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May 17, 2012

OBAMA’S TEAM ANNOUNCES BIG LEASE SALE IN CENTRAL GULF

Texas industry group applauds move, but president’s critics unmoved

President Barack Obama announced final details Thursday for a June 20 oil and gas lease sale that will open all remaining areas in the Central Gulf of Mexico   more than 38 million federal acres – for exploration and production.

“That’s absolutely incredible,” said Deb Hastings, executive vice president at the Texas Oil & Gas Association. “It’s about time. It’s a good thing anytime they open up any leases, in my opinion.”

Plans for the lease sale, as the administration’s news release notes, have been in the works since January 2012. The final details unveiled today include making available all 7,276 blocks, some 38.6 million unleased acres, in the Central Gulf of Mexico offshore Louisiana, Mississippi and Alabama. The sale will be held in New Orleans’ Mercedes-Benz Superdome.

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By Polly Ross Hughes

May 17, 2012

SIERRA CLUB: PUSH ENERGY EFFICIENCY, NOT HIGHER PRICES

Group recommends PUC shift focus for meeting peak electric demand

The Texas Public Utility Commission should focus on proposed energy efficiency rules rather than raising wholesale power prices to shore up the Texas electric grid, according to the Sierra Club’s Lone Star Chapter.

The group said Thursday it submitted comments regarding a PUC proposal to raise the maximum wholesale energy prices from $3,000 to $4,500 per megawatt by summer. Sierra Club notes that an independent analysis by the Electric Reliability Council of Texas shows the PUC proposal could hike individual homeowners’ average electric bills by $5 to $15.

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By Polly Ross Hughes

May 17, 2012

UT SPEECH ON ENERGY EFFICIENCY IN MILITARY: 1:15 P.M.

DOD official Sharon Burke, Bass Lecture Hall, 2315 Red River

By Texas Energy Report

May 16, 2012

TINTERA LANDS AT TEXAS ALLIANCE OF ENERGY PRODUCERS

Past RRC executive director joins regulatory compliance team

Former Texas Railroad Commission Executive Director John Tintera is joining the regulatory compliance team at Texas Alliance of Energy Producers, Townes G. Pressler, the group’s board chairman, announced Wednesday.

Tintera, who left his longtime post at the helm of the state’s leading oil and gas regulatory agency this spring, will be specializing in environmental and technical consulting, the Alliance said.

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By Polly Ross Hughes

May 16, 2012

WIND POWER BOOSTS STATE’S RENEWABLES BY DOUBLE DIGITS

ERCOT report shows Texas renewable energy generation up 13 percent

Wind generation helped boost Texas energy generated by renewable sources by 13 percent in 2011, according to the Electric Reliability Council of Texas, grid operator for most of the state.

ERCOT filed its annual report on the Texas renewable energy credit program Wednesday with the Texas Public Utility Commission, recording 31.7 million megawatt hours recorded in 2011 versus 28 million megawatt hours in 2010.

The 13 percent gain came mostly from wind generation, which represented the largest share of renewable generation with 30.9 million megawatt hours. Generation of hydroelectric power decreased by more than half as a result of last year’s drought, while solar power generation more than doubled.

A copy of the report can be read here.

By Polly Ross Hughes

May 16, 2012

UT HOSTS SPEECH ON MILITARY PLANS FOR ENERGY EFFICIENCY

DOD to invest $1 billion to upgrade energy efficiency of planes, ships, vehicles

The University of Texas at Austin is hosting a 2:15 p.m. speech tomorrow on how the military plans to spend $1 billion to improve the energy efficiency of its aircraft, combat vehicles and ships.

Sharon Burke, assistant secretary of defense for operational energy plans and programs, will deliver remarks on the subject as part of her two-day visit to Austin, according to the College of Liberal Arts.  She’ll also meet with energy chief executive officers at the Austin Chamber of Commerce, university leaders and graduating Texas Army ROTC seniors.

Burke will be speaking at the LBJ School of Public Affairs, Bass Lecture Hall, 2315 Red River. The event is free and open to the public.

During the next fiscal year, the U.S. Department of Defense plans to invest more than $1 billion on energy efficiency methods. These include enhancing efficiency of aircraft and aircraft engines, building hybrid electric drives for ships, improving generators and micro-grids for combat bases and improving efficiency of combat vehicles.

DOD plans to spend another $1 billion to improve energy efficiency at its installations and use them to demonstrate next-generation energy technologies.

By Polly Ross Hughes

May 16, 2012

LAS BRISAS POWER PLANT FACES BIG SETBACK

Judge finds fault in TCEQ’s air permit for proposed pet coke-fired plant

Environmental groups on Tuesday hailed a letter from a Travis County judge indicating he will rule against an air pollution permit that’s critical for the proposed Las Brisas Power Plant to move forward.

Travis County District Court Judge Stephen Yelenosky issued the seven-page letter to attorney’s on both sides, outlining numerous shortcomings in the Texas Commission on Environmental Quality permitting of the proposed petroleum coke-fueled plant near Corpus Christi.

“The court has announced that it intends to rule against the TCEQ because, in issuing the permit, TCEQ committed a number of critical legal errors,” said Environmental Integrity Project Attorney Erin Fonken, who represents Sierra Club in the lawsuit. 

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By Polly Ross Hughes

May 16, 2012

FEDS FIGHT BACK WITH ‘IDLE’ DRILLING REPORT

Industry lets 56 percent of onshore federal lands sit idle, analysis shows

The U.S. Interior Department’s May 2012 report to President Barack Obama, “Oil and Gas Lease Utilization, Onshore and Offshore,” states that 46 million acres of lands the federal government has leased are not being drilled by the oil and gas industry.

“There are approximately 26 million leased acres offshore and over 20 million leased acres onshore that are currently idle – that is, not undergoing exploration, development, or production,” the report says.

Offshore, nearly 72 percent of the Outer Continental Shelf (OCS) land – or 26 million acres – that have been leased to oil and gas companies are not producing as of May 2012, the report says, or are not subject to pending or approved exploration or development plans.

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By Polly Ross Hughes

May 11, 2012

TEXAS SCHOOL BUSES GET POLLUTION CONTROL OVERHAULS

Retrofits help school kids breathe a little easier, says TCEQ

The Texas Commission on Environmental Quality said this week it awarded $1.7 million to Brownsville ISD to retrofit 129 school buses with pollution control equipment to better protect children from exposure to particulate matter.

The school district, in turn, placed its work order with Clean Diesel Technologies Inc. of Ventura, Calif., an emissions control company, the TCEQ confirmed. Clean Diesel announced separately that it expects to begin the work next month and complete it in July.

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By Polly Ross Hughes

May 11, 2012

PHASING OUT DIRTIER DIESEL IN TRASH BUSINESS

Waste Management expands compressed natural gas-fueled fleet

Waste Management said Friday it plans to add another 35 natural gas-powered collection trucks in the Houston area this year and open a new compressed natural gas (CNG) fueling station in Conroe.

The Houston-based company currently operates five CNG-fueled collection trucks in the city’s northern suburban communities. Its new fueling station will serve the company’s local fleet, sell CNG to other commercial fleets and soon serve retail customers who drive CNG-powered vehicles, the company said.

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By Polly Ross Hughes

May 10, 2012

CRADDICK WINS FIVE NORTH TEXAS ENDORSEMENTS

Sen. Carona, four House members back her bid against Chisum

Texas Railroad Commission candidate Christi Craddick of Austin announced endorsements Thursday from five fellow conservatives in the Dallas-Fort Worth area for her GOP primary bid to fill the seat vacated by Elizabeth Ames Jones.

Craddick’s chief primary rival in a six-way race is Rep. Warren Chisum of Pampa, who has won conservative Republican endorsements as well.

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By Polly Ross Hughes

May 10, 2012

EAGLE FORD LIQUIDS PROMPT HOUSTON EXPANSION

Copano announces second expansion of cryogenic processing site

With Eagle Ford Shale producers increasingly concentrating their efforts on natural gas liquids, Copano Energy LLC announced plans Thursday to add an extra 400,000 thousand cubic feet (mcf) per day of cryogenic processing capacity to its Houston Central complex in Colorado County.

The expanded capacity, with an estimated cost of $190 million, is expected to be up and running in mid-2014, said spokesman Jack Lascar, and is the second expansion announced. The initial expansion, also for 400,000 mcf, is expected to be operating in early 2013. When both expansions are complete, the facility will have a total high-efficiency cryogenic processing capacity of 1 billion cubic feet per day.

“Gas coming out of the Eagle Ford is turning out to be much richer than originally anticipated,” said Lascar.

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By Polly Ross Hughes

May 10, 2012

FRITO-LAY ADDS NATURAL GAS-FUELED LARGE-LOAD TRUCKS

Also clocks one million miles with all-electric delivery fleet

Frito-Lay of Plano, while celebrating one million miles with its electric-powered commercial delivery fleet, said Thursday it’s introducing compressed natural gas (CNG) tractors this spring to haul large loads.

The company expects its CNG vehicles to grow to 67 CNG by yearend, eliminating the need for more than 900,000 gallons of diesel fuel annually.

“As we push to make Frito-Lay’s fleet the most fuel efficient commercial fleet in the U.S., we need to continue to build on our current strategy and look for options to address other types of trucks in the fleet – one of which will be compressed natural gas for our tractor fleet,” said Mike O’Connell, senior director of fleet capability for Frito-Lay North America.

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By Polly Ross Hughes

May 9, 2012

UTSA: EAGLE FORD TRANSFORMING SOUTH TEXAS

$25 billion in economic output; $3.1 billion in salaries and benefits

SAN ANTONIO – The Eagle Ford Shale’s astonishing expansion in South Texas last year has ignited unprecedented production gains – oil increased six-fold, natural gas doubled and condensate tripled, according to a new study at the University of Texas at San Antonio’s Institute for Economic Development.

The resulting economic bonanza will benefit generations of Texans to come, industry experts and public officials said as the study was released Wednesday.  Already the boom has sparked dramatic hikes in permitting, well drilling and completions, residential and commercial construction, pipeline construction and multiple support activities.

As one of the hottest shale plays in the country, the Eagle Ford in 2011 generated $25 billion in economic output in a 20-county region, supported nearly 47,100 full-time jobs and generated $3.1 billion in salaries and benefits for workers, according to the study by the institute’s Center for Community and Business Research.

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By Polly Ross Hughes

May 8, 2012

JOINT VENTURE WATER DEAL ARRIVES IN PERMIAN BASIN

Remediation project a ‘just in time’ solution for big shale play

Latitude Solutions Inc. and Oil Raiders Logistics Inc. announced a 50-50 joint venture Tuesday to provide a water remediation center serving the oil and gas industry in the West Texas Permian Basin.

The deal calls for the purchase of 192 acres with three fresh water wells that produce 1 million gallons per day in Ward County, the companies said in a joint statement.

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By Polly Ross Hughes

May 8, 2012

SLEDGE BASHES EPA WITH, YEP, HIS SLEDGEHAMMER

Last week’s ‘pee on fence’ ad gained far more attention

Hitting the social media world with another catchy campaign ad, Railroad Commission candidate Roland Sledge of Houston asked supporters Tuesday to “Hammer the EPA.”

So far, hammering the Environmental Protection Agency with Sledge doesn’t seem nearly as popular as his “pee on an electric fence” ad from last week, which has drawn at least 56,174 views, according to You Tube.

Sledge is a Houston energy attorney and Republican candidate for the seat vacated by former commissioner Elizabeth Ames Jones in a primary race dominated by state Rep. Warren Chisum of Pampa and Austin attorney Christi Craddick.

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By Polly Ross Hughes

May 7, 2012

LEADING RRC RIVALS RUNNING NECK-AND-NECK

Chisum holds ‘telephone town halls’ while Craddick launches TV ad

Texas Railroad Commission candidate Christi Craddick launched a slick TV spot Monday, promising to fight off U.S. President Barack Obama. Her chief GOP Primary rival Warren Chisum, meanwhile, revealed he’s connecting with “hundreds of thousands” of party loyalists statewide via ‘telephone town halls.’

With name recognition in Texas politics, Chisum and Craddick are considered the leading candidates in a six-way race to replace former RRC Chairman Elizabeth Ames Jones. The two appear locked in a close battle as the May 29 primary nears, but the ultimate outcome might await a likely run-off election this summer. A third candidate, Houston energy attorney Roland Sledge, has strong oil and gas industry ties as well.

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By Polly Ross Hughes

May 7, 2012

NEW TV AD: CHRISTI CRADDICK AIRS HER FIRST SPOT IN RUN FOR RAILROAD COMMISSIONER

Targets Obama as enemy to oil and gas exploration in Texas

By Texas Energy Report

May 4, 2012

TROUBLED CHESAPEAKE CONFIRMS SEC PROBE

Bad news upon bad news intensifies McClendon’s hot seat

Chesapeake Energy Corp. confirmed Thursday that the company and its Chairman and CEO Aubrey K. McClendon are the subjects of an informal inquiry by the Securities and Exchange Commission.

The company and its colorful founder, rocked by recent controversies that have sent its share price plunging, said in a statement that it received notice of the inquiry yesterday from the SEC, which requested that the company and McClendon retain certain documents.

The SEC also indicated that the inquiry by the Fort Worth Regional Office has begun. The request from the securities watchdog agency noted that the existence of the inquiry does not necessarily mean that any violation of federal securities laws has occurred.

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By Texas Energy Report

May 4, 2012

VALERO ENERGY NAMES GORDER CHIEF OPERATING OFFICER

Executive VP will oversee refining, plus commercial operations

San Antonio-based Valero Energy Corp. announced Thursday that Joe Gorder has been named executive vice president and chief operating officer, overseeing refining operations along with commercial operations – marketing, supply and transportation.

Gorder previously served as executive vice president and chief commercial officer. He also served as president of Valero Europe, where he oversaw business activity and operations of Valero’s assets in the United Kingdom and Ireland, until March when Eric Fisher, formerly vice president of investor and corporate communications, was named to that post. As a result of Gorder’s COO promotion, Lane Riggs, senior vice president–refining operations, will now report to Gorder.

Assets of Valero Energy subsidiaries include 16 petroleum refineries, 10 ethanol plants and a 50-megawatt wind farm. About 6,800 retail and branded wholesale outlets carry the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean.

By Polly Ross Hughes

May 4, 2012

BLUEBONNET SENDS MEMBERS $2.9 MILLION IN CREDITS

Bastrop-based Bluebonnet Electric Cooperative said Thursday its board has voted to give $2.9 million to its members in the form of capital credits.

Bastrop-based Bluebonnet Electric Cooperative said Thursday its board has voted to give $2.9 million to its members in the form of capital credits.

The credits, which are paid each year, are similar to dividends and represent a portion of each member’s share in the ownership of the co-op. Current members received refunds on May electric bills while former members, who still owed a capital credit, will receive a check in May or June, the co-op said in a statement.

“During the last five years Bluebonnet has returned $18.7 million to its members,” said Rick Schmidt, Bluebonnet’s board president. “Paying capital credits is what sets nonprofit, member-owned cooperatives apart from investor-owned and city-owned utilities.”

By Polly Ross Hughes