Nearly 60 pieces of legislation tied to natural gas drilling, production and distribution got some kind of hearing in either the state Senate’s Natural Resources Committee or the House’s Energy Resources Committee in the 81st legislative session.

A handful of bills made it through and became law, beefing up inspection, safety and cleanup efforts, particularly for pipelines.

But other bills languished, including those that would have steered the industry toward “green” completions and sharing geological findings — as well as sorting out battles over property rights and municipal authority.

Cities’ rights

This spring, more than 30 Barnett Shale cities signed a resolution asking the Legislature to limit the use of eminent domain by pipeline companies, many of which, they contended, did not fit the traditional definition of a public utility. Even some industry officials agreed the recent proliferation of gathering pipelines was becoming a concern.

The pipeline companies enlisted the help of Rep. Yvonne Gonzalez Toureilles, D-Alice, to introduce House Bill 4441. That bill would have transferred certain longstanding, local authority over pipelines and compression to the Texas Railroad Commission.

Many cities and environmental groups worked hard to defeat the bill, including the Oil and Gas Accountability Project, which sent out several legislative alerts in March urging its defeat, according to Jennifer Goldman, the group’s public health and toxics campaign director.

Dish Mayor Calvin Tillman had spearheaded the effort to get the problem solved, but had to shift gears after HB 4441 was introduced.

“I’d hoped we’d gain something in this session, but at least we didn’t lose anything either,” Tillman said.

HB 4441 died in committee.

“I managed that,” Tillman said, adding that he is focusing his attention on the next legislative session and is trying to work closer with the industry to solve the problem.

Davis’ defeats

Freshman Sen. Wendy Davis, D-Fort Worth, was perhaps the most ambitious among those representing the 19 counties of the Barnett Shale. Among the legislation she introduced, six bills took on some of the most pressing issues in natural gas drilling, production and delivery.

Of those that made it out of committee, one would have ensured that disposal wells be permitted only in the Ellenberger formation, protecting Texas groundwater by injecting drilling waste nearly 8,000 feet down. Another would have limited gas well venting, a rule that has not been updated since 1977, and would have helped with North Texas air quality.

Texas Commission on Environmental Quality officials recently affirmed the findings of a Southern Methodist University study funded by the Environmental Defense Fund: Barnett Shale drilling and refining activities contribute 200 tons of smog and greenhouse gases daily, doubling what is belched out by traffic each day.

But neither bill got any further traction because of problems with the House calendar.

“That ‘green completions’ was the most important legislation because we are a non-attainment area,” Davis said of the inability of the North Texas area to meet federal requirements for air pollution.

Another bill would have leveled the playing field between municipalities and energy companies when it comes to negotiating mineral leases. Currently, the law allows energy companies to lease minerals owned by cities at terms that are more favorable to the industry.

Legislative records show that when the bill went before the committee on May 5, the city of Fort Worth sent one representative to speak in favor of the bill. The Texas Municipal League also supported the bill. But the industry sent two representatives to speak against the bill and representatives from six major energy producers wrote against it, as well.

Another bill would have helped protect the rights of property owners in unincorporated areas. Currently, only cities are allowed to write rules that can require wells to be drilled away from homes, schools and businesses. Most have setbacks between 500 and 1,000 feet.

Despite the political popularity of such a measure, that bill also died in committee.

The University of North Texas Survey Research Center conducted a poll of Denton and Tarrant county residents last fall.

Given a scenario of a well proposed for 1,000 feet away from homes and businesses, 52 percent of those polled said they would favor drilling in their neighborhood, and 65 percent were in favor if they thought they shared in the mineral rights. However, at 500 feet, the mood shifted, and 72 percent opposed the prospect.

Even if respondents had the mineral rights for such a well, 59 percent would oppose a well that close. Given a scenario at 200 feet, 86 percent of respondents without rights, and 78 percent with rights, opposed the prospect.

Paul Ruggiere, director of the study, said that a distance of 1,000 feet appeared to influence the favorability of a well.

Davis also sponsored a bill that would have required gas suppliers and the Texas Railroad Commission to report “Grade 1” leaks to local authorities, since those leaks present the greatest risk to the public.

That bill also died in committee.

Davis said the problems had more to do with the House and its calendar, which got clogged after Democrats pushed to kill the voter identification bill.

“These are major pieces of legislation that should have gotten through,” Davis said. “Four of them sailed through the Senate with no problem.”

Crownover’s victories

It took Rep. Myra Crownover, R-Lake Dallas, two sessions to get through legislation that closed loopholes that allowed some energy companies to abandon wells without properly plugging them and cleaning up the well site.

HB 2259 awaits Gov. Rick Perry’s signature to become law.

Crownover’s assistant, Kevin Cruser, said the bill was a victory for property owners and the industry alike, since it distinguishes between the “good actors” and marginal operators.

“We’ve had positive feedback from the governor’s office,” Cruser said.

Two of Crownover’s other bills were folded into other legislation, including a law, effective Sept. 1, that beefs up pipeline inspections. The Texas Railroad Commission has faced increased scrutiny after failed compression fittings led to pipeline explosions that killed people in Wylie and McKinney.

Another bill Perry is expected to sign would allow pipeline companies to use public roadways.

But a fourth bill will have to wait for another session, Cruser said. With HB 2356, Crownover tried to shore up the requirement that drilling companies file their well logs with the railroad commission, information that could help production throughout a natural gas field.

The only other natural gas drilling-related bill Perry has signed so far is HB 472, which allows the railroad commission to use some of its oilfield clean-up money to decontaminate leaks and spills from pipelines.

Next session

Neither Tillman nor Cruser thought any of the legislative measures would be resuscitated in a special session, should the governor call one.

Gwen Lachelt, executive director of the Oil & Gas Accountability Project, which has been successful with regulatory reform in Colorado and New Mexico, said that her group has turned some of its focus toward Texas. The group is working with a statewide steering committee to determine what reforms are needed.

“We’re doing a lot of research,” Lachelt said. “We’re developing a campaign reform package that should make a difference in the next couple of years.”

PEGGY HEINKEL-WOLFE can be reached at 940-566-6881. Her e-mail address is pheinkel-wolfe@dentonrc.com .