Current law exempts oil and gas companies from the permitting requirement for wells used for “drilling or exploration”. However, SB873, a bill in the Texas legislature hopes to change that by requiring a permit for wells used by oil & gas operators. TIPRO has been attempting negotiating a compromise on this bill, but recently informed the AAPL that those negotiations had not been successful.
Jim Dewbre, President of the AAPL, sent out a letter today urging a grass-roots effort for those with business in Texas to contact their state representatives to defeat this bill. As per the letter, this bill would do the following:
- It introduces regulatory uncertainty tot the oil and natural gas section.
- It puts lease hold interests at risk.
- It unnecessarily challenges the development of minerals.
- It is the forerunner of more legislation that could directly impact the industry in Texas and more specifically landmen.
- Would be a precedent setting bill that would be used in other states.
If you’d like to know who your state representative is, you can find out here. I encourage you to contact your state representative if you live or do business in Texas. This bill, if it becomes law, will be a model that other states will follow — please do your part to ensure it does pass as it is currently written.
If you would like to see the full text of the notice sent out by the AAPL, Click Here.