Areas of Focus Potential Impacts of Oil and Gas Drilling Important Government Agencies and Rights of Landowners What You Can Do

Transcription

1 Oil and Gas Development: What Landowners Should Know The University of Texas Environmental Law Clinic and The Caddo Lake Institute

2 Areas of Focus Potential Impacts of Oil and Gas Drilling Important Government Agencies and Rights of Landowners What You Can Do

3 Potential Impacts Economic Health, Safety and Environmental

4 Economic Impacts Royalties and Other Direct Compensation Property Values

5 Gas Well

6 Economic Impacts Royalties and Other Direct Compensation Property Values Roads

7

8

9 Economic Impacts Royalties and Other Direct Compensation Property Values Roads Recreation and Tourism

10

11 Health, Safety and Environmental Impacts Noise Air Quality Water Quality Spills of oil or chemicals and leaks from poorly cased or abandoned wells

12

13 Health, Safety and Environmental Impacts Noise Air Quality Water Quality Spills of oil or chemicals and leaks from poorly cased or abandoned wells Produced water and other waste disposal

14 Injection Wells? Oil and gas production creates a lot of waste, primarily saltwater. This water is often disposed of in wells. These wells must be properly built and maintained, otherwise the waste can contaminate ground and surface water.

15 Injection Well

16 Reserve Pit

17 Texas Railroad Commission (RRC) Authority to regulate the Oil and Gas industry in Texas Functions Maximize development of public resources Protecting the environment Public safety Protecting rights of mineral owners Preventing waste of natural resources picture from RRC strategic report

18 Statutes Affecting RRC Texas Constitution Texas Water Code Texas Natural Resources Code Safe Drinking Water Act Resource Conservation Act Clean Water Act

19 Texas RRC Responsibilities Regulatory jurisdiction over Oil and Gas and pipeline transporters Granting permits and licenses Inspection of facilities Investigating complaints Plugging abandoned wells To report a spill contact field operations Does not Give advice on enforcing or making oil and gas leases Enforce royalties of leases

20 Texas RRC offices 24 hour emergency number Public Relations office General information line Marion and Harrison Counties are in District 6 Director Michael O Quinn Henderson Blvd Kilgore TX Office of General Counsel Enforcement section charged with prosecuting individuals and companies charged with violating RRC rules and regulations Posts Decisions and Orders divisions/gc/pfdord/ogpoindx.html

21 Environmental Protection Agency Mission (EPA) To protect human health and the environment Develops and enforces regulations and implements federal environmental law Can issue sanctions and provide support to states to help maintain environmental quality. Provides grants and financial assistance to states, non-profits, and educational institutes Picture from EPA strategic report

22 Statutes Affecting EPA Clean Air Act Clean Water Act Oil Pollution Act Safe Drinking Water Act Oil and Gas may be exempted from parts or all of the above statutes. Information on laws and full text

23 EPA Emergency Response Maintains phone number through the National Response Center for reporting chemical spills Provides information to public regarding spills or releases of hazardous substances and oil spills In some instances helps coordinate spill response Picture from EPA strategic report

24 Texas Commission on Environmental Quality (TCEQ) Environmental agency of the State Mission- To protect Texas human and natural resources consistent with sustainable economic development. Clean Air, clean water, and the safe management of waste Administers Clean Air Act and Clean Water Act Will defer to RRC for Oil and Gas issues

25 TCEQ Offices Enforcement Division Responsible for investigation of violations of state environmental laws Responsible for ensuring that corrective action is taken Drafts proposed enforcement orders and penalties Has mobile laboratories to analyze air, water, and waste samples Environmental complaints hotline

26 TCEQ Reporting a Spill To report a spill contact (State Emergency Response Commission) Have as much of the following information available as possible: Date and time of spill or release Identity of material Estimate of quantity Location of spill and any waters involved Source Information on identity of owner Steps taken Extent of injuries Hazards

27 Mineral and Surface owners rights Severance of Rights Mineral Estate as dominant estate Surface Estate as servient estate

28 Mineral and Surface Owner Rights Dominant Estate may use premises as is reasonably necessary to produce and remove minerals Enter and Exit property Locate wells Construct roads Install pipes House employees Install storage tanks, slush pits Use any water

29 Mineral and Surface Owner Rights Surface estate entitled to accommodation Mineral owner must not substantially impair an existing use when reasonable alternative Interference with irrigation Close proximity to homes Damages outside the surface area reasonably necessary Negligence

30 Surface Owners Actions to Protect Interests Attempt to purchase mineral rights Attempt land use or surface use agreement Work with mineral right holder

31 Permits Permit is required through RRC to drill for oil or gas Drill permit Application query Action.do Army corps of Engineers 404 permit for the discharge of dredged or fill material into navigable waters at specified disposal sites Withdrawing water from underground reservoirs below base of usable quality water ( saline or brackish water) requires permit through RRC

32 What Can I Do? A lot. There are many things that you can do to guide and impact the development of oil and gas in the Caddo area.

33 This includes: getting involved in the permitting process for drillers; drafting the best leases for you and your community; being aware of State laws that affect you; learning the lessons of other communities who have dealt with oil and gas.

34 Permits Drillers are required to obtain a permit from the RRC for drilling related to oil and gas production and disposal. Under the RRC Rules, the public has an opportunity to participate when: the operator intends to deviate from the Statewide rules; or there is an application for a disposal or injection well for oil & gas waste.

35 New Wells If an operator is planning to drill a new well according to the RRC s standard statewide rules, there is NO public input. The statewide rules primarily deal with how close the proposed new well is to another existing well or neighboring property line. If an operator wants to deviate from these rules, the neighboring mineral owners will be notified.

36 Injection Well Permits If an injection well is proposed for the area, all affected parties will be notified, and notification must be published in the newspaper. You can contest the injection well and bring information to a hearing on whether the RRC should grant or deny the permit. Other communities have been successful contesting injection wells in their towns.

37 Surface Use Agreements (SUA) & Leases The best way to protect your land and economic interests is through a well-drafted SUA or lease.

38 SUAs defined These are agreements between the surface owner and company. They cover how the company will use the surface and how damages to the surface will be handled. They can be negotiated whether or not the surface owner also owns the mineral rights. Mineral owners often negotiate a SUA at the same time as a lease.

39 Things to consider in your SUA Make sure you are compensated for ALL surface damages. This can include: injuries to crops and pastures; erosion and stagnation of soil; growing timber; livestock; fences; ditches; canals; buildings and other structures; and pollution of any surface or subsurface waters.

40 Surface Damages Texas Cooperative Extension photo by Brian Hill

41 SUA (cont. d) Water Land Use Reclamation Quality of life, health, and safety

42 Leases defined A contract between a landowner (lessor) and a company or individual (lessee) that grants exploration and development rights to subsurface oil and gas deposits.

43 Leases A preprinted lease will tend to favor the interests of the drilling company. When entering into a lease, take care to define all terms carefully.

44 Before Signing a Lease or SUA Do not sign anything right away. If someone makes you an offer, ask for it in writing. Consult an attorney or landowners organization. Find out as much as you can about the company. Talk to your neighbors.

45 House Bill 630 Requires gas or oil well operators to notify surface owners before they enter property to drill. The operator must give notice within 15 days of receiving a permit from RCC. If you have a SUA, operators are NOT required to give you notice under this law.

46 Lessons from other Communities BEFORE AFTER

47 Road Damage Poorly Maintained Injection Wells

48 Panola County