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Sunday, August 25, 2002

Alliance success evident

By Bill Stevens
Executive vice president, Texas Alliance of Energy Producers

As the Texas Alliance of Energy Producers approaches its third anniversary, the officers and members of the combined organizations wonder why the West Central Oil and Gas Association (Abilene) and the North Texas Oil and Gas Association (Wichita Falls) didn’t merge sooner.

By all measures the Alliance is proving to be an effective advocate and successful trade association for independent oil and gas producers of Texas.

Survey results from the members of the two old associations directed the Alliance officers to concentrate on representing the new membership in Austin before the Texas legislature and the Railroad Commission of Texas, and in Washington, D.C., before the U.S. Congress.

With a staff of six, including a full time government relations officer, the association has moved rapidly forward in its involvement in state and national policy making regarding our energy future.

With nearly 1,800 members across Texas, the Alliance is growing at an annual rate of five percent. Alliance members reside in 187 Texas towns and cities; operate in all 13 RRC districts within the state, and produce in 22 other states. The association is led by current chairman, Roy T. Pitcock Jr. of Graham, a third generation oilman; vice presidents are Bob Eagle (Clearfork, Inc., Abilene); Hollis Sullivan (Wichita Falls), and Frank King (Republic Minerals, Dallas). Alex Mills is president and chief of staff (Wichita Falls): Bill Stevens is executive vice president of government relations (Abilene); and, Pat French is vice president of development (Fort Worth).

Following its mandate, the Alliance staff and officers have been deeply involved in lobbying both the House and Senate on the current energy legislation, which is in conference and should be debated and passed in September and October.

Specifically, the association has pushed to include eight tax adjustments that would help the independent producer.

Additionally, the association is fighting the EPA Storm Water Permitting Phase II, which would require operators on private lands to obtain federal permits for the construction of a drilling location. This permit would not only be time consuming and costly, but would also trigger actions by the U. S. Fisheries and Wildlife Service and state historic preservation offices.

In Austin, issues before the RRC have dominated the interim since the adjournment of the legislature.

The Alliance has been at the forefront and will remain so in the fight to correct the misinterpretation of the SB 310 Financial Assurance; the issues of naturally occurring radioactive materials (SWR 94 NORM) and pit liners (SWR 8) are nearing resolution.

Additionally, the potential vacancy at the RRC caused by Commissioner Garza’s ambassadorial appointment has set in motion a search for an industry knowledgeable nominee to suggest to Governor Perry.

Next January’s convening of the legislature will find the Alliance representing independent producers in Austin on a full-time basis.

Coalitions and agendas of specific issues and proposed legislation are being worked on daily. A workable financial assurance bill will be at the top of the Alliance list.

Check-off legislation for an industry advocacy program and severance tax adjustments will again be on the Alliance list. Low pressure, low volume gas should also receive attention. Opposition to onerous issues is always part of the agenda.

Land use restrictions, new taxes, statute of limitations, and increased pipeline gathering system regulations are some of the potential issues being discussed.

Regardless of the issue in Washington, D.C., or Austin, the Texas Alliance of Energy Producers knows who it represents – the independent oil and gas operators of Texas.

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Crossing borders: Maximizing energy opportunities by Debra Guerra-Vasquez. The recent trade mission to Mexico has caused interest in Texas energy circles.

Desk & Derrick Club professional, not social group by Kathy Edwards. Celebrating 50 years in Abilene, this organization supports the energy industry through education.

Petrochemicals and how I use them by Nicollette Moore, Desk & Derrick Club of Abilene’s 2002 essay contest winner.

Senate bill balancing act for regulators by Kathi Stapp. A closer look at what Senate Bill 310 means to Texas independent producers.

Bill Stevens gives an update on the Texas Alliance of Energy Producers.

The Texas Alliance of Energy Producers meets Tuesday and Wednesday at Abilene Civic Center, 601 Pine. Their agenda will keep you current on their major issues.

RRC Chairman Michael Williams explains the propane projects the Texas Railroad Commission is developing.

RRC Commissioner Charles Matthews writes about Texas’ abundant natural resources.

The national energy bill is still in committee. Charles Stenholm gives his perspective on the proceedings.

RRC Commissioner Tony Garza writes about finding a balance between utilizing our resources and protecting them.

17th District Congressional candidate Rob Beckham offers his view on the national energy bill.

Energy bill possible production catalyst by Kathi Stapp. Energy reserves are in good shape, and production may get a hefty boost with the passing of the Comprehensive Energy Bill.



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