PBPA, jointly with the New Mexico Oil & Gas Association (NMOGA), submitted comments to the U.S. Department of Agriculture regarding proposed updates to regulations under the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA).

In our comments, PBPA and NMOGA expressed support for the Department’s goal of improving transparency around foreign investment while raising concerns about how the proposed regulations could unintentionally affect the oil and gas industry. The Permian Basin’s highly interconnected and dynamic network of mineral interests, surface agreements, rights-of-way, gathering and processing infrastructure, and other assets presents unique considerations that differ significantly from traditional agricultural land ownership.

Of particular concern is the proposed definition of a “foreign person,” which could potentially capture U.S.-organized entities based on the aggregate interests of unrelated foreign investors—even when those investors have no common objective or control. This could create significant and potentially duplicative reporting and compliance requirements for publicly traded companies with otherwise lawful foreign investment, particularly when those companies hold incidental interests in agricultural land.

PBPA and NMOGA encouraged the Department to reconsider the inclusion of oil and gas assets within the proposed framework and work with industry to achieve greater transparency without creating unintended barriers to investment, development, and American energy dominance.

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