American Oil and Gas Reporter - April 2015 - 150

ConventionSection: Texas Alliance of Energy Producers

Lawmakers Wrestle With
Municipal Authority
By Corinne Westeman

WICHITA FALLS, TX.-Texas' 2015
legislative session adds another chapter
to the nation's ongoing discussion about
local versus central power, as some state
legislators hope to pre-empt local authority
regarding oil and gas regulation.
According to the Texas Alliance of
Energy Producers, Texas lawmakers have
introduced several bills that would exempt
industry activities from local ordinances.
Alliance officers say local ordinances
have been the most controversial industry-related issue of the legislative session
thus far.
Association members will hear the
latest news on these bills' progression,
and discuss the possible effects on the
state's producing industry at the Texas
Alliance of Energy Producers' 2015 Expo
& Annual Meeting, April 21-22 at Wichita
Falls' Multi-Purpose Events Center.
Alliance government affairs consultant
Bill Stevens confirms that, out of more
than 6,000 total pieces of legislation,
there are multiple bills on local control
that have differing language and overall
objectives. "The discussion has become
whether local subdivisions are eclipsing
the state's authority," he clarifies. "This
session, legislators are hoping to clear
up these matters."
While some want to add clearing
stages before a municipality can impose
a ban, others want state authority to have
prime jurisdiction over oil and gas regulations, Alliance President Alex Mills
says, adding that the Texas Municipal
League has opposed nearly all of the
local control bills.
"There are at least six bills in the
Senate and seven in the House on this issue," he remarks. "We expect the legislative session to be different this year
because of the oil price decline and the
Denton, Tx., vote, whereas normally, we
would be dealing with environmental issues, taxes, and water. But local ordinances
have become the biggest issue of the session."
Mills says the Alliance has five staff
members and consultants in Austin,

Texas Alliance Expo
& Annual Meeting
Wichita Falls, Tx.
Tuesday, April 21

7 a.m. Morning Round Registration Opens,
Sandbaggers' Scramble Golf Tournament, Wichita Falls Country Club
7:30 a.m. Sandbaggers' Scramble Golf
Tournament, Morning Round Shotgun
Start
9 a.m. Environmental Seminar, MultiPurpose Events Center, MPEC Seminar
Room
9 a.m.-4 p.m. Alliance Expo Setup, MPEC
Clymer Exhibit Hall
11 a.m. Golfers' Lunch
Noon Afternoon Round Registration
Opens, Sandbaggers' Scramble Golf
Tournament, WFCC & Champions
Course at Weeks Park
1 p.m. Sandbaggers' Scramble Golf Tournament, Afternoon Round Shotgun
Start
5 p.m. Alliance Expo & Oil Patch Reception, MPEC Clymer Exhibit Hall
5 p.m. Silent Auction, MPEC Room 8
7:30-8 p.m. Country & Western BBQ,
MPEC Yeager Coliseum

Wednesday, April 22

8 a.m. Membership Breakfast & Special
Alliance Expo Viewing, MPEC Clymer
Exhibit Hall
8 a.m. Silent Auction, MPEC Room 8
9:30 a.m. "Surviving the Downturn,"
MPEC Seminar Room
David Porter, Texas Railroad Commissioner
Gary Stone, Vice President of Engineering, Five States Energy Capital
Jeremy Friesen, Commodity Trading
Desk Strategist, Morgan Stanley
11:30 a.m. Luncheon, MPEC Yeager Coliseum
2 p.m. Alliance Board of Directors Meeting, MPEC Room 5
4 p.m. Alliance Expo Closes; Exhibitor
Tear-down

working the legislative session on behalf
of members. He mentions three were
added since last session, with growing
attention on industry-related issues such
as water use, seismicity-and now-local
ordinances.

150 THE AMERICAN OIL & GAS REPORTER

Differing Language
For instance, the Alliance reports that
HB 40 and HB 2855, both introduced by
Representative Drew Darby, R-San Angelo, and SB 1165 by Senator Troy Fraser,
R-Horseshoe Bay, would pre-empt most
operations-related regulations by cities
and all other political subdivisions.
According to the association, HB 40
has the strongest language, declaring state
law overrides any subdivision's regulations
on oil and gas. Cities and counties could
no longer pass anything that "bans, limits,
or otherwise regulates an oil and gas operation within its boundaries. An oil and
gas operation is subject to the exclusive
jurisdiction of the state," the bill reads.
Mills says Alliance representatives
also have testified in favor of HB 540 by
Representative Phil King, R-Weatherford,
before the House State Affairs Committee.
HB 540 would mandate that all municipalities or subdivisions would have to
seek the opinion of the attorney general
before enacting or repealing a municipal
ordinance.
The association highlights two other
bills with similar objectives, but differing
language. SB 343, by Senator Don
Huffines, R-Dallas, states that "unless
expressly authorized by state statute, a
local government may not implement an
ordinance, rule, or regulation that conflicts
with or is more stringent than a state
statute or rule, regardless when the state
statute or rule takes effect."
SB 360, introduced by Senator Craig
Estes, R-Wichita Falls, changes the definition of a "taking" to include a "series
of actions within a 10-year period," and
enlarges the scope of a regulatory taking
to include allowing filings against the
municipality. The bill also extends the
statutory window for filing suits and allowing real property owners to receive
judicially determined damages, according
to the Alliance.
"This issue has turned into a major
fight between state officials who want
the state to retain regulatory control over
the oil and gas industry, and cities that
want to have the right to govern oil and
gas operations," Mills says.

American Oil and Gas Reporter - April 2015

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