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.The Texas Energy Report

“Set the Record Straight” On Lege’s Lack of Success In Eminent Domain Reform: Coalition For Critical Infrastructure

July 15, 2019

The failure of eminent domain reform in Texas was a major disappointment of the 86th Legislature to some organizations and to those who sponsored the legislation to bring it about, especially District 18 state Senator Lois Kolkhorst.

Some details of the negotiations among the groups trying to pass her SB 421 and the companion House bill 991 were detailed elsewhere in The Texas Energy Report, but one of those organizations, the Coalition for Critical Infrastructure, has released an open letter to members of the legislature that reiterates its positions on several of the negotiating points.

Here is the letter in full:

 

July 10, 2019

To: Members, Texas Legislature

Subject: Eminent Domain SB 421/HB 991

In response to several misleading and inaccurate media reports and communications regarding the failure of eminent domain legislation this session, we feel compelled to set the record straight:

1. First and foremost, CCI wanted to pass meaningful eminent domain legislation during the 86th Legislative Session and the failure of SB 421 was a great disappointment to our coalition.

2. We negotiated in good faith throughout the entire process.

In fact, throughout the interim following the 2017 legislative session, we offered to negotiate with landowner groups with the intention of reaching an agreement prior to the 2019 session convening.

This offer was declined. We were not privy to the filed versions of SB 421/HB 991 until they became public on January 23, 2019.

3. We never reached agreement as to all aspects of the bill. Any claim to the contrary is simply untrue.

4. The version that passed the Senate was NOT an “agreed to” bill. Although CCI agreed to changes that enhanced transparency and accountability, we never agreed to the provisions that exposed entities, taxpayers, and consumers to increased litigation costs and project delays.

5. Once SB 421 reached the House, we worked with Chairman Craddick and other members to draft compromise language on the parts of the bill that were not resolved in the Senate.

We did not reject negotiated language; but never reached an agreement on several key components.

6. Additionally, we were assured that we would have an opportunity to vet final language with those directly responsible for compliance.

That opportunity never came.

7. The only “agreement” was to move forward with the House version to get the bill into a conference committee.

8. CCI was not privy to any counter proposal or conference committee report by Senator Kolkhorst prior to the conference committee report deadline.

Thus, it would have been impossible for us to reject such a proposal, as claimed by some landowner groups.

For the 18 months prior to the 86th Legislative Session, beginning with the House Land & Resources Management Committee interim hearings, until Sunday, May 26th, 2019, the last day to adopt conference committee reports, we worked in good faith to pass meaningful eminent domain reform.

CCI again stands ready and willing to work on a compromise legislation during the upcoming interim.

Circulating false, misleading, and inflammatory statements aimed at members of the Legislature and the entities that
provide much-needed critical infrastructure does not provide a basis for meaningful reform.

As always, we appreciate your interest in crafting a well-reasoned and balanced approach to infrastructure development that both protects private property rights and keeps the Texas economy on the move.

We look forward to working with you again next session on this important issue.

Please call on us if we can provide further information.

CCI representatives can be reached at 512-320-0474.

 

The Drilling Report July 4-10, 2019: RRC

July 15, 2019

Permit applications approved by the Texas Railroad Commission for July 4 through July 10 for Districts 7C, 8 and 8A. Numbers in parentheses indicate the number of permits approved for that leasehold.

  • APC Water Holdings 1, LLC, APC 55-1-41, Loving, new drill (3).
  • APR Operating, LLC, Cosmo Daltex Unit 45-4, Culberson, new drill.
  • Basa Resources, Inc., Foster, Mary, Mitchell, recompletion.
  • BHP Billiton Petroleum (TX Gath.), LLC, Waterfall 56-T2-17 SWD, Reeves, new drill.
  • Birch Operations, Inc., Mike The Tiger 18-7 A, Howard, new drill (3); Mike The Tiger 18-7 B, Howard, new drill; Mike The Tiger 18-7 C, Howard, new drill (2); Mike The Tiger 18-7 D, Howard, new drill; Captain Cane 18-30 E, Howard, new drill.

    • …
     

Texas Leads the Charge: Alex Mills

By Alex Mills

Texas is leading the charge in making America more energy secure, according to new study released this month.

“The United States is now producing more oil and natural gas than any country in the world, and American oil and natural gas production volumes are at record highs,” the study published by Texans for Natural Gas said.

“The United States is poised to export more energy than it imports for the first time since the 1950s; during the past decade the U.S. energy trade deficit fell by $363 billion, while the non-energy trade deficit rose by $343 billion,” the study said.

Texas is the leading producer of oil and natural gas, accounting for 40 percent of U.S. oil production and 25 percent of the nation’s natural gas production.

The Permian Basin, the largest oil producing region, recently surpassed Saudi Arabia’s Ghawar as world’s top producing oilfield. The Eagle Ford Shale of South Texas is the second highest producing oilfield in the U.S.

The report also said Laredo surpassed Los Angeles as the nation’s top trade port in March, and the Houston-Galveston Port District became a net export of crude oil and petroleum production last year….
 

Texas Drilling Permits and Completions Statistics for June 2019

June 10, 2019

AUSTIN –– The Railroad Commission of Texas (Commission) issued a total of 1,001 original drilling permits in June 2019 compared 1,230 in June 2018. The June 2019 total included 905 permits to drill new oil or gas wells, 10 to re-enter plugged well bores and 86 for re-completions of existing well bores. The breakdown of well types for those permits is 240 oil, 69 gas, 613 oil or gas, 74 injection, zero service and five other permits.

In June 2019, Commission staff processed 632 oil, 182 gas, 61 injection and two other completions compared to 914 oil, 158 gas, 48 injection and four other completions in June 2018. Total well completions processed for 2019 year to date are 5,050; down from 5,574 recorded during the same time period in 2018. …