American Oil and Gas Reporter - April 2015 - 152

proved several transportation measures
in response to many concerns expressed
about infrastructure maintenance, especially in energy-producing areas such as
the Eagle Ford Shale. She adds that the
Alliance is very supportive of these measures, as the issue was brought to light
through the Eagle Ford Shale Task Force,
and has evolved from there.

Taxes And Water
Leal reports lawmakers are considering
several tax bills, but none directly involve
the oil and gas industry. "Nevertheless,
we are concerned that the bills' language
could be changed to decrease the number
of taxpayers and increase the burden on
the oil and gas industry during a downtime,
with ramifications on the state's economy,"
she says. "Oil and gas is Texas' number
one economic mover, after all."
Stevens says that, once again, water
use is another major issue for the legislature,
although much of the water talk this year
seems to be overshadowed by the local
ordinance discussion. Nevertheless, because
the state is still in a drought and lakes are
not filling, Steven says groundwater use
remains a fragile topic for industry members
to discuss with legislators.
"Everyone scrutinizes water use during
a drought," he reflects. "The Alliance

continues to work with legislators and
communities on this issue by looking at
possible brackish water use for fracturing
and so forth. But there are more than 50
water-use-related bills this session."
Among them, he points to bills on
water governance, jurisdiction of river
authorities, water recycling, desalination,
water leasing, and limitations on landowners' use of water under "rule-of-capture."
Of particular interest to the oil and
gas industry, Stevens says, HB 30 would
restrict what qualifies as brackish water,
which would limit the industry's use of
such water.
"On one end, there is potable water,
then useable water, then brackish, with
saline water on the other end," Stevens
explains. "HB 30 would change the definition of brackish water to include useable
quality water. The Alliance opposes this
bill because it would limit the type of
water operators could use on well sites.
In drought conditions such as this, the
industry is looking to brackish water as a
useful alternative to potable or useablequality groundwater."
On one nonlegislative matter, Mills
notes that in February, a Travis County
judge granted the city of Denton's request
to move lawsuits challenging its fracturing
ban to a district court in Denton County.

152 THE AMERICAN OIL & GAS REPORTER

He recalls that after the city's ban went
into effect on Dec. 3, the Texas General
Land Office and the Texas Oil & Gas
Association both filed lawsuits in Travis
County. Both the GLO and TxOGA are
challenging the city's ban on constitutional
grounds, and Mills says the two suits
possibly could be combined.

Eagle Ford Shale
According to the Alliance, Texas Railroad Commissioner David Porter convened
the Eagle Ford Shale Task Force on
March 10 for a special meeting at the
Capitol to receive a legislative update.
"The Eagle Ford Shale is one of the
most energy rich areas of the country,
and has supplied billions of dollars in
revenue and hundreds of thousands of
jobs to Texas," Porter told those present,
including association representatives.
"With the drop in oil prices, it's important
for oil and gas stakeholders to communicate the state of the industry to state leaders."
Leal says Senator Judith Zaffirini, DLaredo, chairman of the Natural Resources
Committee, and Representative Geanie
Morrison, R-Victoria, who chairs the Environmental Regulation Committee, addressed the group. The task force discussed
the challenges Eagle Ford operators and



American Oil and Gas Reporter - April 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2015

Contents
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