Government Relations and Regulatory Compliance

Government Relations Approach

A central aspect of Crestwood’s role in the MLP midstream industry is proactive engagement on national, regional, and local policy issues that are relevant to our industry. We maintain open and honest dialogue with governmental leaders and regulators at all levels to educate them on the scope of our activities, critical aspects of our operations, and to remain engaged on pertinent policy issues.

For example, Crestwood has remained at the forefront of the Pipeline and Hazardous Materials Safety Administration (PHMSA)’s “Mega Rule” rulemaking process, which will implement federal regulation of “gas gathering pipelines.” Based on the geography of our assets and the institutional knowledge of our employees, Crestwood is uniquely positioned to work directly with the Gas Pipeline Advisory Committee on this important rulemaking.

We further our engagement with relevant policymakers through active participation in trade associations and industry groups. We work in partnership with industry members and provide input, expert testimony, and sound data to policymaking discussions. Our seat at the table ensures that our operations are subject to effective, evidence-based public policy. For example, representatives from our Environmental, Commercial, and Legal teams participate in the New Mexico Oil and Gas Association’s (NMOGA) methane emissions working group. This group collaborates with state regulators to enact a workable policy that aims to reduce methane emissions throughout New Mexico.

Crestwood’s Government Relations team has also been proactive with introducing Crestwood and our industry to newly elected officials in New Mexico, including the New Mexico State Land Commissioner who oversees State Trust Lands where Crestwood maintains a portion of its New Mexico operations.  Crestwood also testifies before both legislative chambers in North Dakota regarding policy initiatives involving different aspects of our business. This outreach and the relationships built allow Crestwood to help guide strong public policy, and navigate unique regulatory environments and uncertainties.

In addition to engaging directly with elected officials and policymakers, we hold several board positions, participate in various committees and working groups, sponsor advocacy and educational activities, deliver conference presentations, and offer letters of support when appropriate.  

“It is important to actively engage governmental authorities whose regulatory and policy determinations may affect our industry, company, and employees.  We constructively participate with tribal and local governments, states where we operate, and federal officials to make sure our company stays on time and on track.  We appreciate the relationships we have built with these regulatory and policy stakeholders, and believe those relationships are furthered by our open and honest dialogue.”

Portrait of Daubs Thompson, Vice President, Associate General Counsel

Daubs Thompson,
Vice President,
Associate General Counsel

Trade Association Memberships

Crestwood participates in a number of trade associations in the United States. The organizations below are those with whom we have the greatest level of engagement.

Trade Associations Purpose Our Involvement
National
Develops and advocates innovative, research-based policies promoting highway safety, security, environmental sustainability, and profitability. ATA educates policymakers and the general public about the essential role trucking plays in the economy, promotes responsible policies to improve highway safety, and advances the industry’s environmental goals.
Active participation by Director, Fleet Maintenance
Develops standards, conducts industry research, educates the midstream workforce, and works with lawmakers and regulators to develop policies promoting a safe and viable midstream industry. GPA provides best practices that increase the efficiency and environmental performance of gas processing facilities, which enhances the sustainability of natural gas, natural gas liquids and crude oil as an energy source.
Vice President, Business Development serves on the Board
Promotes the common interest of publicly traded Master Limited Partnerships (MLPs) that finance infrastructure needed to develop and utilize domestic energy resources. MLPs lead to greater energy independence for the United States and ensure that a wide variety of energy products make their way efficiently and safely from the production fields to American homes, businesses, and communities.

Active participation by Vice President, Tax and Manager, Government Affairs

Regional
Provides governmental relations support to all aspects of the oil and gas industry including production, refining, pipeline, mineral leasing, consulting, legal, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain region.
Vice President & Associate General Counsel serves on the Board
Advocates on issues related to pipeline safety, environmental regulations, taxation and legislation, and is the primary resource for information regarding the Texas pipeline industry.
Vice President, Business Development serves on the Board

 

Case Studies

Houston Office Visit by Congressman Kevin Brady

In August 2018, U.S. Congressman Kevin Brady met with the Crestwood Executive Team in our Houston corporate office. As Chairman of the House Ways and Means Committee, Congressman Brady was able to provide unique insight on the historic Tax Cuts and Jobs Act of 2017, and its intentions to boost U.S. economic growth. The Chairman explained some of the details of the new legislation, in particular how pass-through entities and infrastructure investments are treated under the new code. As part of the dialogue, Crestwood leaders briefed Chairman Brady on the company’s operating principles, strategy for growth, and MLPs’ vital role in long-term domestic infrastructure development. Crestwood emphasized the importance of cooperation between industry and government to ensure the U.S. remains a world leader in responsible energy development.

Regulatory Compliance

Crestwood’s philosophy for compliance rests on a commitment to meet or exceed current regulatory requirements and industry performance standards throughout our operations, and to act as a model for future regulatory initiatives.

Approach

Ultimate oversight of compliance rests with the Audit Committee of our Board of Directors. While day-to-day compliance is a responsibility of all employees and contractors, they are supported with tools and training from key corporate departments such as Operations, Environment, Safety and Regulatory (ESR), Legal, and Human Resources.

We work to ensure that all of our pipeline, processing, and storage facilities are constructed, maintained, and operated at levels that meet or exceed all state and federal regulations. We use IT systems to track compliance status in real time, and ensure that any required tasks are assigned to the appropriate personnel for timely completion in accordance with our operating principles and procedures. Tiered assurance and employee training programs further support these processes.

Looking Ahead

With our expansion of Crestwood’s footprint in the Powder River Basin, our Government Affairs efforts throughout 2019 will include strategic outreach to new stakeholders in Wyoming.  We will introduce Crestwood and our Wyoming operations to the Wyoming Congressional delegation, and local leaders. We will also expand our involvement in the Western Energy Alliance, while continuing to build on our relationships and efforts in the other States where we operate.

Additionally, our Chief Executive Officer will be joining the Board of Directors for the Master Limited Partnership Association (MLPA).  MLPA is increasing the scope of the organization to advocate on issues impacting the oil and gas midstream sector such as permitting regulations, taxes, ESG, and public education regarding the benefits of domestic energy production and transportation. 

Related Content 

Economic Performance

Corporate Governance and Business Ethics

Supply Chain Management