HomeMy WebLinkAbout08-1293 10-14-2008RESOLUTION NO. 08 -1293
A RESOLUTION OF THE CITY OF EULESS, TEXAS, OPPOSING THE
CONTINUED PREEMPTION OF MUNICIPAL REGULATION OF
CERTAIN INTRA -STATE GAS UTILITIES; URGING LEGISLATIVE
ACTION TO PERMIT GREATER LOCAL REGULATORY OVERSIGHT.
WHEREAS, cities throughout the state have been created in accordance with the
provisions of Chapter 8 of the 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 and has
largely preempted the local regulation of so- called "midstream" intra -state natural gas
pipeline utilities ( "gas utilities ") on the basis that such companies are affected with a
public interest; 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 needs
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 operators 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 form 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 intimidated 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 and 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 and are without the necessary authority
to safeguard the Tong -term economic viability of the region.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
SECTION 1
THAT the City of Euless support legislation 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 private property.
APPROVED AND ADOPTED at a regular meeting of the Euless City Council on
the 14th day of October, 2008, by a vote of 7 ayes, o nays, and o
abstentions.
APPROVED:
Mary Li aleh, Mayor
ATTEST:
Susan Crim, RMC, City Secretary
Resolution Na 08 -1293, Page 2 of 2