RAILROAD COMMISSION OF TEXAS
NEWS RELEASE - OCTOBER 11, 2007

RAILROAD COMMISSION DESIGNATES COMMISSIONER CARRILLO TO BEGIN DIALOGUE WITH BARNETT SHALE REGIONAL OFFICIALS ON REGULATORY EFFORTS

AUSTIN —To enhance public education, enforcement, and regulation of industry activity in the Barnett Shale play, the Texas Railroad Commission selected Commissioner Victor Carrillo to spearhead dialogue with city and county leaders on regulatory oversight issues in the Barnett Shale.  Commissioner Carrillo will focus on fostering relationships with local leaders to enhance community awareness of the agency’s regulatory framework over natural gas drilling and ultimately to increase efficiency and effectiveness of Barnett Shale oversight. 

As energy prices have risen, so has statewide oil and gas activity, particularly in the Barnett Shale Field— an 18-county region surrounding Fort Worth that is arguably the nation’s most active natural gas play. The Barnett Shale is estimated to hold over 26 trillion cubic feet of natural gas and has created over 55,000 permanent jobs and generated an annual regional economic impact of over $5 billion.  This and other unconventional gas plays are increasingly important in strengthening our national energy security by contributing to our domestic energy reserves.

In addition to selecting Commissioner Carrillo to meet with Barnett Shale regional leaders, the Commission has already taken the following actions in the Barnett Shale region:

• Barnett Shale region inspections have doubled from 7,397 inspections in FY 2002 to 14,194 in FY 2007.  Inspections in Tarrant County have risen more than 700% from 100 in FY 2002 to 713 in FY 2007;
• Over the past several years, we have reassigned field staff positions from other less active areas of the state to District Offices that cover Barnett Shale activity;
• In 2007, we shifted existing funding and staff positions to enhance inspections and service in the field by reassigning four Austin positions to field staff positions;
• On Sept. 1, 2007, we changed our Barnett Shale Field oversight to enhance the inspection process as well as our response to emergencies and citizen complaints in the field;
• Acknowledging an increase in applications for new saltwater disposal facilities, the Commission is encouraging disposal into the deeper Ellenberger formation. In addition to being below the Barnett Shale reservoir, the Ellenberger formation contains fewer oil and gas well penetrations and is located further away from freshwater zones. The agency continues to enforce strong rules in place to protect fresh water sources. Industry continues to make progress with experimental saltwater recycling projects that could provide a future alternative method to reduce the volume of saltwater needing disposal.
• The agency has developed a website link (http://www.rrc.state.tx.us/barnettshale/index.php) to provide answers to Fort Worth metroplex area residents who have questions about the ongoing gas exploration and production in their communities.

Commissioner Carrillo was recently appointed by the U.S. Secretary of Energy to a national advisory committee on unconventional resources like the Barnett Shale.  Carrillo said, “I am happy to advance a better understanding of our agency’s work in the Barnett Shale region. As a former practicing geoscientist, I am particularly interested in the responsible development of this important natural gas resource. While Texas has a long tradition of oil and gas production in urban areas going back many decades, I realize that this is a new issue for many residents in the Fort Worth metroplex. That is one reason that I urged staff to develop a one-stop web-based information site for the public to educate themselves about oil and gas activity in the Barnett Shale Field  (http://www.rrc.state.tx.us/barnettshale/index.php).  In the coming weeks and months, I plan to meet with city and county leaders throughout the Barnett Shale region to listen to their concerns and suggestions and to discuss areas of mutual cooperation and improvement.”