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LEGISLATIVE NEWS
House Appropriations and Budget Committee Chair Earl Sears says he is leaving it up to Gov. Mary Fallin and her advisors to come with a funding plan for teachers pay raises that could be considered during a special session of the Legislature. “I am waiting to see the proposal the Governor puts before us,” Sears, R-Bartlesville, said during an interview at the State Capitol. “The members I have spoken to, I'm not picking up a lot of support to have a special session unless the governor has a plan specifically to pull us back in for us all to consider,” said Sears. Fallin announced in late July she was considering calling lawmakers back to the Capitol to consider a funding plan for teachers' pay raises that would rely on $140.8 million in cash carried forward from fiscal year 2016. “At this point, I have no idea what she plans to do,” said Sears.
The A&B Chair noted he tried unsuccessfully to shepherd three revenue raising proposals through the Legislature this session, including a cigarette tax increase, an increase on the fuel tax and an increase on sales and use tax, as well as a new tax on services untaxed today that would have gone to teacher pay raises. “I'm just not hearing anything from House members that want a special session.” House Speaker Jeff Hickman said House members considered “every conceivable option” for increasing teacher pay over the last two legislative sessions but weren't able to develop a plan that they could get approved. “If they can come up with something on short notice, I wish them luck, but the House has been working on this a couple of years and never could come up with something that there was consensus on at this point,” he said. “We'll sure consider anything that they can come up with,” said Hickman, R-Fairview. Potentially complicating matters for a special session on teacher pay is a lawsuit filed by Oklahoma City attorney David Slane. The suit seeks to require Fallin and Doerflinger to return the $140.8 million to the agencies from which it was cut. Oral arguments before an Oklahoma Supreme Court referee are set for September 13. (eCapitol, NewsOK reports)
The Oklahoman reports that opposition to State Question 779, a proposal to increase the state sales tax by 1 percent for various education funding, is stepping up with the statewide election 85 days away. There has been pushback from municipal leaders and political groups that say the increase in the sales tax will affect cities, and development efforts such as MAPS. Resolutions have been passed by city councils in Edmond and Yukon urging citizens to vote against the initiative.
This week The Oklahoman Editorial Board agreed with others that county assessors are not doing a proper job assessing properties at market value and collecting the appropriate taxes. A study prepared by the Oklahoma Tax Commission found 52 of Oklahoma's 77 counties failed to collect $192 million in property tax revenue in 2014. That shortfall was created by county assessors who didn't appraise property at market values. That shortfall would cover almost all of the projected $212.5 million needed to cover the $5,000 pay raise.
A new group, Oklahomans Against Bribery, floated a different proposal this week to fund a teacher pay raise out of a possible fine levied against AT&T in a case before the Oklahoma Corporation Commission which involves a decades old Corporation Commission decision which allowed Southwestern Bell (now AT&T) to keep excess revenues from a corporate tax reduction and reinvest that money, rather than refunding them to ratepayers. Corporation Commissioner Bob Hopkins was convicted of accepting a bribe in that decision and went to prison.
A recent poll from Sooner Poll shows Oklahomans are more dissatisfied with their own Legislature than they are President Barack Obama, and are only slightly happier with Gov. Mary Fallin. SoonerPoll.com President Bill Shapard said Fallin’s favorability rating has dropped from 55 percent early in the year, with the biggest shift among Republicans who have become disenchanted with her. Obama is still very unpopular — nearly half those surveyed said they had “very unfavorable” opinions of him. But 35 percent held very unfavorable opinions of Fallin and 25 percent said the same of the Legislature. In a separate question, 41 percent of those surveyed rated Fallin’s leadership skills “poor,” while only 8.5 percent — including only 11 percent of Republicans — said they were “excellent.”
INDUSTRY NEWS
A city water line is on hold as Tuttle’s city manager determines his next course of action. City Manager Tim Young says a gas pipeline is the cause of the delay. City workers are now trying to establish and enforce permit processes after being hit with a flurry of construction requests last year. Since mid-2015, there has been about 250,000 linear feet of pipeline constructed within city limits, about 30 square miles. Tuttle’s ordinance restricts construction within 75 feet of a section line. That gives the city a 50-foot easement for its utilities and 25 feet for a home’s front yard, according to the report. Young soon realized some of that infrastructure was in a flood plain, and that the companies should have also been requesting flood plain permits. If the construction companies don’t have flood plain permits, Tuttle is at risk of losing national flood insurance protection, Young said. If there are unregistered pipeline companies or other utilities located in the area, the Oklahoma Corporation Commission has enforcement authority to commence further action. LINN Energy is building a new gas plant in Tuttle and needs water for the project. The driller has offered to cover $100,000 in construction costs to build the water pipeline, according to the report. (OK Energy Today, Journal Record (sub req’d) report)
SEISMIC ACTIVITY
Earthquakes have continued to be felt near Luther, Oklahoma. The largest recorded quake occurred Wednesday morning was initially recorded as a 4.3 magnitude but was later downgraded to a 4.0. News9 reports that Matt Skinner, spokesperson for the Oklahoma Corporation Commission, said the Luther area is a “top concern” and that there were still active waste water injection wells in the area although some had been reduced up to 40 percent in recent months. Skinner also told KOCO, “The OCC’s next plan of action will be geared toward reducing seismicity in the Luther area. What the future steps will be depends on the science, what we know, and what the data is, but there will be more actions taken.” He said the other two cities that have yet to see a decrease in earthquake activity are Perry and Fairview.
On Friday morning the OCC sent out a new directive for the Luther-Wellston area. Under the plan, the two Arbuckle disposal wells within three miles of the latest seismic activity will be shut down. Nineteen other Arbuckle disposal wells within ten miles of the latest seismic activity will have volume restrictions. These actions are in addition to the 40 percent volume reduction plan announced earlier this year and completed in May that includes the Luther-Wellston area.
As shared recently in OKOGA Highlights, two lawsuits alleging drillers triggered earthquakes that damaged homes were dropped, but might be refiled. This week, the Journal Record reports that Poynter Law Group attorney Scott Poynter expects to file as many as three new cases targeting damage sustained from three earthquake clusters. He said he’s working with geoscientists to develop a stronger case to establish which companies should be held responsible and the degree of fault each company should have. “My clients are not going away,” Poynter said. Poynter’s two lawsuits are among at least five filed against drillers related to wastewater disposal and earthquakes within the last year. Poynter said the scientists advising him will be able to determine a degree of certainty whether a nearby wastewater injection well contributed to an earthquake swarm. Those new lawsuits he plans to file will target the proper defendants, he said. “We don’t have to attribute fault, that’s for them to figure out,” Poynter said. (sub req’d)
Both of the state’s major newspapers published editorials this week commenting on the state and industry efforts to study and address induced seismic activity. The Oklahoman said the state is on the right course in addressing earthquakes. The Tulsa World commented on the effort by industry to share data collection with state researchers. The study of seismic activity and injection well operation is a first of its kind and will help scientists and the Oklahoma Geological Survey better understand characteristics of underground water flow and how it correlates to man-made earthquakes. The study will cover four counties for now — Alfalfa, Grant, Logan and Payne. We hope this study will lead to answers and solutions. The need for oil and gas is not going away. Finding ways to extract it and deal with the inevitable waste in an environmentally safe way is imperative.
ELECTION UPDATE
Early voting for Oklahoma’s runoff primary elections begins this week. Thirteen state legislative races and a Democratic runoff primary for the fifth congressional district will be among the ballots with some local questions and county official elections. (NewsOK reports) Click here to see a list of all the legislative races on the ballot from eCapitol.
NonDoc continues coverage of runoff races, with an article about the runoff for the Democratic nominee for the fifth district to oppose incumbent Congressman Steve Russell, the Republican runoff election for the party nominee in House District 85 to oppose incumbent Rep. Cyndi Munson, D-Oklahoma City, and the Democratic runoff to replace term-limited Rep. Mike Shelton, D-Oklahoma City, House District 97. Southwestern Oklahoma area news station, KSWO, reported on the tight Republican race for term-limited Sen. Don Barrington’s, R-Lawton, seat in Senate District 31.
Oklahomans have been waiting to see if Gov. Mary Fallin would play a role in Republican presidential nominee Donald Trump’s campaign, as it was reported earlier this year she was on a short list of possible Vice Presidential running mates. This week, the Trump campaign named four Oklahoma officials to Trump’s agricultural advisory committee. Gov. Mary Fallin, Oklahoma Secretary of Agriculture Jim Reese, State Sen. Eddie Fields, R-Wynona, and Rep. Casey Murdock, R-Felt, were all named as members in the release. The 64-member committee is a mixture of current and former politicians along with agriculture business and lobby executives. (News 9 reports)
OKOGA COMMITTEE NEWS
The next OKOGA Ad Valorem Committee meeting is scheduled for Monday, August 22. A calendar appointment and agenda has been sent to the committee. Please contact OKOGA staff if you did not receive the notice.
The 2017 Oklahoma Tax Commission Business Personal Property (BPP) hearing is scheduled for Thursday, September 22, at 10:00 a.m., at the OTC offices, located at 3700 N Classen Blvd, Suite 200, in Oklahoma City. If you and your company have locally valued business personal property, you are encouraged to attend this hearing. At the hearing, the taxpayer is given a perfect opportunity to provide input and real world values for the 2017 OTC BPP schedule. Additionally, the taxpayer can provide information for the OTC to take into consideration in preparing the 2017 schedule.
The OCC Oil and Gas Conservation Division Advisory Subcommittee is scheduled to meet on Tuesday, August 23, 2016, at 1:30 p.m., in Courtroom 301, Jim Thorpe Office Building, 2101 North Lincoln Boulevard, Oklahoma City, Oklahoma. At the meeting, Director Tim Baker and other Commission staff members will discuss issues that may need to be addressed through proposed amendments to Commission rules, and attendees will also have opportunities to present such issues. Click here for a schedule of discussion items.
REGULATORY NEWS
EPA
EPA’s science advisers challenge agency report on the safety of fracking. Washington Post. A draft report from the Environmental Protection Agency that downplays the effect fracking has on drinking water supply has been challenged by agency science advisers. A 30-member advisory panel said in a statement that the EPA's report was “comprehensive but lacking in several critical areas.”
ESA
Obama Administration has $25M secret in environmental lawsuits. Newsmax. The U.S. government has kept the recipients of $25 million in legal fees stemming from environmental lawsuits a secret in the Obama administration, according to a new report. The Daily Caller News Foundation discovered that more than $49 million in public money has been paid to lawyers stemming from lawsuits pertaining to three major environmental laws during President Barack Obama's time in office. Roughly half of that money has gone to parties whose names have been withheld from public records. The report claims the $49 million figure is related to 512 “citizen lawsuits” regarding either the Clean Air Act, the Clean Water Act, or the Endangered Species Act.
FEDERAL REGISTER
PHMSA: Pipeline Safety: Clarification of Terms Relating to Pipeline Operational Status. PHMSA is issuing this advisory bulletin to all owners and operators of hazardous liquid, carbon dioxide, and gas pipelines, as defined in 49 Code of Federal Regulations Parts 192 and 195, to clarify the regulatory requirements that may vary depending on the operational status of a pipeline. Further, this advisory bulletin identifies regulatory requirements operators must follow for the abandonment of pipelines.
PHMSA: Hazardous Materials: FAST Act Requirements for Flammable Liquids and Rail Tank Cars. The Pipeline and Hazardous Materials Safety Administration issued this final rule to codify in the Hazardous Materials Regulations certain mandates and minimum requirements of the FAST Act. Specifically, the FAST Act mandates a revised phase-out schedule for all DOT Specification 111 tank cars used to transport unrefined petroleum products, ethanol, and other Class 3 flammable liquids. The FAST Act also requires that each tank car built to meet the DOT Specification 117 and each non-jacketed tank car retrofitted to meet the DOT Specification 117R be equipped with a thermal protection blanket that is at least 1⁄2-inch thick and meets existing thermal protection standards. Further, the FAST Act mandates minimum top fittings protection requirements for tank cars retrofitted to meet the DOT Specification 117R. This rule becomes effective: August 15, 2016.
Finding that Greenhouse Gas Emissions from Aircraft Cause or Contribute to Air Pollution that May Reasonably Be Anticipated to Endanger Public Health and Welfare. The EPA Administrator finds that elevated concentrations of greenhouse gases in the atmosphere endanger the public health and welfare of current and future generations within the meaning of section 231(a)(2)(A) of the Clean Air Act (CAA, or Act). She makes this finding specifically with respect to the same six well-mixed greenhouse gases—carbon dioxide (CO2), methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride—that together were defined as the air pollution in the 2009 Endangerment Finding under section 202(a) of the CAA and that together constitute the primary cause of the climate change problem. This finding becomes effective on September 14, 2016.
ARTICLES OF INTEREST
American Spectator: Environmentalism’s Thin Ranks
AP: Study: Most of methane hot spot comes from natural gas leaks
EIA: Energy-related CO2 emissions from natural gas surpass coal as fuel use patterns change
NewsOK: Task force could explore sustainable revenue sources for OKC, state
Oklahoma Watch: Will Late Filing by PAC Lead to Fines?
The Coloradoan: Oil firms dig deep to battle Colo. fracking initiatives
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