The Texas Senate unanimously approved a bill on Wednesday that would create a task force to combat the state’s escalating oil theft.
Senate Bill 494, written by Republican Sen. Kevin Sparks of Midland, will form a statewide task force that “analyzes organized oil field theft and recommends solutions” to address theft of Texas petroleum products, he said Wednesday. Under the supervision of the Texas Railroad Commission, the task force consists of industry stakeholders and law enforcement agencies.
“Thieves engaged in organized theft often operate in multiple jurisdictions, complicating efforts to arrest and claim them due to lack of coordination between authorities,” Sparks said.
Oil theft has been a persistent issue in Texas. The Energy Security Council estimated that the industry lost up to 3% of all oil produced in Texas in 2016. This is the latest data, amounting to nearly $1.5 billion, equivalent to a revenue loss of $450 million. At the time, the state moved to carry out criminal offences due to the theft of petroleum products, but lawmakers like Sparks argue that the issue has not been improved.
In a recent interview with ABC Big 2, Ector County Sheriff Mike Griffith added that his department handled “many oil field thefts” in West Texas and seized more than $1 million last year of stolen oil field equipment.
The bill requires the task force to submit “bi-yearly) with recommendations to increase transparency, improve security, enhance consumer protection, prevent theft of petroleum products and address the long-term economic impact of petroleum products theft.”
SB 494 will be moved to the Texas House of Representatives for consideration. If passed, the Texas State Railroad Commission will be responsible for appointing members to the task force, along with the initiative that expires on December 31, 2030.
Another proposed bill, Senate Bill 1054, aims to amend the definition of theft of petroleum products to include production equipment such as drills and other hardware. The bill was co-written by two Democrats. Senators Cesar Blanco of El Paso and Senators Judith Zafirini of Laredo first pushed criminal penalties for oil theft in 2017. The bill was introduced to the Senate Committee last month.
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