Tuesday, May 24, 2011
Fort Worth Star-Telegram, Texas
by Aman Batheja
With just a week left in the legislative session, most proposed drilling-related bills appear dead but a handful still have a chance of becoming state law.
Lawmakers filed more than three dozen bills this session that would have affected natural gas drilling operations in the Barnett Shale against a backdrop of increasing concerns about how the process is affecting the environment. For the most part, only bills not opposed by industry have moved forward.
"There's not a lot out there that we're actively fighting right now," said Bill Stevens, executive vice president of the Texas Alliance of Energy Producers. "I think this has been a good session for public policy, not just for the oil and gas industry but for the state."
Gov. Rick Perry recently signed a bill allocating funding for air monitors in the Dallas-Fort Worth area. There are also other bills still in play, including one that would require drillers to disclose most of the chemicals they use in the controversial hydraulic fracturing process.
Drilling critics and environmentalists agree that, as in past sessions, industry has called the shots.
"The industry in Texas is strong," said Cyrus Reed, conservation director of the Lone Star Chapter of the Sierra Club. "They definitely have a seat at the table."
Fort Worth lawmakers
Two Fort Worth lawmakers filed more drilling bills this session than anyone else: state Rep. Lon Burnam and state Sen. Wendy Davis, both Democrats. Several of their bills proposed increasing state regulation of parts of the drilling process or giving local governments more control. Nearly all of their drilling bills, about 20 in total, never came up for votes on the House or Senate floor.
"This industry has controlled state government for over 100 years, and there's nothing to suggest that's going to change," Burnam said.
Several of Burnam's bills were the subject of committee hearings but now remain stuck in different committees. Nearly all of Davis' bills are parked in the Senate Natural Resources Committee. Committee Chairman Sen. Troy Fraser, R-Horseshoe Bay, chose not to hold hearings on more than a dozen drilling bills from Davis. That's a switch from last session, Davis said, when several of her drilling bills not only received hearings when that committee was run by a different chairman but went on to be approved by the full Senate.
When asked about Davis' bills, Fraser said his committee has focused on "the bills that we thought were good public policy that warranted hearings."
Davis said she was able to get three of her proposals added on as amendments to the House version of a bill revamping the Railroad Commission. The House and Senate have passed different versions of the bill. Lawmakers are now working to hammer out the differences, and a major sticking point is whether the agency should continue with three commissioners or switch to just one.
"What I fear is that the debate over the different versions will end up leading to no bill getting passed in time," Davis said.
Rep. Rob Orr, R-Burleson, said he supported several drilling bills proposed by fellow North Texas lawmakers but most did not gain traction this session. "I do not feel like there has been a lot of progress in improvements to the Barnett Shale," he said.
While there still are situations where residents are not happy with the drilling activity in their communities, Orr said he's heard less of an outcry this session than he did when the price of natural gas was higher and companies were in the midst of a leasing frenzy that left some communities frustrated or confused.
One measure that drew bipartisan attention was suspending or limiting a tax exemption on high-cost natural gas production. The exemption, which has encouraged production in the Barnett Shale, accounted for $7.4 billion in lost revenue to the state over the past six years, according to a state report.
Supporters of a pullback said the money could go toward education, but industry officials predict that such a move would deter drilling activity and hurt economic growth. No changes to the tax break appear likely this session.
"That's one we will continue to be vigilant on," Stevens said.
Fracking fluids
The most significant piece of drilling legislation still alive is a measure to require drilling companies to disclose the fluids they use in the controversial practice of hydraulic fracturing.
"We think it will alleviate some of the public fears that are out there right now related to our fracking process," said Debbie Hastings of the Texas Oil & Gas Association.
Reed said the fracking disclosure bill could indirectly lead to safer drilling practices.
"The hope is if you have to disclose, you will be more careful about what chemicals you're using," Reed said.
After months of negotiations with stakeholders, the measure passed the House earlier this month. Though not as strong as some environmental groups and drilling activists had hoped, it has still drawn broad support.
Copyright (c) 2011, Fort Worth Star-Telegram, Texas
Oil & Gas Post
Promote Your Page Too
No comments:
Post a Comment