Economic Impact of the Eagle Ford Shale County-Level Detail Appendix. September 2014

Economic Impact of the Eagle Ford Shale County-Level Detail Appendix September 2014

Acknowledgements This report was prepared by the Center for Community and Business Research at the University of Texas at San Antonio s Institute for Economic Development. The project was supported with funding from the South Texas Energy and Economic Roundtable (STEER), America s Natural Gas Alliance (ANGA) and SHALE Oil & Gas Business Magazine. Any findings, conclusions, or opinions are those of the authors and not necessarily those reflected by the University of Texas at San Antonio, STEER, ANGA, or SHALE Oil & Gas Business Magazine. Principal Investigator: Thomas Tunstall, Ph.D. Lead Investigator: Javier Oyakawa, M.A., MSc. Researchers: Gina Conti, Maricela Diaz-Wells, Jason Hernandez, Yongsun Lee, Vincent Loeffelholz, Neeraj Ravi, John Rodriguez, Feihua Teng, Carelli de la Garza, Hector Torres, Binbin Wang, John Zhang GIS Specialist: Hisham Eid Review Assistance: Chris Clark 1

Contents Acknowledgements... 1 Executive Summary... 11 Atascosa County... 16 Overview of Atascosa County... 16 General County Data... 17 Population Growth Comparison... 18 Population Forecast... 19 Natural Resource and Mining Employment Growth Comparison... 20 Job Growth Comparison... 21 Location Quotients for NRM Employment in Atascosa and 15-County EFS Area... 22 Employment Changes... 24 Employment Forecast... 25 State Sales Tax... 26 Commuting Patterns... 27 Economic Impacts in 2013... 28 Economic Impacts in 2023... 29 Bee County... 30 Overview of Bee County... 30 General County Data... 31 Population Growth Comparison... 32 Population Forecast... 33 Natural Resource and Mining Employment Growth Comparison... 34 Job Growth Comparison... 35 Location Quotients for NRM Employment in Bee and the EFS Area... 36 Employment Changes... 38 Employment Forecast... 39 State Sales Tax... 40 2

Commuting Patterns... 41 Economic Impacts in 2013... 42 Economic Impacts in 2023... 43 DeWitt County... 44 Overview of Dewitt County... 44 General County Data... 45 Population Growth Comparison... 46 Population Forecast... 47 Natural Resource and Mining Employment Growth Comparison... 48 Job Growth Comparison... 49 Location Quotients for NRM Employment in DeWitt and 15-County EFS area... 50 Employment Changes... 52 Employment Forecast... 53 State Sales Tax... 54 Commuting Patterns... 55 Economic Impacts in 2013... 56 Economic Impacts in 2023... 57 Dimmit County... 58 Overview of Dimmit County... 58 General County Data... 59 Population Growth Comparison... 60 Population Forecast... 61 Natural Resource and Mining Employment Growth Comparison... 62 Job Growth Comparison... 63 Location Quotients for NRM Employment in Dimmitt and 15-County EFS area... 64 Employment Changes... 66 Employment Forecast... 67 State Sales Tax... 68 3

Commuting Patterns... 69 Economic Impacts in 2013... 70 Economic Impacts in 2023... 71 Frio County... 72 Overview of Frio County... 72 General County Data... 73 Population Growth Comparison... 74 Population Forecast... 75 Natural Resource and Mining Employment Growth Comparison... 76 Job Growth Comparison... 77 Location Quotients for NRM Employment in Frio and 15-County EFS area... 78 Employment Changes... 80 Employment Forecast... 81 State Sales Tax... 82 Commuting Patterns... 83 Economic Impacts in 2013... 84 Economic Impacts in 2023... 85 Gonzales County... 86 Overview of Gonzales County... 86 General County Data... 87 Population Growth Comparison... 88 Population Forecast... 89 Natural Resource and Mining Employment Growth Comparison... 90 Job Growth Comparison... 91 Location Quotients for NRM Employment in Gonzales and 15-County EFS area... 92 Employment Changes... 94 Employment Forecast... 95 State Sales Tax... 96 4

Commuting Patterns... 97 Economic Impacts in 2013... 98 Economic Impacts in 2023... 99 Karnes County... 100 Overview of Karnes County... 100 General County Data... 101 Population Growth Comparison... 102 Population Forecast... 103 Natural Resource and Mining Employment Growth Comparison... 104 Job Growth Comparison... 105 Location Quotients for NRM Employment in Karnes and 15-County EFS area... 106 Employment Changes... 108 Employment Forecast... 109 State Sales Tax... 110 Commuting Patterns... 111 Economic Impacts in 2013... 112 Economic Impacts in 2023... 113 La Salle County... 114 Overview of La Salle County... 114 General County Data... 115 Population Growth Comparison... 116 Population Forecast... 117 Natural Resource and Mining Employment Growth Comparison... 118 Job Growth Comparison... 119 Location Quotients for NRM Employment in LaSalle and 15-County EFS Area... 120 Employment Changes... 122 Employment Forecast... 123 State Sales Tax... 124 5

Commuting Patterns... 125 Economic Impacts in 2013... 126 Economic Impacts in 2023... 127 Lavaca County... 128 Overview of Lavaca County... 128 General County Data... 129 Population Growth Comparison... 130 Population Forecast... 131 Job Growth Comparison... 132 Natural Resource and Mining Employment Growth Comparison... 133 Location Quotients for NRM Employment in Lavaca and 15-County EFS area... 134 Employment Changes... 136 Employment Forecast... 137 State Sales Tax... 138 Commuting Patterns... 139 Economic Impacts in 2013... 140 Economic Impacts in 2023... 141 Live Oak County... 142 Overview of Live Oak County... 142 General County Data... 143 Population Growth Comparison... 144 Population Forecast... 145 Natural Resource and Mining Employment Growth Comparison... 146 Job Growth Comparison... 147 Location Quotients for NRM Employment in Live Oak and 15-County EFS Area... 148 Employment Changes... 150 Employment Forecast... 151 State Sales Tax... 152 6

Commuting Patterns... 153 Economic Impacts in 2013... 154 Economic Impacts in 2023... 155 Maverick County... 156 Overview of Maverick County... 156 General County Data... 157 Population Growth Comparison... 158 Population Forecast... 159 Natural Resource and Mining Employment Growth Comparison... 160 Job Growth Comparison... 161 Location Quotients for NRM Employment in Maverick and 15-County EFS area... 162 Employment Changes... 164 Employment Forecast... 165 State Sales Tax... 166 Commuting Patterns... 167 Economic Impacts in 2013... 168 Economic Impacts in 2023... 169 McMullen County... 170 Overview of McMullen County... 170 General County Data... 171 Population Growth Comparison... 172 Population Forecast... 173 Natural Resource and Mining Employment Growth Comparison... 174 Job Growth Comparison... 175 Location Quotients for NRM Employment in McMullen and 15-County EFS area... 176 Employment Forecast... 179 State Sales Tax... 180 Commuting Patterns... 181 7

Economic Impacts in 2013... 182 Economic Impacts in 2023... 183 Webb County... 184 Overview of Webb County... 184 General County Data... 185 Population Growth Comparison... 186 Population Forecast... 187 Natural Resource and Mining Employment Growth Comparison... 188 Job Growth Comparison... 189 Location Quotients for NRM Employment in Webb and 15-County EFS area... 190 Employment Changes... 192 Employment Forecast... 193 State Sales Tax... 194 Commuting Patterns... 195 Economic Impacts in 2013... 196 Economic Impacts in 2023... 197 Wilson County... 198 Overview of Wilson County... 198 General County Data... 199 Population Growth Comparison... 200 Population Forecast... 201 Natural Resource and Mining Employment Growth Comparison... 202 Job Growth Comparison... 203 Location Quotients for NRM Employment in Wilson and 15-County EFS Area... 204 Employment Changes... 206 Employment Forecast... 207 State Sales Tax... 208 Commuting Patterns... 209 8

Economic Impacts in 2013... 210 Economic Impacts in 2023... 211 Zavala County... 212 Overview of Zavala County... 212 General County Data... 213 Population Growth Comparison... 214 Population Forecast... 215 Natural Resource and Mining Employment Growth Comparison... 216 Job Growth Comparison... 217 Location Quotients for NRM Employment in Zavala and 14-county EFS area... 218 Employment Changes... 220 Employment Forecast... 221 State Sales Tax... 222 Commuting Patterns... 223 Economic Impacts in 2013... 224 Economic Impacts in 2023... 225 Additional Counties:... 226 Bexar County... 226 Population County Overview... 227 Population Growth Comparison... 228 Job Growth Comparison... 229 Natural Resource and Mining Employment Growth Comparison... 229 Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 230 Jim Wells County... 233 Population County Overview... 234 Population Growth Comparison... 235 Job Growth Comparison... 236 Natural Resource and Mining Employment Growth Comparison... 236 9

Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 237 Nueces County... 239 Population County Overview... 241 Population Growth Comparison... 242 Job Growth Comparison... 243 Natural Resource and Mining Employment Growth Comparison... 244 Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 245 San Patricio County... 247 Population County Overview... 248 Population Growth Comparison... 249 Job Growth Comparison... 250 Natural Resource and Mining Employment Growth Comparison... 251 Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 252 Uvalde County... 254 Population County Overview... 255 Population Growth Comparison... 256 Job Growth Comparison... 257 Natural Resource and Mining Employment Growth Comparison... 258 Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 259 Victoria County... 261 Population County Overview... 262 Population Growth Comparison... 263 Job Growth Comparison... 264 Natural Resource and Mining Employment Growth Comparison... 265 Location Quotients for NRM Employment in Atascosa and 14-county EFS area... 266 References... 268 10

Executive Summary Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 11

Executive Summary This latest economic impact report on the Eagle Ford represents the 4 th installment in the series. Communities throughout South Texas continue to experience tremendous growth and stand to benefit from significant economic impacts as a result of natural gas, oil, and condensate development in the Eagle Ford Shale. Overall, oil and condensate production in the Eagle Ford has grown from 581 barrels per day in 2008 to over 1.1 million barrels per day as of June 2014. Natural gas production now tops 4 billion cubic feet per day. The Eagle Ford Shale continues to exceed expectations and currently attracts the most capital investment of any shale field in the U.S. This study assesses the economic impact of the Eagle Ford Shale for 2013, including direct, indirect and induced impacts in the 21 counties directly and indirectly involved in production. Lavaca County has been added to the geographical scope of this year s study. Also provided is an analysis of economic impacts of related businesses such as construction projects, manufacturing investments, as well as upstream, midstream and downstream impacts. Of particular note is the aspect of community sustainability. The ongoing activity - driven by energy companies and related industries - presents South Texas community leaders with a rare opportunity to ensure the long-term viability of their cities, towns and counties. As the natural gas, oil, and condensate production in the Eagle Ford continues to increase, the challenges facing community leaders are more critical than ever. Investments in infrastructure - roads, water, wastewater, K-12 education, medical facilities, etc. - are the key components that will provide the necessary foundation to ensure future sustainability of communities in South Texas. To address infrastructure investment, community leaders should be engaged with state legislators to develop systematic solutions to ensure that rural areas benefit from revenue sources such as the Economic Stabilization Fund. 1 Cities and counties that do not collect the two percent sales tax allowed by state law should consider doing so as well. The impact of Eagle Ford is far-reaching, but it will be up to community leadership to seize the opportunity. Estimates of overall economic impact for the 21-county area in 2013 top $87 billion, up from $61 billion in 2012. For 2023, the 21-county impact is estimated to reach nearly $155 billion, far higher than the $89 billion forecast for 2022 that we reported in the March 2013 economic impact study. The rationale for the upward revisions (as mentioned above) is due to the way the Eagle Ford continues to exceed expectations in terms of production. In addition, new manufacturing projects associated with the natural gas renaissance in the U.S., as well as new processing, refining and port facilities are factors driving increases in the economic impact statistics. 1 The Texas Economic Stabilization Fund (ESF) is more commonly referred to as the Rainy Day Fund and isexpected to approach $14 billion by the 2015 legislative session. Oil and gas severance taxes are currently providing the bulk of the funding for the ESF. 12

Scope This study examines the 15 core counties where activity is most prevalent in the Eagle Ford Shale. These counties are: Atascosa Gonzales Maverick Bee Karnes McMullen DeWitt La Salle Webb Dimmit Lavaca Wilson Frio Live Oak Zavala Additionally, this study examines 6 neighboring counties where significant activity, not including extraction, is occurring. These counties are Bexar Jim Wells Nueces San Patricio Uvalde Victoria 13

2013 Total estimated economic impacts For 2013, the oil and gas industry in the Eagle Ford is estimated to have contributed total impacts close to $72 billion in the core 15-county area, supporting almost 115,000 full-time equivalent jobs, while contributing just over $2 billion both to local governments and to the state government. The 21-county area, which includes the 15 core counties and 6 surrounding counties, is estimated to have contributed just under $90 billion in economic output, employing over 150,000 people, and provided over $2.2 billion to both the local governments and to the state government. Economic impact Direct Indirect Induced Total Output $61,470,280,412 $7,941,100,117 $2,418,234,050 $71,829,614,579 Employment, full-time 42,607 52,333 19,375 114,315 Core 15-county area Payroll $2,027,428,721 $1,539,076,337 $584,718,872 $4,151,223,930 Gross regional product $30,448,269,805 $4,333,962,004 $1,542,827,867 $36,325,059,676 Local government revenues $2,025,968,804 State revenue, including severance taxes $2,028,406,113 Output $70,725,115,021 $12,896,817,708 $4,135,496,654 $87,757,429,382 Employment, full-time 51,652 71,648 31,684 154,984 Core and neighboring 21-county area Payroll $2,707,017,870 $2,036,271,899 $896,394,413 $5,639,684,182 Gross regional product $32,992,259,490 $7,199,851,186 $2,640,560,616 $42,832,671,293 Local government revenues $2,218,877,342 State revenue, including severance taxes $2,214,664,000 Source: IMPLAN

2023 Total estimated economic impacts For 2023, the core 15-county area is estimated to have an economic output of over $120 billion, employ 170,000 workers, and contribute approximately $4.5 billion to the local and to the state government. The 21-county area is estimated to contribute close to $155 billion in economic output, provide approximately 220,000 full-time equivalent jobs, and supply over $4.7 billion to both local governments and to the state. Economic impact Direct Indirect Induced Total Output $104,351,566,973 $12,558,453,461 $5,980,635,393 $122,890,655,827 Employment, full-time 40,588 82,307 47,912 170,807 Core 15-county area Payroll $7,236,771,283 $2,334,324,666 $1,446,441,954 $11,017,537,904 Gross regional product $62,080,644,141 $6,667,762,818 $3,815,928,705 $72,564,335,664 Local government revenues $4,492,272,543 State revenue, including severance taxes $4,526,209,986 Output $124,759,808,465 $21,452,588,557 $8,261,973,466 $154,474,370,488 Employment, full-time 42,569 112,699 64,138 219,406 Core and neighboring 21-county area Payroll $7,643,159,428 $3,835,633,784 $2,117,833,257 $13,596,626,469 Gross regional product $66,802,464,206 $11,821,872,891 $5,271,076,088 $83,895,413,184 Local government revenues $4,742,969,499 State revenue, including severance taxes $4,770,092,567 Source: IMPLAN 15

Atascosa County Overview of Atascosa County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 16

General County Data In 2013, much of the economic development in Atascosa has centered in Pleasanton. In order to service Eagle Ford Clients in the shale region, Houston-based FlexSteel Pipeline Technologies, Inc., opened a 6,000 sq. ft. service center. The facility rests on two acres of land and supports four employees. 2 Pipe distributor, ISCO Industries Inc., out of Louisville, KY, also opened a 4,000 sq. ft. facility in Pleasanton, supplying leak- and corrosion-resistant, polyethylene pipe products. 3 In order to supply the millions of gallons of water required for the hydraulic fracturing process, the water-transfer firm, RCW Energy Services, opened an office in Pleasanton, a capital investment that increased its payroll in the area in addition to the allocation of new pipes, pumps, and storage equipment. 4 Other projects were announced in 2013 demonstrated new opportunities for other firms. With the influx of new hires by oil, trucking, and pipeline companies for Eagle Ford projects, there is a subsequent demand comprehensive background checks, including drug and alcohol testing, as a means to prevent on-field injuries. This need convinced the Greenville, South Carolina-based ARCpoint Labs to open of a new office in Pleasanton. 5 In November 2013, the Phoenix Hospitality Group announced the construction of a 70- acre, multi-family housing development, slated for completion in the second quarter of 2014. 6 H.E. Butts Grocery Co. announced an expansion to the Pleasanton location. Once completed in August 2014, the project would double the size of the existing store. 7 Atascosa, a Texan county in the Eagle for Shale region consists of a total population of 46,446 thousand people. Out of these, the population that makes up the total employment is 10,704 people Atascosa, a Texan county in the Eagle Ford Shale region, consists of a total population of 46,446 thousand people. Out of these, the population that makes up the total employment is 10,704 people. It is estimated that out of the total employment, $30,238 is the average per capita personal income. Population 46,446 Per Capita Personal Income 30,238 Total Employment 10,704 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 2 Nowlin, Sanford. FlexSteel opens pipeline-supply facility in Pleasanton to service Eagle Ford clients. San Antonio Business Journal. Nov. 18, 2013. 3 Nowlin, Sanford. ISCO Industries opens pipe distribution facility South of San Antonio. San Antonio Business Journal. Nov. 22, 2013. 4 Nowlin, Sanford. RCW Energy pumps up capital spending in Eagle Ford, other Texas plays. San Antonio Business Journal. September 23, 2013. 5 Aldridge, James. ARCpoint Labs targeting Eagle Ford firms for employment screenings. San Antonio Business Journal. Jan. 8, 2013. 6 Silva, Tricia Lynn. Phoenix Hospitality Group broadens geographic reach. San Antonio, Business Journal. November 29, 2013. 7 Thomas, Mike W. H-E-B expanding store in Pleasanton. San Antonio Business Journal. August 1, 2013. 17

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Similarly, Atascosa County also has been steadily increasing; it holds a 17 percent increase in population. Comparative Population Growth Source: U.S. Census Bureau 18

Population Forecast The following table projects Atascosa County s population from 2010-2023. Atascosa County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 10,165 people. Population Forecast From 2010-2023 Year Population 2010 44,911 2011 45,655 2012 46,374 2013 47,110 2014 47,866 2015 48,623 2016 49,385 2017 50,172 2018 50,963 2019 51,760 2020 52,574 2021 53,401 2022 54,235 2023 55,076 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 19

Natural Resource and Mining Employment Growth Comparison All three areas saw an increase, followed a sharp drop in 2008, with Atascosa falling as much 16 percent in 2009. Despite the decrease in 2009, in 2013 Atascosa experienced a net increase of 41 percent. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 20

Job Growth Comparison All the three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2010 when Atascosa County spiked and continued their increase to their current mark of 36 percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Population Growth Source: Texas Workforce Commission (QCEW) 21

Location Quotients for NRM Employment in Atascosa and 15-County EFS Area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Atascosa County and the 15-County EFS area as a whole have been over 1 for all five years, with Atascosa s peaking at 4.29 in 2010. The 15-County EFS area s location quotient has been steadily rising to 2.53 in 2012. Location Quotients for NRM Employment Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 22

Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 23

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Atascosa county area, there was a 38.88 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Construction with a 217.92 percent increase, and the industry with the highest negative growth in employment was Other Services, with a -29.03 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 9,328 12,955 3,627 38.88% Natural Resources and Mining 863 1,483 620 71.84% Construction 558 1,774 1,216 217.92% Manufacturing 296 320 24 8.11% Trade, Transportation and Utilities 2,136 3,063 927 43.40% Information 68 75 7 10.29% Financial Activities 361 980 619 171.47% Professional and Business Services 368 412 44 11.96% Education and Health Services 3,134 2,990-144 -4.59% Leisure and Hospitality 650 1,018 368 56.62% Other Services 372 264-108 -29.03% Public Administration 516 564 48 9.30% Unclassified - - - Source: Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 24

Employment Forecast The following table demonstrates that Atascosa County will experience in 2023 an increase of 2,832 jobs. Year Total 2011 9,542 2012 9,749 2013 9,960 2014 10,175 2015 10,399 2016 10,625 2017 10,855 2018 11,095 2019 11,338 2020 11,589 2021 11,845 2022 12,106 2023 12,374 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 25

State Sales Tax Source: Texas Comptroller of Public Accounts When analyzing the smoothed data series for sales tax for Atascosa County from 2002 to 2013, we can see that the upward trend began in 2011. In just over two years, Atascosa County has seen a boom in sales tax, and as a result the amount subject to tax has risen from $60 million to $145 million in the fourth quarter of 2013, for an increase of $85 million. This is in contrast to just a $20 million increase in the previous nine years. 26

Commuting Patterns The following table represents the number and percent of the people that work in Atascosa County. Out of the 14,959 persons living in this County, only 3,767 persons are employed there. These figures demonstrated that 74.8% of the population of Atascosa is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 8,535 100% Employed in the Selection Area but Living Outside 4,768 55.9% Employed and Living in the Selection Area 3,767 44.1% Living in the Selection Area 14,959 100% Living in the Selection Area but Employed Outside 11,192 74.8% Employed and Living in the Selection Area 3,767 25.2% Source: U.S. Census Bureau s On the Map 27

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Atascosa County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $3,309 million, the total gross county product was $1,771.55 million, a total of 5,682 full-time employments were generated, and the total estimated county revenue was $103 million. Economic Impacts Direct Indirect Induced Total Output $2,810.88 $405.98 $92.46 $3,309.32 Employment Full-Time 1,922 3,035 725 5,682 Payroll $91.28 $65.31 $21.33 $177.92 Fiscal Impacts Direct Indirect Induced Total Gross County Product $1,520.69 $191.04 $59.82 $1,771.55 Total Local Revenues $103.51 Estimated County Revenue $103.73 28

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Atascosa County. In 2023, it is estimated that a total of 12,796 jobs will be created; the county output will be $6,922 million, over $4,381 million will be the gross county product, and the total estimated county revenue will be $254 million. Economic Impacts Direct Indirect Induced Total Output $5,115.92 $1,433.02 $373.69 $6,922.62 Employment Full-Time 2,028 7,890 2,878 12,796 Payroll $375.13 $266.46 $87.22 $728.81 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,272.67 $868.55 $240.33 $4,381.55 Total Local Revenues $254.83 Estimated County Revenue $254.62 29

Bee County Overview of Bee County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 30

General County Data Bee County also experienced an influx of capital investment. In addition to the nearly $41 million in well construction, the City of Beeville received new permits for the construction of 330 homes, totaling $75 million. Beeville received an additional 19 construction permits valued at $2.5 million dollars. 8 Bee County, a Texan county in the Eagle Ford Shale region, consists of a total population of 32,527 thousand people. Out of these, the population that makes up the total employment is 9,356 people. It is estimated that out of the total employment, $26,697 is the average per capita personal income. Population 32,527 Per Capita Personal Income 26,697 Total Employment 9,356 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 8 Don Frizzell, Beeville Building Inspector, July 10, 2014. 31

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Similarly, Bee County also has been steadily increasing; it holds a 17 percent increase in population. Comparative Population Growth Source: U.S. Census Bureau 32

Population Forecast The following table projects Bee County s population from 2010-2023. Bee County is projected by the year 2023, to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a slow annual increase of 2,072 people. Population Forecast From 2010-2023 Year Population 2010 31,861 2011 32,040 2012 32,200 2013 32,351 2014 32,513 2015 32,676 2016 32,839 2017 33,012 2018 33,170 2019 33,324 2020 33,478 2021 33,629 2022 33,770 2023 33,933 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 33

Natural Resource and Mining Employment Growth Comparison Both the EFS area and the state of Texas as a whole saw an increase, followed a sharp drop in 2008. The EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Bee County s increase in NRM employment was slow until a spike saw the net increase from 16 percent in 2012 to 36 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 34

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2010 when Bee County spiked and continued their increase to their current mark of 36 percent. The EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 35

Location Quotients for NRM Employment in Bee and the EFS Area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Bee County and the EFS area as a whole have been over 1 for all five years, with Bee s rising to 3.71. The EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 36

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 37

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2012, for Bee county area, there was a 14.36 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was manufacturing with a 276.58 percent increase, and the industry with the highest negative growth in employment was Financial Activities, with a -2.48 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 8,472 9,689 1,217 14.36% Natural Resources and Mining 422 861 439 104.03% Construction 224 330 106 47.32% Manufacturing 111 418 307 276.58% Trade, Transportation and Utilities 1,546 1,703 157 10.16% Information 89 115 26 29.21% Financial Activities 242 236-6 -2.48% Professional and Business Services 243 297 54 22.22% Education and Health Services 2,573 2,679 106 4.12% Leisure and Hospitality 761 1,006 245 32.19% Other Services 210 298 88 41.90% Public Administration - 1,733 1,733 - Unclassified - - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 38

Employment Forecast The following table demonstrates that Bee County will experience in 2023 an increase of 3,279 jobs. Year Total 2011 12,236 2012 12,478 2013 12,723 2014 12,976 2015 13,237 2016 13,498 2017 13,768 2018 14,045 2019 14,325 2020 14,612 2021 14,907 2022 15,209 2023 15,515 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 39

State Sales Tax Source: Texas Comptroller of Public Accounts If we take a look at Bee County s state tax data, the fluctuating smoothed data series jumps out first. After a series of gains and losses from 2002 to 2010, it ended up being back at $40 million. This was followed by a steady spike, as the amount of state tax more than doubled in just less than three years from $40 million to $80 million in the fourth quarter of 2013. 40

Commuting Patterns The following table represents the number and percent of the people that work in Bee County. Out of the 10,165 persons living in this County, only 3,097 persons are employed there. These figures demonstrated that 69.5% of the population of Bee is employed outside. Inflow/Outflow Job Counts (Primary Jobs) Count Share Employed in the Selection Area 5,924 100% Employed in the Selection Area but Living Outside 2,827 47.7% Employed and Living in the Selection Area 3,097 52.3% Living in the Selection Area 10,165 100% Living in the Selection Area but Employed Outside 7,068 69.5% Employed and Living in the Selection Area 3,097 30.5% Source: U.S. Census Bureau s On the Map 41

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Bee County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $382 million, the total gross county product was $140 million, a total of 1,186 full-time employments were generated, and the total estimated county revenue was $5 million. Economic Impacts Direct Indirect Induced Total Output $213.64 $134.83 $33.98 $382.45 Employment Full-Time 262 660 264 1,186 Payroll $13.67 $31.23 $8.86 $53.77 Fiscal Impacts Direct Indirect Induced Total Gross County Product $42.24 $75.66 $22.28 $140.18 Total Local Revenues $5.84 Estimated County Revenue $5.74 42

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Bee County. In 2023, it is estimated that a total of 1,991 jobs will be created; the county output will be $1,509 million, over $333 million will be the gross county product, and the total estimated county revenue will be $14 million. Economic Impacts Direct Indirect Induced Total Output $1,165.81 $281.94 $61.52 $1,509.26 Employment Full-Time 122 1,394 474 1,991 Payroll $19.03 $61.71 $16.02 $96.76 Fiscal Impacts Direct Indirect Induced Total Gross County Product $141.45 $152.12 $40.35 $333.92 Total Local Revenues $14.29 Estimated County Revenue $14.14 43

DeWitt County Overview of Dewitt County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 44

General County Data In October 2013, Houston-based Kinder Morgan Energy announced a $74 million extension of its selftitled Kinder Morgan Crude Condensate (KMCC) pipeline from DeWitt County to Gonzales County. The majority of this project, approximately $65.8 million, would be based in DeWitt County alone. 9 Much of the housing development centers at Cuero, Texas. In 2013, three motel units opened in the city: a 51- room America Best Value Inn ($2.7 million), 10 a 77-room Holiday Inn Express ($4.6 million), 11 and a 42- guest room Hotel Texas. Austin-based Cuero DMA Development Company, LLC constructed a $3.2 million, 60-unit apartment complex. 12 The City of Cuero also approved 35 housing permits for $4.5 million and four commercial permits valued at $6.2 million. 13 ERF Wireless, a broadband provider based out of League City, Texas, upgraded its coverage in the Eagle Ford Shale area, particularly in Cuero. The year also saw the construction of new Chisholm Trail Heritage Museum. DeWitt County, a Texan county in the Eagle Ford Shale region, consists of a total population of 20,465 thousand people. Out of these, the population that makes up the total employment is 7,365 people. It is estimated that out of the total employment, $34,727 is the average per capita personal income. Population 20,465 Per Capita Personal Income 34,727 Total Employment 7,365 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 9 Gebrekidan, Salam. Kinder Morgan to build an extension to Eagle Ford pipeline. Reuters. October 9, 2013. Retrieved from: http://www.reuters.com/article/2013/10/09/us-kindermorgan-pipeline-eaglefordidusbre99813l20131009 10 Nowlin, Sanford. Two new hotels going up in Cuero to provide Eagle Ford lodging. San Antonio Business Journal. September, 18, 2013. 11 Ibid. 12 City of Cuero Regular City Council Meeting. January 22, 2013 13 Randall Malik (October 21,2013) 45

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. DeWitt County s population growth has been steady, never rising or falling by more than two percent over the eleven year period. Comparative Population Growth Source: U.S. Census Bureau 46

Population Forecast The following table projects Dewitt County s population from 2010-2023. DeWitt County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see somewhat of an increase of 1,005 people. Population Forecast From 2010-2023 Year Population 2010 20,097 2011 20,165 2012 20,245 2013 20,315 2014 20,377 2015 20,462 2016 20,544 2017 20,608 2018 20,688 2019 20,775 2020 20,855 2021 20,944 2022 21,023 2023 21,102 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 47

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. DeWitt County followed the pattern of the 15-County EFS area and the state of Texas until 2010, when it increased rapidly to 310 percent in 2012, and has slowed the increase slightly as in 2013; the employment growth in NRM sits at 334 percent. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 48

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2010 when DeWitt County spiked and continued is increase to 12 percent in 2012, which was followed by a slight decrease to its current net increase of 11 percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 49

Location Quotients for NRM Employment in DeWitt and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both DeWitt County and the 15-County EFS area as a whole have been over 1 for all five years, with DeWitt s rising to 3.71. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment Source: Texas Workforce Commission, Quarterly Census of Employment an d Wages data, from 2001 to 2012 50

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 51

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for DeWitt county area, there was a 17.59 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources and Mining with a 338.10 percent increase, and the industry with the highest negative growth in employment was Other Services, with a -7.39 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 6,333 7,447 1,114 17.59% Natural Resources and Mining 147 644 497 338.10% Construction 395 532 137 34.68% Manufacturing 897 1,070 173 19.29% Trade, Transportation and Utilities 986 1,128 142 14.40% Information 24 25 1 4.17% Financial Activities 429 580 151 35.20% Professional and Business Services 203 246 43 21.18% Education and Health Services 2,001 1,893-108 -5.40% Leisure and Hospitality 439 570 131 29.84% Other Services 176 163-13 -7.39% Public Administration 627 596-31 -4.94% Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 52

Employment Forecast The following table demonstrates that Dewitt County will experience in 2023 an increase of 1,702 jobs. Year Total 2011 7,490 2012 7,616 2013 7,746 2014 7,877 2015 8,010 2016 8,148 2017 8,288 2018 8,431 2019 8,576 2020 8,725 2021 8,877 2022 9,034 2023 9,192 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 53

State Sales Tax Source: Texas Comptroller of Public Accounts When examining the state tax numbers from DeWitt County, one notices the giant increase once again in 2010. This is preceded by a steady gain from 2002 to 2008, followed by a sharp drop during the global economic crisis. The rise from 2010 to 2013 was from $23 million to $66 million in the fourth quarter of 2013. 54

Commuting Patterns The following table represents the number and percent of the people that work in Dewitt County. Out of the 7,411 persons living in this County, only 2,767 persons are employed there. These figures demonstrated that 62.70% of the population of Dewitt is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 6,181 100% Employed in the Selection Area but Living Outside 3,414 55.2% Employed and Living in the Selection Area 2,767 44.8% Living in the Selection Area 7,411 100% Living in the Selection Area but Employed Outside 4,644 62.7% Living and Employed in the Selection Area 2,767 37.3% Source: U.S. Census Bureau s On the Map 55

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on DeWitt County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $ 4,947 million, the total gross county product was $ 2,391 million, a total of 9, 407 full-time employments were generated, and the total estimated county revenue was $ 134 million. Economic Impacts Direct Indirect Induced Total Output $4,124.92 $663.70 $159.09 $4,947.71 Employment Full-Time 3,188 4,922 1,297 9,407 Payroll $153.07 $122.59 $33.60 $309.26 Fiscal Impacts Direct Indirect Induced Total Gross County Product $1,979.82 $311.04 $100.23 $2,391.09 Total Local Revenues $134.70 Estimated County Revenue $134.79 56

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on DeWitt County. In 2023, it is estimated that a total of 13,152 jobs will be created; the county output will be $8,373 million, over $4,678million will be the gross county product, and the total estimated county revenue will be $295 million. Economic Impacts Direct Indirect Induced Total Output $6,997.39 $1,024.49 $351.39 $8,373.26 Employment Full-Time 2,675 7,614 2,864 13,152 Payroll $473.19 $196.36 $74.20 $743.75 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,989.26 $468.10 $221.29 $4,678.66 Total Local Revenues $295.37 Estimated County Revenue $295.53 57

Dimmit County Overview of Dimmit County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 58

General County Data St. Louis-operated Graybar opened to new branches in Asherton and Carrizo Springs, Texas in Dimmit County. Graybar is a national supply chain management and logistics provider. 14 In 2013, 6 singlefamily homes were constructed valued at $5.8 million. 15 Dimmit County, a Texan county in the Eagle Ford Shale region, consists of a total population of 10,461 thousand people. Out of these, the population that makes up the total employment is 4,798 people. It is estimated that out of the total employment, $34,379 is the average per capita personal income. Population 10,461 Per Capita Personal Income 34,379 Total Employment 4,798 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 14 Aldridge, James. Graybar expanding out to Eagle Ford Shale region. San Antonio Business Journal. March 8, 2013. 15 Source: U.S. Census Bureau 59

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Dimmit County s population growth has been fairly steady throughout, with a steady increase over the last 2 years, reaching a net increase of 4 percent. Comparative Population Growth Source: U.S. Census Bureau 60

Population Forecast The following table projects Dimmit County s population from 2010-2023. Dimmit County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 1,162 people. Population Forecast From 2010-2023 Year Population 2010 9,996 2011 10,079 2012 10,170 2013 10,259 2014 10,345 2015 10,434 2016 10,531 2017 10,617 2018 10,707 2019 10,790 2020 10,875 2021 10,967 2022 11,070 2023 11,158 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 61

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Dimmit County was on a slight increase until 2010, when it increased rapidly to 361 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 62

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2010 when Dimmitt County spiked and continued its huge increase to 89 percent in 2013. The 15- County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 63

Location Quotients for NRM Employment in Dimmitt and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Dimmitt County and the 15-County EFS area as a whole have been over 1 for all five years, with Dimmitt s rising to 11.52 in 2011. In 2012, it stands at 10.27. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 64

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 65

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Dimmit county area, there was a 104.21 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was manufacturing with a 419.23 percent increase, and the industry with the highest negative growth in employment was Professional and Business Services, with a -100 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 2,901 5,924 3,023 104.21% Natural Resources and Mining 527 1,640 1,113 211.20% Construction 182 395 213 117.03% Manufacturing 26 135 109 419.23% Trade, Transportation and Utilities 464 1,001 537 115.73% Information 7 7-0.00% Financial Activities 88 154 66 75.00% Professional and Business Services 67-67 -100.00% Education and Health Services 698 781 83 11.89% Leisure and Hospitality 247 507 260 105.26% Other Services 66 105 39 59.09% Public Administration 527 560 33 6.26% Unclassified - - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 66

Employment Forecast The following table demonstrates that Dimmit County will experience in 2023 an increase of 1,273 jobs. Year Total 2011 3,131 2012 3,218 2013 3,307 2014 3,399 2015 3,498 2016 3,597 2017 3,700 2018 3,807 2019 3,918 2020 4,035 2021 4,154 2022 4,276 2023 4,404 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 67

State Sales Tax Source: Texas Comptroller of Public Accounts Dimmit County s data clearly shows the impact of the Eagle Ford Shale drilling. Their local economy was fairly stagnant until the middle of 2010, when a major spike in the amount of state tax levied. In that time, the tax paid increased more than five-fold, from $13 million in 2010 to $56 million in the fourth quarter of 2013. 68

Commuting Patterns The following table represents the number and percent of the people that work in Dimmit County. Out of the 2,724 persons living in this County, only 1,172 persons are employed there. These figures demonstrated that 57% of the population of Dimmit is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 3,752 100% Employed in the Selection Area but Living Outside 2,580 68.8% Employed and Living in the Selection Area 1,172 31.2% Living in the Selection Area 2,724 100% Living in the Selection Area but Employed Outside 1,552 57.0% Living and Employed in the Selection Area 1,172 43.0% Source: U.S. Census Bureau s On the Map 69

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Dimmit County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $8,552 million, the total gross county product was $4,529 million, a total of 5,970 full-time employments were generated, and the total estimated county revenue was $253 million. Economic Impacts Direct Indirect Induced Total Output $7,601.75 $738.96 $212.27 $8,552.98 Employment Full-Time 0 4,392 1,578 5,970 Payroll $265.30 $230.54 $57.57 $553.41 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,980.46 $413.87 $134.80 $4,529.12 Total Local Revenues $253.41 Estimated County Revenue $253.51 70

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Dimmit County. In 2023, it is estimated that a total of 17,404 jobs will be created; the county output will be $14,441million, over $9,000million will be the gross county product, and the total estimated county revenue will be $560 million. Economic Impacts Direct Indirect Induced Total Output $12,570.84 $1,322.97 $547.27 $14,441.08 Employment Full-Time 5,491 7,842 4,071 17,404 Payroll $953.81 $419.46 $148.40 $1,521.68 Fiscal Impacts Direct Indirect Induced Total Gross County Product $7,932.14 $720.25 $347.63 $9,000.01 Total Local Revenues $561.44 Estimated County Revenue $560.80 71

Frio County Overview of Frio County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 72

General County Data The cities of Pearsall and Dilley in Frio County has benefitted from the Eagle Ford Shale play development. Both Matrix Builder and 4 th Dimension Builders, both based in Houston, completed a $2.7 million and a $1.5 million commercial hotel projects, respectively. Other commercial developments include a $1.5 office and storage facility and a $380,000 shopping strip. 16 The influx of capital investments into Frio has led to the expansion of public infrastructure projects. The city of Pearsall announced the opening of a new 5,000 sq. ft. police station valued at $1.1 million, 17 the new $397,775 construction for the Frio County Community Center, and Pearsall ISD made $1.85 million of renovation to an elementary school. 18 The City of Dilley also instituted new public works projects. Dilley constructed a new $2.8 million Municipal Water Treatment system, a new $100,000 water well, $1.5 million for road pavement, and $800,000 renovation for sewer improvements. 19 Frio County, a Texan county in the Eagle Ford Shale region, consists of a total population of 17,702 thousand people. Out of these, the population that makes up the total employment is 5,954 people. It is estimated that out of the total employment, $25,836 is the average per capita personal income. Population 17,702 Per Capita Personal Income 25,836 Total Employment 5,954 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 16 Trevino, Jose G. October 29, 2013. 17 Robertson, Marc. Pearsall breaks ground for new police station. Frio-Nueces Current. February 21, 2013. 18 Trevino, Jose G. October 29, 2013. 19 Perez, Noel. City Administrator for City of Dilley, TX. January 27, 2014. 73

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Frio County s population growth has been steadily rising to a 9 percent increase in 2012. Comparative Population Growth Source: U.S. Census Bureau 74

Population Forecast The following table projects Frio County s population from 2010-2023. Frio County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 2,574 people. Population Forecast From 2010-2023 Year Population 2010 17,217 2011 17,406 2012 17,593 2013 17,792 2014 17,988 2015 18,189 2016 18,384 2017 18,579 2018 18,792 2019 18,994 2020 19,186 2021 19,390 2022 19,590 2023 19,791 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 75

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Frio County steadily declines 12 percent until 2009, when the employment in natural resources and mining increased to 11 percent in 2011. This was followed by a huge spike to 72 percent in 2012, upon when there was a decline to a net increase of 44 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 76

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, when Frio County spiked and continued its steady increase to 39 percent in 2012, upon which it has stayed steady. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 77

Location Quotients for NRM Employment in Frio and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Frio County and the 15-County EFS area as a whole have been over 1 for all five years, with Frio s increasing to 6.64. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 78

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 79

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Frio Maverick county area, there was a 10.22 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources, with a 106.70 percent increase, and the industry with the highest negative growth in employment was Manufacturing, with a -30.94 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 85,081 93,779 8,698 10.22% Natural Resources and Mining 1,374 2,840 1,466 106.70% Construction 2,814 2,258-556 -19.76% Manufacturing 1,099 759-340 -30.94% Trade, Transportation and Utilities 26,369 29,568 3,199 12.13% Information 648 693 45 6.94% Financial Activities 3,983 3,868-115 -2.89% Professional and Business Services 5,428 7,769 2,341 43.13% Education and Health Services 27,837 28,375 538 1.93% Leisure and Hospitality 8,155 9,893 1,738 21.31% Other Services 1,306 1,505 199 15.24% Public Administration 6,035 6,225 190 3.15% Unclassified 29 25-4 -13.79% Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 80

Employment Forecast The following table demonstrates that Frio County will experience in 2023 an increase of 1,561 jobs. Year Total 2011 4,954 2012 5,067 2013 5,182 2014 5,304 2015 5,424 2016 5,549 2017 5,676 2018 5,807 2019 5,941 2020 6,080 2021 6,221 2022 6,364 2023 6,515 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 81

State Sales Tax Source: Texas Comptroller of Public Accounts The data for Frio County shows only a slight fluctuation from 2002 to 2009. Following the pattern shown by several of the other counties, in late 2010, the boom in state tax occurred. The amount subject to state tax increased from $20 million in quarter three of 2010 to $70 million by the fourth quarter of 2013, nearly tripling their numbers in just less than three years. 82

Commuting Patterns The following table represents the number and percent of the people that work in Frio County. Out of the 6,240 persons living in this County, only 1,513persons are employed there. These figures demonstrated that 75.80% of the population of Frio is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 4,154 100% Employed in the Selection Area but Living Outside 2,641 63.6% Employed and Living in the Selection Area 1,513 36.4% Living in the Selection Area 6,240 100% Living in the Selection Area but Employed Outside 4,727 75.8% Living and Employed in the Selection Area 1,513 24.2% Source: U.S. Census Bureau s On the Map 83

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Frio County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $684 million, the total gross county product was $379 million, a total of 757 full-time employments were generated, and the total estimated county revenue was $20 million. Economic Impacts Direct Indirect Induced Total Output $520.56 $135.86 $28.43 $684.85 Employment Full-Time 0 543 214 757 Payroll $23.84 $23.01 $6.35 $53.20 Fiscal Impacts Direct Indirect Induced Total Gross County Product $276.79 $84.71 $18.38 $379.88 Total Local Revenues $20.10 Estimated County Revenue $20.13 84

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Frio County. In 2023, it is estimated that a total of 1,704 jobs will be created; the county output will be $1,196million, over $767 million will be the gross county product, and the total estimated county revenue will be $44 million. Economic Impacts Direct Indirect Induced Total Output $902.81 $235.72 $58.44 $1,196.97 Employment Full-Time 357 910 437 1,704 Payroll $66.20 $36.40 $13.04 $115.64 Fiscal Impacts Direct Indirect Induced Total Gross County Product $577.62 $152.45 $37.75 $767.83 Total Local Revenues $44.53 Estimated County Revenue $44.61 85

Gonzales County Overview of Gonzales County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 86

General County Data Gonzales County, a Texan county in the Eagle Ford Shale region, consists of a total population of 20,045 thousand people. Out of these, the population that makes up the total employment is 6,728 people. It is estimated that out of the total employment, $31,270 is the average per capita personal income. Population 20,045 Per Capita Personal Income 31,270 Total Employment 6,728 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 87

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Gonzales County s population growth has been steadily rising to a seven percent gain in 2012. Source: U.S. Census Bureau Comparative Population Growth 88

Population Forecast The following table projects Gonzales County s population from 2010-2023. Gonzales County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a slow increase of 2,589 people. Population Forecast From 2010-2023 Year Population 2010 19,807 2011 20,013 2012 20,217 2013 20,408 2014 20,616 2015 20,796 2016 20,981 2017 21,172 2018 21,358 2019 21,565 2020 21,751 2021 21,965 2022 22,192 2023 22,396 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 89

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Gonzales County steadily decreased in employment in natural resources and mining until a slight increase in 2011, which was followed by a decrease to a net loss of 6 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 90

Job Growth Comparison Gonzales County s employment decreased, finally reaching a net positive gain in 2011, increasing to a three percent gain in 2012, followed by a slight decrease to just once percent in 2013.The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 91

Location Quotients for NRM Employment in Gonzales and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Gonzales County and the 15-County EFS area as a whole have been over 1 for all five years, with Gonzales s rising to 7.40 in 2010, and in 2012, falling slightly to 6.41. The 15- County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 92

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 93

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Gonzales county area, there was an 8.02 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Leisure and Hospitality with a 44.24 percent increase, and the industry with the highest negative growth in employment was Information, with a -25.00 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 6,408 6,922 514 8.02% Natural Resources and Mining 1,105 1,234 129 11.67% Construction 150 187 37 24.67% Manufacturing 1,069 1,160 91 8.51% Trade, Transportation and Utilities 1,347 1,517 170 12.62% Information 48 36-12 -25.00% Financial Activities 215 234 19 8.84% Professional and Business Services 190 174-16 -8.42% Education and Health Services 1,556 1,469-87 -5.59% Leisure and Hospitality 321 463 142 44.24% Other Services 138 166 28 20.29% Public Administration 263 279 16 6.08% Unclassified - - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 94

Employment Forecast The following table demonstrates that Gonzales County will experience in 2023 an increase of 1,561 jobs. Year Total 2011 2012 6,647 2013 6,772 2014 6,903 2015 7,034 2016 7,169 2017 7,307 2018 7,449 2019 7,592 2020 7,742 2021 7,894 2022 8,049 2023 8,208 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 95

State Sales Tax Source: Texas Comptroller of Public Accounts Gonzales County saw their state tax totals spike between $18 and $30 million between the years of 2002 to 2008. Following the economic collapse, the County saw a slight decrease to $24 million in 2009. This was followed by the boom, more than doubling their numbers to a total of $53 million at the end of the 2013 fourth quarter. It should be noted that there was a drop in late 2012. However this was followed by a spike in the very next quarter. 96

Commuting Patterns The following table represents the number and percent of the people that work in Gonzales County. Out of the 8,449persons living in this County, only 2,872 persons are employed there. These figures demonstrated that 66% of the population of Gonzales is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 5,790 100% Employed in the Selection Area but Living Outside 2,918 50.4% Employed and Living in the Selection Area 2,872 49.6% Living in the Selection Area 8,449 100% Living in the Selection Area but Employed Outside 5,577 66.0% Living and Employed in the Selection Area 2,872 34.0% Source: U.S. Census Bureau s On the Map 97

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Gonzales County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $7,463 million, the total gross county product was $3,916 million, a total of 11,561 full-time employments were generated, and the total estimated county revenue was $234 million. Economic Impacts Direct Indirect Induced Total Output $6,541.01 $724.40 $197.72 $7,463.13 Employment Full-Time 4,372 5,714 1,475 11,561 Payroll $209.32 $123.89 $39.08 $372.30 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,426.38 $363.49 $126.34 $3,916.21 Total Local Revenues $233.56 Estimated County Revenue $234.21 98

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Gonzales County. In 2023, it is estimated that a total of 17,591 jobs will be created; the county output will be $13,318 million, over $8,169 million will be the gross county product, and the total estimated county revenue will be $536 million. Economic Impacts Direct Indirect Induced Total Output $11,639.25 $1,161.24 $517.78 $13,318.27 Employment Full-Time 4,502 9,217 3,871 17,591 Payroll $830.92 $184.46 $102.56 $1,117.94 Fiscal Impacts Direct Indirect Induced Total Gross County Product $7,287.68 $549.74 $331.73 $8,169.15 Total Local Revenues $535.72 Estimated County Revenue $536.67 99

Karnes County Overview of Karnes County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 100

General County Data Southcross Energy Partners extended their Bee Line pipeline into Karnes County at a cost of approximately $7.04 million. 20 Polk Operating, LLC opened a 200-acre oilfield recycling facility. 21 To capitalize on the growth in the Eagle Ford Shale, Laredo-based developed Hachar Investments constructed the Kenedy Business Park, a 29-lot development resting on 120 acres. 22 The county also saw the construction of 71 single-family homes at $12,845,710 and 12 three-or-four family housing at $1,000,584. 23 Karnes County, a Texan county in the Eagle Ford Shale region, consists of a total population of 15,233 thousand people. Out of these, the population that makes up the total employment is 4,177 people. It is estimated that out of the total employment, $27,377 is the average per capita personal income. Population 15,233 Per Capita Personal Income 27,377 Total Employment 4,177 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 20 Hiller, Jennifer. Southcross Energy Partners completes Eagle Ford pipeline. MySanAntonio.com. August 5, 2013. 21 Thomas, Mike W. Oilfield recycling facility being built to serve Eagle Ford Shale. San Antonio Business Journal. February 14, 2013. 22 Nowlin, Sanford. Kenedy Business Park opening in the heart of Eagle Ford Shale country. San Antonio Business Journal. July 19, 2013. 23 Source: US Census Bureau 101

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Karnes County s population was falling slightly three percent in 2010, and is back up to a net one percent decrease as of 2012. Comparative Population Growth Source: U.S. Census Bureau 102

Population Forecast The following table projects Karnes County s population from 2010-2023. Karnes County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a very slow annual increase of 791 people. Population Forecast From 2010-2023 Year Population 2010 14,824 2011 14,916 2012 14,997 2013 15,062 2014 15,123 2015 15,185 2016 15,241 2017 15,298 2018 15,343 2019 15,409 2020 15,456 2021 15,518 2022 15,563 2023 15,615 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 103

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Karnes County fell thirteen percent until 2009, when it increased rapidly to 349 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 104

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2011 when Karnes County spiked and continued is increase to 123 percent in 2013. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 105

Location Quotients for NRM Employment in Karnes and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Karnes County and the 15-County EFS area as a whole have been over 1 for all five years, with Karnes s rising to 3.90. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 106

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 107

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Karnes county area, there was a 32.19 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources and Mining with a 395.06 percent increase, and the industry with the highest negative growth in employment was Public Administration, with a -12.43 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 3,731 4,932 1,201 32.19% Natural Resources and Mining 127 583 456 359.06% Construction 96 125 29 30.21% Manufacturing 226 242 16 7.08% Trade, Transportation and Utilities 683 1,022 339 49.63% Information - - - N/A Financial Activities 113 152 39 34.51% Professional and Business Services 197 478 281 142.64% Education and Health Services 1,112 1,068-44 -3.96% Leisure and Hospitality 229 415 186 81.22% Other Services 62 71 9 14.52% Public Administration 869 761-108 -12.43% Unclassified - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 108

Employment Forecast The following table demonstrates that Karnes County will experience in 2023 an increase of 1,068 jobs. Year Total 2011 3,784 2012 3,862 2013 3,943 2014 4,024 2015 4,109 2016 4,193 2017 4,282 2018 4,371 2019 4,464 2020 4,558 2021 4,653 2022 4,753 2023 4,852 Sources: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 109

State Sales Tax Source: Texas Comptroller of Public Accounts Karnes County saw its state tax numbers hover around $10 to $15 million for the better part of eight years. In late 2010, the numbers spiked exponentially to a total of $50 million at the end of the 2013 fourth quarter. This follows a pattern seen in the more rural counties of a huge spike in their state tax numbers from 2010 to 2012. 110

Commuting Patterns The following table represents the number and percent of the people that work in Karnes County. Out of the 6,297 persons living in this County, only 1,113 persons are employed there. These figures demonstrated that 82.30% of the population of Karnes is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 2,693 100% Employed in the Selection Area but Living Outside 1,580 58.7% Employed and Living in the Selection Area 1,113 41.3% Living in the Selection Area 6,297 100% Living in the Selection Area but Employed Outside 5,184 82.3% Living and Employed in the Selection Area 1,113 17.7% Source: U.S. Census Bureau s On the Map 111

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Karnes County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $10,964 million, the total gross county product was $5,940 million, a total of 16,729 full-time employments were generated, and the total estimated county revenue was $327 million. Economic Impacts Direct Indirect Induced Total Output $9,230.24 $1,467.91 $266.56 $10,964.71 Employment Full-Time 6,776 7,914 2,040 16,729 Payroll $318.99 $223.83 $51.22 $594.03 Fiscal Impacts Direct Indirect Induced Total Gross County Product $4,860.73 $906.51 $173.50 $5,940.74 Total Local Revenues $326.81 Estimated County Revenue $327.79 112

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Gonzales County. In 2023, it is estimated that a total of 24,898 jobs will be created; the county output will be $19,616 million, over $12,158 million will be the gross county product, and the total estimated county revenue will be $766 million. Economic Impacts Direct Indirect Induced Total Output $16,244.76 $2,675.30 $696.17 $19,616.23 Employment Full-Time 6,549 13,020 5,328 24,898 Payroll $1,218.25 $351.29 $133.81 $1,703.35 Fiscal Impacts Direct Indirect Induced Total Gross County Product $9,994.34 $1,711.19 $453.15 $12,158.69 Total Local Revenues $764.97 Estimated County Revenue $766.70 113

La Salle County Overview of La Salle County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 114

General County Data The City of Cotulla announced a $9 million expansion to the Cotulla-LaSalle County airport, adding 6,005 feet of runway, scheduled for completion in July 2014. Andarko Petroleum Corp. completed a $100 million Brasada Gas Processing Plant with an operation capacity of 200 million cubic feet per day. 24 San Antonio-based logistics firm, NuStar Crude Oil Pipeline LP, proposed a two-phased upgrade to their pipeline system to haul crude product from their La Salle operations. Once completed, the projects would add 100,000 barrels to its system capacity. 25 Other areas in LaSalle Worldwide Energy Consortium announced the construction of their Whitetail Refinery facility, a new $100 million located near Gardendale, Texas. Once online, the facility will have the capacity of 10,000 barrels per day and utilize the Gardendale Rail System for transportation. 26 The Lewis Energy Group also announced the construction of a new 250-acre, $11 million rail park in Encinal, TX, as crude companies turn to rail as a more efficient alternative to pipelines. 27 La Salle County, a Texan county in the Eagle Ford Shale region, consists of a total population of 7,109 thousand people. Out of these, the population that makes up the total employment is 2,776 people. It is estimated that out of the total employment, $27,326 is the average per capita personal income. Population 7,109 Per Capita Personal Income 27,326 Total Employment 2,776 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 24 Thomas, Mike W. Andarko completing construction on new Eagle Ford Shale gas plant. San Antonio Business Journal. April 1, 2013. 25 Nowlin, Sanford/ NuStar Energy looks for interest on new Eagle Ford pipeline. San Antonio Business Journal. July 26, 2013. 26 Dukes, R.T. La Salle County Refinery Planned Near Gardendale. EagleFordShale.com. May 20, 2013. 27 Nowlin, Sanford. Shale plays are driving rail usage by oil companies. San Antonio Business Journal. June 7, 2013. 115

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. LaSalle County s population growth has been fairly even with the EFS area and the state, with a growth rate of 20 percent in 2012. Comparative Population Growth Source: U.S. Census Bureau 116

Population Forecast The following table projects La Salle County s population from 2010-2023. La Salle County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 1,134 people. Populations Forecast From 2010-2023 Year Population 2010 6,886 2011 6,978 2012 7,083 2013 7,183 2014 7,271 2015 7,363 2016 7,441 2017 7,521 2018 7,602 2019 7,683 2020 7,776 2021 7,856 2022 7,939 2023 8,020 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 117

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. LaSalle County followed the pattern of the 15-County EFS area and the state of Texas until 2009, when it increased consistently and rapidly until the current 2013 mark of 225 percent. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) (Data from 2011 and 2012 are based on estimations made by CCBR based on 2010-4 and 2013-1 data from the Texas Workforce Commission, using an average quarterly growth rate) 118

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2010 when LaSalle County spiked and continued its upward trending increase to 69 percent in 2012. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) (Data from 2011 and 2012 are based on estimations made by CCBR based on 2010-4 and 2013-1 data from the Texas Workforce Commission, using an average quarterly growth rate) 119

Location Quotients for NRM Employment in LaSalle and 15-County EFS Area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both LaSalle County and the 15-County EFS area as a whole have been over 1 for all five years, with LaSalle s rising to 10.67. The 15-County EFS area s location quotient stands at 2.58 in 2012. Figure 4: Location Quotients for NRM Employment 120

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 121

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for La Salle county area, there was a 102.93 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Construction with a 344.90 percent increase, and the industry with the highest negative growth in employment was Natural Resources and Mining, with a -100.00 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 1,675 3,399 1,724 102.93% Natural Resources and Mining 419 - -419-100.00% Construction 49 218 169 344.90% Manufacturing - - - N/A Trade, Transportation and Utilities 138 272 134 97.10% Information - - - N/A Financial Activities 36 46 10 27.78% Professional and Business Services - 181 181 N/A Education and Health Services 358 353-5 -1.40% Leisure and Hospitality 114 312 198 173.68% Other Services 37 36-1 -2.70% Public Administration 363 415 52 14.33% Unclassified - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 122

Employment Forecast The following table demonstrates that La Salle County will experience in 2023 an increase of 876 jobs. Year Total 2011 1,749 2012 1,807 2013 1,868 2014 1,930 2015 1,995 2016 2,064 2017 2,134 2018 2,206 2019 2,284 2020 2,363 2021 2,448 2022 2,535 2023 2,625 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 123

State Sales Tax Source: Texas Comptroller of Public Accounts La Salle County s data stayed relatively the same from 2002 to 2008. In 2009, they saw their numbers spike up and down, until the state tax numbers soared from $5.4 million in the second quarter of 2009 to $34 million in the fourth quarter of 2013. This is more than a 600% increase in just four years. 124

Commuting Patterns The following table represents the number and percent of the people that work in La Salle County. Out of the 1,862 persons living in this County, only 623 persons are employed there. These figures demonstrated that 66.50% of the population of La Salle is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 1,911 100% Employed in the Selection Area but Living Outside 1,288 67.4% Employed and Living in the Selection Area 623 32.6% Living in the Selection Area 1,862 100% Living in the Selection Area but Employed Outside 1,239 66.5% Living and Employed in the Selection Area 623 33.5% Source: U.S. Census Bureau s On the Map 125

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on La Salle County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $9,001 million, the total gross county product was $4,755 million, a total of 8,818 full-time employments were generated, and the total estimated county revenue was $252 million. Economic Impacts Direct Indirect Induced Total Output $8,678.56 $201.97 $120.81 $9,001.34 Employment Full-Time 6,473 1,425 921 8,818 Payroll $304.76 $51.68 $25.78 $382.21 Fiscal Impacts Direct Indirect Induced Total Gross County Product $4,561.32 $114.03 $80.50 $4,755.84 Total Local Revenues $252.02 Estimated County Revenue $252.91 126

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on La Salle County. In 2023, it is estimated that a total of 10,809 jobs will be created; the county output will be $15,876 million, over $9,891 million will be the gross county product, and the total estimated county revenue will be $580 million. Economic Impacts Direct Indirect Induced Total Output $15,234.27 $285.52 $356.52 $15,876.31 Employment Full-Time 6,143 1,944 2,722 10,809 Payroll $1,108.77 $76.89 $76.20 $1,261.85 Fiscal Impacts Direct Indirect Induced Total Gross County Product $9,497.59 $156.78 $237.58 $9,891.94 Total Local Revenues $579.86 Estimated County Revenue $580.95 127

Lavaca County Overview of Lavaca County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 128

General County Data Lavaca County, a Texan county, that is now included in the Eagle Ford Shale region, consists of a total population of 19,468 thousand people. It is estimated that out of the total employment, $40,173 is the average per capita personal income. Population 19,468 Per Capita Personal Income 40,173 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 129

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Lavaca County s population growth has been steady, rising only three percent since 2001. Source: Texas Workforce Commission (QCEW) 130

Population Forecast The following table projects Lavaca County s population from 2010-2023. Lavaca County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a slow decrease of 9 people in grand total. Year Population 2010 19,263 2011 19,266 2012 19,236 2013 19,215 2014 19,206 2015 19,204 2016 19,199 2017 19,207 2018 19,218 2019 19,219 2020 19,219 2021 19,219 2022 19,238 2023 19,254 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 131

Job Growth Comparison Lavaca County experienced a steady decline in employment from 2007 to 2009, and again from 2012 to 2013 ending up with a decreased of nine percent. The 15-county EFS areas as well as the state of Texas as a whole both have shown modest increases by seven and six percent respectively. Source: Texas Workforce Commission (QCEW) 132

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Lavaca County rose by 18 percent until 2008, when the employment in natural resources and mining decreased by 26 percent until 2010. This was followed by a huge spike of 97 percent by 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 133

Location Quotients for NRM Employment in Lavaca and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Lavaca County and the 15-County EFS area as a whole have been over 1 for all five years, with Lavaca s increasing to 11.65. The 15-County EFS area s location quotient stands at 2.53 in 2012 and Lavaca 10.67. Location Quotients for NRM Employment 134

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 135

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Lavaca county area, there was a negative growth of -0.38 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Professional and Business Services with a 60.56 percent increase, and the industry with the highest negative growth in employment was Other Services, with a -26.94 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 1,675 3,399 1,724 102.93% Natural Resources and Mining 419-419 -100.00% Construction 49 218 169 344.90% Manufacturing - - - N/A Trade, Transportation and Utilities 138 272 134 97.10% Information - - - N/A Financial Activities 36 46 10 27.78% Professional and Business Services - 181 181 N/A Education and Health Services 358 353-5 -1.40% Leisure and Hospitality 114 312 198 173.68% Other Services 37 36-1 -2.70% Public Administration 363 415 52 14.33% Unclassified - - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 136

Employment Forecast The following table demonstrates that Lavaca County will experience in 2023 an increase of 1,180 jobs. Year Total 2011 5,992 2012 6,082 2013 6,172 2014 6,264 2015 6,359 2016 6,452 2017 6,551 2018 6,650 2019 6,749 2020 6,851 2021 6,955 2022 7,063 2023 7,172 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 137

State Sales Tax Source: Texas Comptroller of Public Accounts Lavaca s data increased steadily from 2002 to 2008. In the first quarter of 2009, Lavaca saw their numbers spike down hitting its lowest point in 2010. The State tax numbers soared from $21 million in the first quarter of 2010 to $32 million in the fourth quarter of 2013. This is just over 50% increase in just four years 138

Commuting Patterns The following table represents the number and percent of the people that work in Lavaca County. Out of the 1,862 persons living in this County, only 623 persons are employed there. These figures demonstrated that 62.70% of the population of Lavaca is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 5,105 100% Employed in the Selection Area but Living Outside 2,672 52.3% Employed and Living in the Selection Area 2,433 47.7% Living in the Selection Area 7,861 100% Living in the Selection Area but Employed Outside 5,428 69.0% Living and Employed in the Selection Area 2,433 31.0% Source: U.S. Census Bureau s On the Map 139

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Lavaca County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $1,607 million, the total gross county product was $671 million, a total of 2,388 full-time employments were generated, and the total estimated county revenue was $39 million. Economic Impacts Direct Indirect Induced Total Output $1,363.05 $181.27 $62.96 $1,607.27 Employment Full-Time 667 1,239 482 2,388 Payroll $35.97 $36.27 $12.00 $84.25 Fiscal Impacts Direct Indirect Induced Total Gross County Product $543.42 $87.96 $40.18 $671.55 Total Local Revenues $39.63 Estimated County Revenue $39.66 140

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Lavaca County. In 2023, it is estimated that a total of 4,000 jobs will be created; the county output will be $2,966 million, over $1,388 million will be the gross county product, and the total estimated county revenue will be $88 million. Economic Impacts Direct Indirect Induced Total Output $2,515.62 $312.66 $138.55 $2,966.83 Employment Full-Time 736 2,203 1,060 4,000 Payroll $134.26 $64.85 $26.41 $225.52 Fiscal Impacts Direct Indirect Induced Total Gross County Product $1,157.42 $142.89 $88.36 $1,388.67 Total Local Revenues $88.84 Estimated County Revenue $88.83 141

Live Oak County Overview of Live Oak County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 142

General County Data Howard Midstream Energy Partners, LLC built a 260-acres railroad hub at the Live Oak Railroad near Three Rivers in Live Oak. Completed in May 2013, it handles trains used to hydraulic fracturing materials and product. 28 Fifteen single-family homes were constructed at $1,664,100. 29 Live Oak County, a Texan county in the Eagle Ford Shale region, consists of a total population of 11,664 thousand people. Out of these, the population that makes up the total employment is 4,233 people. It is estimated that out of the total employment, $36,016 is the average per capita personal income. Population 11,664 Per Capita Personal Income 36,016 Total Employment 4,233 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 28 Hiller, Jennifer. Howard Midstream plans new gas plant, rail hub. Fuelfix.com. February 11, 2013. 29 Source: U.S. Census Bureau 143

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Live Oak County s population growth steadily decreased until 2009 by five percent. Since then, it has increased by two percent. Comparative Population Growth Source: U.S. Census Bureau 144

Population Forecast The following table projects Live Oak County s population from 2010-2023. Live Oak County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a slow increase of 203 people. Population Forecast From 2010-2023 Year Population 2010 11,531 2011 11,554 2012 11,577 2013 11,592 2014 11,617 2015 11,628 2016 11,630 2017 11,642 2018 11,663 2019 11,664 2020 11,683 2021 11,700 2022 11,718 2023 11,734 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 145

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Live Oak County followed the pattern of the 15-County EFS area and the state of Texas until 2009, when it increased rapidly and consistently, with the employment growth in natural resources and mining at a huge increase to 442 percent since 2007. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 146

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady decline until 2009, when Live Oak County spiked and continued is increase to 49 percent in 2012, which was followed by a slight decrease to its current net increase of 46 percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 147

Location Quotients for NRM Employment in Live Oak and 15-County EFS Area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Live Oak County and the 15-County EFS area as a whole have been over 1 for all five years, with Live Oak s rising sharply to 10.17 in 2012. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 148

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 149

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Live Oak county area, there was a 57.52 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources and Mining with a 501.15 percent increase, and the industry with the highest negative growth in employment was Public Administration, with a -57.20 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 2,858 4,502 1,644 57.52% Natural Resources and Mining 262 1,575 1,313 501.15% Construction 142 167 25 17.61% Manufacturing - - - - Trade, Transportation and Utilities 567 779 212 37.39% Information 10 12 2 20.00% Financial Activities 126 251 125 99.21% Professional and Business Services 45 144 99 220.00% Education and Health Services 532 500-32 -6.02% Leisure and Hospitality 311 458 147 47.27% Other Services 75 99 24 32.00% Public Administration 479 205-274 -57.20% Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 150

Employment Forecast The following table demonstrates that Live Oak County will experience in 2023 an increase of 800 jobs. Year Total 2011 3,076 2012 3,134 2013 3,195 2014 3,256 2015 3,318 2016 3,383 2017 3,449 2018 3,516 2019 3,585 2020 3,655 2021 3,727 2022 3,800 2023 3,876 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 151

State Sales Tax Source: Texas Comptroller of Public Accounts In 2002, Live Oak recorded just over $9 million in state tax, with only a marginal increase to $12 million in 2009. This was followed by an increase in just two years to $54 million. However, the tax data has been fluctuating since 2011 down to $38 million in 2012, and back up to $48 million at the end of 2013. 152

Commuting Patterns The following table represents the number and percent of the people that work in Live Oak County. Out of the 3,340 persons living in this County, only 783 persons are employed there. These figures demonstrated that 76.60% of the population of Live Oak is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 2,583 100% Employed in the Selection Area but Living Outside 1,800 69.7% Employed and Living in the Selection Area 783 30.3% Living in the Selection Area 3,340 100% Living in the Selection Area but Employed Outside 2,557 76.6% Living and Employed in the Selection Area 783 23.4% Source: U.S. Census Bureau s On the Map 153

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Live Oak County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $6,954 million, the total gross county product was $2,299 million, a total of 5,097 full-time employments were generated, and the total estimated county revenue was $92 million. Economic Impacts Direct Indirect Induced Total Output $6,564.42 $313.83 $75.88 $6,954.13 Employment Full-Time 2,542 1,992 562 5,097 Payroll $140.10 $83.10 $15.95 $239.14 Fiscal Impacts Direct Indirect Induced Total Gross County Product $2,077.41 $172.32 $50.02 $2,299.75 Total Local Revenues $92.26 Estimated County Revenue $92.33 154

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Live Oak County. In 2023, it is estimated that a total of 2,235 Live Oak County jobs were supported by the 15-county area under analysis, in addition to $8,724 million in output as well as over $3,526 million gross county product. Economic Impacts Direct Indirect Induced Total Output $8,724.24 $465.90 $165.53 $9,355.67 Employment Full-Time 2,235 2,872 1,225 6,332 Payroll $369.00 $132.54 $30.88 $532.42 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,526.95 $248.61 $109.04 $3,884.59 Total Local Revenues $194.46 Estimated County Revenue $194.56 155

Maverick County Overview of Maverick County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 156

General County Data According to the U.S. Census Bureau, Maverick County saw the addition of new housing in the area. In 2013, 68 single-family homes were erected at a value of $5,460,245. Construction also included multifamily housing such as 10, two-family structures at $798,485; 4 three-or-four family homes at $180,000; and 31 five-or-more housing structures at $2,071,391. 30 Maverick County, a Texan county in the Eagle Ford Shale region, consists of a total population of 56,365 thousand people. Out of these, the population that makes up the total employment is 16,705 people. It is estimated that out of the total employment, $22,188 is the average per capita personal income. Population 56,365 Per Capita Personal Income 22,188 Total Employment 16,705 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 30 Ibid. 157

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Maverick County s population growth has been steadily rising at a slightly slower rate than the EFS area and the state of Texas. After leveling out in 2011, the population growth for Maverick County as of 2012 sits at sixteen percent. Comparative Population Growth Source: U.S. Census Bureau 158

Population Forecast The following table projects Maverick County s population from 2010-2023. Maverick County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a big increase of 11,637 people. Population Forecast From 2010-2023 Year Population 2010 54,258 2011 55,108 2012 55,951 2013 56,800 2014 57,671 2015 58,537 2016 59,452 2017 60,355 2018 61,262 2019 62,184 2020 63,107 2021 64,033 2022 64,962 2023 65,895 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 159

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Maverick County slightly increased its employment in natural resources and mining until another sharp spike in 2011. By 2012, the increase was at 41 percent. This was followed by a sharp decline in 2013, falling to eighteen percent. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 160

Job Growth Comparison Maverick County consistently increased its employment percentage to a net mark as of 2013 of thirteen percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 161

Location Quotients for NRM Employment in Maverick and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for Maverick County have consistently been less than one since 2008. The location quotient for Maverick County has fluctuated from 0.59 to 0.77, one of the few counties in the 15-County EFS area below one. The 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 162

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 163

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Maverick county area, there was a 6.60 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was manufacturing, with a 57.44 percent increase, and the industry with the highest negative growth in employment was Construction, with a -12.36 percent change. Area Employment 2009 2013 Emp Chg Pct Chg Industry Sector 4th Qtr 4th Qtr Total, All Industries 16,300 17,376 1,076 6.60% Natural Resources and Mining 256 294 38 14.84% Construction 348 305-43 -12.36% Manufacturing 531 836 305 57.44% Trade, Transportation and Utilities 3,481 3,671 190 5.46% Information 95 89-6 -6.32% Financial Activities 537 477-60 -11.17% Professional and Business Services 420 392-28 -6.67% Education and Health Services 7,194 7,311 117 1.63% Leisure and Hospitality 1,745 2,310 565 32.38% Other Services 128 136 8 6.25% Public Administration 1,560 1,555-5 -0.32% Unclassified - - N/A Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 164

Employment Forecast The following table demonstrates that Maverick County will experience in 2023 an increase of 5,462 jobs. Year Total 2011 16,566 2012 16,959 2013 17,360 2014 17,770 2015 18,193 2016 18,628 2017 19,074 2018 19,533 2019 19,873 2020 20,489 2021 20,987 2022 21,499 2023 22,028 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 165

State Sales Tax Source: Texas Comptroller of Public Accounts Maverick County, whose County seat is Eagle Pass, has one of the more interesting graphs in the Eagle Ford Shale region. They saw constant fluctuation in their state tax numbers, rising and falling, with the greatest increase occurring between 05 to 07 when they rose from $50 million to $93 million. Maverick County is also unique in that their starting numbers in 2002 were extremely high when compared to the other counties in the region. In 2002, Maverick County was already paying $55 million in state taxes. After fluctuation from quarter to quarter, year to year, the state tax as of the fourth quarter of 2013 stands at $114 million. 166

Commuting Patterns The following table represents the number and percent of the people that work in Maverick County. Out of the 19,467 persons living in this County, only 10,105 persons are employed there. These figures demonstrated that 48.10% of the population of Maverick is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 14,265 100% Employed in the Selection Area but Living Outside 4,160 29.2% Employed and Living in the Selection Area 10,105 70.8% Living in the Selection Area 19,467 100% Living in the Selection Area but Employed Outside 9,362 48.1% Living and Employed in the Selection Area 10,105 51.9% Source: U.S. Census Bureau s On the Map 167

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Maverick County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $175 million, the total gross county product was $98 million, a total of 420 full-time employments were generated, and the total estimated county revenue was $5 million. Economic Impacts Direct Indirect Induced Total Output $110.23 $47.02 $18.15 $175.39 Employment Full-Time 75 204 141 420 Payroll $3.58 $6.52 $4.34 $14.44 Fiscal Impacts Direct Indirect Induced Total Gross County Product $59.66 $27.06 $11.71 $98.43 Total Local Revenues $5.56 Estimated County Revenue $5.54 168

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Maverick County. In 2023, it is estimated that a total of 80 Maverick County jobs were supported by the 15-county area under analysis, in addition to $200 million in output as well as over $128 million gross county product. Economic Impacts Direct Indirect Induced Total Output $200.62 $69.43 $33.48 $303.53 Employment Full-Time 80 314 259 654 Payroll $14.71 $9.18 $7.99 $31.89 Fiscal Impacts Direct Indirect Induced Total Gross County Product $128.36 $39.47 $21.60 $189.43 Total Local Revenues $11.69 Estimated County Revenue $11.66 169

McMullen County Overview of McMullen County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 170

General County Data Energy firms continued to invest in McMullen County. Southcross Energy Partners invested $4.9 million for a 16-inch, 3.5-mile pipeline in McMullen County as part of this expansion of the Bee Line pipeline. 31 Another firm, Sanchez Energy, announced a two-phased development in the county. In 2013, Sanchez plans invest $420 million in the construction of 40 net wells with another $700 million slated in 2014 for 76 net wells. 32 McMullen County expanded their public infrastructure to accommodate the influx of energy investments. The McMullen County Independent School District instituted the $18 million Phase III project for a new building and renovations for Mission High School. Calliham, Texas initiated the construction of a waste water treatment plant. McMullen County, a Texan county in the Eagle Ford Shale region, consists of a total population of 726 hundred people. Out of these, the population that makes up the total employment is 465 people. It is estimated that out of the total employment, $52,810 is the average per capita personal income. Population 726 Per Capita Personal Income 52,810 Total Employment 465 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 31 Hiller, Jennifer. Southcross Energy Partners completes Eagle Ford pipeline. MySA.com. August 5, 2013. 32 Dukes, R.T. Sanchez Energy Adds Eagle Ford Acreage In McMullen County From Rock Oil $220 Million. Shalemarkets.com. September 9, 2013. 171

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. McMullen County s population has been in a rocky decline since 2001, with a steady drop from 2007 to 2009. As of 2012, its net population growth since 2001 stands at negative eleven percent. Comparative Population Growth Source: U.S. Census Bureau 172

Population Forecast The following table projects McMullen County s population from 2010-2023. McMullen County is projected to see an overall increase in population in 2023. Based on our calculations starting in 2010, the population, by 2023, will see a minimal increase of 31 people in that 13 year span. Population Forecast From 2010-2023 Year Population 2010 707 2011 711 2012 715 2013 720 2014 725 2015 730 2016 732 2017 733 2018 732 2019 736 2020 734 2021 735 2022 738 2023 738 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 173

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. McMullen County followed the pattern of the 15-County EFS area and the state of Texas until 2010, when it increased rapidly to 321 percent in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 174

Job Growth Comparison McMullen County had a steady increase of 28 percent by 2010, when the employment growth skyrocketed to its current 2013 mark of a net gain of 163 percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 175

Location Quotients for NRM Employment in McMullen and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient for both McMullen County and the 15-County EFS area as a whole have been over 1 for all five years, with McMullen s decreasing from 14.17 in 2008 to 11.66 in 2012. 15-County EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 176

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 177

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for McMullen county area, there was a 162.55 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Trade Transportation, and Utilities, with a 418.75 percent increase, and the industry with the least growth in employment was Financial Activities, with a 42.86 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 235 617 382 162.55% Natural Resources and Mining 49 243 194 395.92% Construction - - - N/A Manufacturing - - - N/A Trade, Transportation and Utilities 32 166 134 418.75% Information - - - N/A Financial Activities 7 10 3 42.86% Professional and Business Services - 5 5 N/A Education and Health Services - - - N/A Leisure and Hospitality - 16 16 N/A Other Services - 4 4 N/A Public Administration 48 72 24 50.00% Unclassified - - - N/A Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 178

Employment Forecast The following table demonstrates that McMullen County will experience in 2023 an increase of 60 jobs. Year Total 2011 229 2012 233 2013 237 2014 241 2015 246 2016 251 2017 256 2018 261 2019 267 2020 271 2021 277 2022 283 2023 289 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 179

State Sales Tax Source: Texas Comptroller of Public Accounts McMullen County follows a similar patter shown by some of the other counties in the Eagle Ford Shale region. However, the numbers started in 2002 extremely low when McMullen County only paid out 311 thousand dollars. This number rose slowly with fluctuation until 2011, when they saw a dynamic increase. As of the fourth quarter of 2013, McMullen County pays is subject to 12.3 million dollars. In eleven years, McMullen County s numbers have increased by 47 times. 180

Commuting Patterns The following table represents the number and percent of the people that work in McMullen County. Out of the 603 persons living in this County, only 35 persons are employed there. These figures demonstrated that 94.20% of the population of McMullen is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 211 100% Employed in the Selection Area but Living Outside 176 83.4% Employed and Living in the Selection Area 35 16.6% Living in the Selection Area 603 100% Living in the Selection Area but Employed Outside 568 94.2% Living and Employed in the Selection Area 35 5.8% Source: U.S. Census Bureau s On the Map 181

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on McMullen County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $8,276 million, the total gross county product was $4,374 million, a total of 9,109 full-time employments were generated, and the total estimated county revenue was $240 million. Economic Impacts Direct Indirect Induced Total Output $7,825.51 $367.79 $82.87 $8,276.16 Employment Full-Time 5,639 2,943 527 9,109 Payroll $266.43 $64.84 $11.48 $342.76 Fiscal Impacts Direct Indirect Induced Total Gross County Product $4,203.10 $117.72 $53.67 $4,374.49 Total Local Revenues $240.07 Estimated County Revenue $240.79 182

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on McMullen County. In 2023, it is estimated that a total of 5,613 McMullen County jobs were supported by the 15-county area under analysis, in addition to $13,938 million in output as well as over $8,896 million gross county product. Economic Impacts Direct Indirect Induced Total Output $13,938.87 $525.38 $250.50 $14,714.75 Employment Full-Time 5,613 4,219 1,593 11,425 Payroll $1,028.36 $93.54 $34.70 $1,156.61 Fiscal Impacts Direct Indirect Induced Total Gross County Product $8,896.41 $129.14 $162.45 $9,188.00 Total Local Revenues $553.39 Estimated County Revenue $553.90 183

Webb County Overview of Webb County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 184

General County Data Capital investments in Webb County continued to center at Laredo, Texas. Howard Midstream Energy Partners, LLC, announced the construction of a new $50 million natural gas plan. Dallas-based AT&T Inc. added new towers to expand their 4G LTE network outreach to Laredo. 33 Additionally, Laredo was the site for the new 7,300 sq. ft., $3.5 million South Texas Border Intelligence Center. Commissioned by the U.S. General Services Administration and built by Brasfield & Gorrie, the new administrative and communication office building is set house 20 government agencies from both the United States and Mexico. Laredo was the center of other capital investments. According to the Laredo Development Foundation, the City of Laredo experienced $415 million in new building permits, including $119 million in new single-family housing, $29 million in new multi-family housing, $72 million in Warehouse building, and $43 million in new commercial permits. 34 Webb County, a Texan county in the Eagle Ford Shale region, consists of a total population of 259,172 thousand people. Out of these, the population that makes up the total employment is 90,819 people. It is estimated that out of the total employment, $24,985 is the average per capita personal income. Population 259,172 Per Capita Personal Income 24,985 Total Employment 90,819 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 33 Aldridge, James. AT&T expands 4G LTE network to Laredo. San Antonio Business Journal. August 7, 2013. 34 Laredo Development Foundation, Laredo Economic Indicators. www.ldfonline.org April 11, 2014. 185

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Webb County s population growth has steadily increased at the same pace, with a 29 percent gain as of 2012. Comparative Population Growth Source: U.S. Census Bureau 186

Population Forecast The following table projects Webb County s population from 2010-2023. Webb County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a massive population annual increase of 74,630 people. Population Forecast From 2010-2013 Year Population 2010 250,304 2011 255,465 2012 260,638 2013 265,932 2014 271,345 2015 276,757 2016 282,524 2017 288,467 2018 294,411 2019 300,428 2020 306,574 2021 312,586 2022 318,782 2023 324,934 Source: Texas Workforce Commission as computed in 2012 by The Off of the State Demographer For the State of Texas 187

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Webb County followed the pattern of the 15-County EFS area, rising in 2010 of hiring in natural resources and mining to the current 67 percent increase in 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 188

Job Growth Comparison Webb County followed the same pattern as the 15-County EFS area and the state of Texas, with slightly lower employment percentages. After a steady increase since 2010, the employment numbers for Webb County have increased 7 percent. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 189

Location Quotients for NRM Employment in Webb and 15-County EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Webb County and the 15-County EFS area as a whole have been ranged from 0.64 to 1.03 in 2012, the only year where the location quotient was over one. The EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 190

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 191

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Webb county area, there was a 10.22 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources and Mining with a 106.70 percent increase, and the industry with the highest negative growth in employment was Manufacturing, with a -30.94 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 85,081 93,779 8,698 10.22% Natural Resources and Mining 1,374 2,840 1,466 106.70% Construction 2,814 2,258-556 -19.76% Manufacturing 1,099 759-340 -30.94% Trade, Transportation and Utilities 26,369 29,568 3,199 12.13% Information 648 693 45 6.94% Financial Activities 3,983 3,868-115 -2.89% Professional and Business Services 5,428 7,769 2,341 43.13% Education and Health Services 27,837 28,375 538 1.93% Leisure and Hospitality 8,155 9,893 1,738 21.31% Other Services 1,306 1,505 199 15.24% Public Administration 6,035 6,225 190 3.15% Unclassified 29 25-4 -13.79% Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 192

Employment Forecast The following table demonstrates that Webb County will experience in 2023 an increase of 60 jobs. Year Total 2011 229 2012 233 2013 237 2014 241 2015 246 2016 251 2017 256 2018 261 2019 267 2020 271 2021 277 2022 283 2023 289 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 193

State Sales Tax Source: Texas Comptroller of Public Accounts Webb County is the most unique of all of the counties in the Eagle Ford Shale region. It contains the major city of Laredo. For this reason, the amount of gross sales subject to state tax is the highest in the region. The graph shows a constant fluctuation, spiking up and down between years. In 2002, they paid $337 million. With fluctuation, yet a constant net gain, in the fourth quarter of 2013, Webb County is subject to $684 million in state tax. 194

Commuting Patterns The following table represents the number and percent of the people that work in Webb County. Out of the 78,343 persons living in this County, 62,862 persons are employed there. These figures demonstrated that only 19.80% of the population of Webb is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 77,406 100% Employed in the Selection Area but Living Outside 14,544 18.8% Employed and Living in the Selection Area 62,862 81.2% Living in the Selection Area 78,343 100% Living in the Selection Area but Employed Outside 15,481 19.8% Living and Employed in the Selection Area 62,862 80.2% Source: U.S. Census Bureau s On the Map 195

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Webb County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $5,008 million, the total gross county product was $2,602 million, a total of 9,870 full-time employments were generated, and the total estimated county revenue was $132 million. Economic Impacts Direct Indirect Induced Total Output $4,091.81 $705.81 $210.77 $5,008.39 Employment Full-Time 3,375 4,744 1,751 9,870 Payroll $150.24 $140.24 $55.62 $346.10 Fiscal Impacts Direct Indirect Induced Total Gross County Product $2,067.24 $400.60 $134.99 $2,602.82 Total Local Revenues $132.21 Estimated County Revenue $132.03 196

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Webb County. In 2023, it is estimated that a total of 590 Webb County jobs were supported by the 10-county area under analysis, in addition to $384 million in output as well as over $198 million gross county product. The total estimated state revenue is $17 million, and the total severance tax is $9.9 million with a total of $81 million in royalties and a total of $3 million in lease payments. The drilling and completion expenditures represented $34 million; followed by oil and gas production with $405 million. Economic Impacts Direct Indirect Induced Total Output $6,068.69 $1,406.26 $623.23 $8,098.18 Employment Full-Time 2,964 8,377 5,157 16,498 Payroll $480.42 $246.75 $163.05 $890.22 Fiscal Impacts Direct Indirect Induced Total Gross County Product $3,759.35 $791.53 $398.35 $4,949.22 Total Local Revenues $285.53 Estimated County Revenue $284.70 197

Wilson County Overview of Wilson County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 198

General County Data Wilson County, a Texan county in the Eagle Ford Shale region, consists of a total population of 44,370 thousand people. Out of these, the population that makes up the total employment is 6,683 people. It is estimated that out of the total employment, $34,810 is the average per capita personal income. Population 44,370 Per Capita Personal Income 34,810 Total Employment 6,683 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 199

Population Growth Comparison The growth in population for the 15-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Wilson County s population growth has steadily increased at the same pace, with a 33 percent gain as of 2012. Comparative Population Growth Source: U.S. Census Bureau 200

Population Forecast The following table projects Wilson County s population from 2010-2023. Wilson County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 10,116 people. Population Forecast From 2010-2023 Year Population 2010 42,918 2011 43,664 2012 44,402 2013 45,148 2014 45,888 2015 46,652 2016 47,435 2017 48,219 2018 49,017 2019 49,796 2020 50,596 2021 51,387 2022 52,211 2023 53,034 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 201

Natural Resource and Mining Employment Growth Comparison Both the 15-County EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 15-County EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Wilson County steadily decreased until 2011 by 19 percent. However, this was followed by a huge spike in employment in natural resources and mining by a whopping 193 percent. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 202

Job Growth Comparison All three areas experienced an increase from 2007 to 2008, which was followed by a steady increase until 2012, when Wilson County spiked and continued is increase to nine percent in 2013. The 15-County EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 203

Location Quotients for NRM Employment in Wilson and 15-County EFS Area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Wilson County and the 15-County EFS area as a whole have been ranged from 0.55 to 1.01 in 2012, the only year where the location quotient was over one. The EFS area s location quotient stands at 2.53 in 2012. Location Quotients for NRM Employment 204

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 205

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Wilson county area, there was a 12.18 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Natural Resources and Mining with a 376.67 percent increase, and the industry with the highest negative growth in employment was Education and Health Services, with a -4.95 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 6,511 7,304 793 12.18% Natural Resources and Mining 90 429 339 376.67% Construction 574 654 80 13.94% Manufacturing 316 330 14 4.43% Trade, Transportation and Utilities 1,317 1,624 307 23.31% Information 64 68 4 6.25% Financial Activities 181 244 63 34.81% Professional and Business Services 275 316 41 14.91% Education and Health Services 2,728 2,593-135 -4.95% Leisure and Hospitality 552 582 30 5.43% Other Services 120 154 34 28.33% Public Administration 289 310 21 7.27% Unclassified - - - Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 206

Employment Forecast The following table demonstrates that Wilson County will experience in 2023 an increase of 1,974 jobs. Year Total 2011 6,631 2012 6,774 2013 6,922 2014 7,070 2015 7,226 2016 7,384 2017 7,543 2018 7,710 2019 7,880 2020 8,055 2021 8,232 2022 8,416 2023 8,605 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 207

State Sales Tax Source: Texas Comptroller of Public Accounts Wilson County s state tax numbers have also been subject to some fluctuation. In 2002, they were paying just $16 million in state taxes in gross sales from all industries. This number doubled by 2004, but this was followed by stagnant growth until 2011. Since then, Wilson County has seen nearly a doubling in their state tax numbers to $63 million in the fourth quarter of 2013. 208

Commuting Patterns The following table represents the number and percent of the people that work in Wilson County. Out of the 19,232 persons living in this County, only 3,095persons are employed there. These figures demonstrated that 83.90% of the population of Wilson is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 6,209 100% Employed in the Selection Area but Living Outside 3,114 50.2% Employed and Living in the Selection Area 3,095 49.8% Living in the Selection Area 19,232 100% Living in the Selection Area but Employed Outside 16,137 83.9% Living and Employed in the Selection Area 3,095 16.1% Source: U.S. Census Bureau s On the Map 209

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Wilson County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $1,444 million, the total gross county product was $658 million, a total of 2,060 full-time employments were generated, and the total estimated county revenue was $38 million. Economic Impacts Direct Indirect Induced Total Output $1,260.92 $148.24 $35.59 $1,444.75 Employment Full-Time 668 1,130 263 2,060 Payroll $33.59 $28.41 $7.01 $69.01 Fiscal Impacts Direct Indirect Induced Total Gross County Product $567.90 $67.98 $22.98 $658.85 Total Local Revenues $38.07 Estimated County Revenue $38.10 210

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Wilson County. In 2023, it is estimated that a total of 708 Wilson County jobs were supported by the 15-county area under analysis, in addition to $2,062 million in output as well as over $1,158 million gross county product. Economic Impacts Direct Indirect Induced Total Output $2,062.56 $278.79 $82.04 $2,423.39 Employment Full-Time 708 2,167 606 3,481 Payroll $128.53 $52.97 $16.16 $197.66 Fiscal Impacts Direct Indirect Induced Total Gross County Product $1,158.06 $122.38 $52.93 $1,333.38 Total Local Revenues $86.81 Estimated County Revenue $86.81 211

Zavala County Overview of Zavala County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 212

General County Data Zavala County, a Texan county in the Eagle Ford Shale region, consists of a total population of 11,961 thousand people. Out of these, the population that makes up the total employment is 2,911 people. It is estimated that out of the total employment, $20,296 is the average per capita personal income. Population 11,961 Per Capita Personal Income 20,296 Total Employment 2,911 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 213

Population Growth Comparison The growth in population for the 14-County EFS area and the state of Texas has been virtually the same since 2001, with both showing a 22 percent increase. Zavala County s population growth has been steady, never rising or falling by more than three percent over the eleven year period, slightly increasing since 2009, with a three percent increase as of 2012. Comparative Population Growth Source: U.S. Census Bureau 214

Population Forecast The following table projects Zavala County s population from 2010-2023. Zavala County is projected by the year 2023 to see an overall increase in population. Based on our calculations starting in 2010, the population, by 2023, will see a steady annual increase of 1,999 people. Population Forecast From 2010-2023 Year Population 2010 11,677 2011 11,828 2012 11,968 2013 12,119 2014 12,275 2015 12,434 2016 12,572 2017 12,723 2018 12,884 2019 13,038 2020 13,189 2021 13,357 2022 13,517 2023 13,676 Source: Texas Workforce Commission as computed in 2012 by The Office of the State Demographer for the State of Texas 215

Natural Resource and Mining Employment Growth Comparison Both the 14-county EFS area and the state of Texas as a whole saw an increase, which was followed a sharp drop in 2008. The 14-county EFS area however, saw multiple spikes in employment in natural resources and mining, recovering from an 18 percent loss in 2009 to see a net increase of 49 percent in 2013. The state of Texas as whole saw the least overall fluctuation, dropping just 3 percent in 2009. There was a 23 percent increase in 2012; however, this number has fallen 10 percent in the last year. Zavala County s employment in natural resources and mining consistently fell by a whopping 39 percent by 2013. Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 216

Job Growth Comparison Zavala County s employment growth fluctuated slightly until 2012, when it sharply fell to an eight percent net loss. The 14-county EFS areas as well as the state of Texas as a whole both have shown modest increases to 107 and 106 percent respectively. Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 217

Location Quotients for NRM Employment in Zavala and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotients for both Zavala County and the 14-county EFS area as a whole have been over 1 for all five years, with Zavala s rising to 2.76 in 2010. The 14-county EFS area s location quotient stands at 2.53 in 2012 and Zavala 1.96. Location Quotients for NRM Employment Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 218

Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 219

Employment Changes Between the fourth quarter of 2009 and the fourth quarter of 2013, for Zavala county area, there was a -11.47 percent change in employment for all industries. Employment growth for the state of Texas for the same period was 10.62 percent. The industry with the highest growth was Leisure and Hospitality with a 101.79 percent increase, and the industry with the highest negative growth in employment was Other Services, with a -16.67 percent change. Area Employment 2009 2013 Employment Change Percent Change Industry Sector 4th Qtr 4th Qtr Total, All Industries 2,903 2,570-333 -11.47% Natural Resources and Mining 163 160-3 -1.84% Construction 111 112 1 0.90% Manufacturing - - - N/A Trade, Transportation and Utilities 229 228-1 -0.44% Information 6 9 3 50.00% Financial Activities 75 74-1 -1.33% Professional and Business Services - 119 119 N/A Education and Health Services 1,324 1,190-134 -10.12% Leisure and Hospitality 112 226 114 101.79% Other Services 84 70-14 -16.67% Public Administration 143 155 12 8.39% Unclassified - - - N/A Source: Texas Workforce Commission, Quarterly Census of Employment and Wages data, from 2001 to 2012 220

Employment Forecast The following table demonstrates that Zavala County will experience in 2023 an increase of 849 jobs. Year Total 2011 2,325 2012 2,383 2013 2,446 2014 2,508 2015 2,574 2016 2,640 2017 2,711 2018 2,782 2019 2,857 2020 2,932 2021 3,011 2022 3,091 2023 3,174 Source: CCBR elaboration with Texas Workforce Commission s forecasts for Workforce Development Areas (WDAs) 2010-2020 221

State Sales Tax Source: Texas Comptroller of Public Accounts Zavala County s graph is one of the simplest to examine. They are one of the few counties to see virtually a steady increase from 2002 to 2013. Starting in 2002 with state tax numbers totaling $3.7 million, they have increased at a pace of just fewer than one million dollars a year, never achieving big gains or losses. As of the fourth quarter of 2013, the state tax stands at just above $10 million. 222

Commuting Patterns The following table represents the number and percent of the people that work in Zavala County. Out of the 3,373 persons living in this County, only 1,157 persons are employed there. These figures demonstrated that 65.70% of the population of Zavala is employed outside. Inflow/Outflow Job Counts (Primary Jobs) in 2011 Count Share Employed in the Selection Area 2,668 100% Employed in the Selection Area but Living Outside 1,511 56.6% Employed and Living in the Selection Area 1,157 43.4% Living in the Selection Area 3,373 100% Living in the Selection Area but Employed Outside 2,216 65.7% Living and Employed in the Selection Area 1,157 34.3% Source: U.S. Census Bureau s On the Map 223

Economic Impacts in 2013 The following table shows the estimated impacts of the oil and gas industry on Zavala County in 2013. The rows contain the estimated economic impact for 2013 in regards to the oil and gas industry. During this period, the total output was $661 million, the total gross county product was $376 million, a total of 914 full-time employments were generated, and the total estimated county revenue was $20 million. Economic Impacts Direct Indirect Induced Total Output $532.78 $110.47 $18.67 $661.93 Employment Full-Time 359 397 158 914 Payroll $17.30 $8.57 $3.86 $29.73 Fiscal Impacts Direct Indirect Induced Total Gross County Product $288.37 $77.32 $10.66 $376.35 Total Local Revenues $20.64 Estimated County Revenue $20.73 224

Economic Impacts in 2023 The following table shows the estimated impacts of the shale activity on Zavala County. In 2023, it is estimated that a total of 381 Zavala County jobs were supported by the 15-county area under analysis, in addition to $969 million in output as well as over $620 million gross county product. Economic Impacts Direct Indirect Induced Total Output $969.68 $206.86 $45.60 $1,222.14 Employment Full-Time 381 571 386 1,338 Payroll $71.10 $16.17 $9.43 $96.70 Fiscal Impacts Direct Indirect Induced Total Gross County Product $620.41 $159.71 $26.02 $806.14 Total Local Revenues $47.22 Estimated County Revenue $47.37 225

Additional Counties: Bexar County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 226

Population County Overview Bexar County, consists of a total population of 1,785,704 thousand people. Out of these, the population that makes up the total employment is 749,534 people. It is estimated that out of the total employment, $36,177 is the average per capita personal income. Population 1,785,704 Per Capita Personal Income 36,177 Total Employment 749,534 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 227

Population Growth Comparison According to the U.S. Census Bureau, the Bexar County has experienced a population growth that exceeds those of State of Texas and 14-county EFS area (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began in 2005, where Bexar County has a higher rate of growth, while Texas and the 14-county EFS area hold a stable growth rate. Compared to the 25.84 percent increase in Bexar County, the 14-county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 228

Job Growth Comparison The State of Texas, 14-county EFS area and Bexar County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2010, and before they all experienced a decline from 2008 to 2010. Different from the 14-county EFS area made a big increase in 2013 with 11.63 percent, the Bexar County and Texas area s employment grew almost at the same pace with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 229

2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. Bexar County faced a big drop in 2011 with 12.3 percent decrease, then increase with 24.31 percent in 2013.. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has 230

greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in Bexar County is less than 1.0, while the 14-county EFS area report a location quotient greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is less important to the Bexar County economy when compared to the Texas State, and to the 14-county EFS area from 2002 to 2006, the natural resource and mining supersector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 231

Figure 5: Location Quotients for NRM Employment 232

Jim Wells County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 233

Population County Overview Jim Well County consists of a total population of 41,754 thousand people. Out of these, the population that makes up the total employment is 20,649 people. It is estimated that out of the total employment, $39,800 is the average per capita personal income. Population 41,754 Per Capita Personal Income 39,800 Total Employment 20,649 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 234

Population Growth Comparison According to the U.S. Census Bureau, the Jim Wells County has experienced a population growth that falls behind those of State of Texas and 14-county EFS area (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began immediately in the following year, where Jim Wells County keeps the lower rate of growth, while Texas and the 14-county EFS area hold a stable higher growth rate. Compared to the 5.17 percent increase in Jim Wells County, the 14-county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 235

Job Growth Comparison The State of Texas, 14-county EFS area and Jim Wells County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2011, and before they all experienced a decline from 2009 to 2011. The Jim Wells County made a big decline with 5.76 percent decrease, then jump into 12.55 percent increase in 2013, and the 14-county EFS area grew with 11.63 percent, Texas with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 236

2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. Jim Wells County faced a big drop in 2009 and 2010 with 22.27 percent decrease, then jump into 35.89 percent increase in 2013.. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has 237

greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in Jim Wells County is much greater than 1.0, and the 14-county EFS area report a location quotient a little greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is much greater important to the Jim Wells County economy when compared to the Texas State, and to the 14-county EFS area from 2002 to 2006, the natural resource and mining super-sector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 238

239

Nueces County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 240

Population County Overview Nueces County, consists of a total population of 347,691 thousand people. Out of these, the population that makes up the total employment is 155,782 people. It is estimated that out of the total employment, $38,441 is the average per capita personal income. Population 347,691 Per Capita Personal Income 38,441 Total Employment 155,782 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 241

Population Growth Comparison According to the U.S. Census Bureau, the Nueces County has experienced a population growth that falls behind those of State of Texas and 14-county EFS area (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began immediately in the following year, where Nueces County keeps the lower rate of growth, while Texas and the 14-county EFS area hold a stable higher growth rate. Compared to the 10.85 percent increase in Nueces County, the 14-county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 242

Job Growth Comparison The State of Texas, 14-county EFS area and Nueces County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2011, and before they all experienced a small decline from 2008 to 2010. The Nueces County has 4.04 percent increase in 2013, and the 14- county EFS area grew with 11.63 percent, Texas with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 243

Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. Nueces County faced a big drop in 2009 with 11.87 percent decrease, then jump into 42.16 percent increase in 2013.. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 244

Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in Nueces County is a greater than 1.0 except that in 2009, and the 14-county EFS area report a location quotient a little greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is greater important to the Nueces County economy when compared to the Texas State except that in 2009, and to the 14-county EFS area from 2007 to 2013, the natural resource and mining super-sector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 245

Figure 5: Location Quotients for NRM Employment 246

San Patricio County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 247

Population County Overview San Patricio County consists of a total population of 65,600 thousand people. Out of these, the population that makes up the total employment is 18,982 people. It is estimated that out of the total employment, $38,087 is the average per capita personal income. Population 65,600 Per Capita Personal Income 38,087 Total Employment 18,982 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 248

Population Growth Comparison According to the U.S. Census Bureau, the San Patricio County has experienced a population growth that falls behind those of State of Texas and 14-county EFS area, it even decreased since 2008 (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began immediately in the following year, where San Patricio County keeps the lower rate of growth, and then decrease with 1.63 percent in 2012. While Texas and the 14-county EFS area hold a stable higher growth rate. The 14- county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 249

Job Growth Comparison The State of Texas, 14-county EFS area and San Patricio County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2011, and before they all experienced a small decline from 2008 to 2010. The San Patricio County has 5.75 percent increase in 2013, and the 14-county EFS area grew with 11.63 percent, Texas with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 250

Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. San Patricio County faced a drop in 2009 with 2.04 percent decrease, then jump into 53.77 percent increase in 2013.. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 251

Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in San Patricio County is a greater than 1.0, and the 14-county EFS area also report a location quotient greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is greater important to the San Patricio County economy when compared to the Texas State from 2007 to 2013, and to the 14-county EFS area from 2007 to 20013, the natural resource and mining super-sector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 252

Figure 5: Location Quotients for NRM Employment 253

Uvalde County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 254

Population County Overview Uvalde County consists of a total population of 65,600 thousand people. Out of these, the population that makes up the total employment is 18,982 people. It is estimated that out of the total employment, $38,087 is the average per capita personal income. Population 65,600 Per Capita Personal Income $38,087 Total Employment 18,982 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 255

Population Growth Comparison According to the U.S. Census Bureau, the Uvalde County has experienced a population growth that falls behind those of State of Texas and 14-county EFS area (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began immediately in the following year, where Uvalde County keeps the lower rate of growth with 3.13 percent in 2012. While Texas and the 14-county EFS area hold a stable higher growth rate. The 14-county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 256

Job Growth Comparison The State of Texas, 14-county EFS area and Uvalde County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2011, and before they all experienced a small decline from 2008 to 2010. The Uvalde County has 1.26 percent increase in 2013, and the 14- county EFS area grew with 11.63 percent, Texas with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 257

Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. Uvalde County faced a drop in 2013 with 25.18 percent decrease. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 258

Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in Uvalde County is much greater than 1.0, and the 14-county EFS area also report a location quotient greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is greater important to the Uvalde County economy when compared to the Texas State from 2007 to 2013, and to the 14-county EFS area from 2007 to 20013, the natural resource and mining super-sector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 259

Figure 5: Location Quotients for NRM Employment 260

Victoria County Source: Selected GIS software provided by Caliper Corporation; Newton, MA. http://www.caliper.com/ Center for Community and Business Research. 261

Population County Overview Victoria County, consists of a total population of 89,269 thousand people. Out of these, the population that makes up the total employment is 39,119 people. It is estimated that out of the total employment, $42,452 is the average per capita personal income. Population 89,269 Per Capita Personal Income 42,452 Total Employment 39,119 Sources: Bureau of Economic Analysis (BEA), Regional Accounts 262

Population Growth Comparison According to the U.S. Census Bureau, the Victoria County has experienced a population growth that falls behind those of State of Texas and 14-county EFS area (see Figure 1). After sharing the same rate of growth during early 2001, a divergence began immediately in the following year, where Victoria County keeps the lower rate of growth with 5.66 percent in 2012. While Texas and the 14-county EFS area hold a stable higher growth rate. The 14-county EFS area increases 19.3 percent during 11 years and Texas increases 22.23 percent. Figure 1: Comparative Population Growth Source: U.S. Census Bureau 263

Job Growth Comparison The State of Texas, 14-county EFS area and Victoria County all provide more and more job opportunities, thus made the increase of total employment (see Figure 2) since 2011, and before they all experienced a small decline from 2008 to 2010. The Victoria County faced a drop with 5.94 percent decrease, and then grew into 1.52 percent increase in 2013, and the 14-county EFS area grew with 11.63 percent, Texas with 6 percent increase. Figure 2: Comparative Employment Growth Source: Texas Workforce Commission (QCEW) 264

Natural Resource and Mining Employment Growth Comparison All the three areas provide important job opportunities for the Natural Resources and Mining supersector (see Figure 3). The 14-county EFS area experienced a drop in 2009 and followed by a big jump in 2013 with 84.67 percent increase. For Texas, it keeps steady until 2012 with an increase with 22.5 percent, then drop to 13.36 percent increase. Victoria County faced a drop in 2009 with 25.14 percent decrease, and then grew with a 19.29 percent increase in 2013. Figure 3: Comparative Job Growth for Natural Resource and Mining Source: Texas Workforce Commission (QCEW) 265

Location Quotients for NRM Employment in Atascosa and 14-county EFS area Location quotients are useful in determining the significance of a particular job sector in the local economy. This is determined by calculating the ratio of a particular job sector from the local economy with total jobs in the local economy. A location quotient greater than 1.0 denotes a sector that has greater importance to the local economy than that for the state. A location quotient less than 1.0 signifies that the sector is less important to the local economy when compared to the State. The location quotient in Victoria County is much greater than 1.0, and the 14-county EFS area also report a location quotient greater than 1.0 from 2007 to 2013 (see figure 4 and figure 5). It indicates that the natural resource and mining super-sector is greater important to the Victoria County economy when compared to the Texas State from 2007 to 2013, and to the 14-county EFS area from 2007 to 20013, the natural resource and mining super-sector has greater importance than that for the Texas State. Figure 4: Location Quotients for NRM Employment 266

Figure 5: Location Quotients for NRM Employment 267

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