-

By RICHARD BURGESS

LAFAYETTE — City-parish government’s plan for new natural-gas-powered buses and city vehicles has hit a few bumps in the road but should be up and running by next year, officials said this week.

An initial timeline had called for the natural gas initiative to launch this summer, shifting some of the city’s vehicle fleet to a cheaper and cleaner burning fuel.

But technical problems in lining up a contractor to build a special fueling station for the vehicles has led to delays, said City-Parish Director of Public Works Tom Carroll.

A local fueling station is key, because the nearest places to fill up a tank with natural gas are currently in Baton Rouge and the Shreveport-Bossier City area.

Carroll said the city is expected to seek bids in June for construction of the fueling station and construction should be complete by next spring.

“We are just trying to put all the pieces together,” he said.

Carroll said the city also has plans to convert 40 vehicles in its fleet to run off natural gas and the conversion should be complete by the time the fueling station is finished.

The city has already ordered five natural-gas-powered buses, which are scheduled to be delivered in July, said City-Parish Director of Traffic and Transportation Tony Tramel.

“They are ready to roll, but we don’t have any place to refuel them,” he said.

Tramel said the city is considering setting up a temporary natural-gas fueling station to fill up the new buses until the permanent fueling station is completed.

Carroll said the permanent station will be at the public works facility on East University Avenue and plans call for it to be open to the public.

The natural gas program in Lafayette is funded by a $1 million state appropriation and more than $1 million in federal grants, much of that routed through the state Department of Natural Resources.

DNR Secretary Scott Angelle said his department set aside about $5.6 million in federal stimulus money over the past two years to encourage a shift to natural-gas-powered vehicles.

The push to develop natural gas as a vehicle fuel is being driven in part by a search for a cleaner-burning alternative to gasoline, but its cheap price in recent years has been the driving force.

Angelle said the natural gas equivalent of a gallon of gasoline is selling for less than $2 in the Shreveport-Bossier City area.

While the price of crude oil has been rising, the price of natural gas has dropped as new techniques have allowed drillers to tap vast new gas reserves — so-called “shales,” such as the Haynesville Shale in north Louisiana.

Angelle said that less than a decade ago, companies were developing major plans to import natural gas into the United States to meet demand.

There is now such an abundance of natural gas in the U.S. that some of those same companies are considering exporting the fuel the other countries,  he said.

“That’s a seismic shift that has not yet evolved into our energy policy,” Angelle said.

He said the hope is that growing the number of natural gas fueling stations in Louisiana will spur more widespread acceptance of natural gas as a vehicle fuel.

There are about nine more natural gas fueling stations planned in Louisiana, a mix of public and private projects in Lafayette, Alexandria, New Orleans, Shreveport and Bossier City, said Louisiana Oil and Gas Association Vice President Gifford Briggs.

“You are getting to a point now where you’re getting some saturation,” Briggs said.

Briggs, who has been leading LOGA’s effort to promote natural gas as a vehicle fuel, said he plans to pick up his own natural-gas-powered Ford Expedition next week.

He’s looking forward to cheaper fuel bills.

“Saving $2 a gallon makes a big difference,” Briggs said. “That adds up real quick.”

Original Article

-

By JASON BROWN

JUDICE — About 40 families in this south Lafayette Parish community remained evacuated from their homes Wednesday afternoon following an early morning natural gas well blowout, an official said.

The well at 1142 Bourque Road began spewing out gas and drilling mud about 10 a.m. No one was injured in the blowout, said Trooper Stephen Hammons, spokesman for State Police.

Authorities initially evacuated about 100 homes within a one-mile radius, but had reduced that area by half by late afternoon, Hammons said.

While the well had stopped spewing gas, it had not yet been capped and therefore remained unsecured, Hammons said.

The evacuation was expected to remain in effect throughout the night, Hammons said.

Hammons said the well is owned by CEL Properties and the rig belongs to Precision Drilling Corporation. Attempts to reach both companies were unsuccessful Wednesday.

“We have to stop work once the sun goes down and we can resume work once the sun comes up,” Hammons said.

Hammons said Wild Well Control, a company contracted to cap the well, arrived on the scene Wednesday afternoon.

The cause of the blowout is still under investigation, Hammons said.

“We also do realize that this is a huge inconvenience to everybody, but safety is our No. 1 concern,” Hammons said. “We’re going to keep working with all of our local law enforcement partners and emergency service responders to make sure that we’re able to keep this scene as safe as possible.”

The blowout follows a gas well accident in March that killed one worker and injured two others at a well site north of Maurice.

Investigators said they believed that incident was caused by a build-up of pressure that led to equipment failure and a ruptured gas line.

Red Cross and the Lafayette Office of Emergency Preparedness set up a staging area at Judice Middle School earlier Wednesday. Residents were asked to check in at the site for updates.

Cindy Maturin was among the residents gathered at the school Wednesday afternoon. Maturin said emergency personnel asked her to leave her home in the 1700 block of Lagneaux Road soon after the blowout.

Later that evening, Maturin said she was allowed to briefly return to her home to gather necessary clothing and supplies. She said personnel had told her to pack up five-days worth of clothes as an emergency precaution.

“They told us to act like we were going through a hurricane,” Maturin said.

She said her mobile home sits about a hundred yards off of the evacuation boundary. She said she plans to stay with her father-in-law in Maurice until the evacuation is lifted.

“I’ve never been through this and I don’t want to go through it again,” she said.

Original Article

-

By GERARD SHIELDS

WASHINGTON — Facing increasing pressure over rising gas prices, President Barack Obama called for a repeal Tuesday of what he said is $4 billion in annual tax breaks to oil and gas companies, riling the Louisiana congressional delegation and industry interests in the state.

In a letter to U.S. House and Senate leaders, Obama said any new money retrieved from the move should be invested in clean energy initiatives, once again calling the fossil fuel industry “yesterday’s energy.”

Congressional delegation members in Louisiana, which handles 30 percent of the nation’s oil and gas, accused Obama of political posturing under the pressure of $4 a gallon prices throughout the nation.

“It’s just a political talking point and a way to divert attention,” Rep. John Fleming, R-Minden, said of the move. “Over the long haul, it’s about supply and demand and he’s done nothing to help that out.”

Obama’s message was a shot across the bow to major oil companies. But about 85 percent of American producers are smaller independents, said Don Briggs, president of the Louisiana Oil and Gas Association.

“He always targets the big oil companies and that has nothing to do with the heart of the oil and gas industry,” Briggs said.

What Obama calls a “subsidy,” the industry views as an “incentive,” a break no different than a mortgage deduction, Briggs said.

“Those independents are a lot of everyday people and these incentives are important to them,” Briggs said. “To remove these incentives will cripple the domestic oil and gas industry.”

U.S. Rep. Bill Cassidy, R-Baton Rouge, pointed to the independents also as the drivers of the American industry, saying that they are “trying to increase domestic gas production, increase supply and decrease prices.”

That Obama’s call comes a few weeks before oil companies announce their profits is no coincidence, said U.S. Rep. Jeff Landry, R-New Iberia. Any elimination of tax breaks amounts to a tax increase that will be passed on to consumers, Landry said.

“It’s been proven before that any taxes you put on business will be paid by consumers at the far end,” Landry said. “Isn’t the price at the pump a big enough tax for the president?”

Moves to remove tax breaks to oil and gas companies have been traditionally stifled in the U.S. Congress, particularly by Republicans. But on Monday, House Speaker John Boehner, R-Ohio, said the idea is something Congress should look at because the federal government is short on revenue and that the companies should pay their “fair share.”

U.S. Rep. Charles Boustany, R-Lafayette, a  Boehner ally, fired a letter off to his leader Tuesday complaining about the Obama five-month drilling ban last year and the slow permitting process in the wake of the BP Deepwater Horizon oil rig blast a year ago.

Obama’s call to eliminate the tax breaks targets oil and industry workers, Boustany said.

“President Obama’s position on punishing American energy production was evident during his State of the Union and today’s letter to congressional leaders further solidifies his stance,” Boustany wrote.

U.S. Rep. Steve Scalise, R-Metairie, called Obama’s latest move another in his assault on the American energy industry.

“It just seems like the president is just dead set on raising taxes on the American energy producers,” Scalise said. “His policies are clearly raising gas prices and increasing our dependence on foreign oil.”

U.S. Sen. Mary Landrieu, D-La., joined in the chorus of protests on Tuesday.

“Can’t we find better ways to raise revenue than pursue policies that stunt domestic production, raise gas prices and put people out of work?” Landrieu said in a statement.

U.S. Sen. David Vitter, R-La., said any removal of tax breaks should assist other businesses.

“I’m open to ending most tax exemptions, deductions and credits if we use the resulting revenue to lower all rates, much as the president’s deficit commission suggested,” Vitter said in a statement.

“Part of the reason for these provisions is that we have the highest corporate tax rate in the world, which kills American jobs,” Vitter said.

Original Article

-

Participants in Tuesday morning’s Haynesville Shale Task Force tabletop exercise learned their most effective tool during a natural gas well emergency is communication.

The lack thereof contributes to confusion and frustration — as was evident behind the scenes within hours after a major blowout in south Caddo Parish a year ago. The task force was borne out of that incident that sent dozens of families away from their homes; some as long as three weeks.

Tuesday’s meeting, hosted by Caddo Parish Sheriff Steve Prator, was the group’s second, but it involved more than sitting around a table talking. The more than 120 attendees — representing state agencies, first responders, elected officials, oil and gas companies and law enforcement from Caddo, Bossier, DeSoto, Webster and Natchitoches parishes — were presented with a scenario of a well blowout and each group walked through their responsibilities.

“I think everyone learned something,” said Prator, who chairs the group. Being able to sit across from oil and gas company representatives, emergency responders and regulations officials and openly discuss response plans “was very healthy. “» We need to be more familiar with what goes on on a rig site. On the other hand, they learned we have to consider the worst case scenario in everything we do. We understand each other better than we have before.”

Keeping the lines of communication aids in building partnerships that are essential if or when another emergency occurs during the Haynesville Shale development, said Mark Cooper, director of the Governor’s Office of Homeland Security and Emergency Preparedness.

The purpose of putting everyone through the tabletop exercise was to determine whether any gaps exist. None were identified, Cooper said, but it helped “us all know our roles and be unified in our response.”

From the industry standpoint, “it is imperative that all parties communicate expectations and needs prior to an issue, rather than after,” said Jodee Bruyninckx, Louisiana Oil and Gas Association North Louisiana director. “This is the beginning of an official ongoing dialogue between the state agencies of jurisdiction, local entities, and the oil and gas industry on emergency response issues through the task force.”

The task force’s work doesn’t stop here. One recommendation was for all parties to be familiar with the goings on at a rig site so all that would have a part in responding to an emergency were encouraged to visit a location in their jurisdiction. “And the companies were very open to that,” Prator said.

Original Article

-

By Kevin Mooney

Louisiana’s strategic importance to the U.S. a major theme of LOGA luncheon

NEW ORLEANS, La – Top Obama Administration officials who visit the state should not expect an audience with Don Briggs, president of the Louisiana Oil and Gas Association (LOGA).

In his keynote address at Thursday’s LOGA’s “State of the Industry” luncheon in New Orleans, Briggs was particularly critical of Interior Secretary Ken Salazar and Michael Bromwich, the director of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE). Although both federal officials have expressed support for increased production in the Gulf Coast, these statements do not square with their actions, Briggs told audience members.

“They talk about wanting to help [the domestic oil and gas industry], but it’s like watching a magician who is doing one thing with his hands but the action is really somewhere else.”

When Salazar and Bromwich last visited Louisiana, members of the state’s congressional delegation invited Briggs to meet with them. But, he declined. “Been there done that,” said Briggs.

“They tell you one thing and they do another. We give them too much attention and way too much credit because they do not want us to go back to work.”

LOGA’s luncheon, with approximately 40 attendees, coincided with the one-year anniversary of the British Petroleum explosion in the Gulf that resulted in the death of 11 workers and spilled an estimated five million barrels of crude oil. While BP clearly made costly mistakes, there is a large body of evidence that shows the industry as a whole is very responsible and innovative, Briggs said. There are about 40,000 wells in the Gulf, and deepwater drilling has taken place safely and effectively in 1298 wells, he pointed out.

Industry workers on rigs who use joysticks to control robots in the deep water are performing a task that is the equivalent of “going to the moon every day.” Even so, he argued, a change in administration is needed before the region can fully recover economically.

Looking ahead over the long-term, oil and natural gas are not going away and this reality puts the state in a strong strategic position, especially if the right mix of polices are in place, he continued.

“Louisiana is the Aorta of America,” Briggs said. “When we shut down our refineries this means 60 to 70 percent of the fuel that runs this country gets shut down… We will become even more important to this country’s national security and infrastructure over time.”

Unfortunately, for the moment, investors are reluctant to re-enter the Gulf, Briggs lamented. Prior to the BP spill, there were 61 rigs in the entire Gulf and now there are only 26. Where there used to be almost six new deep water permit applications per month, there is now only one, he added. Shallow water permits are also down from about seven to under five, he said.

“You have to understand one thing,” Briggs continued. “If [the administration officials] wanted us to drill in the Gulf of Mexico, we would be drilling.”

The Obama Administration’s actions have created an “unprecedented uncertainty” in the Gulf of Mexico both for small independent companies and for major oil companies, Briggs observed.

He also said that policymakers should carefully consider the real value of renewable efforts, which tend to be very expensive. While it may be fine to have some solar and wind, “they are not going to be the driving fuel of the future,” Briggs said. “Ethanol is the joke of jokes.”

Original Article

-

Proceeds from the sale of Lake Bistineau surface water could provide direct funding for lake improvements under a proposed legislative bill co-authored by several local lawmakers.

Currently, parish governments can enter cooperative endeavor agreements with the Louisiana Department of Natural Resources to sell surface water.

But when that occurs, proceeds go to the Department of Natural Resources and then are forwarded to the state’s general fund, department spokeswoman Phyllis Darensbourg said.

State Rep. Jean Doerge, D-Minden, with the assistance of state Reps. Jane Smith, R-Bossier City; Henry Burns, R-Haughton; and James “Jim” Fannin, D-Jonesboro, filed a bill this month that would authorize the sale of water at Lake Bistineau to fund lake improvements and enhancements.

In Bossier Parish, that could mean the addition of new channel markers or clearing salvinia and other debris from the lake, administrator Bill Altimus said.

Any project funded through water sales would be determined by an advisory board made up of representatives of the three parishes surrounding the lake — Bienville, Bossier and Webster — and the Louisiana Department of Wildlife and Fisheries, which manages the lake.

“The advisory board would elect one of its members to act as an administrator to collect and distribute funds,” Doerge said.

She said the idea to draft the bill came from an awareness of Haynesville Shale drilling needing surface water.

North Louisiana Director for the Louisiana Oil and Gas Association Jodee Bruyninckx said surface water is used in hydraulic fracturing of wells.

She said the companies her organization represents are dedicated to becoming independent from aquifer use and want to use surface water when they can.

Without knowing how much it would cost to purchase the water, it’s difficult to say if the sale of surface water at Lake Bistineau would benefit the companies LOGA represents, Bruyninckx said.

However, she said her organization is committed to using surface water and the more surface water that is available the better it is for all industries.

Original Article

-

By Kathrine Schmidt

HOUMA — A safe ride should be close by if something goes wrong offshore.

That’s the goal of a bill introduced last week by U.S. Rep. Jeff Landry, R-New Iberia, which would require that a “standby vessel” be within 12 miles, or a one-hour range, of manned offshore platforms or drilling rigs in the Gulf.

Even though there were life boats and life vests aboard the Deepwater Horizon, when the rig went up in flames some still had to make the “unimaginable” decision to jump overboard in hopes of saving their lives, Landry said.

Had it not been for a supply vessel that happened to be nearby and a fishing boat that helped rescue workers, the death toll could have been higher, he said.

“We could end up with fatalities for no reason,” said Landry, who announced the bill earlier this week and said it would be considered by the House Natural Resources Committee, of which he is a member. “I felt the industry could use a little nudge.”

The bill could mean a big economic benefit for the local offshore vessel industry.

That could translate into valuable support as Landry fights to keep his seat after the redistricting session carved up his 3rd Congressional district, forcing him to run against U.S. Rep. Charles Boustany, R-Lafayette, in a district that favors Boustany.

A spokesman for Landry, Millard Mulé, rebuffed the suggestion that the bill intends to curry favor.

“Saving lives is not political at all,” he said. “That’s what this legislation is about.”

U.S. Rep. Billy Tauzin of Chackbay introduced a similar bill back in the mid-1980s, but it failed amid industry opposition because of the expense.

Landry said he intends the latest legislation, H.R. 1572, to be a “common-sense” solution improving worker safety, but is also willing to work with industry and be flexible on the specifics.

The fate of the bill is still uncertain: Landry doesn’t have any cosponsors yet, and Louisiana Sens. David Vitter and Mary Landrieu didn’t respond to requests this week about whether one of them would introduce a corresponding bill in the Senate.

“The most valuable resource in the Gulf of Mexico is not the oil and gas underneath the Gulf; it is the men and women who are willing to risk their lives to extract America’s energy,” Landry said in a release this week.

But some contend the bill as written would be impractical and redundant, given the thousands of manned platforms in the Gulf, high level of service traffic already present and response capacity from the Coast Guard.

“You can’t put a policeman at every corner,” said Don Briggs, president of the Louisiana Oil and Gas Association. As for safety response, he said, “I think we have those practices in place.”

Others say Landry’s bill is a step in the right direction when it comes to planning for the worst, particularly if a platform is especially remote or inaccessible by air because of bad weather.

Jim Adams, CEO of the Offshore Marine Service Association, said the group has not taken an official position on the bill.

“One of the lessons learned from a year ago is that the industry, in a comprehensive fashion, needs to have better contingency planning for safety,” he said.

“There is a role for an identified vessel to provide emergency response. The particulars of what that capacity would be, and the proximity, needs to be developed in a collaborative matter.”

Original Article