November 21, 2011 at 9:39 AM
State Regulator Forms Eagle Ford Shale Task Force

Posted on May 16, 2011 by chron.com Energy 

The Texas Railroad Commission is creating a task force in the Eagle Ford shale region of South Texas to ensure that regulators can keep up with the oil and gas boom there, one of the three commissioners said Monday.

In an interview with the Houston Chronicle, Commissioner David Porter said the state’s main drilling regulator wants to avoid repeating problems that arose when gas drilling took off in the Barnett Shale in North Texas in the middle of the last decade.

Breakthroughs in two technologies — hydraulic fracturing and horizontal drilling – have allowed drillers to tap economically into prolific shale formations in the Dallas-Fort Worth area and many other parts of the country.

The speed of development in North Texas led to backlashes against drilling in some communities, Porter said.

“There’s a perception problem that no one was regulating the oil and gas industry,” Porter said. “And it’s still out there, that the oil companies are doing whatever they want.”

Porter said he believes the Eagle Ford has the potential to be the biggest single economic driver in South Texas’ history.

The task force will comprise about a dozen members, including large and small producers, oil field services companies, local elected officials, landowners and environmental groups.

“We want to make sure the lines of communication are clear,” Porter said.

But the commission still may face staff shortages because of deep cuts the Legislature is making this session.

During the last session in 2009 the Commission was funded for 704 full-time equivalent positions, which was considered less than full staffing.

Now the staffing is around 625, down because of budget reductions state leaders asked all agencies to make in the past year.

The commission wants funding for 40 to 50 positions above the 704 funded in 2009, but Porter isn’t optimistic.

A staffing shortage could lead to delays in issuing permits for Eagle Ford work, he said. Worker shortages already have slowed some permitting and enforcement work.

Historically, the commission has moved workers from other divisions when necessary to keep permits for new wells flowing.

“That’s been the highest priority within the commission, to keep everything moving economically,” Porter said – acknowledging the potential for conflict between that function and enforcing safety rules, including ensuring that underground aquifers aren’t contaminated by drilling activities.

“It’s a fine line we walk at the Railroad Commission, between protecting public health and safety and promoting the industry,” Porter said.

The water issues in the Eagle Ford will be even more sensitive than in the Barnett Shale, Porter said, because the area is more arid and the aquifers are deeper than in North Texas, meaning well casing has to run deeper to protect the drinking water.