Eminent Domain Might Be Losing Power in Texas

Eminent domain in Texas might be redefined if a recent court ruling is upheld by higher courts. The court considered the remainder value of the Donnell's family lands in McMullen County, TX and not the pipeline right-of-way alone. The decision required the Eagle Ford pipeline company to compensate the family for depreciation of all lands.  That includes land not directly impacted by the pipeline. The family successfully argued that the land lost value due to its proximity to the pipeline. Essentially, they argued more than just the right-of-way was affected by the pipeline and additional compensation should be required. The pipeline company has been ordered to pay the family $600,000, but the decision will be challenged in higher courts before we get a final decision.

The question wasn't whether LaSalle Pipeline LP — which has the right of eminent domain — could lay a 16-inch, 52-mile pipeline that would cross two tracts of McMullen County land owned by Donnell Lands LP, a family partnership.

The biggest issue was whether the value of the rest of the ranchland would be affected by the pipeline's presence.

The company said no. But the landowners said yes, and a trial jury agreed with them to the tune of more than $600,000.

That decision has been winding its way through the Texas court system, and along with some legislative changes that went into effect in September, could represent a small step in giving landowners a larger voice in eminent domain battles.

Read more at mysanantonio.com

Small Business Development Center Opens in Carrizo Springs

The Rural Business Program, part of the UTSA Small Business Development Center, is scheduled to open a SBDC Information Center in Carrizo Springs. The new center will office with the Middle Rio Grande Development Workforce Solutions offices at 307 West Nopal St. The center will reinforce efforts to help communities become sustainable during the ongoing oil and gas extraction projects in the Eagle Ford Shale region. An open house commemorating the SBDC Information Center opening will be 10 a.m.-1 p.m., Thursday, Nov. 17. The public is invited to attend the special ceremony and listen to presentations on small business opportunities within the Eagle Ford Shale area. 

The Eagle Ford Shale provides more than 12,000 workers with full-time jobs. Communities are welcoming the growth brought by the activity that includes challenges associated with the dramatic economic upturn.

"The Eagle Ford Shale oil and gas play will bring economic prosperity to the region and for the state," said Gil Gonzalez, director of the SBDC Rural Business Program at The University of Texas at San Antonio.

 

Job Creation Isn't Slowing in the Eagle Ford

Job creation isn't slowing down. In fact, we really need the number of qualified applicants to increase. Chesapeake hired 34 new employees on the spot at a job fair last week. (There's a job fair today - November 15th - in Floresville from 9:30-3:30) If you are looking for work, you should at least explore the industry. There's not much we don't need in the oilfield. Also, check out our Jobs Page where there are 100s of jobs.

The jobs range from welders to truck drivers to electricians to engineers.

“You name it. Up and down the line, we'll take those people," said Haynes.

Alamo Community Colleges are also playing a big role, customizing training programs to fit the need of the employers.

"We are not having to do a lot of major changes it's more tuning in what we are already providing, " said Dr. Bruce Leslie, chancellor of Alamo Colleges.

"We can offer that person the opportunity to work in this industry to progress in this industry and offer that person not only a comfortable living but a retirement," Haynes said.

 

Eagle Ford Shale Drilling Rig Count - November 11, 2011

Drilling Rig
Drilling Rig 7

The Eagle Ford Shale drilling rig count jumped 5 rigs to 248 over the past week. That's one above the 247 rig record we hit in the middle of October.  Approximately, 200 rigs are working in the Eagle Ford formation, that's up from less than 20 just 18 months ago. As long as the economy holds together, we should continue to see more active drilling units targeting the play. We lost 4 natural gas rigs to bring us down to 102 active. With natural gas futures prices hovering around $3.60 that trend isn't likely to change soon.  In the continued shift from gas to oil, 9 rigs moved to drilling liquids in the region. We also have one disposal well being drilled in Webb County. Webb (37), La Salle (32) , Karnes (30) and DeWitt (22) counties account for more than 50% of Eagle Ford drilling.

Chesapeake Energy (28) and EOG Resources (24) lead the more than 60 operators that have active programs in the shale.

News throughout the play this past week included:

Operator News:

Stay tuned each week for an update on the South Texas rig count. 

Drilling Rig Count by Operator

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 SmithBits 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 and/or Smith Service Co's (Schlumberger) Smith Rig Count.

Drilling Rigs by County