Austin, Texas – Today the Texas Senate approved passage of House Bill 40 with a vote of 24 to 7. House Bill 40 affirms the state’s exclusive jurisdiction over oil and natural gas development in Texas. The bill also preserves the ability of municipalities to address surface related issues incident to oil and gas development, as long as they are considered commercially reasonable.
The following is a statement from Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association (TIPRO), regarding the passage of House Bill 40.
Chairman Troy Fraser and supporting Senate members showed extraordinary leadership in supporting passage of House Bill 40 today. The Texas oil and natural gas industry is the key economic driver for our state, contributing billions of dollars in annual tax revenue and supporting millions of jobs in the state.
Our greatest priority as an industry is the need for regulatory certainty in our operations. A patchwork effect of local ordinances creating inconsistent regulations, some of which are intentionally onerous in nature, is the wrong path forward, and if left unchecked, could negatively impact investment, tax revenue, employment, and lead to additional legal challenges over property rights.
House Bill 40 will provide much needed clarity and will help keep the Texas Miracle alive for decades to come.
We applaud the Texas State Senate for their leadership on this critical issue and continued efforts to support the responsible exploration and production of oil and natural gas in the state of Texas, and all of the related benefits.