American Oil and Gas Reporter - July 2023 - 48

ConventionSec tion: Texas Independent Producers & Royalty Owners
expansion is especially acute in the Permian
Basin.
SB 2627 provides completion bonuses
and zero interest loans for new power
projects as large as 10 gigawatts, as well
as for additions to existing generation facilities,
Longanecker says. HB 5066 allows
the Texas Public Utility Commission to
grant an application for a certificate of
convenience and necessity based on the
need to extend transmission service into
regions with underserved existing and projected
load, he explains. The PUC must
devise a plan specifically for the Permian
Basin region no later than Jan. 30, 2024.
Walker likens power and producedwater
infrastructure to pipeline takeaway
capacity for oil and gas: less capacity
impedes progress while more of it unlocks
growth to meet the needs of consumers
and the oil and gas industry. " These
critical bills allow us to grow production
and meet demand, " he affirms.
According to Longanecker, the bills
that TIPRO helped persuade lawmakers
to defeat included HB 2941, which called
for criminal penalties for failure to submit
certain regulatory documents to the
RRC.
The association also helped to block
HB 3044 and SB 1550, which sought to
increase operators' financial obligations
for oil and gas well blanket bonds. Since
bonding accounts for a small portion of
the fees that finance the RRC's Oil &
Gas Regulation and Cleanup Fund, a
widespread misconception holds that
steeper bonding requirements would
slash the number of Texas' orphaned
wells, he says.
TIPRO analyzed the data and found
that higher bonding fees would fund
about 40 additional plugged well each
year, Longanecker relates, but the measure's
proponents ignored the impact on
future drilling projects, and the RRC already
meets its annual plugging goals.
" Increasing bonding requirements
would have a disproportionate impact on
smaller producers, " he insists. " That
would make it more difficult for them to
secure those bonds for their drilling ventures,
and its impact on overall funding
would be minimal. "
Missed Opportunities
Two bills aimed at boosting funding
for highways and other infrastructure
passed the House but stalled in the Texas
Senate Finance Committee, including HB
2207 by Landgraf and HB 1392 by Representative
Tom Craddick, R-Midland.
Referred to as " Texas STRONG " and
" GROW Texas, " respectively, the measures
proposed a constitutional amendment that
would allow a portion of the state Economic
Stabilization Fund-also known as the
Rainy Day Fund-to be redirected to areas
from which the revenue originated to help
supplement funding for highways and
other infrastructure, Longanecker says.
The Rainy Day reserve is financed
through oil and gas severance taxes, Walker
observes, and benefits Texas by addressing
necessary projects, including upgrades to
clogged highways in West Texas' Permian
Basin region. " We have infrastructure across
the state that needs updating and the state
is growing dramatically with an influx of
people from higher-cost states such as California
and those on the East Coast. I think
The KIOGA Educational Foundation (KEF) has awarded 24
STEM grants totaling over $18,000 to schools throughout
Kansas over the past 3 years. If you know of a teacher in
your community that would benefit from a grant to help
with science or math curriculum, please have them submit
an application for one of our STEM Grants. The application
can be found through the KIOGA website at
https://www.kioga.org/kef/.
If you know a school that would fit in this category, please
have their school contact us. Grants awarded include:
Derby North Middle School - Derby, KS
Gordon Parks Academy - Wichita, KS
Heller Elementary - Neodesha, KS
Marshall Elementary - Eureka, KS
Victoria Elementary - Victoria, KS
Spaght Science & Communications - Wichita, KS
If you are interested in donating to the program,
contact KEF at kef@kioga.org.
Check out our Facebook page!
48 THE AMERICAN OIL & GAS REPORTER
https://www.kioga.org/kef/
American Oil and Gas Reporter - July 2023

Table of Contents for the Digital Edition of American Oil and Gas Reporter - July 2023
