Texas Governor Signs Bill Preempting Cities’ Drilling Bans

Texas’ governor has signed a measure that blocks municipalities and other local governments from regulating most oil and gas production activities within their jurisdictions

Gov. Greg Abbott on May 18 signed House Bill 40, sometimes called the “Denton fracking bill,” which clarifies that an “oil and gas operation is subject to the exclusive jurisdiction of this state,” according to the legislative analysis of the bill.

It also expressly prohibits “a municipality or other political subdivision” from regulating an oil and gas operation.

The legislation was in response to a ban on hydraulic fracturing, or fracking, enacted by the North Texas city of Denton in November 2014. The ban was the result of a citizen-led petition and was enacted by public vote.

Denton sits atop a large natural gas reserve and the gas fields under it have produced $1 billion in mineral wealth, according to an Associated Press report. Denton’s ban applies to production activities that would have been initiated after the restriction was passed.

It was vigorously opposed by oil and gas interests and some warned the ban could hurt Denton’s economy.

Despite the injunction, the Railroad Commission, which regulates the oil and gas industry in Texas, continued to approve drilling permits in the area.

In a hydraulic fracturing operation, a mix of water, sand and chemicals is blasted deep into underground rock formations to release trapped oil and gas. The practice has been blamed for polluted air and drinking water, but oil and gas organizations say it’s cleaner than other forms of energy extraction.

Upon signing the measure, Abbott said HB 40 protects private property rights in the state and “ensures that Texas avoids a patchwork quilt of regulations that differ from region to region, differ from county to county or city to city.”

The Texas Tribune reported that 59 percent of Denton’s voters supported the ban, which had been challenged in court by the Texas General Land Office and Texas Oil and Gas Association.

Topics Texas Energy Oil Gas