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HomeMy WebLinkAboutRes 08-59 Opposing the Continued Preemption of Municipal Regulation of Certain Intra State Gas UtilitiesTOWN OF WESTLAKE RESOLUTION NO. 08-59 OPPOSING THE CONTINUED PREEMPTION OF MUNICIPAL REGULATION OF CERTAIN INTRA -STATE GAS UTILITIES; URGING LEGISLATIVE ACTION TO PERMIT GREATER LOCAL REGULATORY OVERSIGHT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Westlake, Texas is a Type A General Law municipality located in Tarrant and Denton Counties, and created in accordance with the provisions of Chapter 6 of the Texas Local Government Code and operating pursuant to the enabling legislation of the State of Texas; and WHEREAS, the Legislature has vested regulatory authority in the State of has largely preempted the local regulation of so-called "midstream" intra -state natural gas pipeline utilities ("gas utilities") on the basis that such officials to tailor policies to meet their needs and demands; and WHEREAS, the preemption of local regulation constrains the ability of the public to participate through their locally elected officials to tailor policies to meet their need and demands; and WHEREAS, with the recent development of mineral reserves within the Barnett Shale, oil and gas operators have become dependent on a comprehensive pipeline infrastructure to deliver the produced hydrocarbons to market; and WHEREAS, in order to ensure the maximum profitability of natural gas production, oil and gas operates have have refused to cooperate with unaffiliated third party gas utilities or coordinate pipeline efforts with other producers in the region and instead are each opting to farm their own affiliated gas utility company; and WHEREAS, each gas utility company serves not as a public -minded "utility" accepting produced hydrocarbons from "competing" operators but operates exclusively as the alter ego and servant of the utility's affiliated oil and gas operator greatly blurring the line between gas utility and oil and gas operator; and WHEREAS, the numerous gas utilities, frequently managed and exclusively operated by the affiliated oil and gas operators' own employees, work aggressively to install a network of permanent gas lines across private property creating extensive "no build" zones many dozen feet in width and many miles in length, with little regard for the availability of existing unaffiliated pipelines in the vicinity; and WHEREAS, in order to rapidly accomplish the installation of duplicative and redundant pipeline networks, local citizens and business owners are quickly threatened with eminent domain proceedings by the gas utilities and are intimated into executing one-sided permanent easements for nominal consideration; and WHEREAS, the proliferation of duplicative and redundant pipeline networks, installed with regard only for the shortest and most cost-effective route, causes the unnecessary fragmentation of land the creation of unusable slivers, chipping away at the long term economic potential of the land; and WHEREAS, municipalities, rendered virtually ineffective by the preemption language of §121.202 of the Texas Utilities Code, are unable to respond to the plight of their constituent citizens and business owners are without the necessary authority to safeguard the long-term economic viability of the region. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: the Board of Aldermen of the Town of Westlake, Texas, respectfully requests and urges the Legislature to revisit the prudence and continued appropriateness of preempting municipalities from regulating the practices of midstream gas utilities and respectfully requests that the Legislature confer additional regulatory authority upon municipalities over the activities described herein in order to safeguard the interests of the public and the long term economic viability of the private property. SECTION 2: This Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 27 DAY OF OCTOBER 2008. ATTEST: - /'1" /"�6' Laura Wheat, Mayor Kinn Sutte , TRMC, Town Secretary Tomas E. Brymer o n Manager APPROV D AS TP -FORM: L. tanton own Attorney