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On March 23, the House Committee on Energy Resources took up two bills on their agenda HB 40 and HB 539 and voted out several pending bills.
 
HB 539 & HB 40 laid out together

  • A complete committee substitute was laid out on HB 539 and HB 40 was laid out
  • HB 539
  • HB 40 expressly preempts oil and gas operations
  • Commercially reasonable is defined as a condition that permits a reasonably prudent operator to fully, effectively, and economically exploit, develop, produce, process, and transport oil and gas

 
Public Testimony
Luke Metzger, Environment Texas, against bill

  • Worried this opens door to drilling next to protected areas such as hospitals, schools and homes
  • Studies citied: drilling causing health issues, lowering property value, water resources harmed
  • Cities are doing these ordinances because the state has failed to protect the environment when it comes to drilling
  • RRC lacks political will or statutory authority 
  • Only inspect about 1/3 of active wells each year
  • Only 2% of drilling wells infractions face enforcement action
  • Citizens are counting on cities to step up and protect

 
Brent Meredith, Attorney, against HB 40

  • Representing: Cities of Southlake, Mansfield, Rockdale, River Oaks, Aledo, Benbrook, Lake Worth, Saginaw, Aurora, North Richland Hills, Crowley, Euless, City of Blue Mound, etc
  • Many cities regulate pursuant to their zoning ordinances
  • Constitution already applies a reasonable standard 
  • Bill will have chilling effect on smaller cities

 
Peter Phyllis, City of Mansfield, against both bills

  • Believes city ordinance is a good ordinance

 
Bill Lang, City of Mansfield , against both bills

  • Texas Supreme Court has already settled this issue
  • Bills would open up cities to litigation that have already been settled in courts
  • Number one concern is public safety aspect and how to define setbacks
  • Rep. Darby is a bit confused if they read the witness read the bill
  • If ordinance already in place and been there for 10 years or so – Darby says that sounds like a commercially reasonable ordinance and that language is in the bill
    • Witness says language is not black and white as bill author thinks
  • Rep. King asked for agreement that HB 539 does not pre-empt anything – does not look back only forward looing
  • In response to question from King about Home Rule municipalities vs. General law municipalities – the differences were stated but bottom line not sure there are many differences
  • It is pointed out that the bills are a work in progress
  • Rep. Canales asked about Meredith’s constitutional concerns
    • Would be difficult to overcome constitutional barriers to outright bans on fracking
  • Rep. Craddick asked what is being taken way – what is being taken away from cities – where does it say you cannot adopt ordinances
    • Witness reads from page 2 and noted that language is written broad
  • Rep. Craddick – what is it that they do regulate currently
    • Try to regulate sound, etc
  • Rep. Craddick said he sees bill totally opposite of the way witness see it
  • Rep. Paddie – asked witness how the arrived at setback of 600 ft
    • Attempt to balance competing interest
  • The question on “commercially reasonable” ordinances if prices continue to drop on natural resources
  • City decisions based on health and safety and not economics and concerned the bill shifts focus to economics
  • Cities have developments now that are encompassing well sites and some of these sites are considered takings even though well was there first
  • Home owners signing off at time of closing that well site is there

 
Q&A of Panel

  • Range of setbacks are from 600-1500 ft and witness cannot summarize how each client arrived at setback
  • Deciding setbacks at a local level show how representatives each of those councils are to their constituents
  • Lang said often setbacks are created in regards to public safety concerns
    • Rep. Canales trying to understand why is it safe at 600 or 1500
    • Witness said patchwork of different setbacks make it hard for operators across the shale and finds bill is broader and does not just address setbacks and some confusing economic standard is input into every decision
  • Rep. Paddie asked about city growing around sites – did city approve the development
    • Yes, councils did approve process to allow for development around the sites
    • Could risk effectively take surface property if zoning ordinance only allows for residential said witness
    • Attorney said a lot has to do with ability to respond
  • Rep. Landgraf – How many engineers employed by Mansfield
    • None
  • Rep. Darby said a fracking ban does not appear in Texas Constitution wouldn’t unreasonable setbacks defacto fracking bans? Simply to prevent oil and gas operations
    • Yes it would be said attorney  

 
Public Testimony
Todd Staples, President of Texas Oil and Gas Association, for both bills

  • Local regulations must be reasonable
  • Threat to Texas and big economic driver is real and it is urgent
  • Very sector paving roads and funding schools, etc
  • Local control does not mean out of control
  • Some cities have required extreme setbacks for oil and gas while permitting houses right next to wells

 
Shannon Ratliff, for HB 40

  • Understand concerns with language on commercially reasonable but it goes with reasonable and prudent operator rule

 
John Olson, Professor at UT, on HB 40 testifying as expert

  • Production of crude oil has fallen but increase in natural gas
  • Well integrity is the concern for all industry and RRC regulates

 
Glennis Holmes-Straus, teacher and employed at Conoco Phillips, in favor of both bills

  • Changes in counties directly attributable to Eagle Ford Shale – increase employment opportunities
  • Three agencies knowledgeable of industry and having proven effective in regulating industry

 
Q&A of Panel

  • Rep. Craddick asked to Ratliff – does commercially reasonable test hinge on price of oil and gas
    • “I don’t think it does”
  • Rep. Craddick – would cities have safety regulations on surfaces under this legislation
    • Ratliff – reasonable setback would mean reasonable safety
    • Nothing in bill does away with nuisance
  • Rep. Craddick – would cities be able to require shields for flares
    • Ratliff – I think so but flaring does get into different issue so need further review
  • Rep. Craddick asked if bill gave up more surface rights to the cities
    • Ratliff – Doesn’t think so
  • Rep. Craddick asked about the legal aspects of the bill
    • Ratliff – sees situation today being on one side cities do what they want and industry on other
    • Ratliff – bill this narrows the playing field and tells cities they cannot go over the line and indirectly or directly banning drilling activity
  • Rep. Keffer – going back to reasonable and prudent discussion, shouldn’t operator be prudent in working with local establishment and coming up with siting, etc
    • Yes, “I think that’s right”
  • Rep. Keffer, points to Rep. Dale earlier statement about driller getting one setback and developer in different setback, sees that as driller looking like intruder…cannot have a double standard
  • Rep. King said he was not surprised to see in his area that 15% of property tax base comes from oil and gas and that is going to schools
  • Rep. King was very disturbed by tweet from TML
    • Ratliff pointed out that picture was from a different state and city built around it because they wanted to
  • Rep. Darby reads bill language said he sees four test and any attempt of a municipality to regulate must meet the four test
    • Ratliff – cities have legitimate interest in regulating wells and trying to minimize disruption in surrounding areas but there are certain surface facilities – TCEQ and RRC purview of below ground/ below surface  
    • Darby said above surface such as noise, etc would be up to cities to regulate
  • Staples agree with Ratliff but cities also regulate aesthetics (landscaping issues and painting of wells) and says language in bill makes sure there is not an effective ban of activities
  • Rep. Anchia again more questions on reasonable and prudent to test boundaries
    • Anchia – what if reasonable for equipment to drill for 60 hrs but city has noise ordinances
    • Witness said industry knows the regulatory surroundings and should take it into account

 
Public Testimony
Bill Stevens, Texas Alliance of Energy Producers, for both bills

  • City did work with industry to change setback
  • Included definition of oil & gas definition but do not preclude in definition to maintain, recomplete, plug, and abandon the well as well

 
Candace Brewer, National Assoc. of Royalty Owners, for both bills  

  • Care about safe drilling and safe estate

 
Ed Smith, Mayor and Independent Oil and Gas, neutral HB 40

  • Oil and gas industry is important to the state and cities
  • Not alone in supporting HB 40 and the clarity it provides
  • Public interest is best served when regulation reserved for state entities
  • Cities do not have expertise and resources to accomplish some of these regulations

 
Gilbert Horton, Devon Energy Corporation, for HB 40  

  • Patchwork of codes and regulations across to North Texas to some that are workable and others that could be construed as an outright ban
  • HB 40 puts into place a measuring stick that guides cities in establishing ordinances
  • Rep. Darby asked witness if he thinks bill will help or hinder communications
    • This will help – level the playing field
  • Recognize right of citizens – simply enough to be a good neighbor and routinely put up sound walls and meet with residents before they drill
  • For Devon will not change how they operate but rather encourages to sit down and work with
  • Devon energy SOP requires negotiations and communications
  • Have had to deal with reverse setbacks and many municipalities have this
  • Rep. Keffer – very obvious double standards in regards to set backs?
    • Yes, very obvious double standards
    • Devon was not aware of all disclosure mechanisms for developers/municipalities
  • Rep. Keffer – vast majorities of problems are due to reverse setbacks and information coming out after development
  • Rep. Darby – many problems seem to be not with initial drilling but re-working of well after homes have been built and a lot of tweets showing rigs on other side of the fence and direct outgrowth of oil company needing to re-work well
    • Many times home owners were not aware so it takes some effort when they go back in and working with neighborhood and it becomes a lot of extra work but it is the right way to do things
  • Horizontal drilling can result in win-win for some but it also becomes more critical where you can place the location
  • Devon does not find anything ambiguous in terms reasonable prudent operator  
  • A term well understood by industry

 
Q&A of Panel

  • Rep. Paddie thanked mayor Smith for being there and asked him if he finds bill limiting
    • Thinks bill very well crafted and thinks it addresses city need and thinks it a balance
    • Prudent and operator is at a minimum threshold and where it should start
  • Rep. Paddie – do you believe it provides clarity
    • It leaves authority to city to address areas of concerns that they need to like traffic, noise, nuisance and doesn’t prohibit set backs
  • Rep. King – Tarrant County has 34 municipalities or so, in regards to horizontal well in area like Tarrant where a lot of cities are side by side, can be drilling through multiple cities and how does a company deal with that?
    • Horton – thankfully have not had experience of drilling into city with a frack ban but have drilled into two and they regulate service which makes it easier but in theory this does exist where cities regulate something down hole
  • King – doesn’t that address need for consistency in permitting and regulating down hole?
    • Horton – absolutely and eliminates to some degree patchwork of regulation
  • King – Just in regards to Wise and Parker, how is relationship?
    • Horton – experience has been very positive and they have a level of comfort since they have been around gas drilling longer

 
Public Testimony
Ed Longanecker, President of Texas Independent Producers and Royalty Owners (TIPRO), for both bills

  • Top priority is regulatory certainty
  • Will provide clarity

 
Raymond Welder, President and CEO of Welder Exploration and Production, for HB 40

  • HB 40 strikes a reasonable balance and will help address regulatory certainty

 
Ben Shepherd – Permian Basin Petroleum Association, for both bills

  • This bill protects private property rights but allows municipalities to also conduct business and finds a fair balance between the two

 
Charles Swab, Texas Economic Development Council, for both bills   

  • Advocate for policies that support economic growth of Texas and support positive business climate
  • Many recent economic development projects are related to oil and gas boom

 
Q&A of Panel

  • Rep. Keffer asked Welder if he has read the bill
    • Have read part of the bill and legal counsel has read the bill
  • Rep. Keffer asked if Welder has heard about rogue operators in the State that would not in good faith negotiate and that is also why cities have regulated areas – asked Welder if he feels if there is anything that would make it unfair/not balanced
    • Witness does not believe it gives the operating community any special powers and actually codifies what is currently happening in many areas
  • Rep. King – but for the sale play and oil and gas industry we would still be in the great recession

 
Public Testimony
Truitt Hunt, local business owner in Karnes, for both bills

  • Having had experience with RRC but it is the pre-eminent authority and they have a database and staff of experts  

 
Jeanette Nguyen, Superintendent of Karnes ISD, for both bills

  • School district seen property values increase by 2500% because of oil and gas
  • Local oil companies have partnered with schools and made donations to their education foundation
  • Have experience impact of O&G because of royalties and now pursuing doctorate degree

 
Luis Renau, in favor of both bills, Landman

  • HB 40 is great bill and important to know majority of minerals is privately held

 
Jay Ross Lacey, Midland City Councilman, for HB 40

  • Have O&G ordinance in effect that is working
  • Does not agree with fracking ban
  • RRC has done a fantastic job along with TCEQ
  • Public safety is always number one for O&G operators and that should be the standard
  • Rep. Craddick – any problems with ordinances
    • Doing extremely well with ordinances with 500 spacing and require compromise before they come to the city council

 
Kirk Edwards, Former City Councilman in Odessa, for HB 40

  • There has never been a freshwater zone ruined in state of Texas due to fracking
  • Oil and gas industry strives to have safety and don’t want to jeopardize the community they work in

 
Tommy Taylor, Director of Oil and Gas for Fasken in Midland, for HB 40

  • Stewards of land and environment
  • Ongoing planned development all on top of oil and gas field
  • Agrees RRC should control regulatory over subsurface
  • Regulatory certainty is needed
  • Midland ordinances is an additional reasonable guidance 

 
Anita Burgess, City Attorney in Denton, against HB 539

  • Bill was prompted by ban which was citizen led process
  • Believes bill will strip cities of powers – zoning powers and regulatory powers
  • Proposes convoluted precedent
  • Bill seeking to prevent cities from imposing meaningful controls

 
Chris Watts, Mayor City of Denton, against HB 40

  • Concerned with bill language that restricts regulation to surface activity
  • Think it is a great start but list specific items that cities can regulate
  • Had a major homeowner walk away because they couldn’t work out the number of sites they could use

 
Q&A of Panel

  • Rep. Craddick inquired about asked about Fasken development
    • They have built some structures closer than the setback but not the school but they know they will not go back in and drill on drilling islands and have made that commitment
  • Edwards – responding to questions about background in oil and gas – no one did not have oil and gas background, they usually call out for experts
  • Mayor Watts – no one with background in oil and gas – has gone outside for expertise
  • Rep. Keffer asked Mayor Watts about exceptions for municipalities in HB 40, doesn’t want to be too finite and then leave something out by listing out specifics but would love to see any wording that would help
  • Rep. Keffer said wording is broad on purpose and feels bill is safe for cities
    • Watts – gives example of previous incident and wants to have law in place for when something like that happens
  • Rep. Darby – we are here because of unreasonable operator and variances were granted up to 150 ft set back on known well sites
    • Watts – not aware of council giving out reverse setbacks so would refer back to zoning
    • Many setbacks for health and safety but notice element to ensure people understand what they are buying
    • Trying to find a way to protect the purchaser who may not be aware
  • Rep. Darby – what if we specify but leave something out – how do you leave flexibility to cities
    • Can’t regulate against vapor recovery units under bill
  • Rep. Darby wants to know rational at 1200 feet
    • Watts explains and he made the recommendation as an accommodation o find common ground
  • Rep. Darby asked if any oil and gas operators were on the task force
    • Watts does not believe there was an operator but oil and gas engineers
  • Rep. Craddick asked mayor if he believes that way law is written today that it gives you the ability to ban fracking
    • Will not answer currently under litigation and city did not adopt but it went to vote
    • If bill passes as it is written today it would make it unlikely to ban hydraulic fracturing
  • Rep. Dale – how is concept of notice impact health and safety?
    • Watts –reverse set back primarily driven by health and safety
  • Rep. Paddie  – not suggesting you want legislature to define distance when asking for distance – would suggest not beneficial to get to specific but thinks flexibility is better
  • Rep. Paddie – inquired about city justifying changes to setbacks, aesthetics requirements and are they consistent?
    • Watts – Zoning board of adjustments can approve or deny variances based on testimony in hearing
    • Watts- there are aesthetic criteria and there may have been a problem before but it would be due to a specific operator not negotiating with the city
  • Rep. Paddie – to Ms. Burgess – if HB 539 is on the book what would be the fiscal impact or did they take that into consideration?
    • There was consideration as testimony came forward and all of the information was given to council
  • Rep. King asked Burgess and Mayor Watts if HB 539 was in law – wouldn’t the public initiative had continued forward?
    • Burgess – It would have moved forward but would have had significant chilling effect if people had voted on it
    • Watts – Charter is what allowed them to move forward but HB 40 provides certain clarity and may call for cities to reexamine their petitions

 
Jeff Sparks, Permian Basin Petroleum Association and on city council in Midland, for HB 40

  • Thanks committee for addressing the problem of overreaching municipalities
  • Decided to testify when they got information from TML which said the bill would limit city ordinances 
  • Rep. Craddick – should a grandfather clause be put in bill language for setbacks
    • Homebuilders have to ask for variance and operator has to approve just like when operator comes in
    • If no development then surface developer and subsurface developer try to get together

 
Cliff Todd, C&J Energy Services, for both bills (Also part of Sabine River Authority)

  • Want to minimize impact to environment and strive to be good stewards
  • Bothers him to see people scared because of unsound science

 
Calvin Tillman, League of Independent Voters of Texas, against both bills

  • Candidate for City Council
  • Agrees with previous testimony that it could confuse current law and require more adjudication
  • If HB 40 was clear there would not be this much confusion over the intent

 
Cathy McMullean, Frack Free Denton, against both bills

  • Stories of unsafe conditions and citizens vote to keep Denton frack free
  • These bills are big government overreach and wrong

 
Frank Macchiarola, America's Natural Gas Alliance, for HB 40

  • Industry is vital to the economy
  • Bill provides responsible approach

 
Steve Lindsey, Mansfield City Councilman, neutral on HB 40 and against HB 539

  • Concern for cities that have done right – their ordinances have been in place for a decade
  • Concern operators will cherry pick what they will agree to in ordinances
  • Rep. Keffer asked about concern of operators picking ordinances
    • Yes, could there be a bad actor out there
    • Ordinances are not stagnant and should have flexibility
  • In regards to questions on bad actors – through process have brought them along to some degree but other option could be to deny permit
    • Members again speak on intent of bill which is not to prohibit what cities need to do
    • Witness said he is getting more comfortable with intent as the testimony has gone on through the hearing

 
Christine Goulde, individual, against both bills

  • Reviews how much funding goes into economy from oil and gas
  • Implied concerned and said she deviated from her testimony after listening to testimony 

 
Richard Goulde, individual, against both bills

  • Reviews ozone action days and fears for health and safety of community
  • Texas needs to develop alternative energy industries

 
Sharon Wilson, Earthworks, against both bills

  • Talks about fracking impacting her life and has relocated to find herself in another fracking situation
  • Finds the terms commercially reasonable and prudent operators as loophole terms
  • Finds the bills the be punitive to cities

 
Rosemary Reed, individual, against both bills

  • Fracking has negatively impacted her life, reviews the arduous process of “fighting the battle”  

 
Elisa Luis, individual, against both bills

  • Terms in bill are subjective

 
Q&A of Panel

  • Panel responds to questions of members that they should have come asked citizens about problems
  • Panel says they are experts in oil and gas loopholes
  • Panel says members should have asked those who are living with the problems instead of the industries that cause them

 
Jane Lynn, individual, against both bills

  • Industry tried to scam neighborhoods

 
Lawrence Codle, individual, against both bills

  • City taxpayers should not be forced to pay taxpayers if loss revenue of drilling

 
Don Tymrak, individual and former Mayor, for both bills

  • Was going to oppose but after listening to testimony has decided to be in support

 
Jim Allison, Texas Association of Counties, on HB 40

  • Concern that bill in present form may impact their abilities to carry out certain duties
  • Wants language to say it does not preempt authority of counties under Natural Resources and Transportation Code – or put legislative history in the record
  • Rep. Darby – stated the bill is not intended to interfere with the ordinance in regards to trucks total weight

 
Mark McCord, Director of Frack Dallas, against both bills

  • Bill language strips authority from local government
  • Said bills will be challenged in courts and will not stand

 
Clayton Chandler, City Manager of Mansfield, against both bills

  • Can appreciate the spirited discussion
  • Been told by many city attorney’s this legislation will preempt their authority

 
Snapper Carr, Texas Coalition of Cities for Utility Issues, against both bills

  • Makes compliance with local ordinances to be voluntary in nature
  • Just because industry has lived under the ordinance does not mean it would pass the test when bill language becomes law
  • Commercially reasonable language allows for industry to choose what ordinance it wants to follow
  • Rep. Keffer said he sees the bill still allows the city to pass ordinances but that the bill is written recognizing the dominant mineral estate
    • Used Anchia’s example of loud drilling as example of where city ordinance might not stand
  • Respects intent of bill but words on paper do not get there – “all of the cards” are stacked against cities with this language in bill
  • Language too broad
  • Reasonable is not reviewed from eyes of community member but from that of the operator
  • Rep. Paddie – inquired about certain doctrines already in place
    • This is about dense urban growth and there are different circumstances that are in place 
  • Setbacks, nuisances, noise, transportation routes, hours of operations, and other surface activity issues needed to be expressly included in the bill language to eliminate ambiguity

 
Donald Postell, Attorney of Grand Prairie, against both bills

  • Have tried not to do any ground hole control with the exception from a request from Army Corps of Engineers
  • Concern with term commercially reasonable

 
James Northrop, former oil and gas operator, against both bills

  • Operator can prove commercially viability by showing other preferable city ordinances

 
Ken Baker, Senior Planner for City of Southlake, against both bills

  • Bills would significantly undermine city efforts and eliminate their ability to enforce ordinances

 
Sandy Maddux, individual, against both bills

  • HB 539 is punitive
  • Examples given of fracking activity near schools and homes

 
Phillip Kingston, City of Dallas, against both bills

  • Mayor wanted to be there in person but had previous engagement unable to break
  • Express authority to speak for City of Dallas
  • Ordinance they have didn’t pass unanimously but know they can do a better job of listening to citizens because they are closer to the issue
  • Have passed ordinance that is national model
  • Have problem with not regulating down hole
  • When we really on state for health and safety we wind up with West Texas
  • They have a 1500 ft set back
  • Rep. Darby – that is a nice size golf course
    • Will believe the chair
  • No hydrocarbons under east Dallas and West 
  • Rep. Darby – find it disingenuous to take money and then enact set backs
    • Set back ordinances did not apply to leases signed previously
    • Were about to punch holes but needed permit that was required was before lease was signed

 
Josiah Neely, Texas Director of Artistry Institute, favor of HB 40

  • Do not have full local control now

 
Carol, individual, against both

  • Local problems call for local control
  • Blow out occurred before and residents were not notified immediately
  • Timeline of events were reviewed
  • Current statutes do not provide safe standards
  • Purpose of bill is to punish municipalities

 
Sharon, individual, against both

  • Citizens voted for ban because city and state offered no help
  • Ultimately the courts will decide the legality of the ban   
  • Why is state saying O&G trumps all other businesses  

 
Tricia Davis, Texas Rural Council, for both bills

  • Discussion of economic benefits of O&G industry
  • Legislation is a common sense proposal

 
Q&A of Panel

  • Rep. Paddie said it sounds like they currently don’t feel like local ordinances are helping
    • Witness is happy with ban and did not feel like they were being protected at all by state or city

 
Scott Anderson, Environmental Defense Fund, against HB 40

  • Legal questions with bill, would give O&G industry significant new leverage, concern about 3 of 4 test, and concern about provisions that expressly preempts ordinances, and gives state exclusive jurisdiction
  • Concerned about unintended consequences

 
Sarah Fullweiner, City Attorney for Ft. Worth, against both bills

  • Wrote ordinance and amended twice
  • It is not a safety ordinance but based on impact to quality of life and usage
  • Had 14 years of experience and think they have good balance and have only turned down 2 permits
  • Don’t want to sit down with every operator to determine commercially reasonable
  • Responds to Darby noting there is nothing in bill that would require O&G to be reasonable

 
Danny Scarf, Ft. Worth City Council, against both bills

  • Ordinance was based on quality of life
  • Question of commercially reasonable can only be answered in a courtroom and not by the council

 
Jungus Jordon, Ft. Worth City Council, against both bills

  • Firmly convinced there is a solution
  • Had to cancel transportation construction because could not find a way of O&G
  • Darby – Ft. Worth ordinance as best practice – it would be irresponsible to suggest anyone would say the ordinance is not commercially reasonable because there are operators that have been operating under that ordinance for some time
  • Keffer was going to ask if they would work with bill author but Jungus had already said they will
  • Keffer said going back to Snapper’s testimony – you want clarification on surface drilling
    • Yes
    • Have banned salt water disposal wells within city limits

 
Kent Sullivan, Texas Royalty Council, for HB 40

  • Clearly there is uncertainty but helpful for legislature to provide greater clarity

 
Allan Day, on HB 40, Brazos Valley Groundwater Conservation District

  • Concerned of unintended consequences – they do regulate groundwater used for fracking purposes

 
Taylor Lopez Hubner, College Student, support of both bills  

  • Feel like industry is being pushed by small vocal minority that is not based on sound science

 
John Love, Council for City of Midland, neutral HB 40 against HB 539

  • Supports O&G industry but also supports municipalities right to determine what works for their jurisdiction
  • Ordinance requires grounding system, fencing, catwalks, no flaring allowed, no venting allowed, etc but what makes it work is the O&G people that are in the industry live there
  • Darby said all cities a little different and bill is trying to promote that
  • Craddick said to get it right you need to look at the whole state
  • King asked if any benefit that set prima facie is by ordinance that has been in place for a while – John said he things yes that language would be good addition to bill
  • Rep. Keffer on Carr’s statement about language being included in bill but question is how granular would it become – written granularly on purpose

 
Adam Briggle, VP of Denton Drilling Awareness, against both bills

  • Who gets to define and apply commercially reasonable test and concern is that the power is put in hands of industry   
  • Problem is that Denton had too little authority not too much – city was so frail they voted for a ban

 
Lon Burnam, Public Citizen, against both bills

  • Industry not respectful
  • City of Ft. Worth in regards to air pollution was wrong
  • Thinks Snapper Carr had most important testimony to offer up today

 
CE Williams, Panhandle Groundwater Districts, on HB 40

  • Concern unintended to groundwater districts

 
David Smith, Texas Neighborhoods Together, against HB 40

  • No position on fracking but against legislation that would impair city to regulate  

 
James Parajon, Deputy Manager for City of Arlington, against HB 40

  • Lists regulations that could be lost such as ability to monitor and regulate wells

 
Don Crowson, Direct of Emergency Management in City of Arlington, against HB 40

  • Seems to eliminate right of local jurisdiction to protect and regulate certain gas well pad sites
  • Members say that since business must follow current regulations to get permit, then current regulations must be reasonable and prudent and thinks bill language is pretty clear
    • Does not see that current intent in bill language and would like to clarify
  • Bill potentially threatens their ability to enforce the fire code but member says they will continue working on language
  • Using national fire code (2009 but getting ready to move in 2015)

 
Nelda Martinez, Mayor of Corpus Christi, oppose both bills

  • Assurances are needed but intent she has heard for bill is very encouraging

 
Jonathan Adams, Individual from Denton Texas, against both bills

  • We are all being played for fools and industry refuses to be good neighbors in the first place

 
Tara Hunter, Denton Awareness Groups, against both bills

  • 59% of Denton voted for ban
  • Assumption that O&G would be good neighbors proved naïve

 
Jess Fields, Texas Public Policy Foundation, former City Councilman, support of HB 40

  • Business owners are not criminals
  • These businesses have created thousands of jobs for community
  • State already provides means for redress

 
Morgan Larson, individual, against both bills

  • Agree with Denton Awareness Groups
  • Concerned about vague language

 
Zach Trahan, Texas Campaign for the Environment, against both bills

  • Cities with stronger ordinances have not even put a dent in the industry

 
David Griggs, Farmer Branch Attorney and Teacher, against both bills

  • Have burdensome effect on local government
  • Each community has a different approach and one size does not fit all

 
Kathy Wallis, against both bills, individual

  • Many earthquakes in area – concerned of citizen wealth and health are compromised

 
Leigh Thompson, Texas Public Policy Foundation, support of HB 40

  • Keeps 1k new regulatory bodies from springing up with ordinances
  • Does nothing to impair legitimate regulations 

 
Suzy Bell, League of Women Voters of Texas, against both bills

  • Supports clear separation of powers and provisions to protect public health

 
Robin Schneider, Texas Campaign for the Environment, against both bills

  • Bill does nothing to talk about health and safety of citizens and very one sided

 
Elizabeth Reamschleider, Sisters of Charity of the Incarnate Word, against both bills

  • There are other values than commercial values such as clean air, clean water and good public health

 
Bennett Sandlin, Texas Municipal League, against both bills

  • Feel more comfortable knowing intent but would like to see safe harbor language cleared up and grandfather language

 
Rita Beving, individual in Farmers Branch, against both bills

  • Concerned with language of commercially reasonable and reasonably prudent operator – other concerns with bill language being too broad and in favor of O&G