Eagle Ford Oil Companies Fight Back – The State Should Share Revenues

Very little of the state's revenue from oil & gas operations is allocated to help maintain infrastructure

Eagle Ford oil companies are fighting back against local impact fees. Operators already pay multiple taxes and permitting fees. The problem is not much of that revenue is shared with the counties and counties don’t have authority to enforce one off fees. As roads continue to deteriorate, we’ll likely see both oil companies and local constituents lobbying to have more money allocated to improvements in South Texas. The video below highlights this debate as it evolves in Karnes County.

South Texas School Districts Become Robinhood Targets

It’s a nice problem to have. Tax appraised values are rising by hundreds of millions of dollars across South Texas. Our schools will be getting better, but the state’s “Robinhood” provision means they’ll also be sending money elsewhere.

Robstown ISD saw an almost 20 percent increase in values from 2011, from $375.4 million to about $450 million, and London ISD’s preliminary estimate came in 23 percent above 2011, rising from about $233 million to about $287 million.

Those numbers pale in comparison to districts in the heart of the Eagle Ford Shale. Karnes City ISD has seen valuations increase nearly sixfold in the past two years.

Read more at Caller.com

Karnes County Well Fire Starts During a Hot Oil Treatment

A Karnes County fire broke out Thursday September 22, 2011, during maintenence of a 60 year old producing well operated by Amerril Energy. The fire was first reported as a rig explosion, but as details emerged it was evident the fire was started during a hot oil treatment of an existing well by Texas Hot Oilers out of Giddings. Hot oil treatments are used to clear paraffins out of a well. The paraffins (wax) can hinder production flows or block rod pumps from operating effectively. It has been reported the oil backed up and caught fire where propane was being used as the heat source. Flames stretched five to six stories into the air shortly after the explosion.

Two members of the crew were taken to the hospital and one has already been released. The other is expected to make a full recovery. [Read more…]