American Oil and Gas Reporter - April 2015 - 173

ConventionCoverage: Texas Independent Producers & Royalty Owners

TIPRO Lobbies For State Pre-Emption
AUSTIN, TX.-The state, not municipalities, has exclusive authority over oil
and gas regulation in Texas, insists the
Texas Independent Producers & Royalty
Owners Association.
When TIPRO members carried that
message to lawmakers during their 69th
annual convention, March 2-4 at the Sheraton Hotel in downtown Austin, at least
six bills already had been introduced in
the state legislature-with more expected-to curb local attempts to exert control
over oil and gas drilling.
A legislative showdown with municipalities and anti-industry groups was put
in motion after Denton, Tx., voters passed
an ordinance in November, banning hydraulic fracturing within city limits-the
first such move by a Texas municipality.
"As an industry, we are trying to figure
out what is the best approach to address
this issue, and how far municipalities
can go in their jurisdiction," Lindsey
Skinner, TIPRO's government affairs director, told members just before the association's biennial state Capitol call-up.
Texas Land Commissioner George P.
Bush told annual meeting attendees the
state needed to find a balance between
the needs of municipalities and the state's
exclusive regulatory domain.
In December, just prior to Bush taking
office, the General Land Office filed a
lawsuit to have the Denton ban annulled.
Although the suit was filed in Travis
County-home to Austin-it was remanded
to Denton County, Bush recounted. "It
would have been great to be in Tarrant
or Parker, or other counties that have
witnessed urban drilling (where) we could
find a more reasonable jury, but all we
can do is pursue what we have," he said.
Bush focused on the opportunity for

lawmakers, the industry and municipalities to find agreeable solutions this legislative session. "The opportunity here
is to pass a law that is clear, and sends a
message to municipalities and counties,
but allows opportunity for grievances,"
he reasoned.
Protecting State Authority
TIPRO has watched environmental
activists use misinformation and fear to
advance anti-oil-and gas agendas, the association spelled out in a position paper
distributed to lawmakers. Unfortunately,
misinformation already influenced a majority of voters in Denton to pass the
anti-fracturing ordinance, TIPRO asserts.
"The public perception of the Texas
oil and natural gas industry in Denton,
and the resulting vote, was based on the
same flawed science used by groups that
have targeted key states and communities
across the country with efforts to stop
the responsible exploration and production
of oil and natural gas," TIPRO states.
The association says it is actively supporting efforts to better define local
control, protect state-regulated business
practices, and prevent a patchwork of
regulations that infringe on property rights
and negatively impact the state.
"We cannot have individual cities regulating the oil and gas industry," agreed
Lieutenant Governor Dan Patrick in remarks made during the TIPRO Chairman's
Dinner on March 3.
"I like local control, but responsibility
also comes with local control," he added.
Patrick said the oil and gas industry
didn't need to be regulated by multiple
agencies, similar to water usage, which
is overseen by 105 water conservation
districts across the state. "The point is,

Texas State Representatives Chris
Paddie (left), R-Marshall, and Drew
Darby, R-San Angelo, stress the
importance of balancing state and
municipal interests in overseeing
oil and gas development activities
during a legislative panel at
TIPRO's annual convention, held
March 2-4 in Austin, Tx.

we don't need 105-or 55 or 20-cities
with different regulations," he insisted.
"The oil and gas industry is the backbone
of our economy, and I for one will be
sure we nurture and help it grow. Legislators in both parties are ready to make
sure that we don't have individual cities
hurting the economy of Texas, so we are
going to do everything we can to focus
on this."
TIPRO members need to talk up the
state's exclusive regulatory role and advocate for protecting property rights, state
lawmakers said during a state issues panel.
"One of the overriding values you
need to impart is property rights," opined
state Representative Drew Darby, R-San
Angelo. "You have a vested right to develop your minerals. I would stress (to
lawmakers) that you simply want them
to help protect your property rights, and
that necessarily imparts protection to the
state's property rights also."
Numerous municipalities have co-existed well with the oil and gas industry
for years, and lawmakers still recognize
that cities have roles in maintaining the
health and safety of citizens, including
regulating noise and traffic, providing
for orderly development, and establishing
setbacks, he said.
"I think the legislature will try to
maintain that delicate balance between
cities' necessary police powers and the
state's right to orderly develop its mineral
resources," offered Darby. "We hope to
establish a test for these ordinances. Are
they reasonable?"
While cities' roles in protecting people
need to be reasonable, Representative
Chris Paddie, R-Marshall and a former
Marshall mayor, told TIPRO members
to talk up their contributions to local
communities and the state. "You have to
toot your own horn," he advised. "Tell
legislators about all the good things you
do and the ways you support and contribute
financially to your communities, which
we know is substantial."
Paddie told TIPRO members to equip
themselves with an appropriate message
and stick with it. "(Industry opponents)
have a one- or two-sentence message:
'Do you like clean air and water, and
safe neighborhoods?'" he illustrated.
"Well, who doesn't? Our challenge is to
message better to stop some of this."
APRIL 2015 173



American Oil and Gas Reporter - April 2015

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

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