Oil & Gas Economic Impacts

1. Overview of drilling2. Drilling activity staff is seeing3. Potential revenue

Purpose

Eagle Ford Shale

2013 - North Brazos County ◦ 37 properties – Eagle Ford◦ 24 properties - Woodbine

2014 - Staff has been in contact with four (4) companies◦ Looking to drill wells in the next 6-24 months

County & City Activity

Four Sources of Potential Revenue

Drilling = Water

Mineral Leases = Royalties

FY12 & FY13 = $5,100

CoCS Mineral Revenue

Equipment & Mineral = Ad Valorem

Capitol Appraisal Group, LLC 12

CoCS Total net taxable value = $6.7B Mineral net taxable value = $3.8M

◦ Minerals = <1% of total net taxable value

People = Sales Tax & HOT Tax

Regulatory Agencies Texas Railroad Commission (RRC)

◦ Permitting◦ Monitoring◦ Inspecting◦ Compliance◦ Investigating Complaints

Questions?