Oil & Gas Pro

Recent Texas Supreme Court Opinion

http://www.supreme.courts.state.tx.us/historical/2011/mar/080497.htm

 

Because of the increased activity arising out of the shale plays in Texas, suits have been filed by residents attempting to place limits on activity.  This has primarily been done in the Barnett Shale due to the proximity to urban areas.  Here is a link to a recent opinion out of the Texas Supreme Court that narrows the scope of claims residents and landowners can assert to try and slow oil and gas activity.  Essentially, residents in part of the Barnett Shale attempted to stop Pioneer's application to convert an existing well into a salt water injection well, citing evidence that it will result in increased traffic that will damage roads, lower property values and cause traffic safety issues.  A section of the Water Code requires the application in order to show, among other things, that the injection well is in the "public interest."  The residents argued it was not in the public interest because of the public safety issue.  The RRC determined that public safety is not considered in deciding whether the injection well is in the "public interest."  The Court agreed.

 

 

 

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Replies to This Discussion


landownerPermalink Reply by intrepid on March 30, 2011 at 7:39
Some very, very troubling decisions have been coming from the TSC lately. Too many of their decisions favor the large out of state corporations over Texas taxpayers. Time for some fresh blood there. No, I don't mean liberals. Just populist conservatives and it's not a mutually exclusive term.

landownerPermalink Reply by JHH on March 30, 2011 at 7:45
How does the "state" define "public safety" and "public interest"? jhh

Oil & Gas ProPermalink Reply by Ben Elmore on March 30, 2011 at 7:51
That is a good question and the best answer as shown by this decision is:  it depends on the situation and statute at issue.  One might think that common sense tells us that "public interest" certainly includes "public safety" which certainly includes "traffic safety."  But, when our elected officials create the laws, they are not always following "common sense."  On top of that, the courts' interpretation of statutes do not always follow "common sense."  Not to say that is necessarily a bad thing, but it can certainly leave people scratching their heads sometimes.

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