Eagle Ford Company Beats Giant

July 14, 2015 Elizabeth Alford

Chesapeake Before Texas High Court — Eagle Ford Company Takes on Dept. of Labor

Small Eagle Ford company wins “David v Goliath” battle with the U.S. Department of Labor.

Bert Steindorf, the owner of Gate Guard Services, won a victory last week in his two-year battle to retrieve attorneys fees from a 2013 case he won over the Department of Labor

The trouble started when the Labor Department claimed Gate Guard owed $6.2 million in back pay, including minimum wage and overtime for employees it classified as independent contractors. Senior U.S. District Judge John Rainey sided with the company and classified the workers as employees and awarded Steindorf $565,000, which amounts to $125 an hour.

Stendorf appealed and the 5th Circuit of Appeals found examples of ‘bad faith’ and said that the Department of Labor was rife with misconduct. This ruling opens the door for Steindorf to potentially receive compensation that is closer to the actual fees he paid out during the trial. The final dollar amount is expected to be awarded later this month, but the government agency may now have to pay up to $1 million.

Gate Guard Services is a small Corpus Christie-based company that provides security services to oil fields in the Eagle Ford Shale. The company is fortunate it had the resources necessary to continue to fight.

“Not many small service companies in the energy sector can afford to fight. They simply do not have the the financial wherewithal in a prolonged legal battle.”

— Defense attorney, Daniel Pipitone

Fracking Uses 16% of Eagle Ford Water

July 13, 2015 Elizabeth Alford

Researchers from the University of Austin say that water usage in the Eagle Ford has expanded exponentially over the last five years thanks to fracking.

The study, conducted by Bridget Scanlon, Robert Reedy and Jean Philippe Nicot, originated from concerns about potential water constraints that might limit oil and gas production using hydraulic fracturing in shale plays, particularly in semiarid regions and during droughts.

Fracking relies on massive amounts of water to break the shale rock to extract oil or gas. Scientis tracked Eagle Ford water usage for hydraulic fracturing between 2009 and 2013 and found that the 18 billion gallons used represent ~ 16% of the total water consumption in the area for 2012.

The study concluded that the regional impact is relatively small, saying “The comprehensive analysis of Eagle Ford water issues and comparison with other semiarid plays indicates that, with proper management, water should not constrain hydraulic fracking in these semiarid regions.”

The biggest area of concern noted in the study is that the Carrizo Wilcox Aquifer in the western part of the Eagle Ford has been declining for decades due to agricultural pumping in the area. Researchers go on to advise that producers should consider using brackish water as a way to avoid clashing with agricultural interests.

Read the full text of the UT study here.

Eagle Ford Rig Count Drops to 115

July 10, 2015 Elizabeth Alford

The Eagle Ford Shale rig count fell by five this week to 115 rigs running across our coverage area by midday Thursday

In recent Eagle Ford news, the temporary housing market for oilfield workers in the Eagle Ford is hanging on despite slower demand. New numbers by the Comptroller’s Office show lodging providers in the Eagle Ford took in $63 million in revenue in the first quarter of the year, down 11 percent from the previous quarter, but a $5.1 million increase over 2014.

The U.S. rig count increased slightly, ending with 863 rigs running by midday Friday. A total of 217 rigs were targeting natural gas (two less than the previous week) and 645 were targeting oil in the U.S. (five more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)368 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford fell to 25 this week and natural gas prices traded at $2.77/mmbtu, an decrease of $.04 from the previous week.

The oil rig count fell by four to 90 as WTI oil prices dropped to $52.74, a decrease of $3.98. A total of 105 rigs are drilling horizontal wells, zero are drilling directional wells, and 10 are vertical rigs. Karnes leads development this week running 20 rigs, with LaSalle (17), DeWitt (15) and Webb (15) follow closely. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

Eagle Ford Shale News

Oil Export Ban: No Fans in Texas

Texas Railroad Commission Available 24/7

Texas Drilling Still Sluggish

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count. Read more at bakerhughes.com

Oil Export Ban: No Fans in Texas

July 9, 2015 Elizabeth Alford

Japan Eyes Eagle Ford Natural Gas — Oil Exports Bad for Eagle Ford

Railroad Commission Chairman David Porter joined Governor Abbott and other Texas legislators to urge the federal government to lift the ban on oil exports.

At a hearing before the U.S. Agriculture Committee this week, Porter testified to the immediate need for Congress to lift the ban on the archaic and outdated policy and made the case that keeping the 40 year old law is bad for Texas and the whole economy.

“Technological advancements have allowed U.S. producers to tap new sources of oil and natural gas from shale formations, including from the Permian Basin and Eagle Ford in Texas. Development of our shale resources has been a game-changer and presents the US with the opportunity to be the world’s largest producer of both oil and natural gas.”

— David Porter

Highlights of Porter’s testimony to lift export ban:

Increase production resulting in new jobs, economic growth, increased state and federal revenue. U.S. GDP would increase by $38.1 billion in 2020 and every state and congressional district would also benefit from increased oil production due to the expansive supply chain it supports.
Consumers would save money at the pump
Enhance free trade and lower the U.S. trade deficit
Strengthen our national security

Read the full testimony at rrc.state.tx.us

Texas Railroad Commission Available 24/7

July 8, 2015 Elizabeth Alford

The Texas Railroad Commission (RRC) added a new toll free number this week to insure they are easily accessible to the public and first responders when emergencies happen in the oilfield.

The RRC is responsible to regulate the exploration, production, and transportation of oil and natural gas in Texas, which includes investigating accidents and inspecting pipelines. Companies contact the RCC when they have any environmental emergency, discharge, spill, or air release from oil and gas facilities, pipelines, or alternative fuels.

During emergencies, the RRC works closely with first responders to provide support with a staff that is on call 24 hours a day, seven days a week. The agency added the new number (844-773-0305) to streamline operations and improve efficiency.

“Public safety and the protection of our natural resources are our highest priority at the Commission. While we never want to see an emergency situation arise, our staff is on call and ready to support emergency responders including providing information and overseeing any related cleanup efforts.”

— Commissioner, Christi Craddick

The Railroad Commission also offers other resources on its website to help companies stay on top of safety concerns including emergency planning forms, safety FAQs and training.