TIPRO & TXOGA File Lawsuit Against City of Arlington on Well Fire Code 5-7-2012.pdf
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The Texas Oil & Gas Association (TXOGA)
and the Texas Independent Producers and
Royalty Owners Association (TIPRO)
today expressed disappointment that
the City of Arlington refused to collaborate with local oil and gas operators regarding
changes to the City Fire Code that would impose an additional $800,000 tax – per year – for oil and natural gas companies operating in the city.
and the Texas Independent Producers and
Royalty Owners Association (TIPRO)
today expressed disappointment that
the City of Arlington refused to collaborate with local oil and gas operators regarding
changes to the City Fire Code that would impose an additional $800,000 tax – per year – for oil and natural gas companies operating in the city.
The Texas Oil & Gas Association (TXOGA)
and the Texas Independent Producers and
Royalty Owners Association (TIPRO)
today expressed disappointment that
the City of Arlington refused to collaborate with local oil and gas operators regarding
changes to the City Fire Code that would impose an additional $800,000 tax – per year – for oil and natural gas companies operating in the city.
and the Texas Independent Producers and
Royalty Owners Association (TIPRO)
today expressed disappointment that
the City of Arlington refused to collaborate with local oil and gas operators regarding
changes to the City Fire Code that would impose an additional $800,000 tax – per year – for oil and natural gas companies operating in the city.
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FOR IMMEDIATE RELEASE Contact: Kelli Way(512) 477-4452
May 7, 2012 kway@tipro.org
Oil and Gas Industry Disappointed with New Fire Code Tax in City of Arlington
New Unconstitutional Fire Code Tax Results in Lawsuit
Austin, TX –
The Texas Oil & Gas Association (TXOGA) and the Texas Independent Producers andRoyalty Owners Association (TIPRO) today expressed disappointment that the City of Arlington refusedto collaborate with local oil and gas operators regarding changes to the City Fire Code that would imposean additional $800,000 tax – per year – for oil and natural gas companies operating in the city.The City of Arlington plans to charge oil and natural gas operators $2,400 per well, per year, creating anew tax that will not enhance public safety, according to Deb Hastings, executive vice president of TXOGA. City officials have not been able to explain how the new tax will increase public safety as itrelates to oil and natural gas operations.“Safety is the top priority of oil and natural gas operators. In addition to maintaining their ownemergency responders on call 24-hours-a-day, 365 days a year, local oil and natural gas operators haveoffered to provide the Arlington Fire Department with training – free of charge. The City has repeatedlydeclined,” said Hastings. “Even though fires at oil and natural gas well sites are very rare, oil and gasoperators routinely provide free training to local fire departments and emergency response teams acrossTexas.”
“This new Fire Code tax is unnecessary because natural gas well operators are alreadyresponsible for reimbursing the City of Arlington for costs incurred in the unlikely event thatan incident occurs on a gas well site,”
said Justin Furnace, president of TIPRO. Thisobligation is included in the Amended Gas Well Drilling Ordinance the City of Arlingtonadopted in December 2011.
“After months of unsuccessful industry attempts to collaborate with city officials on this issue,unfortunately, it appears the City plans to exploit an opportunity to expand its revenues by taxing asingle industry. The proposed oil and gas fire code tax is up to seven-times higher than permit fees theCity charges similarly situated businesses that have flammable and combustible substances on site,” saidHastings.“It’s disheartening to see the City pursue such discriminatory conduct toward an industry that hasprovided enormous economic benefits to its residents,” she said.“Tens of thousands of North Texas residents and their families depend on high quality oil and natural gas jobs. Additionally, local mineral owners receive income from oil and natural gas operations. And theArlington Tomorrow Foundation was created specifically to oversee an endowment fund created by
