Interim News - Texas

In-state tuition for undocumented immigrants debated

Concerns raised about methods of natural gas recovery from shale

Interim NewsNumber 81-6 December 15, 2010

AdvancesindrillingtechniqueshaveincreasednaturalgasproductionfromshalerockformationsinTexasandotherstates,butalsohaveledtoconcernsabouttheeffectstheextractionmethodsmayhaveonwaterandairqualityandonpublicsafety.

NaturalgasdrillingintheBarnettShaleformationinNorthTexashasincreasedsignificantlyinthelastdecade.Whilethishasbeenaboontotheoilandgasindustryandtocities,counties,andlandownersinNorthTexas,asdrillinghasmovedintourbanneighborhoodsdisputesalsohavearisenoverpipelineroutesandthedistancebetweenwellsandsurroundinghomes.

Concernshavebeenraisedaboutpotentialdrinkingwatercontaminationcausedbythehydraulicfracturingusedtoextractnaturalgasfromshaleandaboutairqualitydegradationfrompotentiallyharmfulsubstancesemittedbywellsandequipment.Unusualseismicactivity,thoughttobecausedbyextensivedrillingandwellfracturinginthearea,alsohasbeenreported.SomehavecalledforamoratoriumongasdrillingaroundFortWorthuntiltheseissuescanbefurtherstudied.

Since2001,whenthe77thLegislatureenactedHB1403byNoriega,TexashastreatedcertainlongstandingresidentundocumentedimmigrantslivinginTexasasin-statelegalresidentsforadmissiontopubliccollegesanduniversitiesandeligibilityforin-statetuitionrates.

Nationwide,debatepersistsoverwhethertoadmitundocumentedimmigrantstopubliccollegesanduniversitiesandwhethertochargethemin-stateorout-of-statetuition.Whilefederallawdoesnotprohibitundocumentedimmigrantsfromattendingpubliccollegesanduniversities,individualstateshavevaryingpoliciesonwhethertodosoandhowmuchtuitiontocharge.

IntheUnitedStates,anychild,regardlessofimmigrationstatus,isentitledtofreepublicprimaryandsecondaryeducation.In1982,theU.S.SupremeCourt,inPlyler v. Doe,457U.S.202,heldthataTexasstatutethatprohibitedchildrenwhowereillegalimmigrantsfromreceivingafreepubliceducationviolatedtheEqualProtectionClauseofthe14thamendment.

TheUrbanInstituteestimatesthatbetween50,000and65,000undocumentedimmigrantstudentsgraduatefromhighschoolsintheUnitedStateseachyear.TheTexasLegislaturemayrevisitinthe2011regularsessionofthe82ndLegislaturewhetherornottopermit

thesestudentstoremaineligibleforin-statetuition.

In-state tuition in Texas

In2001,Texasbecamethefirststatetoallowundocumentedimmigrantstoestablishstateresidencyandpayin-statetuitionatitspubliccollegesanduniversities.TheTexaslawdoesnotspecificallyaddressimmigrationstatus,butitdefineseligibilityforin-statetuitionwithrequirementsthatsomeundocumentedstudentsmay

satisfy,includinglivinginTexaswithaparentorguardianforthreeyearsimmediatelyprecedinghighschoolgraduationorreceiptofanequivalencydiploma(GED).

StatelawallowsthoseclassifiedasTexasresidentstopayresident,orin-state,tuition.Asresidents,studentsalsoareeligibleforstatefinancialaid.TexaslawdoesnotstipulateU.S.citizenshipasaprerequisiteforTexasresidencyandmakesresidencyrequirements

(See Tuition, page 2)

(See Shale, page 7)

Tuition, from page 1

page 2

HOUSE RESEARCH ORGANIZATION

Interim News

uniformforallstudents,regardlessoftheirlegalstatus.Asaresult,someundocumentedstudentsmayqualifyforin-statetuitionandfinancialaid.

Theaverageundergraduate,out-of-statetuitioninTexascanbemorethantwicethatoftheaverageresidenttuition.Forexample,forfiscalyear2010-11,theaveragetuitionandfeesfor30semestercredithoursattheUniversityofTexasatElPasois$6,504forin-statetuitionand$15,804forout-of-statetuition.

Texaslawpermitscitizens,permanentresidents,andcertainindividualsintheUnitedStatesoneligiblevisasseveralwaystoestablishresidentstatusandeligibilitytopayresidenttuitionrates.TheymaypaytheresidentrateiftheyestablishandmaintainadomicileinthestateforoneyearbeforeenrollingincollegeoriftheygraduatefromaTexashighschooloracquiretheequivalentofadiploma,havingmaintainedacontinuousresidenceinthestateforatleastthreeyearsleadinguptograduationortheGED.Studentsalsomustresideinthestatetheyearimmediatelybeforeenrollingincollege.UnderTexasHigherEducationCoordinatingBoard(THECB)rules,adomicilemaybeestablishedbybuyingandmaintainingrealpropertyinthestateforoneyearbeforeenrollingincollege,buyingandmanagingaTexasbusinessforoneyearbeforeenrollingincollege,orbeinggainfullyemployedinthestateforoneyearbeforeenrolling.

SomeonewhoisnotacitizenorpermanentU.S.residentorwhodoesnotholdlegalimmigrationstatuscanbeclassifiedasaTexasresidentandbeeligibletopayin-statetuitiononlyby graduatingfromaTexashighschoolafterlivinginthestateforatleastthreeyearsimmediatelyprecedinggraduation.Inaddition,thosewhoarenotcitizensorpermanentU.S.residentsmustpromisetoseekpermanentresidentstatusassoonastheyareabletoapply. TheresidencystatutesforhighereducationinTexashaveevolvedsincetheLegislatureenactedHB1403in2001.HB1403allowedstudentswhohadlivedinTexas

withtheirparentorlegalguardianandwhoattendedhighschoolforatleastthreeyearsbeforegraduatingorreceivingaGED,butwholackedlegalimmigrationstatus,toestablishresidencyforin-statetuitionpurposes.Studentshadtosignaffidavitspromisingtoapplyforpermanentresidentstatusassoonastheywereabletodoso.TheaffidavitrequirementlimitedthispathtoresidencytostudentswhowerenotcitizensorpermanentU.S.residents,includingundocumentedstudents.

Thelawwasamendedin2005bySB1528byZaffirini.Before2005,manyU.S.citizenswereinadvertentlypreventedfromobtainingTexasresidencystatusforhighereducationpurposes.Theseincluded

studentstooyoungtoestablishadomicileontheirownwhomayhavelivedinthestatewithagrandparentinsteadoftheirparentsorlegalguardianandstudentswhoseparentsmovedoutofstatebeforethestudentenrolledincollege.Thesestudentspreviouslywereclassifiedasnonresidents,

eventhoughtheymayhavebeeninthestatetheirentirelives.

Nowallstudents, regardlessoftheircitizenshiporimmigrationstatus, whograduatefromhighschoolinTexasundertherequiredconditionsmaybeclassifiedasresidentsforhighereducationpurposes,allowingthemtoenrollandpayin-statetuitionrates.Undocumentedstudentsstillmustpromisetoseeklegalstatus.

AccordingtoTHECB,thenumberofnon-citizensandnon-permanentresidents–amajorityofwhomarethoughttobeundocumentedstudents–whowerepermittedtopayin-statetuitioninfiscal2009was14,292,or0.9percentoftotalenrollment.THECBestimatesthatthestateallocatedabout$23.6millionindirectaidforthesestudentsinfiscal2009,includingfundingallocatedtoinstitutionsandfinancialaid.Thesestudentspaidabout$27.2millionintuitionandfeesduringthesametimeperiod.Whenallstate,institutionalandprivatefinancialaidisconsidered,thesestudentspaidanettotalof about$9.5millionoutofpocketfortheirhighereducationinfiscal2009.

The average undergraduate, out-of-state tuition in Texas can be more than twice that of the average resident tuition.

December 15, 2010


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States allowing in-state tuition

AccordingtotheNationalConferenceofStateLegislatures,since2001,whenTexasenactedthefirstsuchlaw,10additionalstateshaveenactedlawsallowinglong-termundocumentedimmigrantswhowerebroughttotheUnitedStatesaschildren,whograduatefromhighschoolinthestate,andwhomeetcertainothercriteriatopayin-statetuitionratesatpubliccollegesanduniversities.Ingeneral,studentsmustliveinthestateandattendhighschoolforaspecifiedtimeperiod,graduateorreceiveaGED,beacceptedtoapubliccollegeoruniversity,andpromisetofileforlegalimmigrantstatus.

California,Utah,Washington,Oklahoma,NewYork,Illinois,Kansas,NewMexico,Nebraska,andWisconsinhaveenactedsimilarlaws.Whilemostofthesestatesdonotallowundocumentedimmigrantstoreceivestatefinancialaid,NewMexico,Oklahoma,andTexasdo.UndocumentedimmigrantsinTexaswhoareclassifiedasTexasresidentsareeligibleforstatefinancialaidunderthesameconditionsasotherstudents,exceptthattheyspecificallycannotqualifyforworkstudyprogramsorthe“B-on-Time”loanprogram.Studentswithoutlegalimmigrationstatusalsoarenoteligibleforfederalfinancialaid.

In2007,Oklahomalawmakersmadeundocumentedimmigrantstudentsineligibleforin-statetuitionandstudentfinancialaidunlesstheOklahomaStateRegentsforHigherEducationadoptedapolicyallowingit.Thestateregentssubsequentlyadoptedsuchapolicy,whichbecameeffectiveNovember1,2007.ThepolicyallowsundocumentedstudentsinOklahomatopaythelowerresidenttuitionandbeeligibleforfinancialaidifcertainconditionsaremet,includinggraduatingfromapublicorprivatehighschoolinthestateandlivingwithaparentorguardianfortwoyearsimmediatelyprecedinghighschoolgraduation.Topayresidenttuition,undocumentedstudentsmustaffirmtheirintentiontolegalizetheirimmigrationstatus.Toreceivefinancialaid,theymustalreadyhaveappliedtolegalizetheirimmigrationstatus.Studentswhohadbeeneligibletopayin-statetuitionandreceivefinancialaidbeforethechangetostatelawweregrandfatheredandremaineligibleundertheprevioussystem.

States denying in-state tuition

Georgiaallowsundocumentedimmigrantstoattendsomeofthestate’spubliccollegesbutchargesthemthehigherout-of-staterate.GeorgiahighereducationofficialsapprovedmeasuresinJunetoensurethatundocumentedstudentsdidnotpaythelowerin-statetuitionratesatanyoftheschoolsoftheUniversitySystemofGeorgia.ThedecisionfollowedacontroversyatKennesawStateUniversityaboutanundocumentedstudentwhowasfoundtobepayingin-statetuitioninsteadofthehigherout-of-statetuitionrequiredbylaw.

InOctober2010,Georgia’sboardofregentsvotedtobanillegalimmigrantsfromattendingthestate’smostselectivepublicinstitutions.Thepolicyrequirescollegestocheckthelegalresidencyofanyapplicantadmittedandprohibitsillegalimmigrantsfromenrollingatanycollegewithaselectiveadmissionsprocessthathasrejectedacademicallyqualifiedapplicantsforthepasttwoacademicyearsbecauseofspaceorotherissues.Fiveinstitutionscurrentlyfallintothiscategory.Thepolicywilltakeeffectinfall2011.

ArizonaandColoradoalsospecificallydenyin-statetuitionbenefitstoundocumentedimmigrants.In2008,SouthCarolinabecamethefirststatetobansuchstudentsfromitspubliccollegesanduniversities.

TheNorthCarolinaStateCommunityCollegeBoardhasbeenwranglingwiththisissuefornearlyadecade,changingitsadmissionspolicyforundocumentedstudentsfivetimes.Inthefallof2009,theboardvotedtoadmitundocumentedimmigrantsiftheyhavegraduatedfromaU.S.highschool,payout-of-statetuitionrates,anddonotdisplaceaNorthCarolinaorU.S.resident.Undocumentedstudentsarenoteligibleforstatefinancialaid.Thisreversedanearlierdecisiontobanthemaltogether.ThedecisioncameaftertheU.S.DepartmentofHomelandSecurityissuedastatementin2008totheNorthCarolinaattorneygeneralaffirmingthatfederallawdoesnotbartheadmissionofundocumentedstudentsandthatitisuptoeachstatemakeitsowndeterminationonthisissue.


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Federal law

Disagreementcontinuesoverthemeaningofa1996federallawthatprohibitsstatesfromgrantingundocumentedimmigrantscertainpostsecondaryeducationbenefitsonthebasisofstateresidenceunlessthesamebenefitsareavailabletoallU.S.citizens.Sec.505ofthelaw,knownastheIIRIRA(IllegalImmigrationReformandImmigrantResponsibilityAct),8U.S.C.sec.1623,saysthatunauthorizedaliens“shallnotbeeligibleonthebasisofresidencewithinastate(orapoliticalsubdivision)foranypostsecondaryeducationbenefitunlessacitizenornationaloftheUnitedStatesiseligibleforsuchabenefitwithoutregardtowhetherthecitizenornationalissucharesident.”AccordingtotheCongressionalResearchService,legalscholarsdisagreeabouttheprecisemeaningoftheprovision,whichdoesnotdefine“postsecondaryeducationbenefit”or“residence.”

Withoutfederalregulationsorcongressionallanguageforguidance,theprovisioniscommonlyunderstoodtomeanthatstatesmaynotgrantin-stateresidencystatustoundocumentedimmigrantsfortuitionpurposes.SomehavearguedthatCongressexceededitsauthoritybylegislatinghowstatesmaydispensestatebenefits,whileothersbelievethefederalgovernmenthassettledtheissuewiththeenactmentoftheIIRIRA.Sincethe1996enactmentofsec.505,debatehascontinuedonwhetherstatesandlocalitiesmayofferin-statetuitiontoundocumentedimmigrantstudentsonsomebasisotherthanresidency,suchasin-statehighschoolattendanceandgraduation,inordertoavoidviolatingthelaw.

Debate on offering in-state tuition

Supporters of making undocumented students eligible for in-state tuitionsaysuchlaws,includingtheTexaslaw,arebasedonhighschoolattendanceandgraduation,notlegalresidencyorimmigrationstatus,sotheydonotconflictwithIIRIRA.Theysayitisunjustto

denyundocumentedstudentstheopportunitytopayin-statetuitionratesbecausethesestudentshavequalifiedforadmissionandmostwouldnotbeabletoaffordthemoreexpensiveout-of-staterate.TheysaymanyofthesestudentshavegrownupintheUnitedStatesandcanmakeeconomicandsocialcontributionsifprovidedwithlesscostlyaccesstohighereducation.

Ifthesestudentsareunabletoattendcollegebecausetheycannotaffordtheout-of-statetuition,supporterssay,itwouldmeanthestatewasfailingtocapitalizeon

itsinvestmentinthesestudents’K-12education.Becausein-statetuitionlawsrequirestudentstoseeklawfulpermanentresidency,theypromoteresponsiblebehaviorandprovideanincentiveforhighschoolgraduation.Ittakesout-of-statecitizensonlyoneyeartoestablishresidencywithout

havingtograduatefromaTexashighschool.Supporterssayin-statetuitionisnotahandout,butanopportunityforqualified,butnotdocumented,Texasresidenthighschoolgraduates, regardlessoftheircitizenshiporimmigrationstatus,toattendacollegeoruniversityinthestate.

Opponents of making undocumented students eligible for in-state tuition sayitisaviolationoffederallawandthatthehighschoolattendanceandgraduationrequirementsinappropriatelyfunctionasaproxyforresidencyrequirements.Theysayofferingin-statetuitiontoundocumentedstudentsisunfairtoout-of-stateU.S.citizensandotherswhoareinthestatelegallybutarenoteligibleforthelowertuitionrates.

OpponentssaystateeducationdollarsshouldbespentonmakingcollegemoreaffordableonlyforU.S.citizensandlegalresidents,notillegalimmigrants.TheypointoutthatgrantingresidenttuitionratestoillegalimmigrantstakesopportunitiesawayfromU.S.citizensbyputtingthemindirectcompetitionforadmissiontopublicuniversities.ItalsoprovidesincentivesforpeopletoimmigrateillegallytotheUnitedStatesortoremainaftertheirvisashaveexpired.Someopponentsalsoquestionthepurposeofeducatingundocumentedstudentswhoseimmigrationstatuswillpreventthemfromlegallyworkingaftercollege.

Disagreement continues over the meaning of a 1996 federal law.

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December 15, 2010

Legal challenges

In2004,opponentsoftheKansaslawallowingundocumentedstudentstopayin-statetuitionratessuedthestate,sayingthelawviolatedsec.505oftheIIRIRA.Theysaidthefederallawwasdesignedtoensurethatanystateofferingdiscounted,in-statetuitionratestoundocumentedimmigrantsmustofferthosesamediscountedtuitionratestoallU.S.citizensandnationals,includingthoseinotherstates.

In2005,theU.S.CourtofAppealsfortheTenthCircuitupheldafederaldistrictcourtdeterminationinDay v. Sibelius,376F.Supp.2d(D.Kan.2005),thattheplaintiffslackedstandingtosuebecausetheycouldnotshowtheywereharmed,giventhattheirownnon-residentstatuswouldnotchange,regardlessofwhetherillegalimmigrantswereallowedtopayresidenttuition.Thedistrictcourtdeterminedthatasprivateindividuals,theplaintiffshadnoauthoritytoseektoenforcefederalimmigrationlaw,whichisundertheexclusivejurisdictionoftheU.S.DepartmentofHomelandSecurity(DHS).TheU.S.SupremeCourtdeclinedtohearthecase. In2006,asimilarlawsuitwasfiledinCalifornia–Martinez v. Regents of the University of California, 83Cal.Rptr.18(Cal.App.3Dist.2008) – claimingtheCalifornialawgrantingin-statetuitiontoundocumentedimmigrantstudentsviolatedsec.505oftheIIRIRAbygivingeducationalbenefitsbasedonresidencytoillegalimmigrantsbutnottoallU.S.citizens.InNovember2010,theCaliforniaSupremeCourtunanimouslydecidedthattheCalifornialawdoesnotconflictwithfederallaw.Thecourtconcludedthatthelawthatprovidestheexemptionfromnonresidenttuitionforcertainstudents,includingthosenotlawfullyinthiscountry,isnotbasedonresidenceinCalifornia.Rather,itisbasedonothercriteria,specificallythatthoseexemptedfromnonresidenttuitionmustpossessaCaliforniahighschooldegreeorequivalent;thatiftheyareunlawfulalienstheymustseektolegalizetheirimmigrationstatus;andthattheymusthaveattendedhighschoolinCaliforniaforthreeormoreyears.ThecaseisexpectedtobeappealedtotheU.S.SupremeCourt.

Rep.LeoBermanhadrequestedanopinionfromthe Texas attorneygeneralonwhetherTexascouldcontinuetograntin-statetuitiontoundocumentedstudents.Atty.Gen.GregAbbottsaidinhisopinion(GA-0732)issuedinJuly2009,beforethedecisionbytheCaliforniaSupremeCourt,thattherewasnotenoughlegalprecedenttoanswerthequestionwithcertainty.TheopinionstatedthattheTexasstatutesthatpermitillegalimmigrantstopayresidenttuitionatstatecollegesanduniversitiescouldconflictwithfederallawbutgiventhescarcityofjudicialprecedent,“wecannotpredictwithcertaintythatacourtwouldsofind.”ItstatedthatafederalorstatecourtinTexaslikelywouldconcludethatthestatutesdonotfaciallyviolatetheequalprotectionclausebecausethestatutoryprerequisitesforin-statetuitionarereasonablerequirementsthatservethestate’slegitimateinterestinassuringthatonlybonafideresidentsthatgraduatefromstatehighschoolsorreceiveaGEDfromastatehighschoolareeligibleforin-statetuition. In2009,opponentsofTexas’in-statetuitionlawfiledastatecourtlawsuit,Immigration Reform Coalition of Texas v. Texas, et al., No. 2009-79110, claimingthattheTexaslawthatallowsundocumentedimmigrantstopaydiscountedin-statetuitionandreceivestatestudentfinancialaidconflictswithfederallawthatmakesillegalimmigrantsineligibleforpost-secondaryeducationbenefitsatpublichighereducationinstitutions.Thelawsuitcurrentlyispendinginthe281stdistrictcourtinHarrisCounty.ThechallengerssaythestateshouldnotgivebenefitstoundocumentedstudentsthatU.S.citizensfromotherstatesdonotreceive.Especiallyinthecurrentbudgetclimate,itmakessense,theysay,torestrictlimitedstatedollarstolegalTexasresidents.

UniversityofHoustonlawprofessorMichaelA.OlivassaysthatthelegalclaimsofthosechallengingtheTexaslawarebasedonaflawedreadingofthe1996federalimmigrationlaw,whichhesaysexplicitlyallowsstatestoenacttheirownlawsregardingthisissueiftheychoose.Olivassaystheimmigrationlawinquestion“doesnotprohibitstatesfromallowingin-statetuitionforundocumentedstudentsbutrathersaysstatescannotmakeiteasierforundocumentedstudentstoattainresidencystatusthansomeonewhoisfromanotherstate.” Hesaysastatelawextendingin-state

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tuitiontoundocumentedstudentsbyrequiringin-statehighschoolattendanceaswellasalongerdurationofresidencyfortheundocumentedthanforU.S.citizenswhoareresidentsofotherstatesisincompliancewiththefederallaw.

Path to citizenship

LawmakersinCongresshaveproposedrepealingthe1996federalprovisiontospecificallyallowstatestoofferillegalimmigrantsin-statetuitionrates.ProposedlegislationalsowouldprovideapathtoU.S.citizenshipforthosewhocametotheUnitedStatesasdependentchildren.

TheproposedDREAMAct(Development,ReliefandEducationforAlienMinorsAct),S.729byDurbin,wouldrequireundocumentedstudentstohavebeeninthecountryatleastfiveyears,havegraduatedfromaU.S.highschoolorobtainedaGED,andbeofgoodmoralcharacter.StudentswouldnotqualifyiftheyhadcommittedcrimesorwereinadmissibleorremovablefromtheUnitedStatesoncertainothergrounds.Thebillwouldallowforasix-yearconditionalresidencyduringwhichundocumentedimmigrantswouldhavetoearnatleastatwo-yeardegreeorservetwoyearsintheU.S.military.Theywouldnotbeeligibleforfederalcollegegrantsbutcouldapplyforstudentloansandworkstudy.AsimilarbillintheHouseofRepresentatives,H.R.1751byBerman,iscalledtheAmericanDreamAct.OnDecember8,2010,theHouseofRepresentativesapprovedH.R.1751,buttheSenatehasnottakenuptheissue.

SimilarbillshavebeenintroducedinCongresssince2001.AccordingtotheImmigrationPolicyInstitute,CaliforniahasthelargestnumberofpotentialbeneficiariesoftheDREAMAct,with553,000,whileTexashasroughly258,000possiblebeneficiaries.

Supporters of allowing undocumented students to pay in-state tuition and have a path to citizenshipsaythatthosewhocametotheUnitedStatesasminorsunderthecareoftheirparentsarenotguiltyofanycrime.Formany,theUnitedStatesistheonlyhometheyknow.Ifallowedtopursuetheirpotentialthroughacademics,thesestudentscouldcontributefullytosociety,butlargenumberswillbeunabletodosounlesstheyareeligibleforthelowerin-statetuitionratesattheirstatecolleges.Thesestudentsshouldhavelegalstatussotheycanlegallyworkaftergettingacollegedegree.Byincreasingthenumbersofeducatedworkers,moretaxeswillbepaid,morejobscreated,andmoregoodspurchased.Itwouldbeasolidinvestmentinthecountry’scollectivefuture.OtherssupportthegoalofapathwaytoU.S.citizenshipforillegalimmigranthighschoolgraduatesbutsayrequirementsshouldbemorestringentthanthoseproposedintheDREAMAct.Requiringpublicserviceinadditiontocompletingatleasttwoyearsofhighereducationormilitaryservicewouldbemoreappropriate,theysay.

Opponentsof allowing undocumented students to pay in-state tuition and have a path to citizenshipsayitwouldbetantamounttograntingamnestytomillionsofillegalimmigrantsandprovidingspecialprivilegestoundocumentedstudentsattheexpenseofAmericanstudents.Theysayundocumentedimmigrantstudentsandtheirfamiliesareinthecountryillegally,andtaxpayermoneyshouldnotbeusedtosubsidizetheeducationofindividualswhoareintheUnitedStatesinviolationofthelaw.Morebroadly,opponentssay,grantingbenefitstoillegalimmigrantstudentsunderminestheU.S.immigrationsystemandwouldencouragemoreillegalimmigrationintothecountry.

— by Rita Barr


page 7December 15, 2010


NaturalgasproductionalsoisbeingdevelopedintheEagleFordShaleinSouthTexasandtheHaynesvilleShale,whichismostlyinLouisianabutextendsintoseveralcountiesineastTexas(see Shale gas fields, page 9).Asdrillinginshalerockformationsexpandstootherareasofthestate,theresolutionofissuesraisedintheBarnettShaleareamayinfluencehowsuchissuesarehandledelsewhere.

The Barnett Shale

Texasisthenation’sleadingnaturalgasproducer,accountingforaboutthree-tenthsoftotalU.S.naturalgasproduction,accordingtotheU.S.EnergyInformationAdministration.TheBarnettShale,agiantnaturalgasformationthatliesbeneathFortWorthand23surroundingcounties,accountsfor25percentofthenaturalgasproducedinTexas.

TheBarnettShalerockformationliesmorethan7,000feetbelowthesurface,withshaleabout400to500feetthick.WhentheBarnettShalewasdiscoveredin1981,onlyafewofthethickersectionsnearFortWorthwereexpectedtobeprofitabletodrill,butadvancesinhorizontaldrillingandhydraulicwellfracturingtechnologyincreasedtheareaoftheBarnettShaleconsideredpotentiallyprofitable.Significantdrillingactivitydidnotbeginuntilgaspricesincreasedinthelate1990s.Since2002,gasproductionintheareahasgrownsignificantly,andtheamountofdrillingthatisoccurringinurbanareasisunprecedented.

MostBarnettShalewellsareinsixcountiesaroundFortWorth—Tarrant,Denton,Wise,Parker,Hood,andJohnson.TheBarnettShaleformationhadmorethan14,401producinggaswellsasofSeptember22,2010,withmorethan1,000inFortWorth.Inaddition,3,175locationshavepermitspending.

Horizontal drilling, hydraulic fracturing

Unlikeshallownaturalgasprojects,theproducibleportionsofdeepshalegasformationsaremanythousandsoffeetbelowthesurfaceinshalerockwith

lowpermeabilityandlowporosity.Producershavelongknownthatdeepshaleformationscontainednaturalgasdeposits,buttheywerethoughttobeunrecoverable.Throughtheuseofhydraulicfracturing,combinedwithhorizontaldrilling,extraordinaryamountsofnaturalgasnowarebeingproducedfromdeepshaleformationsacrosstheUnitedStates(see page 9).

Withhydraulicfracturing,commonlycalled“fracking,”awellisdrilledverticallymorethanamiledeep,thenextendedhorizontallyintothetargetedrockformation.Fracturingfluids,consistingofwater,sand,andchemicaladditives,arepumpedatextremelyhighpressuredownthewellbore.Thefracturingfluidsflowthroughperforatedsectionsofthewellboreandintothesurroundingformation,fracturingtherockandinjectingsandintothecrackstoholdthemopen.Thisprocessisrepeatedmultipletimestoreachmaximumareasofthewellbore.Thewaterpressurethenisreducedandfluidsarereturnedupthewellborefordisposalorfortreatmentandre-use,leavingthesandinplacetopropopenthecracksandallowthegastoflowandbecollectedatthesurface.

Water quality and consumption

Withtheincreaseduseofhydraulicfracturinginshalegasproduction,concernshaveincreasedaboutpotentialgroundwatercontaminationforthoselivingnearshalegasfieldsacrossthecountry,aswellasaboutthelargeamountofwaterrequiredtofrackawell.

Water quality. Concernsaboutgroundwatercontaminationfromhydraulicfracturinghaveresultedinintensedebate.Ithasbecomethesubjectofmultiplestudies,atleastfourdocumentaryfilms,andtownhallmeetingsfromNewYorktoTexas.

ThefederalCleanWaterActregulatesthedischargeintosurfacewaterofoilandgaswastewaterfromhydraulicfracturingoperations.TheSafeDrinkingWaterAct(SDWA)generallyregulatestheundergroundinjectionoffluids.However,thefederalEnergyPolicyActof2005amendedtheSafeDrinkingWaterActtoexcludefromfederalregulationtheundergroundinjectionoffluidsorcertainproppingagentsinhydraulicfracturingforoil,gas,orgeothermal

Shale, from page 1


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production.Thisamendment,referredtobysomeasthe“Halliburtonloophole”becausetheextractiontechniquesweredevelopedbyHalliburton,effectivelyexemptedhydraulicfracturingfromfederalwaterqualityregulationandgavejurisdictionandauthorityovertheseoperationstothestates.TheuseofdieselfuelduringhydraulicfracturingisstillregulatedundertheSDWA.BillswereintroducedinCongressin2009torepealtheexemptionandreturnregulatoryjurisdictiontothefederalgovernment.Noactionhasbeentakenonthesebills.

Ina2004study,thefederalEnvironmentalProtectionAgency(EPA)didnotfindanyincidenceofcontaminationofdrinkingwaterbyhydraulicfracturingandconcludedthatitposeslittleornothreattoundergroundsourcesofdrinkingwater.TheInterstateOilandGasCompactCommissionmemberstates,includingTexas,havesaidnocaseshavebeenidentifiedinwhichhydraulicfracturingcanbeverifiedtohavecontaminateddrinkingwater.

Sincethe2004EPAstudy,complaintsfromlandownersofwellcontaminationimmediatelyaftergaswellsontheirpropertieswerefrackedhavecroppedupacrossthenationinplaceswithsubstantialdeepshalegasdrilling.TheEPAisagaininvestigatingthepossiblerelationshipsbetweenhydraulicfracturinganddrinkingwater,andstudyresultsareexpectedbylate2012.

Thewaterthatflowsbackfromfracturingprojectsisanotherconcern.Itmaybetreatedandreused,butinmanycasesisdisposedofinsaltwaterdisposalinjectionwells,whichtypicallyareabandonedoilandgaswells.Useofthesewellsiscausingconcernaboutwhethertheystillareproperlycasedandadequatelycementedtopreventleakageandpotentialgroundwatercontaminationandiftheyarebelowaquiferlevels.

TheTexasRailroadCommission(RRC),whichregulatesoilandgasexplorationinTexas,requireswellstoincludemultiplelayersofprotectivesteelcasingsurroundedbycementinordertoprotectfreshwateraquifers.Gaugesmonitorthewellborecasingsatthesurface.Beforedrillingcanbegin,oilandgascompaniesmustregisterwiththeTexasCommissiononEnvironmentalQuality(TCEQ)theirplansforinstallingthesurfacecasingofthewellinordertoensurethat

thecasingsareadequatetopreventseepageintothewatertable.Thesurfacecasingisasteelpipeencasedincementthatextendsfromthesurfacetobelowthegroundwater.Cementissetbetweenthecasingandthesidesofthewellboretosealitfromtheaquifer.TCEQidentifiesthedepthatwhichgroundwatermustbeprotectedfromcontaminationbycementandsteelateachdrillsiteforwellswherehydraulicfracturingwillbeused.Thisdictatestherequireddepthofeachwell’ssurfacecasing.

RRCinspectorstrytowitnessthepluggingofallabandonedanddrywells,whichcanposeathreattogroundwaterifnotpluggedcorrectly.Unplugged,inactivewellsarerequiredtobepressuretestedannuallytoidentifyanyintegrityproblemsinthecasing.

Water consumption. Inadditiontoconcernsaboutgroundwatercontamination,concernsaboutwateravailabilityhavebeenraisedbecauseofthelargeamountofwaterrequiredinhydraulicfracturingawell.Frackingahorizontaldeepshalegaswellrequiresanaverageof4.5milliongallonsofwaterperwell,accordingtoChesapeakeEnergy,oneofthetopproducersintheBarnettShaleformation.ConcernsarethatasgasproductionintheBarnettShalecontinuestogrow,thewaterresourcesintheareawillbeoverstretchedandthewaterneedsofothersintheregionwillbeaffected.

Potential legislation. The82ndLegislaturemayseeproposedlegislationaimedatprotectingwaterqualityandreducingitsconsumptioninfrackingoperations.Billsmayproposeincreasedoversightofwelldesign,includingcementingandcasing,andofthewastehandlingoffracturingfluids.Requiringfulldisclosureofchemicalsusedinfrackingmaybediscussed,aswellasrequiringuseofnon-pollutingsubstitutesfortoxicfracturingchemicals.Otherbillsmayrequireorseektoincentivizetherecyclingofwaterusedinthefrackingprocess.OneproposalmaybetotransferregulatoryauthorityforgroundwaterprotectionduringoilandgasactivitiesfromTCEQtotheRRC.

Supporters of hydraulic fracturinghavesaiditisunlockingvastdomesticnaturalgasreservesoncethoughtunattainable,strengtheningAmerica’senergyindependence,andreducingcarbonemissions.



Hydraulicfracturinghasbeenakeytechnologyinmakingshalegasaffordableandhasproventobeaneffectivetechnique.Useofhydraulicfracturingalsorequireslesssurfaceareaandfewerwells.Anaveragewellthathasbeenfrackedcanaccessupto60timesmorebelow-groundarea.Also,operatorscandrillasfewassixtoeightwellsonasinglesitetoaccessthesamenaturalgasthatoncerequired16ormorewellsdrilledinseparatelocations.

Supporterssaythathydraulicfracturinghasbeendonesafelyformorethan60yearswithnoincidenceofgroundwatercontaminationdirectlyattributabletothisprocess.Also,thechemicalsusedinfrackingawellmakeuplessthan1percentofthefracturingfluid.Theriskofgroundwatercontaminationfromfrackingisextremelyremote,especiallyinareasliketheBarnettShale,wheremorethanamileofdenserockseparatesshallowfreshwateraquifersfrompetroleumdeposits.ThegeologyinTexas,combinedwithsafeguardsrequiredbytheRailroadCommission(RRC),whichregulatesoilandgasexplorationandproductioninTexas,wouldpreventwaterusedinhydraulicfracturingfrommigratingtoawatertable.

Frackingadvocatessaythereislittleevidencethathydraulicfracturinghasbeenadirectcauseofgroundwatercontamination.Pollutionoffreshwateraquifersismorelikelytobecausedbypoorcementing

andcasingofwells.Anew EPAstudylikelywillidentifyriskstopublichealthnotfromfrackingitself,butfromsloppydrillingpractices.

Supporterssaythatwhilewatermanagementandavailabilityareachallengebecauseoftheamountofwaterrequiredforhydraulicfracturing,innovativeregionalsolutionsareemergingthatallowshalegasdevelopmenttocontinuewhileensuringthatthewaterneedsofotherusersarenotaffectedandthatsurfaceandgroundwaterqualityisprotected.Whilethe2007StateWaterPlandidnotfactorinwaterusefromhydraulicfracturing,thecurrentroundofregionalwaterplanningforthe2012StateWaterPlandoesfactorinwaterusefromhydraulicfracturinginNorthTexas.Also,whiletheamountofwaterrequiredforhydraulicfracturingmayseemlarge,itissmallincomparisontosomeotherusesofwater,suchasagriculture,electricpowergeneration,andmunicipaluse.Also,thewateruseistemporary,occurringonlyduringthedrillingandcompletionphasesofeachwell.Somecompanieshaveinstitutedwaterrecyclingprogramsthatcaptureasignificantvolumeofwaterrequiredforthehydraulicfracturingprocessforreuseinfutureoperations.

Opponents of hydraulic fracturinghavesaidprivatecitizensinareasofshalegasproductionhavereportedmanycasesacrossthecountryofdrinkingwaterthattookonafoultasteandodorandbeganto

BesidestheBarnettShaleinNorthTexas,threeotherareasintheUnitedStateshavesignificantshalegasfieldscurrentlyinproduction.ThelargestistheMarcellusShale,whichcovers95,000squaremilesandincludescentralandwesternPennsylvania,southernNewYork,andnorthernWestVirginia.ThenaturalgasresourcesoftheMarcellusShalewerethoughttobeexhausted,buttheareaisnowestimatedtohold168to516trillioncubicfeetofrecoverablenaturalgaswiththeuseofhorizontaldrillingandhydraulicfracturing.ThesecondlargestareaistheHaynesvilleShale,encompassingabout9,000squaremilesinnorthernLouisianaandeasternTexasandthoughttocontain251trillioncubicfeetofrecoverablenaturalgas.TheFayettevilleShaleinnorthernArkansasisestimatedtohold20trillioncubicfeetofnaturalgas.

Althoughstillintheearlystagesofdevelopment,theEagleFordShaleinSouthTexas,whichbeginsneartheMexicoborderandsweepseastbelowSanAntonio,isbeingcalledthebiggestoilandgasdiscoveryin40yearsbysomeintheindustry.Naturalgashasbeenfoundinalmost20countiesinSouthTexas,withmoretobeaddedascompaniesextendtheiracreageanddomorewelltesting.Recentlyannouncedinfrastructureinvestments,includingpipelines,indicatethattheEagleFordShalecouldbecomealeadingplayerforbothnaturalgasandcrudeproductionoverthenextfewyears.

Shale gas fields being developed around the United States

Interim Newspage 10


fizzandbubbleimmediatelyaftergaswellsonorneartheirpropertieswerefracked.Theygiveexamplesofgroundwaterusersnearfrackingoperationshavingflammablewaterrunningfromtheirtap,anindicationthatnaturalgashadseepedintothewatersource. TheEPArecentlyorderedaFortWorthnaturalgascompanytosupplyhomeownersnearaParkerCountydrillingsitewithgasmonitorsanddrinkingwaterafterhighlevelsofmethanewerefoundinresidents’tapwater.ThecompanyalsomustidentifyandremediateanypotentialgasflowpathwaystotheTrinityAquifer.

Currentoversightisinadequatetoprotectwatersourcesfromeffectsofhydraulicfracturing,criticssay.Forexample,thechemicaladditivesusedinfracturingfluidsarenotfullydisclosedtothepublic,butinsteadremainproprietarytradesecrets.Someoftheadditivesaretoxic.Evenasmallamountofatoxicsubstancewouldbeunacceptableifleakedintoadrinkingwatersupply.Whiletheindustrysayshydraulicfracturinghasbeendonesafelyformorethan60years,ithasnotbeendoneatsuchhighpressureandnotwithrecentadvancesindrillingmethods,suchashorizontaldrilling.Complaintsofrecurrenthealthproblemshavecomefrompreviouslyhealthypeopleandarethoughttostemnotonlyfromdrinkingcontaminatedwater,butalsofrombreathingcontaminatedair.Suchhealthcomplaintsincludeheadaches,upsetstomachs,asthma,dizziness,disorientation,ringingintheears,lossofsenseoftasteandsmell,andinsomeinstancesneurologicalproblems.

Opponentssayitisnotsurprisingthatevidencethathydraulicfracturinghasbeenadirectcauseofgroundwatercontaminationismostlyanecdotalthusfarbecauseitisdifficulttopinpointthesourceofnaturalgaspollution.Also,neitherindustrynorgovernmenthasconductedadequatescientifictestingtodeterminewhetherfrackinghascontaminatedgroundwater.Toomanylandownersalloverthecountryaredescribingthesamescenarios,sosomethingiswrong.

Also,waterconsumptioningasdrillingoperations,evenwhileshortinduration,issignificantandposesarisktowateravailabilityinNorthTexas.Whilethecurrentroundofregionalwaterplanningforthe2012StateWaterPlandoesfactorinwaterusefromhydraulicfracturing,thewateruseprojectionsforgasdrillingsarehighlyuncertainanddependentonthepriceofgas,requiringmultipleplanningscenarios,opponentssay.

Air quality

Oncegaswellshavebeendrilledandareoperating,activitiessurroundingactivewellscanresultinemissionsofavarietyofairpollutants,includinggreenhousegases,ozoneandfineparticlesmog-formingcompounds,andairtoxicchemicals.Thegreenhousegasesofgreatestconcernarecarbondioxide,methane,andnitrousoxide,whichareemittedfromoilandgassourcesintheBarnettShalearea.

ThefederalCleanAirActlimitsairemissionsfromengines,gas-processingequipment,andothersourcesassociatedwithdrillingandproduction.Thefederallawgrantsprimacytothestates,allowingstateagenciestoimplementairqualityprogramswithfederaloversight.

Oncedrillingiscompleteandawellisbeingtestedorhasstartedproducing,TCEQwillissueanairpermitforanystationarysources,suchasavalveonawellhead,thatmayemitanaircontaminant.

Duetoairqualityconcerns,TCEQconductedairqualitytestsin2009at94sitesacrosstheBarnettShalearea.Thetestsrevealedtwositeswithhighlevelsofbenzene,aknownhumancarcinogen,and19morewithelevatedlevels.Mostsiteshadeithernoharmfulemissionsorsmallamounts.Thereadingsatthetwoworstsiteswerecausedbymechanicalproblemsthatwerefixedbythecompanies.TCEQreportednoimmediatehealthconcernbasedonsamplestakeninFortWorth.However,aninternalTCEQauditlatershowedthatfouroftheeightsamplestakeninFortWorth hadconcentrationsofbenzenehigherthanwhatTCEQinitiallyreported,butwerenotatlevelsindicatinganimmediatehealthconcern,accordingtoTCEQ.FortWorthofficialshavecommissionedtheirownairqualitystudy,whichbeganinlatesummerandincludespoint-sourcetestingforleaksatdrillingandproductionsitesand24-hourambientairtesting.ThefinalreportisduetothecityinMarch.

AirqualitytestscommissionedlastsummerbythecityofDishinDentonCountyandaprivatecitizenfromFortWorthreportedhighlevelsofbenzeneandothertoxiccompoundsintheairneargaswells,compressorstations,andotherfacilities.



NinecountiessurroundingFortWorthandDallasdonotmeetthefederalozonestandardsandhavebeendesignatedbytheEPAastheD-FWozonenonattainmentarea:Tarrant,Denton,Parker,Johnson,Ellis,Collin,Dallas,Rockwall,andKaufman.Fourofthesecounties(Tarrant,Denton,Parker,andJohnson)havesubstantialoilandgasproductionthatcanemitpollutantstotheatmospherethatcontributetoozoneandfineparticulatemattersmog.

TCEQisinstallingsevenair-qualitymonitorsintheBarnettShaleregionthatwilloperatearoundtheclockandprovideemissionsdatathatthepubliccanaccess.Themonitorswilltestfor45volatileorganiccompounds,includingbenzene.MonitorscurrentlyareoperatinginDish,theEagleMountainLakeArea,FortWorth,Dallas,andmorerecently,DecaturandFlowerMound.AnairmonitorinSoutheastTarrantCounty,eitherinFortWorthorEverman,willbeoperationalbytheendoftheyear.TCEQrecentlypartneredwiththeUniversityofTexasatArlingtontoinstallfouradditionalairqualitymonitorsintheBarnettShaleregion.Thelocationsforthosemonitorswillbedeterminedwithstakeholderinput.Also,sevenairinspectorshavebeenaddedinTCEQ’sFortWorthregionalofficetorespondtocomplaints.

TCEQ proposed rule changes. TCEQhasproposednewrulestoreplacethecurrentstandardpermitforconstructionand/ormodificationofoilandgasproductionfacilitieswithanewstandardpermit.Thenewruleswouldrequireasinglesite-wideemissionsauthorizationratherthanindividualemissionsauthorizationsforeachpieceofequipment.

Theproposedruleswouldcreatetieredrequirementsbasedontheamountofpollutantemittedandwould,forthefirsttime,considertherateofemissionandthedistancefromareceptor,suchasahome,school,daycare,church,orhospital.Facilitieswouldhavetobeatleast50feetfromreceptors.Operationalmonitoring,suchasleakdetectionandairpollutantsampling,wouldberequired,aswouldmorespecificrecord-keeping.

ExceptforrequirementsforTCEQtobenotifiedaboutcertainsitedetailsandtoauthorizemaintenance,start-up,andshutdownactivities,thenewruleswouldnotapplytoexistingfacilitiesunlesstherewasa

modificationatthefacility.AdoptionoftheproposedrulesisexpectedonJanuary26,2011.FacilitieswillbephasedinstartingintheBarnettShaleareaearly2011,followedbytherestofthestatestartingearly2012.

SupportersoftheproposedTCEQruleshavesaidtheyareastepintherightdirectionofprotectinghealthandsafety.Theserulescontaininnovativeimprovementsandenhancements,includingatieredapproachthatwouldplacethemoststringentregulationsonthehighestemittersofaircontaminants.Aset-backrequirementof50feetfromhomes,schools,andotherpublicareas,althoughstillclose,wouldhelptoensurethesafetyofresidentsinareasofurbandrilling.Theproposedrulesshouldnotputastrainonindustrybecausemanyoftherequirements,suchasrecord-keeping,shouldhavebeendoneallalong.

Opponentsoftheproposedruleshavesaidthattheyareoverreachingandwouldcreateanunnecessaryburdenonindustry.Theserules,whichwouldbeimplementedstatewide,wouldforceproducerstocollectdata,analyzesamples,andcompilepaperworkfortensofthousandsofwells,includingwellsinruralareaswherenoseriousemissionsproblemsexist.Complyingwiththerequirementscouldcostgasproducersasmuchas$100,000perfacility.Theserulesshouldbelimitedtoheavilypopulatedareasthathavecurrentairqualityissuesandareinviolationoffederalozonestandards.

Other opponentshavesaidthatwhiletheserulechangesarealong-overduestepintherightdirection,theydonotgofarenoughtoprotectresidentsinareasofurbandrilling.Theywouldapplyonlytonewoilandgasfacilities,leavingmostcurrentwellsunderthelessstringentrules.WithproductionoftheBarnettShalecontinuingtoincrease,andproductionoftheEagleFordShaleinSouthTexas,whichisnearSanAntonioandBexarCounty,beginningtotakeshape,urbandrillingislikelytobecomemorecommonplaceinTexas.

Health and safety

HealthandsafetyconcernshavebeenraisedaboutwellsintheBarnettShaleareabeingdrilledandoperatingnearhomes,schools,andotherpublicareas.Alongwithcomplaintsaboutthenoiseandvisual

Interim Newspage 12


Staff:Tom Whatley, Director; Laura Hendrickson, Editor; Rita Barr, Office Manager/Analyst; Catherine Dilger, Kellie Dworaczyk, Tom Howe, Andrei Lubomudrov,Blaire Parker, Research Analysts

John H. Reagan BuildingRoom 420P.O. Box 2910Austin, Texas 78768-2910

(512) 463-0752

www.hro.house.state.tx.us

Steering Committee:

Bill Callegari, Acting Chairman Drew Darby Harold Dutton David Farabee Dan Gattis Yvonne Gonzalez Toureilles Susan King Jim McReynolds Jose Menendez Geanie Morrison Elliott Naishtat Rob Orr Joe Pickett Todd Smith


nuisanceofthewellsrightoutsideresidents’backyards,especiallyduringthedrillingprocess,arefearsofbreathingtoxicairemissionsandaccidentsthatcouldresultinexplosions.

TheRRCdoesnotregulatehownearahouse,school,orpublicareaanoilorgaswellmaybedrilled,butacitymayenactordinancesregulatingwellswithincitylimitsthatgoverntheirproximitytodwellingsorotherstructures.Forexample,FortWorthallowsdrillingnocloserthan300feettohomes,schools,parksandothersensitiveuses,butascloseas200feetifthesitewasacquiredbefore2008.Manymineralleasesalsocontainclausesthatgovernhowclosetoexistingstructuresawellmaybedrilled.

Potential legislation.Billsmaybeproposedduringthenextregularsessiontoprovideastandardset-backrequirementforalloilandgasdrillingandpipelinesnearhomesandplacesusedbythepublic.Anotherproposalwouldincreasepenaltiesforviolatingthedamagepreventionprogram,whichallowsanyonediggingnearapipelinetocallacentralclearinghousesothatcrewscanmarkundergroundfacilitiestopreventtheunintendedpiercingofanaturalgasline.

Landowner rights

LandownerconcernsaboutoilandgasdrillingarenotuniquetotheBarnettShalearea,buttheyhavebeenamplifiedbytheunprecedentedamountofurbandrillinginthearea.Suchissuesincludeleasesofsurfaceandmineralrights,eminentdomainauthoritytodrillonprivateproperty,andplacementofwellsandpipelinesnearhomes,schools,business,andotherpublicareas.

Potential legislation.Severallandownerprotectionbillsmaybeconsideredbythe82ndLegislature,includingonetoprotectlandownerswhodidnotsignamineral-rightsleasefrombeingforciblyincludedinadrillingunit,calledforcedpoolingorunitization.Anotherproposalwouldcreateapublicprotectionofficetohelpresidentsindrillingareaswithissuesrelatingtomineralinterests,eminentdomainauthority,spacingofwellsandpipelines,andforcedpooling.Anotherproposalwouldmakepipelineroutingmoresimilartoroutingofelectrictransmissionlines,includingsubmittingalternateroutesandallowingpublicparticipationinroutingdecisionsaffectinglandowners.

— by Blaire D. Parker

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