GOVERNOR ABBOTT SIGNS OIL AND NATURAL GAS

Transcription

1 THE TIPRO TARGET VOLUME 18, NO. 10 May 21, 2015 Texas Independent Poduces and Royalty Ownes Association GOVERNOR ABBOTT SIGNS OIL AND NATURAL GAS PRE-EMPTION BILL INTO LAW Texas Goveno Geg Abbott officially signed legislation, House Bill 40, on Monday, May 18, 2015, which affims the state s exclusive juisdiction ove oil and natual gas development. The new law, which takes effect immediately, also outlines and claifies the citeia necessay fo adopting local odinances that egulate suface activity incident to oil and natual gas exploation and poduction. TIPRO paticipated in Monday s bill signing ceemony. H.B. 40 does a pofound job of helping to potect pivate popety ights hee in the state of Texas, ensuing those who own thei own popety will not have the heavy hand of local egulation depive them of thei ights. This law ensues that Texas avoids a patchwok quilt of egulations that diffe fom egion to egion, diffe fom county to county o city to city, said Goveno Abbott. H.B. 40 stikes a meaningful and coect balance between local contol and peseving the state s authoity to ensue that egulations ae even-handed and do not hampe job ceation. MAJOR DEADLINES APPROACH AS SESSION WINDS DOWN; OTHER UPDATES ON PRIORITY BILLS With one week emaining of the 84 th Regula Legislative Session, the Texas legislatue has eached seveal impotant deadlines ove the couse of the last few weeks. Duing the final week of session, cutoff dates fo legislative action will be eached daily. With appoximately 6,200 bills filed by the legislatue and 240 appoved by both chambes to date, thee will be a ush to the finish to get impotant pieces of legislation on the Goveno s desk. Below we have povided some of the moe notable deadlines fo legislative action befoe June 1, 2015: May 22 maks the fist day the Senate may conside all bills and esolutions the day they ae posted on the intent calenda. May 27 will be the last day the House can conside all Senate bills. May 29 is the last day the House can act on Senate amendments. May 31 is the last day the Senate can concu with House amendments o adopted confeence committee epots. The egula session ends on Monday, June 1, Othe petinent legislative updates fom the capitol include: Contested Case Refom - The Texas Senate concued on amendments made in the Texas House to Senate Bill 709, and the bill has now been sent to the Goveno. S.B. 709 by Senato Toy Fase efoms the contested case heaing pocess, attacting investments and jobs to Texas, while also addessing abuses of the contested case pocess and peseving public paticipation and envionmental potection. Petition Refom - House Bill 2595 has been appoved by the Texas House of Repesentatives and was left pending in the Senate Committee on Natual Resouces and Economic Development. House Bill 2595 by Repesentative Jim Keffe would pohibit a home-ule city fom appoving a petition equesting an odinance if the odinance would estict the ight of any peson to use o access the peson s pivate popety fo economic gain. Cude Oil Field Theft - House Bill 3291 would add additional tools fo the investigation and posecution of ciminals involved in the theft of cude oil. The bill is expected to be head by the Senate chambe late this week. TEXAS LEGISLATURE PASSES RESOLUTION IN SUPPORT OF CRUDE EXPORTS On Tuesday, May 19, the Texas Legislatue passed Senate Concuent Resolution 13, which fomally uges the U.S. Congess to end the ban on cude oil expots. We applaud the initiative of the Texas Legislatue to pompt Congess to epeal the nation s cude expot ban. Allowing Ameican oil and gas fee access to the global maketplace will finally acknowledge the new eality of the Ameican enegy enaissance. These policy changes will benefit Ameican wokes and consumes while poviding a huge boost to ou economy. This is accomplished by putting Ameican poduces on a level playing field with thei intenational competitos, commented Ed Longanecke, pesident of the Texas Independent Poduces & Royalty Ownes Association (TIPRO). We hope that Congess and the Pesident will heed these unambiguous, bipatisan messages fom Ameica s leading enegy poducing state, Texas. Likewise, on Tuesday, the legislatue also unanimously appoved Senate Concuent Resolution 32, which pompts Congess to also expedite natual gas expots. The esolution uges the U.S. govenment to advance policies that will enable Ameica to expot natual gas to solidify the nation s competitive advantage in enegy makets as a global enegy leade.

2 Page 2 May 21, 2015 THE TIPRO TARGET CHAIRMAN S MESSAGE TIPRO membes- This month, ou fiends at the Intestate Oil & Gas Compact Commission (IOGCC) and Gound Wate Potection Council (GWPC) announced that the national hydaulic factuing egisty FacFocus will now offe chemical disclosue data in a fomat available fo public download, povided in a manne that is use-fiendly and machine-eadable. This will allow membes of the public to have geate access to additional infomation on the chemicals utilized duing the hydaulic factuing pocess, futhe inceasing the tanspaency by the oil and gas industy and building added awaeness on enegy development in the United States. Data available fo download will featue enties detailing the following infomation: the well, its location, the date of the teatment, the total volume of base fluids, a list of additives used (poviding the additive name, supplie and the pupose of the additive), and finally, the list of chemical ingedients added to the base fluids. Though fac fluid is typically 99.5 pecent wate and sand, the emaining 0.5 pecent is compised of othe additives and chemical solutions which help to enhance factuing opeations. Fom limiting the gowth of bacteia to peventing coosion of the well casing, these chemicals ae necessay to ensue that the factuing job is as effective and efficient as possible. What most people do not ealize, howeve, is that most of these exact same chemical compounds ae also found in liteally hundeds of household poducts, which we use evey day. With inceasing knowledge on hydaulic factuing and oil and gas opeations, the Ameican public can bette undestand and appeciate the tuth behind exploation and poduction of domestic natual esouces fom shale fomations. Sinceely, Raymond James Welde III TEXAS CONGRESSMAN WARNS OF IMPLICATIONS FROM EPA REGULATORY OVERREACH Speaking befoe membes of Congess on May 12, U.S. Repesentative Michael Conaway (R-TX) advocated fo passage of House Resolution 1732, known as the Regulatoy Integity Act of 2015, which would foce the U.S. Envionmental Potection Agency (EPA) and the Amy Cops of Enginees to stop moving fowad with thei poposed Wates of the United States ule. The poposed ule was initially announced in Mach 2014, and would claify potection fo steams and wetlands by the fedeal govenment unde the Clean Wate Act. Many ague, howeve, that if the EPA and othe fedeal entities wee to be ganted this additional authoity to manage the nation s wate esouces, the ule could lead to unnecessay govenment ovesight of smalle bodies of wate in Texas and acoss the nation. That in tun could pesent complex legal and technical issues in the futue, paticulaly fo developes and popety ownes who likely would have to hie hydologists and lawyes befoe stating even basic pojects. I ise today in stong suppot of H.R. 1732, the Regulatoy Integity Potection Act of I cannot stess enough the impotance of this legislation to stop the Obama Administation s Wates of the United States poposed ule and its damaging impacts on ou county. This ule, in its cuent fom, is a massive oveeach of EPA s authoity and will impact nealy evey fame and anche in Ameica. It gives [the] EPA the ability to egulate essentially any body of wate they want, including fam ponds and even ditches that ae dy fo most of the yea. The EPA s defense of this ule is that it povides claity to poduces egading what is and is not egulated, but in eality, this ule will allow nealy evey body of wate in the United States to be contolled by fedeal egulatos. Citics of the ule also wan of its ambiguous natue, which could pemit the EPA to incease its juisdiction and expand its egulatoy ovesight, even in cases whee it is edundant and uncalled fo. House Majoity Leade Kevin McCathy (R-CA) also spoke on the House floo in suppot of H.R. 1732, saying, Fankly, the EPA has cossed a line with this poposed wate ule. It s cossed a line constitutionally, and it cossed a line by huting people and theatening thei livelihoods and pivate popety. This is an Administation that caes moe about egulation than efom that caes moe about powe than it does about people. Congessman McCathy continued, The House is going to pass a bill to stop this ule this abuse of powe. We e going to stop this egulation fo all the hadwoking Ameicans who have tied [of] all of this agency s powe gabs just fo the sake of powe. We e going to do it fo eveyone who wishes they could have contol ove thei own lives. The EPA doesn t need any moe powe, the people do. JUNE 10, 2015 HOUSTON IPAA/TIPRO Leades in Industy Luncheon, 11:30 a.m. Houston Petoleum Club. Fo info, call: (832) TIPRO Calenda of Events JULY 8, 2015 HOUSTON IPAA/TIPRO Leades in Industy Luncheon, 11:30 a.m. Houston Petoleum Club. Fo info, call: (832) JULY 29-30, 2015 SAN ANTONIO South Texas Oilfield Expo, Heny B. Gonzalez Convention Cente. Fo info, call: (866) AUGUST 6-8, 2015 SAN ANTONIO TIPRO Summe Confeence & Golf Tounament, Hyatt Hill County Resot Fo info, call: (512)

3 Page 3 May 21, 2015 THE TIPRO TARGET RAILROAD COMMISSION REMAINS ENGAGED ON ISSUE OF SEISMICITY IN TEXAS In esponse to anothe seismic event in Noth Texas, the Raiload Commission said ealie this month it will equie fou disposal well opeatos nea the vicinity of the epicente to conduct additional well and esevoi testing. We take the issue of seismicity vey seiously and want to move quickly to bette undestand if thee ae actions the commission should equie of opeatos to potect the public, up to and including shutting down well opeations, commented D. Caig Peason, staff seismologist fo the commission. Moe data is always useful in making these kinds of citical decisions that impact the public and the industy. Following the May 7 th seismic activity in Johnson County, as a pecaution, the Raiload Commission immediately dispatched inspectos to the aea to inspect neaby oil and gas wells and disposal wells fo any esulting damage. No damage to infastuctue was found o detected, epots the state agency. The agency will continue to wok closely with seismic eseaches and industy to collect, analyze and evaluate seismic data and oil and gas activity in the egion to bette detemine if thee is a connection. Duing a ecent inteview with Austin s Time Wane Cable News, Raiload Commission Chai Chisti Caddick offeed assuance that the state s egulatoy agency would keep engaging all stakeholdes to assess any needs fo egulatoy intevention. We think it s a good science-based way of doing business, Caddick said. Instead of ove-eacting, we think it s a measued esponse. She added, Not all seismic activity is oil and gas elated. In Octobe 2014, the Raiload Commission of Texas passed some of the most compehensive ules on seismicity in the county, allowing the commission to addess disposal well opeations in aeas of histoical o futue seismic activity. Though amendments adopted to Statewide Rules 3.9 and 3.46, applicants fo new disposal wells ae equied to povide histoical seismic data. The egulatoy changes also affimed the commission s authoity to modify o teminate a disposal well pemit if scientific data indicates a connection to seismic activity in the aea. REMINDER: SUBMIT YOUR NOMINATIONS FOR THE 2015 TEXAS TOP PRODUCER AWARDS! Nominations ae still being accepted fo the 2015 Texas Top Poduce awads, which ecognize outstanding pofessionals in the Texas oil and gas industy. TIPRO stongly encouages all membes to take an active ole in this yea s pogam by nominating a deseving colleague o pee. If you believe a paticula individual meets the citeia fo Best CEO, Enginee, Landman o Geoscientist in the Texas industy, please submit you nomination(s) via the TIPRO website, at The deadline fo nominations will be on June 5, SAVE-THE-DATE FOR TIPRO S SUMMER CONFERENCE & GOLF TOURNAMENT Join the Texas Independent Poduces & Royalty Ownes Association this August fo the oganization s annual Summe Confeence & Golf Tounament! This yea, TIPRO will etun to the Hyatt Hill County Resot in San Antonio, on August 6-8, fo its 2015 summe meeting. TIPRO s Summe Confeence and Golf Tounament bings togethe independent oil and gas poduces, oyalty ownes, industy leades, govenment officials and othe enegy pofessionals, poviding a platfom to discuss cuent and futue challenges facing the Texas E&P secto. TIPRO s summe meeting also povides seveal oppotunities to netwok with othe membes of the association and fom new business connections. Lean moe about available sponsoship oppotunities fo this event on pages 4-6 of this newslette. Additional details on TIPRO s confeence and a complete agenda will be eleased in the coming weeks. Fo moe infomation on the confeence and golf tounament, please contact Stephen Coffman at (512) o scoffman@tipo.og.

4 TIPRO S SUMMER CONFERENCE AUGUST 6-8, 2015 HYATT HILL COUNTRY RESORT SAN ANTONIO, TEXAS GENERAL SPONSOR PACKAGES GOLD $6,000 Receive 3 complimentay meeting egistations, 1 complimentay golf egistation and special ecognition at the Chaiman s Dinne. SILVER $3,500 Receive 2 complimentay meeting egistations (does not include golf) and special ecognition duing the Keynote Luncheon. BRONZE $2,000 Receive 1 complimentay meeting egistation (does not include golf) and special ecognition duing the Keynote Luncheon. GIVE-AWAY ITEM SPONSORSHIPS Each sponsoship below includes 1 complimentay meeting egistation badge and company logo* pinted on item that is to be distibuted at the confeence TOP SPONSORS T-SHIRT SPONSORSHIP $4,000 TOTE BAG SPONSOR $2,500 NOTEBOOK SPONSOR $2,500 LANYARD SPONSOR $2,500 TUMBLER WATER BOTTLE SPONSOR $2,500 PHONE CHARGER SPONSOR $2,500 OTHER SPONSORSHIP OPPORTUNITIES HOSPITALITY SUITE SPONSOR $2,500 Receive 1 complimentay meeting egistation and exclusive ecognition in the hospitality suite. AMENITY SPONSOR $2,500 Receive 1 complimentay meeting egistation and company logo pinted on notecad placed along with amenity in guest s hotel oom. To sign up to sponso the TIPRO Summe Confeence, please fill out and etun the fom on the following page. QUESTIONS? PLEASE CONTACT STEPHEN COFFMAN AT (512) OR SCOFFMAN@TIPRO.ORG

5 BADGE 1: Name of Attendee: Company: Addess: SPONSOR REGISTRATION FORM City/State/Zip Code: SPONSORSHIP LEVELS PLEASE CHECK DESIRED SPONSORSHIP CHOICE GOLD $ 6,000 SILVER $ 3,500 BRONZE $ 2,000 ADDITIONAL SPONSORSHIPS PLEASE CHECK DESIRED SPONSORSHIP CHOICE T-SHIRT SPONSOR $ 4,000 TOTE BAG SPONSOR $2,500 HOSPITALITY SUITE SPONSOR $ 2,500 NOTEBOOK SPONSOR $ 2,500 AMENITY SPONSOR $ 2,500 LANYARD SPONSOR $ 2,500 TUMBLER SPONSOR $ 2,500 PHONE CHARGER SPONSOR $ 2,500 ATTENDEE INFORMATION Phone: Fax: BADGE 2: Name of Attendee: Company: Phone: BADGE 3: Name of Attendee: Company: Phone: *Please note: Gold-level confeence sponsos may eseve thei complimentay golf egistation via the fom on the page that follows. PAYMENT INFORMATION Sponsoship Level: Sponsoship Total: Payment Method: VISA MASTERCARD AMEX CHECK NO: Pint Name: Company: Billing Addess: Cedit Cad No.: Signatue: Exp. Date: CID: Mail fom to TIPRO at: 919 Congess Avenue, Suite 1000, Austin, Texas o fax to (512) Foms must be accompanied by payment. Office Code: Taget0521

6 TIPRO S ANNUAL GOLF TOURNAMENT DATE: Satuday, August 8, 2015 TEE TIME: 7:30 a.m. LOCATION: Hyatt Hill County Resot San Antonio, Texas FORMAT: Fou-Man Scamble COMPETITIONS: Hole-in-One Giveaway, Longest Dive Contest, Closest to the Pin, and much moe! FOURSOME: $680 GOLF SPONSORSHIPS: 19 TH HOLE RECEPTION & AWARDS SPONSOR* $5,000 Receive 2 complimentay golf egistations, 1 complimentay meeting egistation, company logo featued on tounament tophies, exclusive oppotunity to pesent golf awads and company logo pominently displayed on all event signage. GOLF HAT SPONSOR* $2,000 Receive 1 complimentay golf egistation and company logo pinted on golf tounament hat. BEVERAGE CART SPONSOR (2 SPONSORSHIPS AVAILABLE) $1,500 Receive 1 complimentay golf egistation and company logo featued on tounament beveage cats. Sponsos may use golf cat to inteact with and hand out pomotional items to tounament paticipants. DIVOT TOOL & BALL MARKER SET SPONSOR* $1,500 Receive 1 complimentay golf egistation and company logo pinted on divot tool & ball make set. GOLF TOWEL SPONSOR* $1,500 Receive 1 complimentay golf egistation and company logo featued on tounament golf towels. KOOZIE SPONSOR* $1,000 Receive 1 complimentay golf egistation and company logo featued on tounament golf koozies. DRIVING RANGE SPONSOR* $750 Receive 1 complimentay golf egistation and company logo displayed pominently on signage on diving ange pio to tounament. HOLE SPONSOR $500 Company logo displayed on signage, and oppotunity to inteact with tounament paticipants at assigned tee box. *One sponsoship available PARTICIPANTS: Name: Company: Addess: Handicap: INDIVIDUAL: $180 QUESTIONS? Contact TIPRO at (512) o scoffman@tipo.og PAYMENT: Sponsoship: Total: $ Method of payment (please check desied option): [ ] Check #, made payble to TIPRO [ ] Chage my: VISA MASTERCARD AMEX Name Company Phone Numbe Cedit Cad Numbe Exp. Date Billing Addess Secuity Code Signatue Please etun fom to TIPRO at: 919 Congess Avenue, Suite 1000, Austin, Texas o fax to (512) Foms must be accompanied by payment.

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8 AN INDEPENDENT FEE-ONLY FIRM SINCE 1988 SERVING CLIENTS FOR OVER 25 YEARS 5177 Richmond Ave., Suite 700 Houston, Texas EQUIPPED TO HANDLE YOUR SUCCESS MEETING INVESTMENT MANAGEMENT NEEDS ACROSS TEXAS AND BEYOND THE TIPRO TARGET THE TIPRO TARGET Texas Independent Poduces & Royalty Ownes Association With moe than 2,800 membes, TIPRO is the nation s lagest statewide association epesenting both independent poduces and oyalty ownes. Ou membes include small family-owned companies, the lagest publicly taded independents and lage and small mineal estates and tusts. 919 Congess Avenue, Suite 1000 Austin, Texas Phone: (512) Fax: (512)