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