Commissioner David Porter Hosts On-Site Generation Workshop

12/17/2012

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.