This has the potential to be even bigger than the HERO repeal referendum.
Voters will decide whether this North Texas college town will become the state’s first city to ban hydraulic fracturing.
After a public hearing Tuesday night that stretched into Wednesday morning, the Denton City Council rejected a proposal to ban the method of oil and gas extraction inside the city, which sits on the edge of the gas-rich Barnett Shale. The 5-2 vote kicked the question to the city’s November ballot, the next step in a high-profile property rights clash that will likely be resolved outside of Denton.
“It’s a high-stakes game,” said mayor Chris Watts, who said he voted against the proposal so that citizens would have a say. “This issue is going to be decided in one of two places: the statehouse or the courthouse.”
Fracking opponents forced the council’s vote after gathering nearly 2,000 signatures on a petition calling for a ban. The proposal would not prohibit drilling outright; it would apply only to fracking, which involves blasting apart rock with millions of gallons of chemical-laced water.
Denton, population 121,000 and pockmarked with more than 270 natural gas wells, is one of several Texas cities wrangling with questions about where to allow drilling and how strictly to regulate it.
As drilling increasingly moves into urban areas, tension is growing between property rights above ground and sub-surface mineral rights. States, along with the federal government, regulate most aspects of drilling, including well integrity, pipeline safety, and air and water impact. Cities, however, have sought to regulate noise and to control the location of wells or related sites like compressor stations.
No Texas city has tried to ban fracking, and the prospect of a ban in Texas prompted state officials and energy industry representatives Tuesday to join an overflow crowd at city hall.
“The whole world is watching Denton, Texas,” said Chris Faulkner, CEO of Dallas-based Breitling Energy, who urged the council to reject the ban.
I think that’s fair to say. It’s also highly likely that there will be a ton out outside interest and money in this referendum, and if it passes you can be sure there will be litigation.
A Chron story from Tuesday morning set the scene.
“I think everyone all along assumed this was going to go to a citywide vote, given the uncharted waters we find ourselves in,” Councilman Kevin Roden said in an interview. “My guess is there’s comfort in letting it go to an entire city vote as opposed to seven of us trying to decide this.”
Denton sits over the Barnett Shale, one of the nation’s largest natural gas fields.
Barry Smitherman, chairman of the Texas Railroad Commission, sent a 4-page letter to the mayor and council members blasting the ban proposal as “extremely misguided.”
“Increased production of natural gas, natural gas liquids and crude oil has greatly enhanced the Texas economy,” Smitherman wrote. “Over 400,000 Texans work in the oil and gas industry and the average wage per employee is a staggering $128,000.”
Smitherman [didn't] attend Tuesday’s public hearing because of a prior commitment, but asked that his written comments be considered.
Although Roden, the councilman, declined to state his position on the ban, he was unimpressed with Smitherman’s letter.
“We’ve been struggling with how to make natural gas drilling compatible in residential areas and largely because of the regulatory environment we find ourselves in, the state is pulling the shots and we’re not able to regulate from a local perspective,” he said.
“For him to write us a letter in the 11th hour with no policy suggestions on how to get better, only advocating for an industry he’s supposed to be regulating, I found it pretty out of touch.”
Here’s Smitherman’s letter. Perhaps if the RRC had any credibility as a watchdog, this sort of advocacy would not have arisen. State Rep. Myra Crownover, who represents Denton, is quoted in the Trib story saying that she will work with Sen. Craig Estes “to find a finely crafted fix for these issues”, but again, I don’t know how much credibility that carries. We all know whose interests come first around here. The Observer, Unfair Park, and Texas Sharon, one of the leaders of the petition effort, have more.