COMPANIES REFUSE TO HELP REBUILD DESOTO ROADS
This reminds me of the comment by Don Briggs of the LA. Oil & Gas Association to the DeSoto Police Jury that he was shocked and surprised that Haynesville Shale related industry traffic had caused extensive damage to the parish road system. Yeah, right!
August 15, 2011
DeSoto road repair program nears end
By Vickie Welborn
vwelborn@shreveporttimes.com
MANSFIELD — The DeSoto Parish Police Jury is near completion of one of the most ambitious road repair programs it ever has undertaken.
Increased tax revenue and budgeted expenditures have allowed the parish governing body to spend approximately $21 million on road and related improvements, representing 80 different parish roads spread over about 120 miles. Each of the 11 Police Jury districts is touched in some way.
"That's what is either completed or under construction at this time," parish Administrator Steve Brown said. "We're about 80 percent done and should be complete by late September, and we only started in April."
It's not totally surprising the road work is being emphasized this year since it is an election year. Promises to repair roads often are interjected into re-election campaigns or by office seekers.
Then again, the Police Jury, unlike never before, has had to battle deteriorating roads because of the thousands of additional vehicles traversing parish byways either on the exploration or production ends of the Haynesville Shale natural gas play. Substandard parish roads quickly disintegrated, leaving parish residents such as Daniel Wilhelm begging for relief.
Wilhelm showed up for a second time at a recent Police Jury committee meeting to complain about the condition of Red Strong Road. Assurances the road is on an upcoming repair list did little to dissuade Wilhelm of his plans to circulate a petition among his neighbors demanding attention. He shook his head when the road superintendent deemed Red Strong as "passable."
Part of the problem, Police Juror Greg Baker explained, is the three oil and gas companies that are primarily using the road to service their wells have refused to chip in for new asphalt because "they feel the road is in adequate condition." The companies — Chesapeake, Petrohawk, EXCO — are willing, however, to cover maintenance costs.
Wilhelm's complaints about road conditions are not new, but the frequency of citizens showing up at meetings to voice similar displeasure has slowed this year. The Police Jury in December 2009 inked an agreement with the oil and gas companies holding them partly responsible for upkeep of the roads their contractors travel on. While there have been some hiccups along the way — mostly disputes on the percentage of damage companies are assessed when multiple ones use the same road — police jurors have been satisfied with the response.
The Police Jury initially budgeted $14.6 million this year — compared to $10 million in 2010 and $8 million in 2009 — but the total goes over the $20 million mark once related road projects are factored in.
Included in the overall budget are about $1.4 million in drainage repairs to four heavily traveled roads such as White Springs, Red Bluff and Keithville-Kingston paid for by a federal grant. The main focus is on 20 different roads on a priority list, with at least 15 being total reconstruction and the rest overlay.
"We've got the money to do it with; it's just in different funds," Police Jury President Dewayne Mitchell said. "We're getting a lot done this year."
Additionally, an estimated $3.1 million is coming from the various oil and gas companies to cover repairs to at least eight roads, with those projects scheduled to be at the top of next year's list, Brown said.
"Almost all of the rest of the money is coming from Police Jury funds," Brown said.
The Police Jury is able to see more roads repaired, Brown said, because of the employment earlier this year of a commercial road contractor who is being paid by unit price for work ranging from soil cementing to asphalt overlay. It's the first time the governing body has tried this route instead of relying on in-house crews or seeking bidders on individual road projects.
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Replies to This Discussion
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Permalink Reply by North LA on -
"Part of the problem, Police Juror Greg Baker explained, is the three oil and gas companies that are primarily using the road to service their wells have refused to chip in for new asphalt because "they feel the road is in adequate condition." The companies — Chesapeake, Petrohawk, EXCO — are willing, however, to cover maintenance costs."
This comment makes me sick!
O&G companies pay taxes don't they? I don't understand why the O&G company would be treated any differently than any other industry. If any other company said they would bring in 4,000+ jobs and over a billion $$ worth of investments into LA I'm sure the state would be willing to shell out over a $100million in incentives to get them to locate here. So what's the difference with spending $21million to maintain infrastructure? Maybe the state or local government should use taxes collected to rebuild the roads to keep this economic engine running smooth OR maybe these 3 companies should pack up and leave so that those precious DeSoto parish roads can remain pristine.
Sorry for the soap box. I just hate complaining and whining. Some people would complain if you gave them a billion dollars, a new house, a hot wife, and ten genius children. They just don't know how NOT to be miserable. I understand most people in DeSoto parish probably don't feel this way. Just please understand how blessed you are and don't start killing the golden goose.
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Permalink Reply by Skip Peel - Mineral Consultant on
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I doubt that you would have a similar opinion if I tore up your roads and then said, oh by the way take it out of all those taxes I paid you. The taxes paid have no relation to the fact that the industry has damaged roads and imposed hardships on residents. The industry didn't pay a road tax, they paid sales and use taxes largely unrelated to the upkeep of roadways. The industry would rather make donations such as the amphibious vehicle for the Sheriff's Department recently in the news than to assist with the larger costs of something of much greater importance. The Police Jury has the responsibility to keep up the roads and should invest tax dollars however IMO the industry should have made a good faith effort to recognize the problem and cooperate with the Police Jury as opposed to saying it's not our job to participate in the cost of replacing the roads we have damaged but we will pay you something in the future to maintain the rebuilt roads. This has nothing to do with whether appreciation is warranted for development. It has to do with the industry stepping up to the plate and cooperating with local governments on an issue that should bear no debate. The industry needs good roads and their operations have severely damaged the public roads of the parish. If the industry desires good public relations they should step forward and make arrangements to augment taxes invested in roads. Not wait until after the damage is done and say, you rebuild them and will help maintain them.
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Permalink Reply by Scott on
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My question is, what type of condition were these roads in prior to these companies arrival?
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Permalink Reply by essay on
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truth. i suspect there's blame to go around for tearing up some roads but also a fair bit of scapegoating going on too.
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Then I don't believe these companies should bear the full cost of replacing the roads. Of course this is only my opinion.
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Permalink Reply by Skip Peel - Mineral Consultant on
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The industry is paying nothing toward the replacement of the roads. They are offering some unknown contribution to the maintenance of the rebuilt roads. Much of the roads in question were rural parish roads and were in less than ideal condition. The industry should not be expected to pick up the entire cost of bringing them up to a higher standard. However the roads were usable "as is" prior to industry traffic and did not require rebuilding to a higher standard.
Many things have changed with the new era of unconventional reservoir development. In the past an operator was using only a small portion of a road system to drill a well and there was no continuation of road use whenever wells proved non-productive. In the Haynesville Play operators individually and the industry as a whole knew two things: that all wells successfully completed would be productive to some degree, and require continuing maintenance, and that the layout of surface locations would be in an orderly, repeated pattern. They could look at the map of DeSoto and know with little doubt what roads would be needed to support the Play. Instead of negotiating a minimal participation after the fact, IMO the industry should have taken the lead and offered greater assistance in the improvements required to support their activities. Much of that assistance could have been in-kind: planning and surveying, dirt work, cheaper materials bought through the companies but paid for by the parish and coordination of roadwork to facilitate industry activities and spare the residents as much inconvenience as possible.
At at time when the industry's image is less than stellar and politics tend to hinder pursuit of development opportunities, a little more cooperation and regard for the rights of surface owners is not setting a bad precedent as many in the industry appear to believe.
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Permalink Reply by North LA on
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In my opinion one of the jobs of the govt is to maintain infrastructure so that industry is attracted and production is streamlined so that jobs are created and maintained so that the population is employed creating wealth.
I would like to see a town or region try this shakedown with a car plant, steel mill, dock, etc. I believe it's unconstitutional for a govt to single out one entity as a culprit if that entity breaks no laws and maintains all govt requirement like everyone else.
The govt can't single out one industry unless there is law that allows it. The people of DeSoto parish can do whatever they like but they better make laws which don't select out one industry. e.g. they should create toll roads so that all have to pay or make a requirement that for any trucks operating over a certain tonnage over a certain period have to pay for a graduated fee based off of hours of operation.
The people of De Soto parish can do as they please but in my opinion it would be foolish to punish those who are bringing so much prosperity where there was nothing but poverty before.
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Permalink Reply by North LA on
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It's really up to the people of De Soto parish. In my opinion it would be idiotic. With the price of gas so low these companies have a choice... On second thought I hope the people of DeSoto tax the crap out of them so maybe they'll move over here faster and start drilling for oil.
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Permalink Reply by kittycatmama on
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Back in the late 1990s or early 2000 when Ron Bean was still a state senator, he secured funding to widen Stonewall Frierson Rd. from Stonewall to I-49. If you will remember, the state started purchasing land from adjacent landowners and even went so far as to start clearing the land. Then Ron died and the project died with him. Where did those funds go? Then Encana said they were willing to share some of the costs in widening Stonewall Frierson (they were going to be concentrating on the Holly & Caspiana Fields) because they were afraid for their workers to travel it as it was so narrow and dangerous. Never heard anymore on that except that work is now being done. Maybe Encana did help on that
Other roads in the parish are definitely in need of assistance and a lot of the problems are caused from heavy trucks; however, look at what the state and parishes offer as incentives to get businesses to relocate to their areas. I can't even remember what incentives GM got, but at the time it was enormous just to get them in and once in the area, they were given tax incentives to stay. SO, I have to say it is up to the state and parishes who are benefiting from all this job growth, tax revenue growth to repair their roads--most of which were not in the best of shape to begin with. Just my opinion
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Permalink Reply by Hopeful About Natural Gas on
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They (the companies) could look at the map of DeSoto and know with little doubt what roads would be needed to support the Play. Instead of negotiating a minimal participation after the fact, IMO the industry should have taken the lead and offered greater assistance in the improvements required to support their activities. Much of that assistance could have been in-kind: planning and surveying, dirt work, cheaper materials bought through the companies but paid for by the parish and coordination of roadwork to facilitate industry activities and spare the residents as much inconvenience as possible." (by Skip)
I like this. The roads may not have been in good shape before the drilling BUT most of us know that heavy trucks cause road damage. Maybe the companies are worried about other towns and parish/counties also asking for road money??
However, I think they could have done a better job of working with the police juries. These companies pay very little in local taxes. Sure they pay to the feds and state but those monies seldom trickle back down to a small road in your parish. IMO, it's very reasonable to ask a company to help pay for the road damage their trucks do. Since this will happen almost anywhere they drill wells it seems like there should be an better way to assess damages.
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