Energy Development Impact on Transportation Infrastructure presented by TxDOT at Ports-to-Plains Alliance Annual Meeting in Washington DC on April 26, 2013.

1. PORTS-TO PLAINS
4TH ANNUAL ENERGY
CONFERENCE
Scott Haywood
Chief of Staff

2. ENERGY
DEVELOPMENT
IMPACT ON
TRANSPORTATION
INFRASTRUCTURE
April 26th, 2013

3. 2002
Well Permits by Year

4. 20022002-2003
Well Permits by Year

5. Well Permits by Year
2002-2004

6. Well Permits by Year
2002-2005

7. Well Permits by Year
2002-2006

8. Well Permits by Year
2002-2007

9. Well Permits by Year
2002-2008

10. Well Permits by Year
2002-2009

11. Well Permits by Year
2002-2010

12. Oil and Gas Development in Texas
 Texas recently had 839 drilling rigs operating — nearly half
of all rigs in the U.S. and 22.7 percent of rigs worldwide.
 Early estimates for the Cline Shale development (West-
Central Texas) put the estimated recoverable reserves at 30
billion barrels of oil.
 By comparison, the U.S. Geological Survey estimates the
Eagle Ford Shale (South Texas) holds up to 7 billion to 10
billion in recoverable reserves, while the Bakken Shale
(North Dakota) could hold as much as 4.3 billion barrels of
recoverable oil.
12

13. Wind Development
Texas has 12,200 MW of wind generation,
more than double any other state.
More than +1,500 MW of capacity in wind
installations just in 2012.
Most wind farms are located in areas
overlapping oil and gas development.
13

14. 14

15. Typical 1940’s Tractor Trailer
15

16. Modern Energy Production Vehicles
16

17. Loaded Trucks Per Gas Well
1,184 loaded trucks to bring one gas well into
Production, plus
353 loaded trucks per year to maintain, plus
997 loaded trucks every 5 Years to re-frac the
well
This is equivalent to roughly 8 Million cars
to drill a well, plus an additional 2 Million
cars per year to maintain the well
17

18. Increase in Traffic
18

19. Traffic Impacts
19

20. Impact to the System
Research has determined that the service life
on IH, US, SH, and Farm to Market highways
is reduced:
Due to truck traffic associated with natural
gas well operations alone between:
•1% and 16% for rig movements
•1% and 34% for the saltwater disposal traffic
•4% and 53% for construction traffic
•Overall Impact (Average) 30%
20

21. Impact to the System
Due to truck traffic associated with crude oil
well operations alone between:
•1% and 3% for construction traffic
•2% and 16% for the production traffic
•Overall impact (Average) 16%
21

22. Estimated Annual Impacts
 Original Estimate for FM System: $890 million
–Additional 20% for heavier trucks
–Additional 15% for higher road material prices
–Very conservative: well over $1 billion annually
 Extrapolating to local roads
–Similar number of lane miles
–Lower original design requirements
–Estimated impacts well over $1 billion annually
22Template with layouts

23. Proactive/Reactive
 Dimmit County (South Texas)
– Rehabilitation Project on FM 2688 (12.61 Miles)
 Reactive vs. Proactive
– Reactive: roads are fixed or maintained after damage has occurred.
– Proactive: maintains roads before damage is done to preserve the
quality of the road.
Additional Wells Reactive Cost Proactive Cost
0 $13,756,000 $2,004,536
1 $19,271,448 $2,004,536
5 $23,303,952 $4,654,149
10 $27,452,880 $5,723,553
23Template with layouts

24. Impact on Infrastructure
24Template with layouts

25. Impact on Roadways
25Template with layouts

26. Impact on Roadways
26Template with layouts

27. Impact on Roadways
27Template with layouts

28. Impact on Bridges
28Template with layouts

29. ROW Issues
29Template with layouts

30. Safety and Environmental Concerns
30Template with layouts

31. 2012 Crash Data
Eagle Ford Shale (23 Counties):
 2012 = 248
 2011 = 177
 40% increase in fatalities
Permian Basin (58 Counties):
 2012 = 320
 2011 = 252
 27% increase in fatalities
31Template with layouts
Leading causes of crashes according to law enforcement were
failure to control speed and driver inattention.

32. Possible State Legislation
 Tax Increment Reinvestment Zone/Mobility Authority for
Counties
 Dedicate Oil and Gas Severance Tax Revenues to
Transportation
 Greater Enforcement of Oversize/Overweight Trucks
 One-time appropriation from Economic Stabilization Fund
32Template with layouts

33. QUESTIONS