From September 11th to 14th the KBH Center joined the Energy Institute, the Jackson School of Geosciences, the LBJ School of Public Affairs, and the Cockrell School of Engineering in hosting a delegation from the US State Department for a 4-day electricity workshop. On the 12th, Dr. John Butler, the executive director of the KBH Center, coordinated the Energy Finance Panel, while Professor Melinda Taylor organized the one on Energy Law. Thirty-two State Department officials as well as students from departments across campus were in attendance. The finance presentations featured a panel of experts moderated by Sheridan Titman (Walter W. McAllister Centennial Chair in Financial Services) that included Rob Jones (Director, Shell Midstream Partners), Mark Egan (Managing Director, Merrill Lynch Commodities), Shalini Ramanathan (VP Origination at RES America) and Michael Page (President and CEO of Renewable Assets, LLC). The topics ranged from financing vehicles available in the US to impediments to completing transactions with foreign partners. The law presentations included a discussion of the PUC and the challenges Texas faced early on in figuring out how to meet the RPS and integrate wind power into the grid (Becky Klein, former Chair of the Texas Public Utility Commission), the development of wind farms in Texas and especially the considerations relevant to private landowners (Rod Wetsel, Founding Partner, Wetsel, Carmichael & Allen, L.L.P.), and a brief overview of the regulatory framework in Texas (David Adelman, Harry Reasoner Regents Chair in Law), among others. There was also a roundtable discussion about Mexico’s experience to date with reforms to the electricity sector, especially efforts to expand the portfolio of renewable power generation (Jose Maria Lujambio, former General Legal Counsel, Mexican Energy Regulatory Commission). The organizers also co-hosted a lunch where several State Department officials spoke on careers at the State Department to students from departments across campus. [caption id="attachment_10583" align="alignnone" width="2048"] State Department officials in front of Townes Hall at the School of Law.[/caption]
News Types: Media Coverage
On July 12, 2017, the New Haven Register quoted Professor David Spence in a story on a new analysis by WalletHub, a Washington, D.C.-based personal finance website, that found that, when it comes to overall energy costs, Connecticut is the most expensive state int he nation for consumers. Spence said the natural gas pipelines that bring the fuel to Connecticut and the rest of New England have “a constraint” in the amount of natural gas they can deliver to the region during period of peak demand. That constraint drives up the cost of natural gas during peak usage periods. “That also increases the price of electricity (generated) from natural gas at those times,” Spence said. About the Author David Spence is Professor of Law, Politics & Regulation at the University of Texas at Austin, where he teaches in both the McCombs School of Business and the School of Law.
On June 26, 2017, Houston Public Media quoted Professor Melinda Taylor, the associate director of the KBH Center, in a story on a review of shale drilling science from the Academy of of Medicine, Engineering and Science of Texas (TAMEST) that found benefits - and consequences - from the industry's growth across Texas. A TAMEST Task Force member, Professor Taylor served as the lead on Chapter 4 of the report, which describes the effects of shale development on Texas' land resources. According to Professor Taylor, "there's more to learn when it comes to land use. We don't have a real good sense of how oil and gas development is affecting the land resources, such as wildlife and plant resources, at the site level." She also observed that industry expansion into parts of Far West Texas is an opportunity for baseline land studies that haven't been done before.
On June 24, 2017, MyStatesman.com quoted David Spence in a story about the energy policy debate. About the Author David Spence is Professor of Law, Politics & Regulation at the University of Texas at Austin, where he teaches in both the McCombs School of Business and the School of Law. Professor Spence is co-author of the leading energy law casebook, Energy, Economics and the Environment (Foundation Press), and has published numerous scholarly articles on subjects relating to energy policy, regulation and the regulatory process. Professor Spence’s research focuses on the law and politics of energy regulation, broadly defined. His scholarly writings address the environmental regulation of the oil and gas industry and the electric utility industry, as well as economic regulation (regulation of price and competition) in the public utility industry. He has Ph.D in political science from Duke University and a J.D. from the University of North Carolina.
On June 19, 2017, the Academy of Medicine, Engineering, and Science of Texas (TAMEST) released a new, comprehensive report on the effects of shale oil and natural gas development in Texas. Titled Environmental and Community Impacts of Shale Development in Texas, the TAMEST Shale Task Force Report focuses on six areas: seismicity, land resources, water, air, transportation, and community impacts. In the report, a diverse group of experts from academia, environmental organizations, the oil and gas industry and state agencies analyze what we do and don't know about the impacts of shale oil and natural gas development. Read the report. Texas has long been a major producer of domestic oil and gas supplies and products. Texas remains a leading United States oil and gas producer, and, in fact, the state today is on par with many of the world’s major energy-producing nations. Some overall highlights of the TAMEST Shale Task Force Report include:
- Texas leads the nation in oil and gas production.
- 1.1 billion barrels of oil were produced in Texas in 2016.
- 215/254 Texas counties produce oil and natural gas.
- There are nearly 250,000 oil and gas wells in Texas.
- In 2015, Texas produced more oil than all but 6 countries in the world.
- Oil and natural gas production generated over $1.7 billion in property tax revenue for Texas schools in 2016.
- 19 experts from across the state with diverse knowledge and experience convened to produce this report.
- Texas hosts an extraordinary degree of biodiversity, due to the diverse topographic, geologic, and climatic conditions across the state.
- Texas lands are almost entirely privately-owned. Shale development takes place largely on private lands, which generally are not sites of formal environmental impact studies.
- The few studies that have been conducted on erosion and soil contamination from oil and gas development in Texas indicate that well pad development has an increased potential for erosion and that soil contamination is possible from oil and gas production.
- The vast number of new wells drilled in shale formations in Texas since 2007 have had substantial spatial impacts on the landscape. However, horizontal wells have a smaller impact than the equivalent number of vertical wells would have had. When operators use a single well pad for multiple wells, surface impacts are significantly reduced.
- The most comprehensive information on species-specific impacts has been compiled for the Dunes Sagebrush Lizard and Lesser Prairie Chicken, with extensive studies of changes to their habitats and their life cycles and requirements. Both species are covered by voluntary conservation plans overseen by state agencies.
- Landowners in Texas who do not own the mineral rights associated with their property have very limited control over oil and gas operations.
- Most states where development of shale resources is occurring have a surface damage act in place to protect the rights of landowners who do not own the mineral rights associated with their property. In Texas, if the surface owner controls any portion of the mineral rights, the owner may be able to use contractual provisions to negotiate with the operator and resolve disputes. In addition, if the owner discovers damages caused by the operator within the statute of limitations time frame—two years—the tort/legal system may provide relief. Damages for the landowner are capped at the value of the damaged property and do not cover the actual cost of remediation.
- Data on environmental impacts of oil and gas development reside in several different state and federal agencies, and there is not a single database, readily searchable and available online, that integrates the data across different entities.
- Baseline land and habitat conditions at the oil and gas play level should be characterized, and changes to wildlife populations and vegetation should be tracked over time where there are opportunities on both private and public lands.
- The effectiveness of voluntary programs to conserve at-risk species should be studied, along with options for incentives to conserve at-risk species and reduce effects on land resources by oil and gas development activities.
- Advantages and disadvantages of adopting a surface damages act to address the gaps in legal protection for landowners who do not own the minerals associated with their property should be evaluated.
- The existing, non-proprietary information about land impacts of shale development that is collected and evaluated by multiple state and federal agencies should be assembled and made available online to the public.