Our Fracking Future

Surprising San Angelo is about to be fracked up.  Local leaders met to discuss four areas:  workforce availability and assistance, education and training, housing and lodging, and economic development.  Who's working on roads, water, health care and public safety?  It's hard to tell, but here are my thoughts

Roads - negative
The State of Texas and San Angelo under invested in roads the last decade, which each will readily admit.  Heavy oil field equipment will accelerate asphalt breakdown. 

Public Safety - negative
DPS Officer Shawn Baxter said Midland/Odessa had been added to his responsibilities.  He noted the magnitude of issues DPS officers face in the area.  He cited frequent, major traffic accidents and safety situations he termed "absolutely bizarre."

Water - mostly negative
San Angelo already has a precarious water situation.  Adding water heavy fracking to this load is concerning.   Also, where will drillers dispose of toxic frack water?.

The owner of the brine sea of groundwater around Mertzon is excited about fracking.  This is the same salty water  the City of San Angelo once pondered desalinating. 

Healthcare - negative
San Angelo's physician capacity is as precarious as our water situation.  A major increase in population will stress health care access.  Many physician practices aren't taking new Medicaid patients.  Others won't take new patients of any kind.  This sends people to area Emergency Rooms for care. 

Major traffic accidents in the Cline field will send more trauma to those same Emergency Rooms. 

While the Cline Shale Boom smells like money to many, it's the very thing that could destroy San Angelo's unique attractiveness. 

MedHab Talk at Texas Tech

MedHab founder Johnny Ross spoke at Texas Tech University's CEO Roundtable in March 2012.  He spoke of his company's plans to bring their product to market.  Ross stated StepRite is a Class II medical device, thus it needs no clinical study.  It does need FDA approval and permission from Medicare and Medicaid to bill the $2,250 fee per patient.  However,Medicare/Medicaid does expect the company to show StepRite's value, i.e. clinical efficacy, before approving the device for payment.

Ross stated he expected to bring his product to market in October 2012. That didn't happen.  Soon a year will have passed since Ross' TTU talk.  There has been no news from MedHab or the City of San Angelo since they inked the $3.6 million economic incentive package in August 2012.

Medhab Talk at Texas Tech - March 2012 by alan_prest

Ross is a noted salesman who promotes himself as a "C Suite Rainmaker".  Oddly, MedHab will have no sales department.  This function will be contracted out.  The company sold San Angelo Mayor Alvin New, a MedHab investor and board member, before it sold City Council.  Representations were made.  An update seems in order. 

West Texas Oilfield Developments: China Stake & Permian Tank Redux

Two recent developments in the West Texas oil sector may be instructive.  One, a Chinese company purchased a significant chunk of Pioneer Natural Resources stake in the Wolfcamp Shale for $1.7 billion.  It seems domestic sources could fuel China's energy needs.

Two, a new tank manufacturer will locate in Harriet, between San Angelo and Miles.

Kelly Womack, owner of the company, bought 51 acres of farmland and will build the facility on 6 acres, leaving room for expansion. The plant will first manufacture steel and fiberglass storage tanks and later produce additional equipment used in the oil and gas industry, such as separators, heater treaters and gunbarrels.

Womack’s late father, Glen, started Permian Tank & Manufacturing in Odessa in 1975 and sold the company in 2007. Now Kelly and Curtis feel like it’s time to get back into the business. 

“We’ve got good connections and friends in the industry and we know a lot of people,” Pittman said. “This factory has a lot of possibilities to grow.”

The Carlyle Group and joint venture energy partner bought Permian Tank for $50 million.  They also own Three Rivers Energy.  Carlyle withdrew its registration seeking to take the company public. 

I wonder how Hirschfeld Steel will take the competition from Womack Tank & Manufacturing, given both aim to be steel manufacturing facilities for the oil and gas industry  Like Permian Tank, Hirschfeld has private equity ties.  Hirschfeld's owners see major growth in tanks.  Might Womack garner Insight funding or an eventual buyout?

Rep. Darby Assigned Key Committee Seats

San Angelo's Representative Drew Darby received three committee assignments in the Texas House of Representatives - 83rd Legislative Session,

Speaker Appointment:
Budget
Higher Education

Chair:
Redistricting

House Energy Caucus

Darby's selection for Budget and Higher Education place him squarely in the position to advocate for Angelo State University, Howard College, area healthcare providers, area public schools and the San Angelo State Park.  San Angelo is lucky to have representation on such key committees.

So far Darby is out front on the issues regarding energy, water and transportation.
Redistricting may garner Darby added political capital.  That could give him the kind influence of San Angelo once had with Representative Rob Junell.  How will Rep. Drew Darby use it?  Hopefully to address local and citizen concerns.

Hotel Occupancy Tax Bonanza

The oil boom means full hotel rooms, which means a dramatic increase in collected hotel taxes.  City Council will wrestle with what to do with the bonanza, potentially an excess $900,000 for 2013. 

I haven't seen that sized contribution to fund balance since the last two years' health insurance.  Maybe Mayor New can now buy that fire truck or the city can put it toward fixing/maintaining roads.

If it were budget time, this council might've used it to roll back tax rates a penny or two.  A dramatically different council, maybe Mayor, will have that task.

Encore for Furnituregate Star?

Former Assistant City Manager Elizabeth Grindstaff played a major role in the unauthorized purchase of over $100,000 in furniture for the Water Department.

City Councilwoman Charlotte Farmer nominated Grindstaff to serve on the City's Airport Advisory Board for a term ending October 2016.  Do citizens want someone deeply involved in an illegal purchase, one which ruined Daniel Valenzuela's debut as City Manager, to serve on an important public board? 

Grindstaff misrepresented her role in the Furniture Fiasco in that very meeting. I chronicled her statement to Council (which can be verified by video recording):

The furniture budget Council approved for the project was over $200,000.   At some time "they" decided to change the furniture in their suite.  At no time did Mr. Wilde and I have a discussion over new furniture for the Water Department.  Another city employee worked with Will on this.

City e-mails tell a different story.  New furniture for the Water Department arose in early March.  Interim City Manager Michael Dane and Grindstaff chose not to present this item to Council in March.

Grindstaff cheered the order in May in an e-mail discussion with Water Chief Will Wilde.

The public got a series of "they's" from Grindstaff and Will Wilde.  Neither made clear who "they" were.  As there has been no release of the internal investigation, one can only go off the e-mail record obtained by the Standard Times. 

Charlotte Farmer's nomination of Elizabeth Grindstaff is troubling.  Surely another representative from Texas Pacifico can be found to serve, one who didn't undermine public trust with her actions..

ASU's Interim Appointments

An Angelo State University press release stated:

Angelo State University President Brian J. May has named Angie Wright and Dr. June Smith to interim administrative positions at the university.

 

Wright, associate vice president for finance and administration, will become interim vice president for finance and administration on March 15.  She will succeed Michael L. Reid, who has resigned, effective that date, to accept a position as vice president for administration and finance at the University of Montana in Missoula.

Smith, professor of communication and member of the graduate faculty, will serve as interim dean of the College of Graduate Studies, effective Feb. 1.  She succeeds Dr. May, who held that position simultaneously with his post as provost and vice president for academic affairs until November when he was appointed ASU president. 

May said neither interim appointee will be a candidate for the permanent position when each is filled.  

Did anyone else notice the gap between November 2012 and February 2013 for Graduate Dean?  Was the role completely unfilled or did someone perform the job anonymously? 

Certainly a new President would want somebody in that role, especially given graduate studies major role in ASU's growth.  Who was the mystery Interim before the current Interim?