A barrel of oil is a barrel of oil, but how much is an mcf of gas? Herein some basic facts about natural gas composition and measurement. The first thing to remember: natural gas is measured by volume (cubic feet) but is sold based on its heating content (Btus). A cubic…
Environmental groups are debating whether to support the bill recently passed by the U.S. House of Representatives as the American Clean Energy and Security Act, in its present form. Principal criticisms are that it strips away some of the Clean Air Act authority to reduce coal pollution in new coal-fired…
Momentum appears to be gaining to increase use of compressed natural gas in vehicles in the U.S., both to decrease the nation’s dependence on foreign oil and as a “bridge fuel” to fight global warming. Last Week, the Potential Gas Committee issued a report estimating that the toal U.S. natural…
Four legislators from Colorado, New York and Pennsylvania have introduced a bill making hydraulic fracturing subject to regulation by the Environmental Protection Agency under the Safe Water Drinking Act. Dubbed the Fracturing Responsibility and Awareness of Chemicals Act, or FRAC Act ( FRAC Act.pdf), the bill would amend the Safe Drinking Water…
The Texas Supreme Court has been asked to review a case decided by the Eastland Court of Appeals, Lesley v. Veterans Land Board, that raises important questions about the duty of a mineral owner to owners of non-executive mineral interests. If the Court decides to take the case, the outcome…
A study ( Armendariz Study.pdf) published last February by Al Armendariz, an engineering professor at Southern Methodist University, concluded that gas drilling in the Barnett Shale contributes about as much air pollution to the D-FW area as emissions from cars and trucks. Dr. Armendariz’s study was financed by the Environmental Defense Fund. Dr. Armendariz…
As landowners have become more sophisticated in their negotiations of oil and gas leases, they have begun to insist on the inclusion of a “continuous operations” or “continuous drilling” clause in their leases. The idea behind such clause is that the lessee should have a reasonable time to fully develop…
The Texas Railroad Commission handed down an interesting order last August that may have broad application for operators’ use of Texas’ Mineral Interest Pooling Act to force unleased mineral owners into pooled units. In Docket No. 09-0252375, Finley Resources applied under the MIPA to form a pooled unit in the Barnett…
Last week I attended an Energy Syposium sponsored by South Texas Money Management, Ltd. in San Antonio. One of the speakers was Amy Myers Jaffe, who is the Wallace S. Wilson Fellow in Energy Studies at the James A. Baker III Institute for Public Policy at Rice University and associate director of…
Boone Pickens’ efforts to promote natural gas as an alternative to gasoline in vehicles seems to be gaining momentum. In a column published by the Huffington Post, Pickens said that the recent advances in extraction of natural gas from shales is a “game-changer.” “One study estimates that we have enough natural…