SHALE Oil & Gas Business Magazine May/June 2015

Page 56

efforts to kill the bill. Assuming final passage, the House version of the bill will have to be reconciled with the Senate version. Therefore, the bill could quite possibly also head to conference committee.

UPPING THE ANTE

The Environmental Defense Fund has filed three petitions for rulemaking before the Railroad Commission of Texas:  Require installation and maintenance of subsurface shut-off valves.  Provide for the delegation of permitting authority and notification of pipeline locations to local governments, or, alternatively, assumption of direct oversight by the commission.  Amend rules to regulate truck traffic in populated areas.

THE NEXT CHAPTER IN REGULATION

Site Development

excavation

UtilitieS

paving

Another legislative policy dilemma for state lawmakers is balancing the protection of water resources with the need to reduce regulation and maintain the state’s predominant economic status. Several bills granted hearing in the House Natural Resources Committee dealt with groundwater regulation and the responsibilities of groundwater conservation districts. Currently there are 98 districts in the state operating under rules and procedures that vary from district to district. Committee Chair Rep. James L. “Jim” Keffer (R-Eastland) filed several bills that would establish some uniformity across the state. HB 200 would establish a framework for regulation of groundwater resources, whereas HB 2767 deals with the powers, duties and administration of groundwater conservation districts. HB 1972, also filed by Keffer, imposes uniform requirements for obtaining a permit from a groundwater conservation district, including reporting and assessment of a fee. A bill filed by Rep. Lyle Larson (R-San Antonio) encourages the storage and recovery of water in underground aquifers as opposed to above-ground reservoirs where quantities of water are lost to evaporation. Other bills call for increased oversight and uniform treatment of brackish water resources and incentives for desalination efforts. HB 30, also filed by Larson, would establish a statewide framework for development of brackish water. The bill was heard in committee, and similar to other priority legislation was the subject of contentious testimony that went late into the evening. Landowners, water producers and conservation districts took opposing positions on the need for regulation and on the definition of “brackish water” itself. The bill was sent to subcommittee for resolution, but progress is being made. SB 1738 by Sen. Juan Hinojosa (D-Edinburg) looks into the development and production of marine seawater desalination, integrated marine seawater desalination, and facilities for the storage, conveyance, and delivery of desalinated marine seawater. Also generating energetic, even contentious, discussion in hearing are bills related to annexation and eminent domain authority, utility rate-making and contested case proceedings. Lawmakers also considered bills regarding allocation wells and granting unitization authority for tertiary recovery. Of note, HB 3291 by Rep. Richard Peña Raymond (D-Laredo) would make the theft of and unauthorized purchase or sale of pipeline, oil and gas equipment, oil, gas or condensate a second-degree felony. Lawmakers continue to work around the clock to resolve some of these issues before the midnight hour on June 1. Still to come: Stay tuned for the July/August issue to find out what passed and what didn’t in the 84th legislative session. For the complete text of the aforementioned bills, visit Texas Legislature Online at www. capitol.state.tx.us.

713-838-7300 • www.slackandco.com

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houston • Eagle ford • Permian basin

SHALE OIL & GAS BUSINESS MAGAZINE // MAY/JUNE 2015

About the author: Gloria Leal is an attorney and government affairs consultant in Austin, Texas. Ms. Leal has a solo practice primarily relating to energy, environmental and healthcare matters. She also represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers. She can be reached at gleallaw@sbcglobal.net.


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