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February 3, 2012

TEXAS LEADING IN GREEN ENERGY USE, TOO

Cities, retailers, schools tap renewable power

Three Texas cities – Houston, Austin and Dallas – lead the nation for the largest purchases of green energy by local governments, according to new rankings released this week by the U.S. Environmental Protection Agency.

All three cities earned their top rankings through purchases of wind energy, which the second-ranking City of Austin uses to supply 100 percent of municipal government’s needs. The city began purchasing wind for its entire annual energy needs – some 406,000,000 kilowatts – from Austin Energy on Oct. 1, 2011, the start of the local government’s fiscal year.

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By Texas Energy Report

January 31, 2012

THREE HOUSE COMMITTEES TO DRILL DOWN ON FRACKING CONCERNS

From the obvious concerns over water and earthquakes to the more subtle, like what happens when small town rents go from $200 to $2,000

Both the promise and perils of hydraulic fracturing, also known as fracking, will undergo scrutiny by three Texas House committees this summer, bipartisan chairmen of the panels told Texas Energy Report Tuesday.

Business & Industry Committee Chairman Joe Deshotel (D-Beaumont) said fracking has invigorated Texas oil and gas drilling and the state economy, but it has also frightened a skittish public worried about safe and available water supplies, earthquakes and other environmental impacts.

His committee, the Energy Resources Committee chaired by Rep. Jim Keffer (R-Eastland) and the Natural Resources Committee led by Rep. Allan B. Ritter (R-Nederland) have agreed to take an in-depth look at fracking this summer, possibly at joint hearings.

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By Polly Ross Hughes

January 31, 2012

AMES JONES ASKS ABBOTT’S OPINION ON RESIDENCY

Does Constitution require Railroad Commissioners to live in Austin? Does that conflict with residency requirement for her run for state senate?

Elizabeth Ames Jones, who is vying with Sen. Jeff Wentworth for Texas Senate District 25, said Monday she’s asking for an official opinion on her residency requirements.

As the incumbent, Wentworth has complained that Jones is not eligible to run for the seat. He contends her duties as Texas Railroad Commission Chairman require her to reside in Austin. Jones insists her home is in San Antonio, but Wentworth says that would mean she’d have to resign from the energy regulatory body.

“Sen. Wentworth is persisting in his effort to distract voters from his problematic record. First, he challenged my eligibility to run against him in the Republican primary although he knows full well that my home is in San Antonio. Now, with a Democrat (sic) lawyer as his guide, he is saying that I cannot run against him and complete my term as Railroad Commissioner,” Jones said in a statement.

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By Polly Ross Hughes

January 27, 2012

FRASER ‘TAKEN ABACK’ BY EAGLE FORD TASK FORCE FINDINGS ON WATER SUFFICIENCY

Natural Resources chair, Sierra Club question rosy water predictions of sufficient water in aquifer

A key state lawmaker studying implications of the state’s exceptional drought says he’s “taken aback” by a declaration from the Eagle Ford Task Force that South Texas has enough water to support oil and gas fracking operations.

Texas Railroad Commissioner David Porter issued a press release Thursday saying his 26-member task force has found that water supplies are sufficient to support Eagle Ford Shale drilling, along with agricultural and municipal needs.

“Did they take into account that we’re in a drought of record?” asked Senate Natural Resources Committee Chairman Troy Fraser (R-Horseshoe Bay), who is holding hearings on interim charges related to the drought.

“I’m taken aback that they would do this and release this without either my input or reporting to me what they found,” Fraser added. “I’d like to know who did the report, what was included in it, and is that considering current drought conditions.”

The task force did not compile its own report or conduct its own independent research, according to Lauren Willis, director of public affairs for Porter. Instead, most of its members agreed at a closed meeting in December that Porter’s office should issue a statement saying the group finds no conflicts between water demands from fracking and other needs.

The press release quoted Porter as saying, “I am pleased to announce, after exhaustive research, our task force has found water sourcing in South Texas is currently not an issue.”

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By Polly Ross Hughes

January 25, 2012

TCAP REPORT: ELECTRIC DEREG FAILS TO DELIVER

Industry, agency critics blast price and reliability comparisons

Texans have paid higher prices for power that is less reliable – as evidenced by two rolling blackouts – during a decade of electric deregulation, a consumer report released Wednesday asserts.

The report, Deregulated Electricity in Texas: A History of Retail Competition – The First 10 Years, prompted swift reaction from critics who questioned its methods for comparing prices and reliability outcomes.

Commissioned by the Texas Coalition for Affordable Power, a non-profit including 163 municipalities and other political subdivisions, the report takes sharp aim at higher retail prices, increased consumer complaints and greater reliability problems.

Key findings:

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By Polly Ross Hughes

January 25, 2012

BLACKMON: ON NATURAL GAS, TEXAS LEADS THE WAY...AGAIN

State of the Union last night includes wins for Texas

Tuesday night was an interesting one for the political debate around energy in the U.S.  It was especially interesting for the nation's natural gas industry, as President Barack Obama touched on several natural gas-related subjects in his annual State of the Union message to Congress.

In his speech, the President discussed his intent to require disclosure of the chemical content in hydraulic fracturing fluids.  Fortunately for Texans, we already have such a requirement in place, thanks to Governor Rick Perry, legislators like Rep. Jim Keffer, Sen. Jane Nelson and Sen. Troy Fraser, and the Texas Railroad Commission.

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By David Blackmon

January 24, 2012

OIL, GAS REGULATORS APPROVE STIFFER SAFETY FINES

Fly-by-night drillers to ‘feel the wrath of the commission’

Texas Railroad Commissioners gave initial approval Tuesday, as expected, to new penalty hikes for safety violations across six major divisions.

The higher fines, which include enhanced penalties for repeat offenders, would apply to safety regulations involving oil and gas, pipelines, liquefied petroleum-gas, compressed natural gas, liquefied natural gas and underground pipeline damage prevention.

It is the first time the commission has published across-the-board guidelines for safety penalties, which will be subject to public comment for 30 days before final adoption.

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By Polly Ross Hughes

January 24, 2012

ANGA HONORS TOMMY WILLIAMS FOR SB 20

Bill created transportation triangle for natural gas-fired vehicles

America’s Natural Gas Alliance gave Sen. Tommy Williams (R-The Woodlands) its Blue Flame award in Houston last night for advancing natural gas-powered transportation in Texas.

Williams’ Senate Bill 20, which passed the Texas Legislature last spring, establishes the Texas Clean Transportation Triangle to develop natural gas fueling stations for vehicles traveling along highways connecting Houston, San Antonio/Austin and Dallas/Fort Worth.

Advocates say implementation of the plan over a four-year period will reduce emissions as much as taking 175,000 gasoline-powered cars off Texas highways. The plan would also help create a new market for natural gas, which has seen its prices plummet below $3 per thousand cubic feet recently in response to a domestic glut made possible by hydraulic fracturing.

“Encouraging the deployment of natural gas vehicles in Texas is the right approach and positions the Lone Star State as a leader in the development and deployment of vehicles that are fueled by a domestically produced energy source that’s affordable and cleaner burning,” said David Blackmon, who leads the Texas State Committee of ANGA.

By Polly Ross Hughes

January 24, 2012

COMPANIES PUSH ENERGY EFFICIENCY

Partners seek standardized codes, better education

Texas ranks 33rd among states in adopting energy efficiency measures, but a group of industry officials are hoping to change that.

The South-central Partnership for Energy Efficiency as a Resource (SPEER) is stressing that energy efficiency is the least expensive resource available for Texas to avoid rolling blackouts next summer.

The Texas Electric Reliability Council reported last year that it would fall below its electric reserve target this summer and far below it by 2014. However, a federal court has temporarily delayed the Environmental Protection Agency’s Cross-State Air Pollution Rule, meaning two coal-powered generating plants will remain online, said ERCOT spokeswoman Dottie Roark. She added the addition of the two power plants will only barely help the grid operator meet its target this summer, and a repeat of last year’s record temperatures could still lead to very tight electric supplies.

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By Polly Ross Hughes

January 23, 2012

RR COMMISSION: REPEAT OFFENDERS BEWARE

Oil, gas regulators set to hike fees for safety violations

Chronic violators of Texas Railroad Commission safety rules better clean up their acts or brace themselves for sticker shock.

Tomorrow commissioners who regulate the state’s booming oil and gas industry are expected to approve penalty hikes in six major categories, taking special aim at repeat offenders, Commissioner David Porter told Texas Energy Report Monday. The proposed penalty hikes – the first since 2004 – will then undergo a 30-day public comment period before new rules are finalized. Repeat offenders will see their penalties enhanced.

“It is due time that the Railroad Commission adopt formal rules strengthening enforcement penalties,” said Porter. “I am especially pleased to see the proposals to increase penalties on repeat offenders. The energy industry overall has a solid record at the commission, and we shouldn’t let these few bad actors tarnish the state’s reputation as the gold standard.”

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By Polly Ross Hughes

January 23, 2012

APACHE BUYS CORDILLERA ENERGY FOR $2.85 BILLION

Deal catapults holdings in liquids-rich Anadarko Basin

Apache Corp., a Houston-based oil and gas producer, said Monday it will pay $2.85 billion for the privately held Cordillera Energy Partners III LLC, doubling its acreage in the energy-rich Anadarko Basin.

The cash and stock deal, reportedly the largest in the United so far this year, will add estimated proved reserves of 71.5 million barrels of oil equivalent (boe), Apache said in a statement.

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By Polly Ross Hughes

January 23, 2012

PLUNGING NATURAL GAS PRICES PROMPT BIG CHESAPEAKE SHIFT

Second-largest gas producer eyes on more rewarding ‘liquids’

Chesapeake Energy Corp., the nation’s second-largest natural gas producer, scaled back its dry-natural gas operating plans Monday in response to the lowest natural gas prices in the past 10 years.

The company announced it is slashing its dry-gas rig count in half to about 24 rigs by the second quarter of this year. This means its rig count in both the Haynesville Shale and Barnett Shale will drop to six operated rigs each. Its dry gas rigs in the Marcellus Shale of northeastern Pennsylvania will drop to 12.

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By Texas Energy Report

January 20, 2012

CRADDICK DRAWS SIZABLE FUNDS FROM MIDLAND/ODESSA

Chisum campaign says she’s counting on father calling in favors

Seven of every 10 large campaign contributors to Christi Craddick’s bid for Texas Railroad Commission hail from either Midland or Odessa, a survey of her campaign finance report filed this week shows.

In announcing that Craddick has raised a total $759,741.27 for her race to replace outgoing Railroad Commission Chairman Elizabeth Ames Jones, Craddick’s campaign noted that her funds came from “441 contributors all across the state of Texas.”

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By Polly Ross Hughes

January 20, 2012

IS KEITH STONE FOR KEYSTONE XL?

We don’t care, but we are amused

The National Journal asks if the makers of the beer Keystone Light from Coors Brewing Co. are worried about confusion with Keystone XL, the 1,700-mile tar sands pipeline proposed by TransCanada.  President Obama rejected the pipeline in its present form this week, but he mentioned nothing about a possible appearance of Keystone Light at his next Beer Summit. If the pipeline gets built, we’d like to see a poll on the beer of choice for pipeline construction workers.

Here’s the story.

By Polly Ross Hughes

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