Showing posts with label Texas Railroad Commission. Show all posts
Showing posts with label Texas Railroad Commission. Show all posts
Sunday, June 14, 2009
Saturday, March 15, 2008
Texas Railroad Commission: Will this kind of malpractice cost you your life or only your health?
By TxSharon - BlueDaze - March 14, 2008
Monday, March 10, 2008
Lack of scrutiny for Tarrant County gas wells questioned - 30% in Tarrant have not seen state scrutiny in past 5 years
By Mike Lee, and Jeff Claassen - Star-Telegram Staff Writer
In Fort Worth, restaurants get inspected by the Health Department at least once a year.
Construction sites are inspected from stakeout to top-out.
The one thing that may not be inspected is a natural gas well.
About 30 percent of the gas wells operating in Tarrant County have not been inspected within the past five years. The inspections are the responsibility of the Texas Railroad Commission, which enforces safety and environmental rules for gas drilling.
Neighborhood groups and local officials say they want the state to step up and do its part, particularly since cities cannot impose stricter safety rules than the state.
Matthew Hudson, past president of the Fort Worth League of Neighborhoods, used the analogy of a building permit. He recently paid more than $800 in permit fees to build an addition to his home, and the addition had to be inspected more than a dozen times.
It actually costs less to get a drilling permit than Hudson paid for his building permit. The maximum fee, set by the Legislature in 2001, is $300, and the total can rise to $650 if a drilling company asks for an expedited permit and exceptions to density rules. By law, that money goes to a state fund to clean up plugged wells and other environmental problems.
The issue of inspections was first raised in a report by the state auditor's office, which came out in August. The report said 46 percent of the oil and gas wells statewide had not been inspected in the previous five years. The report also said Railroad Commission inspectors had chummy relations with the companies they oversaw, often accepting caps, meals and gift baskets.
Fort Worth has its own gas well inspectors, but they can enforce only local rules such as those that govern noise, setbacks, fencing and landscaping. The city inspectors visit every well in Fort Worth annually and can report any problems to the Railroad Commission.
Many in sensitive areas
Railroad Commission officials said at the time of the audit that there is no need to inspect every well, since many of them were plugged or were located in nonproductive fields. They said they had instead tried to concentrate on high-priority inspections, such as wells in environmentally sensitive areas or highly populated areas -- particularly the Barnett Shale field in North Texas.
But a Star-Telegram analysis of Railroad Commission data for the same period as the state audit found that there are a lot of uninspected wells in Tarrant County. Out of 1,010 active wells in Tarrant County, the commission has inspected 696 and left 314 uninspected. About 180 of the uninspected wells have been drilled since 2005, according to the commission.
Many of the uninspected wells are in highly populated and environmentally sensitive areas:
ZIP code 76179, which includes new subdivisions such as Sendera Ranch, Bonds Ranch and the east side of Eagle Mountain Lake, has 108 uninspected wells out of 392, meaning 28 percent of the wells haven't been inspected.
ZIP code 76248, which includes Keller and parts of Fort Worth, had one of the highest rates of uninspected wells, 48 percent (11 out of 23). That's higher than the Tarrant County average and about the same as the statewide average.
ZIP code 76135, which covers Lake Worth, a major source of drinking water, had a 50 percent rate of uninspected wells -- five out of 10.
Also, each well in the Barnett Shale has a surface casing that runs from the surface to a level below the water table. Each casing has to be installed and sealed with cement to protect the groundwater before drilling can continue. Inspectors didn't check 33 percent of cementing operations in Tarrant County, according to the commission's statistics.
Limited staff available
Richard Varela, the commission's executive director, said the agency does the best it can with limited staff. There are 377,000 wells in Texas, each with associated pipelines, tank batteries and other equipment. And there are only 83 inspectors. That's about 4,500 wells per inspector.
The inspectors try to make up for their lack of numbers by randomly picking wells for important inspections such as surface casings.
"That way, the operator doesn't know when we're going to show up," Varela said.
Also, drilling companies have to submit a detailed report to the commission after each well is completed.
The number of field staff (which includes inspectors, well-pluggers and cleanup specialists) has increased about 10 percent, from 125 to 137 since 2002, even as the agency's overall staff has dropped from 803 to 712. But the agency is struggling to keep the positions filled -- there are currently nine vacant field positions -- since the petroleum industry can pay better than the state, Varela said.
During the same five years, the number of active oil and gas wells has climbed by about 9 percent, from 240,357 to 263,057.
It would take a change in state law to add more inspectors or increase permit fees, Varela said.
That's cold comfort for Jerry Bonds and his neighbors near Eagle Mountain Lake.
Bonds' front door is about 250 feet from a cluster of five gas wells operated by Fort Worth-based XTO Energy. The noise, dust and truck traffic have been hard to take, and Bonds figures his 1-acre property is worth about half what it was before the drilling started. There's a double-decker stack of empty cargo containers along his fence line, and a portable toilet next to his driveway.
When it rains, chalky runoff from the site comes down Bonds' driveway, headed for Eagle Mountain Lake, which is a major source of Tarrant County's drinking water. If there's ever an accident, both his home and the wells are at the end of a two-lane blacktop road.
Bonds leased his mineral rights to XTO and got a $1,000 signing bonus, a monthly royalty check and an advance payment for damage. The company asked him not to disclose the damage amount, but he said it's not enough.
His next-door neighbor, Lisa Woolsey, pointed out that the wells probably wouldn't be allowed in Fort Worth or other cities, which have limits on how close wells can be to homes.
XTO officials didn't return calls seeking comments about Bonds' or Woolsey's situation.
Industry safety record
Joe Waller, president of the Lake Worth Alliance, said he's concerned about wells near the lake where he lives, too. The alliance has been campaigning for more than a year to clean up and dredge Lake Worth, and Waller has asked the city to impose extra restrictions on gas drilling near the lake.
Nye, the commission spokeswoman, said the oil and gas industry has a successful safety record, but there have been several incidents in Tarrant County over the last five years, including a blowout at a well in Forest Hill that killed a worker, Robert Gayan.
There have been two other blowouts, one in Haslet in 2002 and one in Fort Worth near Benbrook Lake in 2007. No one was injured in either. All three of the wells had been inspected before the blowouts.
Also in 2007, a contractor at a housing addition cut a 16-inch oil pipeline in southeast Tarrant County, causing a spill of about 420 barrels of oil. About 50 barrels ran into a dry creek bed and pond. About five barrels remained soaked in the ground two weeks later, according to Railroad Commission reports.
The Fort Worth Fire Department has responded to five incidents involving gas wells, Lt. Kent Worley said. Most of those cases involved were minor incidents in which a pressure relief valve was set off; no injuries were reported in any of them.
Mayor wants local office
Mayor Mike Moncrief said he is working with the Railroad Commission to open a satellite office in Fort Worth, with the city possibly providing office space.
Currently, inspectors work from their homes, but the nearest field offices are in Kilgore, Abilene and Wichita Falls.
The city and the Railroad Commission are also discussing joint training of each other's gas inspectors.
"This is important, that we really work together and are each other's eyes and ears," Railroad Commissioner Elizabeth Ames Jones said in an interview.
Jones said the commission also does "a lot of work on the front end" to ensure safety before the agency issues a permit.
Colorado: All wells inspected
In Colorado, which is also undergoing a natural gas boom, state regulators inspect every gas well. Colorado inspectors also do spot inspections, said Deb Frazier, spokeswoman for the Colorado Oil and Gas Conservation Commission.
Still, lax inspections are a problem throughout the West, said Gwen Lachelt, director of the Oil & Gas Accountability Project in Durango, Colo.
High energy prices have kicked off a drilling boom from Texas to Wyoming, and state regulators are struggling to keep up, both in the number of inspectors and in up-to-date rules. Last year, Colorado passed legislation that expanded the commission's powers. The law added specific language regarding "protection of public health, safety and welfare, including protection of the environment and wildlife resources."
By the numbers
1,010 gas wells in Tarrant County as of fall 2007.
314 wells not inspected between 2002 and 2007.
696 wells inspected during the same period.
Texas Railroad Commission
The Railroad Commission oversees the oil and gas industry in Texas. It is run by three commissioners, who are elected statewide to six-year terms. Commissioners earn between $92,000 and $137,000 a year.
The three current commissioners each get a substantial amount of their political contributions from the oil and gas industry, according to an analysis of contributions for 2006 by the Web-based watchdog group followthemoney.org.
Chairman Michael Williams, who has been on the commission since 1999, got a third of his contributions -- $138,000 out of $400,000, from people and companies in the oil and gas business, during the 2006 election cycle.
Elizabeth Ames Jones, who was appointed to the commission by Gov. Rick Perry in 2005, also got about a third of her contributions from the oil and gas sector -- $695,000 out of $2.1 million.
Victor Carrillo, who was appointed by Perry in 2003 and re-elected in 2004, got 54 percent of his contributions from the oil and gas sector, $194,000 out of $355,000.
Online: www.followthemoney.org
Texas Railroad Commission, www.rrc.state.tx.us
Gas well inspections
Texas Railroad Commission inspectors make several kinds of checks when they visit a drilling or a completed gas well:
Leaks in the wellhead.
Oil on the ground.
Whether signs are posted correctly.
Whether water sources are protected.
They also make on-site visits when drillers are setting surface casings. At that stage, the well has been drilled to a predesignated depth -- 100 feet below any potable water. A pipe or casing is inserted and cement is pumped into the well until it flows back up the outside of the casing to form a seal between the casing and any water-bearing rock formations. The commission inspected about 67 percent of those operations from 2002 to 2007.
Source: Texas Railroad Commission
Read more in the Fort Worth Star Telegram
In Fort Worth, restaurants get inspected by the Health Department at least once a year.
Construction sites are inspected from stakeout to top-out.
The one thing that may not be inspected is a natural gas well.
About 30 percent of the gas wells operating in Tarrant County have not been inspected within the past five years. The inspections are the responsibility of the Texas Railroad Commission, which enforces safety and environmental rules for gas drilling.
Neighborhood groups and local officials say they want the state to step up and do its part, particularly since cities cannot impose stricter safety rules than the state.
Matthew Hudson, past president of the Fort Worth League of Neighborhoods, used the analogy of a building permit. He recently paid more than $800 in permit fees to build an addition to his home, and the addition had to be inspected more than a dozen times.
"It makes sense that when somebody files a permit to drill, that there's enough money in that permit fee to do these inspections," Hudson said.
It actually costs less to get a drilling permit than Hudson paid for his building permit. The maximum fee, set by the Legislature in 2001, is $300, and the total can rise to $650 if a drilling company asks for an expedited permit and exceptions to density rules. By law, that money goes to a state fund to clean up plugged wells and other environmental problems.
The issue of inspections was first raised in a report by the state auditor's office, which came out in August. The report said 46 percent of the oil and gas wells statewide had not been inspected in the previous five years. The report also said Railroad Commission inspectors had chummy relations with the companies they oversaw, often accepting caps, meals and gift baskets.
Fort Worth has its own gas well inspectors, but they can enforce only local rules such as those that govern noise, setbacks, fencing and landscaping. The city inspectors visit every well in Fort Worth annually and can report any problems to the Railroad Commission.
Many in sensitive areas
Railroad Commission officials said at the time of the audit that there is no need to inspect every well, since many of them were plugged or were located in nonproductive fields. They said they had instead tried to concentrate on high-priority inspections, such as wells in environmentally sensitive areas or highly populated areas -- particularly the Barnett Shale field in North Texas.
"If there's a gas well in a rural area, where the water table is not going to be impacted, that well is not going to pose a risk to the environment or public safety," commission spokeswoman Ramona Nye said.
But a Star-Telegram analysis of Railroad Commission data for the same period as the state audit found that there are a lot of uninspected wells in Tarrant County. Out of 1,010 active wells in Tarrant County, the commission has inspected 696 and left 314 uninspected. About 180 of the uninspected wells have been drilled since 2005, according to the commission.
Many of the uninspected wells are in highly populated and environmentally sensitive areas:
ZIP code 76179, which includes new subdivisions such as Sendera Ranch, Bonds Ranch and the east side of Eagle Mountain Lake, has 108 uninspected wells out of 392, meaning 28 percent of the wells haven't been inspected.
ZIP code 76248, which includes Keller and parts of Fort Worth, had one of the highest rates of uninspected wells, 48 percent (11 out of 23). That's higher than the Tarrant County average and about the same as the statewide average.
ZIP code 76135, which covers Lake Worth, a major source of drinking water, had a 50 percent rate of uninspected wells -- five out of 10.
Also, each well in the Barnett Shale has a surface casing that runs from the surface to a level below the water table. Each casing has to be installed and sealed with cement to protect the groundwater before drilling can continue. Inspectors didn't check 33 percent of cementing operations in Tarrant County, according to the commission's statistics.
Limited staff available
Richard Varela, the commission's executive director, said the agency does the best it can with limited staff. There are 377,000 wells in Texas, each with associated pipelines, tank batteries and other equipment. And there are only 83 inspectors. That's about 4,500 wells per inspector.
The inspectors try to make up for their lack of numbers by randomly picking wells for important inspections such as surface casings.
"That way, the operator doesn't know when we're going to show up," Varela said.
Also, drilling companies have to submit a detailed report to the commission after each well is completed.
"For all the wells we did not get to check physically, we can do an audit to see if they're at least telling us what was done," Varela said.
The number of field staff (which includes inspectors, well-pluggers and cleanup specialists) has increased about 10 percent, from 125 to 137 since 2002, even as the agency's overall staff has dropped from 803 to 712. But the agency is struggling to keep the positions filled -- there are currently nine vacant field positions -- since the petroleum industry can pay better than the state, Varela said.
During the same five years, the number of active oil and gas wells has climbed by about 9 percent, from 240,357 to 263,057.
It would take a change in state law to add more inspectors or increase permit fees, Varela said.
'They don't protect you'
That's cold comfort for Jerry Bonds and his neighbors near Eagle Mountain Lake.
Bonds' front door is about 250 feet from a cluster of five gas wells operated by Fort Worth-based XTO Energy. The noise, dust and truck traffic have been hard to take, and Bonds figures his 1-acre property is worth about half what it was before the drilling started. There's a double-decker stack of empty cargo containers along his fence line, and a portable toilet next to his driveway.
When it rains, chalky runoff from the site comes down Bonds' driveway, headed for Eagle Mountain Lake, which is a major source of Tarrant County's drinking water. If there's ever an accident, both his home and the wells are at the end of a two-lane blacktop road.
"I want every kind of safety inspection that can be done on it," Bonds said of the gas wells. "My family lives here."
Bonds leased his mineral rights to XTO and got a $1,000 signing bonus, a monthly royalty check and an advance payment for damage. The company asked him not to disclose the damage amount, but he said it's not enough.
"I'd be happy to give them their check back every month," he said.
His next-door neighbor, Lisa Woolsey, pointed out that the wells probably wouldn't be allowed in Fort Worth or other cities, which have limits on how close wells can be to homes.
"The state standards, they don't protect you," she said. "Otherwise, all these other cities wouldn't have these distance limits."
XTO officials didn't return calls seeking comments about Bonds' or Woolsey's situation.
Industry safety record
Joe Waller, president of the Lake Worth Alliance, said he's concerned about wells near the lake where he lives, too. The alliance has been campaigning for more than a year to clean up and dredge Lake Worth, and Waller has asked the city to impose extra restrictions on gas drilling near the lake.
"If one thing should happen out of a thousand, it'd be catastrophic," he said.
Nye, the commission spokeswoman, said the oil and gas industry has a successful safety record, but there have been several incidents in Tarrant County over the last five years, including a blowout at a well in Forest Hill that killed a worker, Robert Gayan.
There have been two other blowouts, one in Haslet in 2002 and one in Fort Worth near Benbrook Lake in 2007. No one was injured in either. All three of the wells had been inspected before the blowouts.
Also in 2007, a contractor at a housing addition cut a 16-inch oil pipeline in southeast Tarrant County, causing a spill of about 420 barrels of oil. About 50 barrels ran into a dry creek bed and pond. About five barrels remained soaked in the ground two weeks later, according to Railroad Commission reports.
The Fort Worth Fire Department has responded to five incidents involving gas wells, Lt. Kent Worley said. Most of those cases involved were minor incidents in which a pressure relief valve was set off; no injuries were reported in any of them.
Mayor wants local office
Mayor Mike Moncrief said he is working with the Railroad Commission to open a satellite office in Fort Worth, with the city possibly providing office space.
Currently, inspectors work from their homes, but the nearest field offices are in Kilgore, Abilene and Wichita Falls.
"They need to be here where all this action is taking place," Moncrief said.
The city and the Railroad Commission are also discussing joint training of each other's gas inspectors.
"This is important, that we really work together and are each other's eyes and ears," Railroad Commissioner Elizabeth Ames Jones said in an interview.
Jones said the commission also does "a lot of work on the front end" to ensure safety before the agency issues a permit.
Colorado: All wells inspected
In Colorado, which is also undergoing a natural gas boom, state regulators inspect every gas well. Colorado inspectors also do spot inspections, said Deb Frazier, spokeswoman for the Colorado Oil and Gas Conservation Commission.
Still, lax inspections are a problem throughout the West, said Gwen Lachelt, director of the Oil & Gas Accountability Project in Durango, Colo.
High energy prices have kicked off a drilling boom from Texas to Wyoming, and state regulators are struggling to keep up, both in the number of inspectors and in up-to-date rules. Last year, Colorado passed legislation that expanded the commission's powers. The law added specific language regarding "protection of public health, safety and welfare, including protection of the environment and wildlife resources."
"Most state oil and gas regulations are terribly outdated," Lachelt said. "They need to be revisited, given the recent surge in new drilling activity, especially in areas where this drilling is within a very urban area. There need to be fees or severance taxes in order for states to hire the inspectors."
By the numbers
1,010 gas wells in Tarrant County as of fall 2007.
314 wells not inspected between 2002 and 2007.
696 wells inspected during the same period.
Texas Railroad Commission
The Railroad Commission oversees the oil and gas industry in Texas. It is run by three commissioners, who are elected statewide to six-year terms. Commissioners earn between $92,000 and $137,000 a year.
The three current commissioners each get a substantial amount of their political contributions from the oil and gas industry, according to an analysis of contributions for 2006 by the Web-based watchdog group followthemoney.org.
Chairman Michael Williams, who has been on the commission since 1999, got a third of his contributions -- $138,000 out of $400,000, from people and companies in the oil and gas business, during the 2006 election cycle.
Elizabeth Ames Jones, who was appointed to the commission by Gov. Rick Perry in 2005, also got about a third of her contributions from the oil and gas sector -- $695,000 out of $2.1 million.
Victor Carrillo, who was appointed by Perry in 2003 and re-elected in 2004, got 54 percent of his contributions from the oil and gas sector, $194,000 out of $355,000.
Online: www.followthemoney.org
Texas Railroad Commission, www.rrc.state.tx.us
Gas well inspections
Texas Railroad Commission inspectors make several kinds of checks when they visit a drilling or a completed gas well:
Leaks in the wellhead.
Oil on the ground.
Whether signs are posted correctly.
Whether water sources are protected.
They also make on-site visits when drillers are setting surface casings. At that stage, the well has been drilled to a predesignated depth -- 100 feet below any potable water. A pipe or casing is inserted and cement is pumped into the well until it flows back up the outside of the casing to form a seal between the casing and any water-bearing rock formations. The commission inspected about 67 percent of those operations from 2002 to 2007.
Source: Texas Railroad Commission
Read more in the Fort Worth Star Telegram
Thursday, February 28, 2008
Art Hall Accepts Thousands From Valero PAC, Employees
Hall Previously Claimed Valero Told Him His Wife's Position With The Firm Constituted No Conflict Of Interest
Vince Leibowitz - February 28, 2008
AUSTIN--Former San Antonio City Councilman Art Hall has accepted more than $5,000 in contributions from Valero Energy's political action committee and several of its employees, according to records from the Texas Ethics Commission.
On February 8, Hall received a $5,000 contribution from the Valero Political Action Committee, a PAC notorious for giving thousands of dollars to Texas' most conservative Republicans-- and Railroad Commissioner Michael L. Williams, the man Hall and Dale Henry (D-Lampasas) seek to replace in the November general election.
In addition to the $5,000 from Valero's PAC, Hall also took more than $2,000 from Valero employees and attorneys in late January and February. According to Hall's most recent filing with the Texas Ethics Commission, he received the following contributions from Valero employees and attorneys:
Robert Bower, Valero Attorney, $500 2/23
Theodore Guidry, Valero employee, $500, 1/26
Diane Hirsch, Valero Attorney, $300, 2/23
Martin Loeber, Valero Attorney, $500, 2/23
Rich Walsh, Valero Attorney, $1,500, 2/23
Parker Wilson, Valero Attorney, $500, 2/23
"The money that Art Hall has accepted from Valero's PAC and its employees is especially troubling given the fact that he is very connected to Valero through the fact that his wife is an attorney for Valero," said Vince Leibowitz, campaign director for Dale Henry, Hall's principal opponent.
According to Hall's Personal Financial Statement on file with the Texas Ethics Commission, Hall's wife owns between 5,000 and 9,999 shares of stock in Valero which, if sold, would represent a net gain of $10,000 to $24,999.
"All of this is especially disturbing given the fact that Art Hall is actually getting advice from Valero on what constitutes a conflict of interest for his campaign," said Leibowitz.
At a forum in Decatur on January 29, Hall was asked if he believed it constituted a conflict of interest that his wife, Stephanie Hall, is an attorney for Valero considering the Railroad Commission regulates the oil and gas industry. Hall told the audience that he had contacted Valero and that he was advised by the company that her work would not constitute a conflict of interest for him.
"Art Hall is getting ethics advice and money from Valero energy. What else is he getting from them? Are they advising him on energy policy as well? Art Hall represents no departure from the current rubber-stamp culture at the Texas Railroad Commission where Commissioners take thousands of dollars from oil company PACs and their employees and then give them whatever they want without regard for the best interest of Texas consumers or the environment," Leibowitz said.
"Valero's PAC is notorious for giving large sums of money to Republicans and pet conservative causes," Leibowitz said. "Valero has given Railroad Commissioner Michael L. Williams $20,000. Now Art Hall is taking Valero's money and telling Texans that he will bring 'balance' to the Texas Railroad Commission. What kind of 'balance' is that, exactly? The kind of 'balance' where Hall will simply be another hand out taking money from the oil industry? That's not 'balance,' that is merely more of the same," Leibowitz continued.
Valero has given incumbent Railroad Commissioner Michael L. Williams $10,000 on two occasions: once less than a year ago on June 28, 2007, and once on June 7, 2002. Valero has also contributed to some of Texans most anti-consumer, counter-progressive Republicans and Republican causes.
The company's PAC gave $15,000 to Tom Craddick's "Stars Over Texas" Leadership PAC ($10,000 on 10/11/06 and $5,000 on 10/25/04), and $30,000 to Speaker Craddick's personal campaign account since 2004 ($10,000 on 11/08/05 and $10,000 on 11/5/07, and $10,000 on 11/10/04). A small sampling of Valero's contributions to Republicans include:
Texas Conservative Coalition ($2,500 on 9/10/07)
Former State Rep. Joe Nixon ($1,000 on 3/5/04)
Lt. Governor David Dewhurst ($10,000 on 11/6/03)
Attorney General Greg Abbott ($10,000 on 7/11/03)
Railroad Commissioner Victor Carrillo ($5,000 on 1/29/04)
U.S. Senator John Cornyn ($2,500 while Cornyn was Texas' AG on 11/7/2000)
State Rep. Phil King ($2,500 on 10/23/07)
Texas Agriculture Commissioner Todd Staples ($5,000 on 11/27/07)
Former State Rep. Talmadge Heflin ($1,000 on 11/9/04)
The Valero-tied contributions aren't the only suspect contributions Hall has received as a candidate. While on the San Antonio City Council, Hall accepted money from executives and employees of the HB Zachry company, a San Antonio-based company which has paired with Spanish company Cintra and, in March 2005, signed a comprehensive development agreement authorizing $3.5 million in planning for the first phase of the controversial Trans-Texas Corridor. Hall accepted a $500 contribution from HB Zachry on April 26, 2005 and a $250 contribution from J.P. Zachry on August 8, 2005. As a San Antonio City Councilman, Hall also took money from Valero's PAC on May 3, 2005 ($500).
At the January 29 forum in Decatur, Hall also failed to state a position on a question that asked whether or not he favored continued development of the Trans-Texas Corridor, which will include "designated utility zones" which will facilitate the transport of oil and natural gas and could have a significant negative impact on Texas' environment and groundwater.
Henry faces Art Hall of San Antonio and Mark Thompson of Hamilton in the March 4 Democratic Primary. The winner of the March 4 Democratic Primary will face Commissioner Michael L. Williams in the general election.
Vince Leibowitz - February 28, 2008
AUSTIN--Former San Antonio City Councilman Art Hall has accepted more than $5,000 in contributions from Valero Energy's political action committee and several of its employees, according to records from the Texas Ethics Commission.
On February 8, Hall received a $5,000 contribution from the Valero Political Action Committee, a PAC notorious for giving thousands of dollars to Texas' most conservative Republicans-- and Railroad Commissioner Michael L. Williams, the man Hall and Dale Henry (D-Lampasas) seek to replace in the November general election.
In addition to the $5,000 from Valero's PAC, Hall also took more than $2,000 from Valero employees and attorneys in late January and February. According to Hall's most recent filing with the Texas Ethics Commission, he received the following contributions from Valero employees and attorneys:
Robert Bower, Valero Attorney, $500 2/23
Theodore Guidry, Valero employee, $500, 1/26
Diane Hirsch, Valero Attorney, $300, 2/23
Martin Loeber, Valero Attorney, $500, 2/23
Rich Walsh, Valero Attorney, $1,500, 2/23
Parker Wilson, Valero Attorney, $500, 2/23
"The money that Art Hall has accepted from Valero's PAC and its employees is especially troubling given the fact that he is very connected to Valero through the fact that his wife is an attorney for Valero," said Vince Leibowitz, campaign director for Dale Henry, Hall's principal opponent.
According to Hall's Personal Financial Statement on file with the Texas Ethics Commission, Hall's wife owns between 5,000 and 9,999 shares of stock in Valero which, if sold, would represent a net gain of $10,000 to $24,999.
"All of this is especially disturbing given the fact that Art Hall is actually getting advice from Valero on what constitutes a conflict of interest for his campaign," said Leibowitz.
At a forum in Decatur on January 29, Hall was asked if he believed it constituted a conflict of interest that his wife, Stephanie Hall, is an attorney for Valero considering the Railroad Commission regulates the oil and gas industry. Hall told the audience that he had contacted Valero and that he was advised by the company that her work would not constitute a conflict of interest for him.
"Art Hall is getting ethics advice and money from Valero energy. What else is he getting from them? Are they advising him on energy policy as well? Art Hall represents no departure from the current rubber-stamp culture at the Texas Railroad Commission where Commissioners take thousands of dollars from oil company PACs and their employees and then give them whatever they want without regard for the best interest of Texas consumers or the environment," Leibowitz said.
"Valero's PAC is notorious for giving large sums of money to Republicans and pet conservative causes," Leibowitz said. "Valero has given Railroad Commissioner Michael L. Williams $20,000. Now Art Hall is taking Valero's money and telling Texans that he will bring 'balance' to the Texas Railroad Commission. What kind of 'balance' is that, exactly? The kind of 'balance' where Hall will simply be another hand out taking money from the oil industry? That's not 'balance,' that is merely more of the same," Leibowitz continued.
Valero has given incumbent Railroad Commissioner Michael L. Williams $10,000 on two occasions: once less than a year ago on June 28, 2007, and once on June 7, 2002. Valero has also contributed to some of Texans most anti-consumer, counter-progressive Republicans and Republican causes.
The company's PAC gave $15,000 to Tom Craddick's "Stars Over Texas" Leadership PAC ($10,000 on 10/11/06 and $5,000 on 10/25/04), and $30,000 to Speaker Craddick's personal campaign account since 2004 ($10,000 on 11/08/05 and $10,000 on 11/5/07, and $10,000 on 11/10/04). A small sampling of Valero's contributions to Republicans include:
Texas Conservative Coalition ($2,500 on 9/10/07)
Former State Rep. Joe Nixon ($1,000 on 3/5/04)
Lt. Governor David Dewhurst ($10,000 on 11/6/03)
Attorney General Greg Abbott ($10,000 on 7/11/03)
Railroad Commissioner Victor Carrillo ($5,000 on 1/29/04)
U.S. Senator John Cornyn ($2,500 while Cornyn was Texas' AG on 11/7/2000)
State Rep. Phil King ($2,500 on 10/23/07)
Texas Agriculture Commissioner Todd Staples ($5,000 on 11/27/07)
Former State Rep. Talmadge Heflin ($1,000 on 11/9/04)
The Valero-tied contributions aren't the only suspect contributions Hall has received as a candidate. While on the San Antonio City Council, Hall accepted money from executives and employees of the HB Zachry company, a San Antonio-based company which has paired with Spanish company Cintra and, in March 2005, signed a comprehensive development agreement authorizing $3.5 million in planning for the first phase of the controversial Trans-Texas Corridor. Hall accepted a $500 contribution from HB Zachry on April 26, 2005 and a $250 contribution from J.P. Zachry on August 8, 2005. As a San Antonio City Councilman, Hall also took money from Valero's PAC on May 3, 2005 ($500).
At the January 29 forum in Decatur, Hall also failed to state a position on a question that asked whether or not he favored continued development of the Trans-Texas Corridor, which will include "designated utility zones" which will facilitate the transport of oil and natural gas and could have a significant negative impact on Texas' environment and groundwater.
Henry faces Art Hall of San Antonio and Mark Thompson of Hamilton in the March 4 Democratic Primary. The winner of the March 4 Democratic Primary will face Commissioner Michael L. Williams in the general election.
Wednesday, February 13, 2008
Williams' Acceptance Of Super Bowl Tickets Highlights Need For Contribution Reform For RRC
By Vince Leibowitz - Dale Henry Campaign - Feb. 13, 2008
AUSTIN--Following revelations by the Fort Worth Star-Telegram that Railroad Commissioner Michael L. Williams accepted free Super Bowl tickets from a lobbyist for CenterPoint Energy in 2004, the Dale Henry Campaign released the following statement:
"This episode highlights the need for real campaign finance reform for the Texas Railroad Commission," said Dale Henry (D-Lampasas).
"The Texas Railroad Commissioners should not have such a cozy relationship with the industries they regulate. It just promotes the continued rubber-stamp culture of the Commission. Of course, given the culture of the Texas Railroad Commission, I suppose it should come as no surprise to us that a sitting Railroad Commissioner would take Super Bowl tickets from a CenterPoint Energy Lobbyist and then turn around and vote on cost-of-service rate increases that are passed on directly to consumers," said Vince Leibowitz, Campaign Director.
"This is exactly why I've proposed my "Texans First Campaign Finance Reform" package," said Henry. "The members of the Texas Railroad Commission should not take money from--and should not be beholden to--the industries they regulate. This is why I plan to, as Railroad Commissioner, ask the Texas Legislature to pass a campaign finance bill that will prohibit the practice of Railroad Commissioners accepting money from the industries they regulate," Henry said.
Dale Henry, a petroleum engineer with more than four decades of experience in the oil and gas service industry, is the most experienced candidate in the race for Texas Railroad Commission. Henry is endorsed by State Rep. Garnet Coleman (D-Houston), the Stonewall Democrats of San Antonio, The Harris County Democrats, the Houston GLBT Political Caucus, The Austin GLBT Political Caucus, Stonewall Democrats of Austin, longtime progressive leader David Van Os and other individuals listed on his campaign website.
Henry faces Art Hall of San Antonio and Mark Thompson of Hamilton in the March 4 Democratic Primary. The winner of the March 4 Democratic Primary will face Commissioner Michael L. Williams in the general election.
AUSTIN--Following revelations by the Fort Worth Star-Telegram that Railroad Commissioner Michael L. Williams accepted free Super Bowl tickets from a lobbyist for CenterPoint Energy in 2004, the Dale Henry Campaign released the following statement:
"This episode highlights the need for real campaign finance reform for the Texas Railroad Commission," said Dale Henry (D-Lampasas).
"The Texas Railroad Commissioners should not have such a cozy relationship with the industries they regulate. It just promotes the continued rubber-stamp culture of the Commission. Of course, given the culture of the Texas Railroad Commission, I suppose it should come as no surprise to us that a sitting Railroad Commissioner would take Super Bowl tickets from a CenterPoint Energy Lobbyist and then turn around and vote on cost-of-service rate increases that are passed on directly to consumers," said Vince Leibowitz, Campaign Director.
"This is exactly why I've proposed my "Texans First Campaign Finance Reform" package," said Henry. "The members of the Texas Railroad Commission should not take money from--and should not be beholden to--the industries they regulate. This is why I plan to, as Railroad Commissioner, ask the Texas Legislature to pass a campaign finance bill that will prohibit the practice of Railroad Commissioners accepting money from the industries they regulate," Henry said.
Dale Henry, a petroleum engineer with more than four decades of experience in the oil and gas service industry, is the most experienced candidate in the race for Texas Railroad Commission. Henry is endorsed by State Rep. Garnet Coleman (D-Houston), the Stonewall Democrats of San Antonio, The Harris County Democrats, the Houston GLBT Political Caucus, The Austin GLBT Political Caucus, Stonewall Democrats of Austin, longtime progressive leader David Van Os and other individuals listed on his campaign website.
Henry faces Art Hall of San Antonio and Mark Thompson of Hamilton in the March 4 Democratic Primary. The winner of the March 4 Democratic Primary will face Commissioner Michael L. Williams in the general election.
Monday, February 11, 2008
Consumer issues likely to play large role in Texas Railroad Commission race
By R.A. DYER - Star-Telegram Staff Writer - Mon, Feb. 11, 2008
AUSTIN -- With North Texas residents feeling the economic pinch -- and home energy prices on the rise -- consumer issues could take center stage in the race for the Texas Railroad Commission.
Agency Chairman Michael Williams, 54, a Republican, is seeking re-election. Three Democrats are also running in their party's March 4 primary: former San Antonio Councilman Art Hall, 37; retired chemical engineer Dale Henry, 76; and Mark Thompson, 48, a mobility specialist for the blind. Thompson lives in Hamilton.
Set against the backdrop of the race are several home heating rate increases authorized by the commission. In at least two major North Texas cases, Williams joined with other commissioners in setting rates higher than the agency's own panel of experts had recommended.
Williams said that while he sometimes disagrees with those experts -- they're administrative law judges, and they conduct hearings and consider evidence in rate proceedings -- he nonetheless strives to reject unwarranted requests by utilities.
"But we can have a difference of opinion with regards to policy questions," he said.
The three Democratic candidates say the commission and Williams are too close to the industry they regulate. Each Democrat lambasted the panel for not doing enough to protect consumers.
"Citizens need to get upset -- they need to write the Texas Railroad Commission and talk to them," Thompson said.
The Texas Railroad Commission, an agency little-understood by the public, regulates the oil and gas industry and is charged with ensuring pipeline safety. It also makes environmental decisions regarding oil wells and authorizes cost-of-service rates for natural gas utilities.
Each of the Democrats gave the commission poor marks when it came to protecting ratepayers.
But it's also clear that not all the Democrats are well-versed on commission responsibilities.
For instance, Thompson has claimed that the agency lacks authority to set municipal rates. "When you think about it, they don't control rates in the cities," he said.
Actually, the commission has great authority over cost-of-service rates charged within cities.
Likewise, Hall stated at one time on his Web site that he would make railroad safety an issue in the race. Despite its name, the Texas Railroad Commission has no authority over railroads.
But Hall also said he has received an earful of complaints from North Texas residents about high utility rates. He described the commission as a "rubber stamp" for industry.
"I think it'll definitely be an issue during the general election," he said.
Henry, the retired petroleum engineer, said, "The Railroad Commission of Texas should not sit idly by as energy companies stick bills for hotel rooms and cases of wine to their ratepayers through cost-of-service rate increases" -- a reference to various luxury items put in a recent rate case by Atmos Energy.
The North Texas utility removed the items after reports appeared in the Star-Telegram.
Henry also said the commissioner has not done enough to ensure that Texans pay only the appropriate commodity price of natural gas and has "not done a credible job in reviewing and approving cost-of-service rate increases for natural gas companies."
A recent analysis by the Star-Telegram found that annual home heating bills are about the same now as they were in 2005, even though the commodity price of natural gas has come down dramatically since two hurricanes disrupted supplies that year.
The reason that bills remain high is related, in part, to repeated cost-of-service increases authorized by the commission.
"They need to keep down rates so that they're more reasonable," Thompson said.
Read more in the Fort Worth Star-Telegram
AUSTIN -- With North Texas residents feeling the economic pinch -- and home energy prices on the rise -- consumer issues could take center stage in the race for the Texas Railroad Commission.
Agency Chairman Michael Williams, 54, a Republican, is seeking re-election. Three Democrats are also running in their party's March 4 primary: former San Antonio Councilman Art Hall, 37; retired chemical engineer Dale Henry, 76; and Mark Thompson, 48, a mobility specialist for the blind. Thompson lives in Hamilton.
Set against the backdrop of the race are several home heating rate increases authorized by the commission. In at least two major North Texas cases, Williams joined with other commissioners in setting rates higher than the agency's own panel of experts had recommended.
Williams said that while he sometimes disagrees with those experts -- they're administrative law judges, and they conduct hearings and consider evidence in rate proceedings -- he nonetheless strives to reject unwarranted requests by utilities.
"But we can have a difference of opinion with regards to policy questions," he said.
The three Democratic candidates say the commission and Williams are too close to the industry they regulate. Each Democrat lambasted the panel for not doing enough to protect consumers.
"Citizens need to get upset -- they need to write the Texas Railroad Commission and talk to them," Thompson said.
The Texas Railroad Commission, an agency little-understood by the public, regulates the oil and gas industry and is charged with ensuring pipeline safety. It also makes environmental decisions regarding oil wells and authorizes cost-of-service rates for natural gas utilities.
Each of the Democrats gave the commission poor marks when it came to protecting ratepayers.
But it's also clear that not all the Democrats are well-versed on commission responsibilities.
For instance, Thompson has claimed that the agency lacks authority to set municipal rates. "When you think about it, they don't control rates in the cities," he said.
Actually, the commission has great authority over cost-of-service rates charged within cities.
Likewise, Hall stated at one time on his Web site that he would make railroad safety an issue in the race. Despite its name, the Texas Railroad Commission has no authority over railroads.
But Hall also said he has received an earful of complaints from North Texas residents about high utility rates. He described the commission as a "rubber stamp" for industry.
"I think it'll definitely be an issue during the general election," he said.
Henry, the retired petroleum engineer, said, "The Railroad Commission of Texas should not sit idly by as energy companies stick bills for hotel rooms and cases of wine to their ratepayers through cost-of-service rate increases" -- a reference to various luxury items put in a recent rate case by Atmos Energy.
The North Texas utility removed the items after reports appeared in the Star-Telegram.
Henry also said the commissioner has not done enough to ensure that Texans pay only the appropriate commodity price of natural gas and has "not done a credible job in reviewing and approving cost-of-service rate increases for natural gas companies."
A recent analysis by the Star-Telegram found that annual home heating bills are about the same now as they were in 2005, even though the commodity price of natural gas has come down dramatically since two hurricanes disrupted supplies that year.
The reason that bills remain high is related, in part, to repeated cost-of-service increases authorized by the commission.
"They need to keep down rates so that they're more reasonable," Thompson said.
Read more in the Fort Worth Star-Telegram
Sunday, August 12, 2007
Boom or Fizzle
By JEFF MOSIER - The Dallas Morning News - Sunday, August 12, 2007
Barnett Shale natural gas has made boomtowns out of many places in North Texas. But for some, a bust might be on the way.
The exponential growth of drilling in the massive gas field has made millions for local governments. However, the dramatic increase in tax rolls has eased in some early exploration hot spots and reversed in others, thanks to lower natural gas prices last year and migration of new drilling southward.
Denton County's mineral values dropped by about $1 billion this year, and Wise County lost $190 million in value. Both were on the leading edge of the Barnett Shale boom.
The mineral values in Tarrant County grew slightly, but the two school districts with the highest mineral values saw their numbers slide.
"It's great to have this value," said John Marshall, Tarrant County's chief appraiser. "But I've warned them [local governments] that counting on this being steady every year is not a good idea."
Tarrant County's mineral values are up 18 percent in 2007, which is a trickle after nearly doubling in each of the two previous years. Mr. Marshall said Tarrant County's mineral values will eventually peak and possibly drop steeply like in Denton County – although no one can predict how quickly.
The early signs of a decline are already here.
The mineral values of the Eagle Mountain-Saginaw school district in northwest Tarrant County – where the county's early drilling started – dropped by nearly 9 percent. And Northwest Independent School District in Denton County, which has more than $2 billion in mineral values, saw an even sharper decline.
An 11 percent drop in the average natural gas price in 2006 contributed to the slump, but it's also the result of more drilling moving toward southern Tarrant County and Johnson and Parker counties.
Some companies have even started exploring in Dallas County. Since December, permits for 22 wells in Dallas County have been approved by the Texas Railroad Commission. Wells have been cleared in Dallas, Grand Prairie and Irving as well as areas in Dallas/Fort Worth International Airport and just north of Waxahachie.
Budget concerns
A slowdown won't make a critical difference at budget time for many cities and school districts – most of which count mineral values as less than 2 percent of their total tax base.
For others, this could be a bigger problem.
Krum ISD Superintendent Troy Hamm said his Denton County district was classified as poor just six years ago.
Since then, the property values skyrocketed from $182 million to $723 million – a majority of that from gas. Mineral values now make up nearly half the district's tax rolls.
Recently, Mr. Hamm received a letter from the Texas Education Agency naming Krum a property-wealthy district that must share revenue with poorer districts.
"How long we can maintain it, I don't know," Mr. Hamm said.
Mr. Hamm said the new gas well money has helped boost teacher pay to a competitive level and eased the cost of a bond package that included an early childhood center and fine arts auditorium at the high school.
At the same time, his district's mineral wealth – down 8 percent this year – might have peaked. The drop was offset by new strip malls and subdivisions filled with starter homes, but that gave the district a slim 4 percent growth in its tax base.
Mr. Hamm said the 1,400-student district hasn't spent its entire windfall. Krum ISD expects to have about $6 million in reserves, which is enough to operate for about six months and perhaps cushion its finances against the volatile mineral values.
"We've been cognizant of the fact that this well will run dry soon, if you'll pardon the pun," Mr. Hamm said.
Natural cycle
The mineral values in booming areas tend to have a sharp incline and then a sharp decline just because of the nature of the calculation.
The mineral values are calculated only when a well starts producing, but then reserves are depleted every day. If prices remain steady, the values rise only if the number of new wells drilled outpaces the declining value of the existing ones.
Gas wells in the Barnett Shale tend to be very productive during the first year of operation, so the decline in mineral values for an active well is particularly steep. Vic Henderson, engineering services manager at Pritchard & Abbott Inc., which estimates the mineral values for local appraisal districts, said it's common for production to drop by 50 percent or 60 percent by the end of the first year.
The wells are projected to keep producing for at least 12 to 15 years, although Mr. Henderson believes they could pump natural gas out of the Barnett Shale for even longer.
Julie Wilson, a spokeswoman for the Chesapeake Energy Corp., said her company has plans for new wells at least through 2013, although that could change with technological advances or more restrictive city ordinances.
Gas wealth hasn't made a difference for every school district with wells. Janice Cooper, superintendent of the Lake Worth school district, said she hasn't seen much of an upside.
"We do nothing but go backwards," she said. "As our appraised values go up, the state sends us less money."
Dr. Cooper said the boost from drilling in the Barnett Shale has been offset in her district by the educational funding formula set in Austin. Mineral values make up more than 38 percent of the district's tax rolls.
Now, mineral wealth in the Lake Worth district is starting to drop slightly – 15 percent this year. Dr. Cooper said she hopes that as the values decrease, that will lead to an increase in state funding and keep the district's finances steady.
"I hate to say that things could get worse because I know they can, but I don't anticipate that will be the case," she said.
A different view
Not everyone is expecting a quick increase and quick decline when it comes to mineral values.
Mickey Hand, chief appraiser for Wise County, said his decline in mineral values mostly comes from the drop in natural gas prices. He also said that drillers have shifted their focus to more suburban areas. Drilling is generally prohibited within 300 feet of homes – although that can increase to 1,000 feet depending on the city ordinance – so many energy companies are trying to get wells in place ahead of subdivisions.
"They are not in as quite a hurry here," Mr. Hand said about his still mostly rural county.
But he said he expected the gas companies to return soon and focus more on Wise County when the suburban and urban areas are tapped out.
In the Denton County town of DISH, mineral values make up two-thirds of the tax base.
Mayor Calvin Tillman said the 25 percent drop in mineral values this year will cut deeply into his finances. The town will lose about $10,000 from an $80,000 budget.
Luckily, Mr. Tillman said, the town has $20,000 in reserves to possibly hold it over until an 80-home subdivision starts selling. The town also intends to annex more land.
"I think we're going to be OK," he said. "We've made it a priority to replace the gas money."
Read more
Barnett Shale natural gas has made boomtowns out of many places in North Texas. But for some, a bust might be on the way.
The exponential growth of drilling in the massive gas field has made millions for local governments. However, the dramatic increase in tax rolls has eased in some early exploration hot spots and reversed in others, thanks to lower natural gas prices last year and migration of new drilling southward.
Denton County's mineral values dropped by about $1 billion this year, and Wise County lost $190 million in value. Both were on the leading edge of the Barnett Shale boom.
The mineral values in Tarrant County grew slightly, but the two school districts with the highest mineral values saw their numbers slide.
"It's great to have this value," said John Marshall, Tarrant County's chief appraiser. "But I've warned them [local governments] that counting on this being steady every year is not a good idea."
Tarrant County's mineral values are up 18 percent in 2007, which is a trickle after nearly doubling in each of the two previous years. Mr. Marshall said Tarrant County's mineral values will eventually peak and possibly drop steeply like in Denton County – although no one can predict how quickly.
The early signs of a decline are already here.
The mineral values of the Eagle Mountain-Saginaw school district in northwest Tarrant County – where the county's early drilling started – dropped by nearly 9 percent. And Northwest Independent School District in Denton County, which has more than $2 billion in mineral values, saw an even sharper decline.
An 11 percent drop in the average natural gas price in 2006 contributed to the slump, but it's also the result of more drilling moving toward southern Tarrant County and Johnson and Parker counties.
Some companies have even started exploring in Dallas County. Since December, permits for 22 wells in Dallas County have been approved by the Texas Railroad Commission. Wells have been cleared in Dallas, Grand Prairie and Irving as well as areas in Dallas/Fort Worth International Airport and just north of Waxahachie.
Budget concerns
A slowdown won't make a critical difference at budget time for many cities and school districts – most of which count mineral values as less than 2 percent of their total tax base.
For others, this could be a bigger problem.
Krum ISD Superintendent Troy Hamm said his Denton County district was classified as poor just six years ago.
Since then, the property values skyrocketed from $182 million to $723 million – a majority of that from gas. Mineral values now make up nearly half the district's tax rolls.
Recently, Mr. Hamm received a letter from the Texas Education Agency naming Krum a property-wealthy district that must share revenue with poorer districts.
"How long we can maintain it, I don't know," Mr. Hamm said.
Mr. Hamm said the new gas well money has helped boost teacher pay to a competitive level and eased the cost of a bond package that included an early childhood center and fine arts auditorium at the high school.
At the same time, his district's mineral wealth – down 8 percent this year – might have peaked. The drop was offset by new strip malls and subdivisions filled with starter homes, but that gave the district a slim 4 percent growth in its tax base.
Mr. Hamm said the 1,400-student district hasn't spent its entire windfall. Krum ISD expects to have about $6 million in reserves, which is enough to operate for about six months and perhaps cushion its finances against the volatile mineral values.
"We've been cognizant of the fact that this well will run dry soon, if you'll pardon the pun," Mr. Hamm said.
Natural cycle
The mineral values in booming areas tend to have a sharp incline and then a sharp decline just because of the nature of the calculation.
The mineral values are calculated only when a well starts producing, but then reserves are depleted every day. If prices remain steady, the values rise only if the number of new wells drilled outpaces the declining value of the existing ones.
Gas wells in the Barnett Shale tend to be very productive during the first year of operation, so the decline in mineral values for an active well is particularly steep. Vic Henderson, engineering services manager at Pritchard & Abbott Inc., which estimates the mineral values for local appraisal districts, said it's common for production to drop by 50 percent or 60 percent by the end of the first year.
The wells are projected to keep producing for at least 12 to 15 years, although Mr. Henderson believes they could pump natural gas out of the Barnett Shale for even longer.
Julie Wilson, a spokeswoman for the Chesapeake Energy Corp., said her company has plans for new wells at least through 2013, although that could change with technological advances or more restrictive city ordinances.
Gas wealth hasn't made a difference for every school district with wells. Janice Cooper, superintendent of the Lake Worth school district, said she hasn't seen much of an upside.
"We do nothing but go backwards," she said. "As our appraised values go up, the state sends us less money."
Dr. Cooper said the boost from drilling in the Barnett Shale has been offset in her district by the educational funding formula set in Austin. Mineral values make up more than 38 percent of the district's tax rolls.
Now, mineral wealth in the Lake Worth district is starting to drop slightly – 15 percent this year. Dr. Cooper said she hopes that as the values decrease, that will lead to an increase in state funding and keep the district's finances steady.
"I hate to say that things could get worse because I know they can, but I don't anticipate that will be the case," she said.
A different view
Not everyone is expecting a quick increase and quick decline when it comes to mineral values.
Mickey Hand, chief appraiser for Wise County, said his decline in mineral values mostly comes from the drop in natural gas prices. He also said that drillers have shifted their focus to more suburban areas. Drilling is generally prohibited within 300 feet of homes – although that can increase to 1,000 feet depending on the city ordinance – so many energy companies are trying to get wells in place ahead of subdivisions.
"They are not in as quite a hurry here," Mr. Hand said about his still mostly rural county.
But he said he expected the gas companies to return soon and focus more on Wise County when the suburban and urban areas are tapped out.
In the Denton County town of DISH, mineral values make up two-thirds of the tax base.
Mayor Calvin Tillman said the 25 percent drop in mineral values this year will cut deeply into his finances. The town will lose about $10,000 from an $80,000 budget.
Luckily, Mr. Tillman said, the town has $20,000 in reserves to possibly hold it over until an 80-home subdivision starts selling. The town also intends to annex more land.
"I think we're going to be OK," he said. "We've made it a priority to replace the gas money."
Read more
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