American Oil and Gas Reporter - October 2015 - 133

ious about the increased seismicity," he
says. "I know the RRC continues to have
public meetings there to hear everyone's
concerns.
"The Alliance wants to have all the
scientific facts on what is occurring, and
whether there are any (human) causes or
correlations to the increased seismicity,"
Mills continues. "But, we have to ensure
the investigations are thorough and comprehensive. Our members in the Azle
area are more than willing to cooperate
with any investigation. And if any link
between seismicity and industry activity
is found, we will work to be proactive
against future events."
According to Mills, the Texas Legislature has commissioned a study by the
University of Texas' Bureau of Economic
Geology.
Additionally, Stevens says the RRC
has taken precautionary measures by updating State Rule 9046, which enables
the commission to shut in any disposal or
injection well with just cause. "As a result
of Azle, the RRC has had to clarify its jurisdiction over seismicity, and has tightened
its disposal well regulations," he says.

The Denton Saga
In August, the Denton, Tx., City Council voted to amend its drilling ordinance
by reducing a 1,200-foot setback to 1,000
feet, Mills confirms. He says the city established reverse setbacks at 250 feet,
and added signage and noise abatement
measures for operators.
According to Denton, the ordinance
revisions seek to preserve surface property
values and other quality of life issues.
While the Texas Legislature did pass HB
40, preventing municipalities from banning
oil and gas activities, the city notes it
still is permitted to regulate items such
as nuisance and noise mitigation, truck
traffic, lighting, notice requirements and
setbacks (AOGR, September 2015, pg.
20).
Stevens points out that HB 40 requires
city ordinances to be commercially feasible, and says Denton continues to be
"a moving target" for companies operating
there.
"Well permits and drilling sites have
been there for years, but when the subdivision developers began to move in, the
reverse setbacks became shorter and
shorter," he describes. "(The eventual
conflicts) were blamed on the well operators, who had the right to be there.
Meanwhile, the city did not hold home
builders to the same standard."
Stevens adds that the Alliance is working with the RRC and other groups to establish communication plans ahead of
time, so that municipalities may voice

their questions and problems. "That way,
we can circumvent this in an efficient,
legal way, by finding a negotiated opportunity where we can all get along better," he says. "I think this whole Denton
affair has been an unfortunate situation,
and it is going to continue."

In The Interim
Since the regular Texas legislative
session ended in June, the Alliance has
been preparing for the upcoming interim
session. Stevens says Texas House Energy
Resources Committee Chairman Drew
Darby, R-San Angelo, wants to make oil
equipment theft and allocation wells a
priority for the interim.
Stevens posits that allocation wells,
indeed, will be a major topic during
interim discussions, as companion bills
HB 1552 and SB 919 would have legalized
allocation wells. However a group of
mineral and royalty owners convinced
the Senate not to pass them, and they
died during the last week of this year's
session, he details.
He also advocates that "the future of
refracturing" should be discussed during
the interim session, saying policymakers
should work with industry to make refracturing wells more feasible.

Legislators have until December to
decide which items they will prioritize
for interim studies, Stevens says, adding
that the industry's water and road use
also likely will be major topics.
Additionally, Mills notes the RRC
will be up for Sunset Review during the
2017 regular session, when lawmakers
will decide whether the agency is performing to the required standard, and
whether any changes could improve it.
It is possible, based on previous Sunset
reviews, that a new name will be proposed
for the commission that is more descriptive
of its functions, Mills mentions.
On a regulatory note, Stevens says
the RRC has modernized most of its
rules for "unconventional fracture treated" fields. The rules were scheduled to
be released in early October. He says
an industry task force met with RRC
representatives for 18 months to negotiate
the UFT rules, which he says will affect
at least 59 fields across Texas.
"It has been a very long and complicated
process," he reflects. "But I am glad we
soon will have these modern rules in
place because they are needed very much.
I think they will be acceptable to both industry members and regulators."
❒

COGA Staying The Course
With Regulatory Engagement
By Dan Larson
Special Correspondent

DENVER-As state regulators consider
new rules for local government involvement in oil and gas development, new
leadership at the Colorado Oil & Gas
Association is reaching out to local communities to listen, discuss and inform.
According to COGA, efforts to engage
with stakeholders in communities across
Colorado will pay dividends in the event
opposition groups push another set of restrictive or prohibitive ballot initiatives
next fall. "The best thing the association
can do is continue to educate and reach
out to communities," reasons COGA immediate past-chairman Alan Harrison.
"If our opponents make another run at a
ballot initiative, I believe our work will
keep them from gaining any traction with
voters."
In the meantime, COGA must stay
engaged with state regulators as a new
round of rule making is set to begin,
Harrison relates. "Industry is motivated
to do things the right way," he states.
"That is why we are interested in main-

taining a dialogue."
Among the agenda items on tap at the
association's annual membership meeting,
scheduled for Nov. 11 in Denver, are a
different perspective on the new market
dynamic, COGA's continuing education
and outreach efforts, and a preview of
the 2016 Colorado legislative session.
Also up for discussion will be the state's
next round of rule making for oil and
gas.

Anticipating Concerns
State government continues its follow-through on the Colorado Oil & Gas
Task Force's recommendations. In its
final report, issued Feb. 27, 2015, the
task force approved nine recommendations, two of which require commission
rule making (see "Colorado Task Force
Releases Report," AOGR, April 2015).
Colorado Oil & Gas Conservation
Commission Director Matt Lepore indicates Recommendation 17 seeks to improve local government participation during permitting of "large scale oil and gas
facilities" located in proximity to several
expanding communities along the state's
OCTOBER 2015 133

American Oil and Gas Reporter - October 2015

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