The Eagle Ford Shale And The Potential Bankrupting Of The 24 TX Counties Sitting On It

[hatrack]

EDIT

The Texas Railroad Commission’s Eagle Ford Shale Task Force issued a report in March 2013 in conjunction with the University of Texas, San Antonio which is a real eye opener. Texas Railroad Commissioner David Porter crows: “The Eagle Ford Shale has the potential to be the single most significant economic development in our state’s history.”

Now setting aside the question of whether it is appropriate for the state regulatory agency charged with oversight of oil and gas to come out as industry’s chief cheerleader, Commissioner Porter appears to have overlooked a few other details that might have a significant impact on the overall economic return to the great state of Texas.

DeWitt County is one of the core counties of the Eagle Ford which means that it has a disproportionate number of good wells. Shales are not homogenous though industry once promised us they were. Each play has contracted down to sweet spots just like a conventional play. Drilling down into the road damage costs for DeWitt county, it is admitted in the report:
“The cost of providing a county road system designed to meet the anticipated traffic demand arising from drilling another 3,250 wells in DeWitt County at 65-acre spacing is approximately $432 million.”

But the Texas Comptroller confirmed that : “…$323 million was collected on production [in the form of severance taxes] from 24 Eagle Ford Shale counties in FY 2011.” Please note that those severance taxes were for all the Eagle Ford counties, not just Dewitt. And still there is a significant shortfall that equates to $109 million…just for Dewitt County. But what about the road damages in those other Eagle Ford counties? No information is given.

EDIT

http://www.resilience.org/stories/2013-06-03/will-the-eagle-ford-shale-bankrupt-local-communities

[bahrbearian]

1. Doesn't even account for the Heath issues or Pollution.

[Downwinder]

2. or increased law enforcement and emergency services.

[eppur_se_muova]

7. I'm OK with Heath issues.

[Gman]

3. The drillers are destroying everything down there

They leave big messes,trash the roads and they will also hide, with a nod and wink from TCEQ, any harmful emissions like benzene in poisonous quantities.

[Socialistlemur]

4. That's very simple: reduce the truck load limits

All they got to do is put up signs limiting truck loads. If the loads are exceeded they can issue fines.

[Ilsa]

5. They might would pass a law for this,

But not a dime allocated to enforce the law.

All smoke & mirrors.

[Socialistlemur]

9. Hell then they are stupid

Im from Texas, I don't live there anymore, but I know a self respecting Texas county would have troopers running around giving tickets to overloaded trucks because it can make a lot of money. Or all your figures are wrong and they get so much from the oil and gas they don't want to mess with Mother Nature. Those guys are a greedy bunch. I assure you.

[Ilsa]

10. I figure the CEOs pay off the sheriffs

who tell the troopers not to give the truckers a hard time because they are the job creators!

[eppur_se_muova]

8. Well, that hasn't worked for coal ...

Even wiith legal haulage limits of 120,000 lbs, coal companies have been caught filling trucks to 160,000 lbs or more. Once one of these things gets out of control, it just rolls over anyone or anything that gets in its way. At least 13 people in WV have been killed in coal truck accidents since 2000.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=56034

[FogerRox]

6. KnR

[Champion Jack]

11. Kicked

[Eleanors38]

12. There's a vulgar expression that sums up the Texas shale boom:

Gang bang.