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RAILROAD COMMISSION OF TEXAS
NEWS RELEASE - DECEMBER 17, 2012

  DAVID PORTER
Commissioner
 
 
Contact: Katie Carmichael 512-463-8870

Commissioner David Porter Hosts On-Site Generation Workshop

AUSTIN – Commissioner David Porter hosted a workshop at the Railroad Commission in Austin today to discuss the ability to use excess natural gas as a source for power on drilling leases and to explore other options for on-site power generation.

The workshop was held as part of Commissioner Porter’s initiative, launched in May of this year, to reduce the flaring of excess natural gas. Panelists included oil and gas companies and service providers, as well as Commissioner Toby Baker of the Texas Commission on Environmental Quality (TCEQ) and Brian Lloyd, Executive Director of the Public Utility Commission of Texas (PUC).

“I am very encouraged to see industry and service providers working together to discuss ways to increase efficiency and productivity, while reducing air emissions and the flaring of gas,” Porter said. 

“I believe a robust economy and environmental protections can coexist, and I commend Commissioner Porter for his efforts to encourage the use of environmentally protective flares, and to promote gas as a source of power for on-lease oil and gas operations,” Commissioner Baker said. “The TCEQ and the Railroad Commission of Texas will continue to collaborate to accomplish the goal of safe, efficient energy production.”

“I appreciate Commissioner Porter creating this opportunity for regulators, operators and service providers to discuss issues facing our industry,” said J.D. Hall, Vice President of the South Texas Asset Team for Pioneer Natural Resources and panelist at the workshop. “It's an important step in creating a win-win environment for all of those impacted by the increased level of activity in South Texas and across the state.”

James Gayle, Co-Chairman and CEO of Red River Compression Services, LLC, presented on one of the panels, saying, “The workshop was extremely informative in that it not only afforded Red River the opportunity to present its products for flare gas reduction, but it also allowed our folks an opportunity to hear first-hand about the other companies’ approach to solutions, actual circumstances facing operators and clarification of regulations impacting operators and solution providers.”

Due to the rapid increase of production activities across the state, there is a demand for power that cannot be filled under current conditions. There is also a lack of pipeline infrastructure needed to carry all the natural gas being produced from the wellhead to market, creating an excess that traditionally would be vented or flared. Commissioner Porter is encouraging operators to look into ways to use excess gas produced at the wellhead as a source of power, instead of traditional electricity, in order to reduce the waste of natural gas and limit the environmental impact from air emissions.

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David J. Porter was elected to the Texas Railroad Commission on November 2, 2010. A Certified Public Accountant and successful small business owner, Commissioner Porter has worked with oil and gas producers for nearly three decades providing strategic financial advice and tax counsel. He has a long record of pro-business, free market, conservative credentials.