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TSCRA Daily News Update, May 20, 2008
Arthur Uhl testifies for TSCRA on oil and gas issues Today at the Capitol in Austin, TSCRA Director Arthur Uhl of San Antonio testified in front of the House Energy Resources Committee. Uhl testified on two of the charges that the committee is studying. The first issue discussed was financial assurance in relation to oil and gas wells and the current bonding structure for well operators. Uhl stated, "More bonding is always a step in the right direction, but a major problem are the inactive wells that ultimately become abandoned because they fall into the hands of operators with limited assets. The Railroad Commission has rules and laws in place to remedy many problems in the field, but the funding and/or willingness to enforce them has been limited." According to the Railroad Commission, there are over 100,000 inactive wells in Texas. The second issue discussed was abandoned equipment and electrical lines on oil and gas leases. Uhl said, "Ranchers are often left with unsafe oil and gas field equipment and material on their ranches long after production ceases." We are also concerned about abandoned live electrical lines which can cause fires (like those in the Panhandle in 2006) resulting in injury to people and livestock and damage to infrastructure (fences, barns, etc.). Removing equipment from the property can be very difficult and expensive for landowners when it is not their responsibility to begin with." TSCRA supported legislation last session that would have strengthened the requirements for oil and gas operators to remove equipment from inactive or abandoned wells and de-energize electric lines not being used. On both issues, Uhl highlighted TSCRA's interest and concern that landowners are often severed from the oil or gas lease and have no way of protecting themselves from damages to the property. Therefore, it becomes the Railroad Commission's responsibility to enforce against the well operators. Uhl also stressed the need for the legislature to include TSCRA in the decision-making process on these issues because landowners are the stewards of the land.
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