Energy Bill Passes
U.S. House, Senate Workout Compromise;
President Says He will Sign Bill Into Law
Senate Republicans and Democrats came together on December 13 to pass
an energy bill by an 86 to 8 vote. Speake of the House Nancy Pelosi (D-Ca.)
said she would accept the compromise bill and President Bush said he would sign it.
Senate Republicans objected to the additonal tax provisions placed on the oil and
gas industry, and senate Democrts could not get enough votes to keep the tax
provisions in the have the bill pass.
Alliance Chairman Frank King thanked members of the House and Senate that
worked so hard to get the bill in an acceptable form.
Alliance Executive Vice President Bill Stevens said many improvements from
our pwrspective were made between the August vote and December vote. The
deletion of the complete repeal of the Section 199 tax credit, and the removal of
Natural Resource Committee restrictions, both of which hurt domestic producers,
made the December version much more appealing. "We need to continue to thank
Texas Democrats Gene Green, Chet Edwards, and Nick Lampson for their hard
work on our behalf with Speaker Pelosi to modify the legislation and draw
distinctions between domestic and foreign interests," Stevens said. "On the Republican
side, Joe Barton, Mac Thornberry and Mike Conaway draw continued attention
in their support of independent oil and gas."
Cape & Trade Legislation Passes Senate Committee
A Senate committee passed a bill, Climate Security Act (S. 2191), on Dec. 5 that would establish
a new market for carbon by setting emission levels for companies. Those that exceed the carbon
dioxide emission standard must buy additional credits from companies that emit less carbon
dioxide than the standard level.
The system is called a cap-and-trade program.
Also, the bill passed by the Senate Environmental and Public Works Committee seeks to
reduce carbon dioxide emmissons by 20 percent by 2020 and 70 percent by 2050.
As designed, the cap-and-trade system would increase the cost of energy and further restrict
the development of domestic fossil-fuel energy supplies.
Metzler Elected Vice Chairman; Board Adopts New Resolutions
The Board of Directors of the Texas Alliance of Energy Producers elected Mark Metzler,
President of Felderhoff Production Company in Gainesville, Vice Chairman and adopted resolutions on global warming and surface issues in Texas.
State Representative Rick Hardcastle, Chairman of the House Energy Resources Committee,
Texas Railroad Commissioner Elizabeth Ames Jones addressed the Board
Chairman Hardcastle noted that during his first few years as Chairman he has witnessed several
issues, - water, surface owner problems, plugging of wells - that will be around for years to come,
but that industry should work to resolve these issues as soon as possible.
Metzler is a graduate of Lindsay High School, and earned a BBA degree from the University of
North Texas in 1975. He is a CPA and worked auditing financial and oil and gas companies
during his career with Arthur Andersen in Dallas. Metzler joined Felderhoff Bros. Drilling in
1984 as Chief Financial Officer.
Eyes on Texas
By Gloria Leal
Attorney at Law & Consultant
It is shaping up to be a busty interim in Austin. On November 29, Speaker of the Texas House
of Representatives Tom Craddick (Midland) issued the long awaited interim charges to be
studied by committees in 2008 in preparation for the next legislative session in January 2009.
Of specific interest to operators will be the interim charges for the House Energy Resources Committe, which include:
- Examine issues related to electrical lines and abandoned equipment on oil and gas leases.
- Examine whether the Railroad Commission of Texas should regulate carbon capture.
- Discuss further the issue of financial assurance in relation to oil and gas wells, and evaluate the current bonding structure.
- Discuss alternative energy sources and how best to incorporate them into our traditional energy sector. Also study the potential benefits of biofuels in Texas, including Texas feedstocks best suited for biofuel production and synergies between that industry and traditional energy sectors. Develop recommendations for facilitating the growth of the biofuel industry in a manner that best positions Texas in the national market.
- Research ways to maintain groundwater quality in relation to oil and gas exploration through economic incentives for innovative technology solutions; and.
- Study the use of the Texas Economic Development Act since its enactment as HB 7 77th Legislature, Regular Session. Determine how the act may be enhanced to better attract significant capital investments by science and technology industries developing alternative energy sources. (Joint Interim Charge with the House Committee on Economic Development)
Other charges will require the House Committee on Land and Resource Management to study ways to better protect private property rights from eminent domain procedures in light of the 2005 Kelo decision by the U.S. Supreme Court. Specifically, legislators will study ongoinglitigation and current practices by condemning authorities to make recommendations for changes in eminent domain laws.
Legislators will also examine the laws used to determine the amount of comprensation property owners receive when their land is condemned, and how they compare to similar laws in other states.
Energy Bill Passes
Energy Bill Passes
U.S. House, Senate Workout Compromise;
President Says He Will Sign Bill Into Law
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