American Oil and Gas Reporter - July 2019 - 91

waste, Longanecker adds. The bill was
filed without signature by Governor Greg
Abbot on May 24 and became law, he
shares.
"There has been some confusion about
ownership related to oil and gas waste
and produced water," Longanecker observes. "This bill clarifies who owns the
water and is part of the larger strategy to
address issues on water management in
exploration and production, recycling and
disposal."
TIPRO members already are benefitting
from other measures that lawmakers
agreed on, he says. Operators within
TIPRO's ranks are looking at reopening
inactive wells with the passage of SB
533, which provides a five-year severance
tax exemption for wells put back into
production after having been inactive for
at least two years, Longanecker details.
A previous 10-year exemption for threeyear inactive wells expired, but SB 533,
which becomes effective in September,
keeps the exemptions in place permanently,
he adds.
"We were very fortunate this session
because House Energy Resources Chairman Chris Paddie, R-Marshall and Senate
Natural Resources and Economic Development Chairman Brian Birdwell, RGranbury, both agreed to sponsor the
bill," Longanecker says.
The measure should have a positive
long-term impact on Texas' orphan well
count, which will benefit the state, operators and royalty owners, Garcia says.
"There are companies that, with this
kind of incentive and relief from severance
taxes, are going to be able to extend the
life of wells and there will be a better relationship between these companies and
the Railroad Commission," he says.
Economic Impact Study
In addition to benefits from legislative
measures, TIPRO will continue to utilize
its study released May 9 on Permian
Basin demographics to point out the economic contribution of TIPRO members
and others, Longanecker says. "We want
to show the prominence of other industry
sectors in the basin while reinforcing the
importance of the oil and gas industry,"
he explains.
The mining and oil and gas extraction
sectors are responsible for 21.3% of
almost $22 billion in gross regional
product in the Permian Basin, and account
for most of the increase in U.S. oil production, Longanecker points out.
The basin suffers from housing and
skilled workforce shortages, but continues
to make a major contribution to the state's
economy, he says.
"The jobs multiplier effect is pretty

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American Oil and Gas Reporter - July 2019

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