Texas State Policy Update Mail

Texas State Policy Update Mail

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Upstream Conventional & Unconventional Onshore Development
Oil and Gas Groups Cleared to Pursue Lawsuit Against City Of Arlington
On September 18, 2014, a Texas appeals court upheld the lawsuit brought forward by the Texas Oil & Gas Association and the Texas Independent Producers & Royalty Owners challenging a tax on oil and gas companies operating within Arlington, Texas. A lower court had previously dismissed the case. In March 2012, the Arlington City Council approved a new annual tax on each well within the city. Funds generated by the tax are intended to provide oil and gas emergency response training for firefighters. Industry groups have argued that the new tax is discriminatory toward their members. With this recent judgment, the trade associations will continue pursuing their lawsuit against the City of Arlington.

Midstream & Infrastructure
Railroad Commission Holds Hearing on Proposed Amendment to Common Carrier Rules
On September 22, the Texas Railroad Commission held a public hearing in consideration of a proposed amendment to the state’s current rule outlining the registration process for common carrier pipelines. This amendment could affect oil and gas pipeline operators seeking eminent domain powers as common carrier pipelines in Texas. Private property owners and various landowner associations claim the current common carrier registration process is not thorough enough to exert eminent domain. The comment period for the proposed amendment closed August 25, 2014. Final rule adoption is currently pending at the Commission.

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