The fracking boom in Texas has brought new life to the oil fields, but it has also caused serious damage to the infrastructure in the Permian Basin, the state’s largest drilling area. Local roads are suffering under the weight of heavy trucks, and small towns are struggling to keep up with the surge in population due to temporary workforce housing, known as man camps. This increase has put pressure on public services like garbage collection, healthcare, and emergency response.
Local leaders are raising alarms about the strain on city and county budgets. In response, two West Texas lawmakers, State Reps. Tom Craddick and Brooks Landgraf, are pushing to redirect 10% of the $8 billion in severance taxes that oil and gas companies pay the state. Their proposed legislation aims to benefit 32 oil-producing counties by funding infrastructure repairs, emergency services, healthcare, education, and workforce development.
Experts agree that significant changes in policy and funding are necessary to address the damage caused by years of oil and gas production. A report from the House Appropriations Committee highlighted that failing to assist these communities could hinder the future growth of the oil and gas industry itself.
Craddick and Landgraf have tried multiple times since 2019 to pass similar legislation, but their efforts have repeatedly stalled in the Senate. This year, they introduced two separate bills: Craddick’s House Bill 265 mirrors their 2019 proposal, while Landgraf’s House Bill 188 includes provisions for oil field cleanup, emissions reduction, and property tax relief for homeowners.
Landgraf expressed uncertainty about whether these changes will garner enough support in the Senate, acknowledging the challenges they face. However, he believes that implementing these policies could benefit all Texans, not just those in oil-producing regions.
If either bill passes through the Legislature and receives the governor’s approval, it would still require voter approval as a constitutional amendment. This could pose another hurdle, as budget writers typically prefer not to be restricted in how they allocate funds.
The rapid pace of oil production in the Permian Basin, which spans 75,000 square miles across Texas and New Mexico, has not only damaged infrastructure but also harmed the environment. The Texas Railroad Commission, responsible for regulating the oil and gas industry, is struggling to manage the costs of plugging orphan wells—abandoned wells with no clear owner.
Landgraf’s bill allocates 1% of the redirected funds to help plug these orphan wells and another 1% for emissions reduction efforts in various sectors. Both bills have received support from oil companies, trade groups, and environmental advocates who recognize the need for more funding to address environmental issues created by the industry.
Landgraf hopes that by expanding the focus of the legislation to include benefits beyond energy-producing areas, he can rally broader support in the Legislature. He believes that what helps the Permian Basin ultimately helps all of Texas.