorganization, we underwent in connection with the Offering, we became a holding company, the sole material assets of which consist of membership interests in Ranger LLC.
+Added: In conjunction with the initial public offering of Class A Common Stock, par value $0.01 per share (“Class A Common Stock”), which closed on August 16, 2017 (the “Offering”), and the corporate reorganization, we underwent in connection with the Offering, we became a holding company, the sole material assets of which consist of membership interests in RNGR Energy Services, LLC (“Ranger LLC”).
Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), the subsidiaries through which it operates its assets.
Through the consummation of the corporate reorganization, Ranger LLC is the sole managing member of, and is responsible for all operational, management and administrative decisions relating to, Ranger Services and Torrent Services’ business and consolidates the financial results of Ranger Services and Torrent Services and their subsidiaries.
−Removed: The following diagram indicates our ownership structure as of February 24, 2021:
+Added: The following diagram indicates our ownership structure as of March 23, 2022:
_________________________
−Removed: (1) CSL, Bayou Well Holdings Company, LLC, certain members of our management and other investors own all of the equity interests in the Legacy Owners, where CSL holds a majority of the voting interests in each of the Legacy Owners.
+Added: (1) CSL and Bayou Well Holdings Company, LLC (collectively the “Legacy Owners”) own the equity interests, where CSL holds a majority.
(2) Inclusive of unvested restricted share awards.
We conduct our operations through multiple business lines that are organized into three reporting segments:
−Removed: High Specification Rigs, Completion and Other Services and Processing Solutions.
+Added: High Specification Rigs, Wireline Services and Ancillary Services.
+Added: Our services, when utilized in conjunction with one another, strategically enhance our operating footprint by creating operational efficiencies for our customers and allow us to capture a greater portion of their spending across the lifecycle of a well.
The following provides additional detail on our reportable segments and the business lines within each segment.
+Added: As a result of three business combinations, coupled with executive management changes, the Company re-evaluated the reportable segments accordingly.
+Added: During the fourth quarter of 2021, the Company bifurcated the legacy Completion and Other Services segment into Wireline Services and Ancillary Services, where the historical Processing Solutions segment has been consolidated into the Ancillary Services segment.
+Added: Prior periods have been revised to conform to the current presentation.
High Specification Rigs
Our High Specification Rig segment provides high-spec well and complementary equipment and services to facilitate operations throughout the lifecycle of a well.
−Removed: We provide these advanced services to E&P companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services.
+Added: We provide services to E&P companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services.
Our high‑spec well service rigs are designed to support U.S.
2 unchanged sentences
• Well completion support .
−Removed: Our well completion support services are utilized subsequent to hydraulic fracturing operations but prior to placing a well into production, and primarily include unconventional well completion operations, including milling out composite plugs, frac sand or other downhole debris or obstructions that were introduced in the well as part of the completion process and installing production tubing and other permanent downhole equipment necessary to facilitate production.
+Added: Our well completion support services are utilized subsequent to hydraulic fracturing operations but prior to placing a well into production, and primarily include unconventional well completion operations, including milling out composite plugs, frac sand or other downhole debris or obstructions that were
+Added: introduced in the well as part of the completion process and installing production tubing and other permanent downhole equipment necessary to facilitate production.
• Workovers .
7 unchanged sentences
These and similar routine maintenance services involve relatively low‑cost, short‑duration operations that generally experience relatively stable demand notwithstanding changes in drilling activity.
−Removed: In addition to our core well service rig operations, we also offer well service‑related equipment rentals, as described below.
−Removed: • Well Service‑Related Equipment Rentals .
−Removed: Our well service‑related equipment rentals consist of a diverse fleet of rental items, including fluid pumps (various horsepower pumping equipment utilized to circulate fluid in and out of wellbores), power swivels (hydraulic motor‑driven, pipe‑rotating machines used to deliver shock‑free torque to the workstring or tubing during well service rig operations), well control packages (equipment used to ensure formation pressure is maintained within the wellbore during well service rig operations), hydraulic catwalks (mechanized lifting devices used to raise and lower drill pipe and tubing to and from the well service rig work floor), frac tanks, pipe racks and pipe handling tools.
−Removed: Our well service‑related equipment rentals are typically used in conjunction with the services provided by our high-spec well services.
−Removed: We have a fleet of 136 well service rigs, which we believe to be among the newest and most advanced in the industry and are considered to be high-spec rigs, with high operating horsepower (“HP”) (450 HP or greater) and tall mast heights (102 feet or higher).
−Removed: The high‑spec well service rigs in our fleet, the substantial majority of which has been built since 2010, have an average age of approximately seven years and feature modern operating components sourced from leading U.S.
−Removed: manufacturers.
−Removed: Approximately 63% of our existing high‑spec well service rigs were manufactured by NOV, with the remaining manufactured by Dragon/Cooper, Service King, Rig Works, Taylor, Mustang and Stewart & Stevenson Crown.
−Removed: The following table provides a summary of information regarding our high-spec well service rig fleet.
+Added: The composition of our well service rig fleet makes it particularly well-suited to provide both completion-oriented services, the demand for which generally increases along with increased capital spending by E&P operators, and production-oriented services, the demand for which is less influenced, on a comparative basis, by such capital spending.
+Added: The ability of our well service rigs to accommodate the needs of our E&P customers in a variety of economic conditions has historically allowed us to maintain relatively high rig utilization.
+Added: We currently have a fleet of 540 well service rigs, which we believe to be among the newest and most advanced in the industry and are considered to be high-spec rigs, with high operating horsepower (“HP”) (450 HP or greater) and tall mast heights (102 feet or higher).
HP Rating (1)
6 unchanged sentences
______________________
−Removed: (1) Per manufacturer.
+Added: (1) Per manufacturer or historical records obtained through acquisitions.
(2) The mast ratings of our high-spec well service rigs complement their high operating HP and tall mast heights by allowing such rigs to safely support the higher weights associated with the long tubing strings used in long-lateral well completion operations and is measured in pounds.
−Removed: The composition of our well service rig fleet makes it particularly well-suited to provide both completion-oriented services, the demand for which generally increases along with increased capital spending by E&P operators, and production-oriented services, the demand for which is less influenced, on a comparative basis, by such capital spending.
−Removed: The ability of our well service rigs to accommodate the needs of our E&P customers in a variety of economic conditions has historically allowed us to maintain relatively high rig utilization.
−Removed: In connection with the operations of our high‑spec well service rigs, we also maintain a supply of additional service and rental equipment, including accumulators, acid and frac tanks, motor vehicles, trailers, tractors, catwalks, cementing units, pipe racks, power swivels, ram block assemblies, fluid pumps and related items.
−Removed: Completion and Other Services
−Removed: Our Completion and Other Services segment provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with our high-spec rig services to enhance the production of a well.
−Removed: Our completion and other services, as described in further detail below, strategically enhance our operating footprint by creating operational efficiencies for our customers and allow us to capture a greater portion of their spending across the lifecycle of a well.
Wireline Services
−Removed: Our wireline services involve the use of wireline trucks equipped with a spool of cable that is unwound and lowered into oil and natural gas wells to convey specialized tools or equipment primarily for well completion, but also for well intervention, pipe recovery, plugging and abandonment purposes.
−Removed: • Fluid Management Services .
−Removed: Our fluid management services consist of the hauling of oilfield fluids, including drilling mud, fresh water and saltwater used or produced in well drilling, completion and production.
−Removed: Additionally, we rent tanks to store such fluids at the wellsite.
−Removed: • Snubbing Services .
−Removed: Our snubbing services consist of using our snubbing units together with our well service rigs in order to perform well completion, workover or maintenance activities.
−Removed: Our snubbing services enable operators to safely run or remove pipe and other associated downhole tools into pressurized or highly deviated wellbores.
+Added: Our Wireline Services segment provides wireline completion and production services necessary to bring a well on production Our wireline services involve the use of wireline trucks equipped with a spool of cable that is unwound and lowered into oil and natural gas wells to convey specialized tools or equipment primarily for well completion, but also for well intervention, pipe recovery, plugging and abandonment purposes.
+Added: Our wireline services consist of the following:
+Added: • Production Services .
+Added: Our wireline production and intervention services provide the information and the means to identify and resolve well production problems through our cased hole logging, perforating, mechanical, and pipe recovery services.
+Added: Our cased hole logging services including cement bond evaluation, multi-arm calipers and ultrasonic logging services for casing and cement inspection.
+Added: These are critical services to determine the integrity of the production casing, the cement outside of the production casing, and the production tubing.
+Added: Our pipe recovery services are used to free drill pipe when it gets stuck in an open hole, or to cut tubing or casing for well intervention operations.
+Added: • Completion Services .
+Added: Our wireline completion services are used primarily for pump down perforating operations to create perforations or entry holes through the production casing.
+Added: These perforations are necessary to allow for hydraulic fracturing and producing from a hydrocarbon formation.
+Added: In horizontal wellbores, the perforating guns are lowered into the vertical portion of the well and are then pumped out to the end of the horizontal wellbore.
+Added: Then the perforating guns are detonated to perforate the casing and they are retrieved out of the well.
+Added: This operation is typically repeated fifty to one hundred times to fully perforate, fracture and complete a one- or two-mile-long horizontal wellbore.
+Added: Ranger uses innovative technologies to enable cleaner, safer, faster, and environmentally friendly operations.
+Added: Our pumping services can be used during completion or intervention operations as a standalone service or in a comprehensive completion pump down perforating solution.
+Added: Combining Ranger’s wireline perforating and pump down services maximizes operational efficiency through integrated safety, quality and communications systems.
+Added: Our pumping services can be used during intervention operations for pressure testing casing, tubing and plugs, for injecting and pumping acid into the reservoir to stimulate production.
+Added: Our pumping services can also be used in conjunction with our high-spec rigs or coiled tubing units to circulate composite frac plug cuttings, frac sand, and other debris out of the wellbore during completion operations.
+Added: Ranger provides a range of high-pressure mobile pumps including the latest tier 4 emissions standards.
+Added: We have a fleet of 68 wireline units and four high-pressure pump trucks that are utilized in our wireline services.
+Added: Our wireline services utilize high-pressure pump trucks to pump fracturing plugs and perforating guns into extended reach horizontal wells for pump down perforating completion purposes.
+Added: Processing Solutions and Ancillary Services
+Added: Our processing solutions and ancillary services, which are described below, are utilized in conjunction with our High Spec Rigs and Wireline Services to establish and enhance the productive life of a well.
+Added: Specifically, in connection with the operations of our high‑spec well service rigs, we also maintain a supply of additional service and rental equipment, including accumulators, acid and frac tanks, motor vehicles, trailers, tractors, catwalks, cementing units, pipe racks, power swivels, ram block assemblies, fluid pumps and related items.
+Added: • Well Service‑Related Equipment Rentals.
+Added: Our well service‑related equipment rentals consist of a diverse fleet of rental items, including fluid pumps (various horsepower pumping equipment utilized to circulate fluid in and out of wellbores), power swivels (hydraulic motor‑driven, pipe‑rotating machines used to deliver shock‑free torque to the workstring or tubing during well service rig operations), well control packages (equipment used to ensure formation pressure is maintained within the wellbore during well service rig operations), hydraulic catwalks (mechanized lifting devices used to raise and lower drill pipe and tubing to and from the well service rig work floor), frac tanks, pipe racks and pipe handling tools.
+Added: Our well service‑related equipment rentals are typically used in conjunction with the services provided by our high-spec well services.
• Decommissioning.
1 unchanged sentence
Decommissioning work is typically less sensitive to oil and natural gas prices than our other well service rig operations as a result of decommissioning obligations imposed by state regulations.
−Removed: Services provided within our High Specification Rig and Completion and Other Services segments, as described above, are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well.
−Removed: We have a fleet of wireline and high-pressure pump trucks that are utilized in our Completion and related services.
−Removed: Our wireline services utilize high-pressure pump trucks to pump fracturing plugs and perforating guns into extended reach horizontal wells for pump down perforating completion purposes.
−Removed: We perform snubbing services, which utilizes specialized trucks and equipment units to enable operators to safely run or remove pipe and other downhole tools from a pressurized well.
−Removed: Our fluid management services utilize trucks, pumps and other tools and equipment to control and separate completion fluids and to haul oilfield fluids used in production.
+Added: • Fluid Management Services .
+Added: Our fluid management services utilizes transport trucks, pumps and other tools and equipment to control and separate completion fluids and to haul oilfield fluids used in production.
+Added: These services consist of the hauling of oilfield fluids, including drilling mud, fresh water and saltwater used or produced in well drilling, completion and production.
+Added: Additionally, we rent tanks to store such fluids at the wellsite.
• Processing Solutions .
−Removed: Our Processing Solutions segment engages in the rental, installation, commissioning, start‑up, operation and maintenance of Mechanical Refrigeration Units (“MRU”), Nitrogen Gas Liquid (“NGL”) stabilizer units, NGL storage units and related equipment.
+Added: Our Processing Solutions services engage in the rental, installation, commissioning, start‑up, operation and maintenance of Mechanical Refrigeration Units (“MRU”), Nitrogen Gas Liquid (“NGL”) stabilizer units, NGL storage units and related equipment.
Our Processing Solutions segment provides a range of proprietary, modular equipment for the processing of rich natural gas streams at the wellhead or central gathering points in basins where drilling and completion activity has outpaced the development of permanent processing infrastructure.
−Removed: We have developed a premium offering that includes proprietary designs and modern processing equipment, including modular MRU’s.
−Removed: Our modular units provide flexibility across a broad range of project requirements and operating environments, and are designed to allow for quick mobilization to minimize downtime and increase utilization, particularly in conjunction with the operational support provided by our expert field personnel.
−Removed: Our natural gas processing solutions assist our customers with meeting pipeline specifications, extracting higher value NGLs, providing fuel gas for wellsites and facilities and reducing emissions at the flare tip.
−Removed: Our modular units provide flexibility to match a broad range of project requirements and are designed to allow for quick mobilization and demobilization.
−Removed: In addition to our proprietary natural gas and NGL processing equipment, we offer full transportation, installation and ongoing operation services in the field.
−Removed: Our turn‑key mobilization services include in‑bound transportation, site offloading, installation, commissioning, startup and training of field personnel.
−Removed: Our ongoing operations and maintenance services include daily onsite and callout services, daily field reports and NGL transportation and marketing arrangements.
−Removed: We also employ full‑time process and mechanical engineers with significant experience in designing gas treating and processing solutions to provide quality service to our customers.
−Removed: We have a fleet of 33 MRUs that are modern, reliable and equipped to handle large volumes of natural gas while operating across a broad array of oilfield conditions with minimal downtime and maintenance.
−Removed: Our MRUs are constructed and assembled by third‑party vendors in accordance with our proprietary designs and with our oversight of sourcing and procurement.
−Removed: Our MRUs can be stacked and scaled to handle a range of projects and natural gas volumes and can generate temperatures downwards of -20 degrees Fahrenheit.
−Removed: In addition, we own and operate five auxiliary NGL stabilizer units (designed to assist our MRUs that require additional capacity to separate and capture valuable NGLs), 78 NGL storage tanks with bulkhead delivery systems and capacities of 18,000 gallons, 13 trailer‑mounted natural gas generators and additional supporting auxiliary equipment.
−Removed: Our proprietary natural gas and NGL processing equipment is generally designed to be mobile and purpose‑built to increase efficiency and productivity while reducing safety risks.
−Removed: We also own and operate 50 gas
−Removed: coolers, which reduces the temperatures of the natural gas stream to allow further processing and meet pipeline specifications.
+Added: • Coil Tubing .
+Added: Our coiled tubing services utilize coiled tubing units to perform well intervention and other production services on a well by injecting small diameter steel pipe, unwound from a reel, into an existing production string.
+Added: Our coiled tubing services provide operators with a cost effective way to workover, drill, or convey tools in live, producing wells and other extended reach, high angle wellbores.
+Added: • Snubbing Services .
+Added: Our snubbing services consist of using our snubbing units together with our well service rigs in order to perform well completion, workover or maintenance activities.
+Added: Our snubbing services enable operators to safely run or remove pipe and other associated downhole tools into pressurized or highly deviated wellbores.
We incur general corporate and administrative costs that are not attributable to any of the operating segments or business lines, which are reported as Other.
4 unchanged sentences
Our competitors include many large and small oilfield service providers.
−Removed: Our largest competitors in the high specification rig and completion services market include Basic Energy Services, Inc., Forbes Energy Services Ltd., Key Energy Services, Inc., KLX Energy Services, Nine Energy Service, Inc.
−Removed: and Pioneer Energy Services Corp.
−Removed: In the processing solutions market our primary competitors include GTUIT, LLC and Kinder Morgan Treating LP.
+Added: Our largest competitors in the current market include Nine Energy Service, Inc., Forbes Energy Services Ltd., KLX Energy Services, and NexTier Oilfield Solutions, Inc.
In addition, our industry is highly fragmented and we compete regionally with a significant number of smaller service providers.
20 unchanged sentences
Significant Customers
−Removed: We have strong relationships with a broad customer base, including EOG Resources, Inc., ConocoPhillips and Pioneer Natural Resources Company.
−Removed: During the year ended December 31, 2020, EOG Resources, Inc.
−Removed: and Concho Resources accounted for approximately 21% and 17%, respectively, of our consolidated revenues where we provided services for approximately 130 distinct customers.
−Removed: During the year ended December 31, 2019, EOG Resources, Inc.
−Removed: and Concho Resources, Inc.
−Removed: accounted for approximately 17% and 14%, respectively, of our consolidated revenues.
−Removed: For the years ended December 31, 2020 and 2019, our top five customers represented approximately 57% and 49% of our consolidated revenues and no other customer represented more than 10% of our consolidated revenues.
+Added: We have strong relationships with a broad customer base, including EOG Resources, Inc.
+Added: (“EOG”), ConocoPhillips (“Conoco”) and Pioneer Natural Resources Company.
+Added: During the years ended December 31, 2021 and 2020, EOG, accounted for approximately 15% and 21% of our consolidated revenues, respectively.
+Added: Conoco accounted for approximately 10% of our consolidated revenues for the year ended December 31, 2021 and Concho Resources accounted for approximately 17% of our consolidated revenues for the year ended December 31, 2020.
+Added: No other customers represented more than 10% of our consolidated revenues and for the years ended December 31, 2021 and 2020, our top five revenue generating customers represented approximately 42% and 57% of our consolidated revenues, respectively.
+Added: We have a diverse portfolio of customers which included approximately 220 distinct customers that we served during 2021.
Our internal supply chain team manages sourcing and logistics to ensure flexibility and continuity of supply in a cost effective manner across all areas of our operations.
23 unchanged sentences
and governmental or private claims for personal injury or property or natural resource damages.
−Removed: The trend in environmental regulation has been to place more restrictions and limitations on activities that may adversely affect the environment, and thus any changes in environmental laws and regulations or re-interpretation of enforcement policies that result in more stringent and costly regulatory requirements could have a material adverse effect on our business, liquidity position, financial condition, results of operations and prospects.
+Added: The trend in environmental regulation has been to place more restrictions and limitations on activities that may adversely affect the environment, and thus any changes in environmental laws and regulations or re-interpretation of enforcement policies that result in more stringent and costly regulatory requirements could have a material adverse effect on
+Added: our business, liquidity position, financial condition, results of operations and prospects.
We may be unable to pass on such increased compliance costs to our customers.
7 unchanged sentences
The waste resulting from such contamination is regulated by federal and state laws.
−Removed: Standards have been developed for worker protection, treatment, storage, and disposal of NORM and NORM waste, management of NORM-contaminated waste piles, containers and tanks and limitations on the relinquishment
−Removed: of NORM-contaminated land for unrestricted use under the Resource Conservation and Recovery Act (“RCRA”) and state laws.
+Added: Standards have been developed for worker protection, treatment, storage, and disposal of NORM and NORM waste, management of NORM-contaminated waste piles, containers and tanks and limitations on the relinquishment of NORM-contaminated land for unrestricted use under the Resource Conservation and Recovery Act (“RCRA”) and state laws.
We may incur significant costs or liabilities associated with elevated levels of NORM.
16 unchanged sentences
In addition, the CWA and analogous state laws require individual permits or coverage under general permits for discharges of storm water runoff from certain types of facilities.
−Removed: The CWA also prohibits the discharge of dredge and fill material in regulated waters, including wetlands, unless authorized by permit.
+Added: The CWA also prohibits the discharge of dredge and fill
+Added: material in regulated waters, including wetlands, unless authorized by permit.
There has been substantial uncertainty regarding the scope of regulated waters in recent years, and any expansion in this scope could result in increased costs or timeframes to complete activities.
9 unchanged sentences
In response to concerns regarding induced seismicity, regulators in some states have imposed, or are considering imposing, additional requirements in the permitting of produced water disposal wells or otherwise to assess any relationship between seismicity and the use of such wells.
−Removed: States may, from
−Removed: time to time, develop and implement plans directing certain wells where seismic incidents have occurred to restrict or suspend disposal well operations.
+Added: States may, from time to time, develop and implement plans directing certain wells where seismic incidents have occurred to restrict or suspend disposal well operations.
In addition, ongoing lawsuits allege that disposal well operations have caused damage to neighboring properties or otherwise violated state and federal rules regulating waste disposal.
12 unchanged sentences
In September 2020, the EPA finalized amendments which removed the transmission and storage segment from the oil and natural gas source category and rescinded the methane-specific requirements for production and processing facilities.
−Removed: However, several lawsuits have been filed challenging these amendments, and on January 20, 2021, President Biden signed an executive order calling for the suspension, revision, or rescission of the September 2020 rule, and the reinstatement or issuance of methane emissions standards for new, modified, and existing oil and gas facilities.
−Removed: Therefore, the extent of future implementation of these standards is uncertain at this time.
+Added: Subsequently, the U.S.
+Added: Congress approved, and President Biden signed into law, a resolution under the Congressional Review Act to repeal the September 2020 revisions to the methane standards, effectively reinstating the prior standards.
+Added: Additionally, in November 2021, EPA issued a proposed rule that, if finalized, would establish OOOO(b) new source and OOOO(c) first-time existing source standards of performance for methane and volatile organic compound emissions for oil and gas facilities.
+Added: Operators of affected facilities will have to comply with specific standards of performance to include leak detection using optical gas imaging and subsequent repair requirement, and reduction of emissions by 95% through capture
+Added: and control systems.
+Added: EPA plans to issue a supplemental proposal in 2022 containing additional requirements not included in the November 2021 proposed rule and anticipates the issuance of a final rule by the end of the year.
In addition, some of our customers may operate on federal or tribal lands, and are subject to further regulation, including by tribal authorities and the federal Bureau of Land Management (“BLM”).
7 unchanged sentences
In September 2018, the BLM issued a final rule rescinding the agency’s 2016 methane rule.
−Removed: However, in July 2020 and October 2020, federal district courts in California and Wyoming, respectively, vacated the rule, and on January 20, 2021, President Biden published an executive order calling for the review and potential revision of the September 2018 rule.
+Added: However, in July 2020 and October 2020, federal district courts in California and Wyoming, respectively, vacated these rules, and litigation is ongoing.
+Added: President Biden has also published an executive order calling for the review and potential revision of the September 2018 rule.
Because of the foregoing, methane requirements on federal land remain uncertain at this time.
7 unchanged sentences
However, President Biden has highlighted addressing climate change as a priority of his administration, which includes certain initiatives for climate change legislation to be proposed and passed into law.
−Removed: Additionally, on January 27, 2021, President Biden issued an executive order that calls for substantial action on climate change, calling for, among other things, the increased use of zero-emission vehicles by the federal government, increased production of offshore wind energy, the elimination of subsidies provided to the fossil fuel industry, and the suspension of the issuance of new leases for oil & gas development on federal lands to the extent permitted by law.
Moreover, following the U.S.
1 unchanged sentence
Department of Transportation (“DOT”), implement GHG emissions limits on vehicles manufactured for operation in the United States.
−Removed: Additionally, various states and groups of states have adopted or are considering adopting legislation, regulations or other regulatory initiatives that are focused on such areas as GHG cap and trade programs, carbon taxes, reporting and tracking programs, and restriction of emissions.
+Added: The federal regulation of methane emissions from oil and gas facilities has been subject to substantially controversy in recent years;
+Added: for more information, please see our regulatory disclosure “Air Emissions.” Additionally, various states and groups of states have adopted or are considering adopting legislation, regulations or other regulatory initiatives that are focused on such areas as GHG cap and trade programs, carbon taxes, reporting and tracking programs, and restriction of emissions.
At the international level, the United Nations-sponsored Paris Agreement requires member states to submit non-binding individually-determined reduction goals every five years after 2020.
−Removed: Although the United States withdrew from the Paris Agreement on November 4, 2020, President Biden signed an Executive Order on January 20, 2021 recommitting the United States to the Paris Agreement.
−Removed: However, the impacts of this executive order and the terms of any legislation or regulation to implement the United States’ commitment remain unclear at this time.
+Added: Following President Biden’s executive order in January 2021, the United States rejoined the Paris Agreement and, in April 2021, established a goal of reducing economy-wide net GHG emissions 50-52% below 2005 levels by 2030.
+Added: Additionally, at the 26th Conference of the Parties (“COP26”) in Glasgow in November 2021, the United States and the European Union jointly announced the launch of a Global Methane Pledge;
+Added: an initiative committing to a collective goal of reducing global methane emissions by at least 30 percent from 2020 levels by 2030, including “all feasible reductions” in the energy sector.
+Added: However, the impacts of these actions remain unclear at this time.
Governmental, scientific and public concern over the threat of climate change arising from GHG emissions has resulted in increasing political risks in the United States, including climate change related pledges made by certain candidates for political office.
These have included promises to pursue actions to limit emissions and curtail the production of oil and gas on federal land.
−Removed: For more information, see our regulatory disclosure titled “Hydraulic Fracturing.” Other actions that could be pursued by the Biden Administration may include the imposition of more restrictive requirements for the establishment of pipeline infrastructure or the permitting of LNG export facilities, as well as more restrictive GHG emission limitations for oil and gas facilities.
−Removed: Litigation risks are also increasing, as a number of cities and other local governments have sought to bring suit against the largest oil and natural gas companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to climate change or alleging that companies have been aware of the adverse effects of climate change for some time but defrauded their investors or customers by failing to adequately disclose those impacts.
−Removed: There are also increasing financial risks for fossil fuel producers as shareholders currently invested in fossil-fuel energy companies concerned about the potential effects of climate change may elect in the future to shift some or all of their investments into non-energy related sectors.
+Added: For more information, see our regulatory disclosure titled “Hydraulic Fracturing.” Other actions that could be pursued by the Biden Administration may include the imposition of more restrictive requirements for the
+Added: establishment of pipeline infrastructure or the permitting of LNG export facilities, as well as more restrictive GHG emission limitations for oil and gas facilities.
+Added: Litigation risks are also increasing, as a number of parties have sought to bring suit against certain oil and natural gas companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to climate change or alleging that companies have been aware of the adverse effects of climate change for some time but defrauded their investors or customers by failing to adequately disclose those impacts.
+Added: There are also increasing financial risks for companies in the fossil fuel sector as shareholders currently invested in fossil-fuel energy companies concerned about the potential effects of climate change may elect in the future to shift some or all of their investments into non-fossil fuel related sectors.
Institutional lenders who provide financing to fossil-fuel energy companies also have become more attentive to sustainable lending practices and some of them may elect not to provide funding for fossil fuel energy companies.
−Removed: Additionally, the lending practices of institutional lenders have been the subject of intensive lobbying efforts in recent years, oftentimes public in nature, by environmental activists, proponents of the international Paris Agreement, and foreign citizenry concerned about climate change not to provide funding for fossil fuel producers.
+Added: For example, at COP26, the Glasgow Financial Alliance for Net Zero (“GFANZ”) announced that commitments from over 450 firms across 45 countries had resulted in over $130 trillion in capital committed to net zero goals.
+Added: The various sub-alliances of GFANZ generally require participants to set short-term, sector-specific targets to transition their financing, investing, and/or underwriting activities to net zero emissions by 2050.
+Added: There is also a risk that financial institutions will be required to adopt policies that have the effect of reducing the funding provided to the fossil fuel sector.
+Added: In late 2020, the Federal Reserve announced that it has joined the Network for Greening the Financial System, a consortium of financial regulators focused on addressing climate-related risks in the financial sector.
+Added: Subsequently, the Federal Reserve has issued a statement in support of the efforts of the NGFS to identify key issues and potential solutions for the climate-related challenges most relevant to central banks and supervisory authorities.
Limitation of investments in and financings for fossil fuel energy companies could result in the restriction, delay or cancellation of drilling programs or development or production activities.
+Added: Additionally, the Securities and Exchange Commission recently proposed new rules relating to the disclosure of a range of climate related risks.
+Added: We are currently assessing this rule but at this time we cannot predict the costs of implementation or any potential adverse impacts resulting from the rule.
+Added: To the extent this rule is finalized as proposed, we could incur increased costs related to the assessment and disclosure of climate-related risks.
+Added: In addition, enhanced climate disclosure requirements could accelerate the trend of certain stakeholders and lenders restricting or seeking more stringent conditions with respect to their investments in certain carbon intensive sectors.
The adoption and implementation of new or more stringent international, federal or state legislation, regulations or other regulatory initiatives that impose more stringent standards for GHG emissions from the oil and natural gas sector or otherwise restrict the areas in which this sector may produce oil and natural gas or generate GHG emissions could result in increased costs of compliance or costs of consuming, and thereby reduce demand for, oil and natural gas, which could reduce demand for our services and products.
7 unchanged sentences
In addition, the EPA released its final report on the potential impacts of hydraulic fracturing on drinking water resources in December 2016.
−Removed: The final report concluded that “water cycle” activities associated with hydraulic fracturing may impact drinking water resources “under some circumstances,” noting that the following hydraulic fracturing water cycle activities and local- or regional-scale factors are more likely than others to result in more frequent or more severe impacts:
−Removed: water withdrawals for fracturing in times or areas of low water availability;
−Removed: surface spills during the management of fracturing fluids, chemicals or produced water;
−Removed: injection of fracturing fluids into wells with inadequate mechanical integrity;
−Removed: injection of fracturing fluids directly into groundwater resources;
−Removed: discharge of inadequately treated fracturing wastewater to surface waters;
−Removed: and disposal or storage of fracturing wastewater in unlined pits.
−Removed: Additionally, the BLM finalized a rule in March 2015 establishing standards for hydraulic fracturing on federal and American Indian lands, but subsequently repealed the rule in December 2017.
−Removed: BLM’s repeal of the rule has been challenged in federal court.
+Added: The final report concluded that “water cycle” activities associated with hydraulic fracturing may impact drinking water resources under certain limited circumstances.
+Added: Additionally, the BLM finalized a rule in March 2015 establishing standards for hydraulic fracturing on federal and tribal lands, but subsequently repealed the rule in December 2017.
+Added: Although these rulemakings have been rescinded, modified, or subjected to legal challenge, new or more stringent regulations may be promulgated by the Biden Administration.
+Added: For example, in January 2021, President Biden issued an executive order suspending new leasing activities, but not operations under existing leases, for oil and gas exploration and production on non-Indian federal lands pending completion of a comprehensive review and reconsideration of federal oil and gas permitting and leasing practices that take into consideration potential climate and other impacts associated with oil and gas activities on such lands and waters.
+Added: Although the federal court for the Western District of Louisiana issued a preliminary injunction against the leasing pause, in response to the executive order, the Department of Interior issued a report recommending various changes to the federal leasing program, though many such changes would require Congressional action.
+Added: As a result, we cannot predict the final
+Added: scope of regulations or restrictions that may apply to oil and gas operations on federal lands.
+Added: However, any regulations that ban or effectively ban such operations may adversely impact demand for our products and services.
In addition, various state and local governments have implemented, or are considering, increased regulatory oversight of hydraulic fracturing through additional permit requirements, operational restrictions, disclosure requirements, well construction and temporary or permanent bans on hydraulic fracturing in certain areas.
For example, Texas, Colorado and North Dakota, among others, have adopted regulations that impose new or more stringent permitting, disclosure, disposal and well construction requirements on hydraulic fracturing operations.
+Added: State regulators may also take action to address concerns regarding induced seismicity.
+Added: For example, in September 2021, the Texas Railroad Commission (“TRRC”) issued a notice to disposal well operators in the Gardendale Seismic Response Area near Midland, Texas to reduce daily injection volumes following multiple earthquakes above a 3.5 magnitude over an 18 month period.
+Added: The notice also required disposal well operators to provide injection data to TRRC staff to further analyze seismicity in the area.
+Added: Subsequently, the TRRC ordered the indefinite suspension of all deep oil and gas produced water injection wells in the area, effective December 31, 2021.
+Added: While we cannot predict the ultimate outcome of these actions, any action that temporarily or permanently restricts the availability of disposal capacity for produced water or other oilfield fluids may increase our customers’ costs or require them to suspend operations, which may adversely impact demand for our products and services.
In addition to state laws, local land use restrictions, such as city ordinances, may restrict drilling in general and/or hydraulic fracturing in particular.
10 unchanged sentences
On April 16, 2019, the Governor of Colorado signed Senate Bill 19-181 (“SB 181”) into law.
−Removed: The legislation makes sweeping changes in Colorado oil and gas law, including, among other matters, requiring the Colorado Oil and Gas Conservation Commission (“COGCC”) to prioritize public health and environmental concerns in its decisions, instructing the COGCC to adopt rules to minimize emissions of methane and other air contaminants, and delegating considerable new authority to local governments to regulate surface impacts.
−Removed: Some local communities have adopted additional restrictions for oil and gas activities, such as requiring greater setbacks, and other groups have sought a cessation of permit issuances entirely until the COGCC publishes new rules in keeping with SB 181.
−Removed: Additionally, activist groups have submitted new ballot proposals for the 2020 election year, including proposals for increased drilling setbacks and increased bonding requirements.
+Added: The legislation makes sweeping changes in Colorado oil and gas law, including, among other matters, requiring the Colorado Oil and Gas Conservation Commission (“COGCC”) to prioritize public health and environmental concerns in its decisions.
+Added: In keeping with SB 181, COGCC has adopted comprehensive rule changes covering a variety of matters related to public health, safety, welfare, wildlife, and environmental resources.
+Added: Most significantly, these rule changes establish more stringent setbacks (2,000-feet, instead of the prior 500-foot) on new oil and gas development and eliminate routine flaring and venting of natural gas at new and existing wells across the state, each subject to only limited exceptions.
+Added: Some local communities have adopted , or are considering adopting, additional restrictions for oil and gas activities, such as requiring even greater setbacks.
+Added: Additionally, on December 17, 2021, the Colorado Air Quality Control Commission adopted regulations aimed at curbing methane emissions from oil and gas operations to include setting methane emission limits per 1,000 barrels of oil equivalent produced, more frequent inspections, and limits on emissions during maintenance.
Our operations may require state-law based permits in addition to federal permits, requiring state agencies to consider a range of issues, many the same as federal agencies, including, among other things, a project’s impact on wildlife and their habitats, historic and archaeological sites, aesthetics, agricultural operations and scenic areas.
7 unchanged sentences
financial reporting;
−Removed: and certain mergers, consolidations and acquisitions.
+Added: and certain mergers,
+Added: consolidations and acquisitions.
There are additional regulations specifically relating to the trucking industry, including requirements related to testing and weight and dimension specifications of equipment, drug testing and product handling.
13 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.