Texas regulator notifies producers of governor's mandate to keep gas in state

The mandate from Governor Greg Abbott asks producers to "take all reasonable steps" that Texas-produced natural gas be available for local power generation. The Texas Railroad Commission, the state's regulator, though, probably does not have the authority to interfere with contracts between companies to export gas out of state, said Commissioner Jim Wright in an interview on Thursday.

The Texas oil and gas regulator on Thursday sent a letter to producers with the governor's directive that the state's natural gas providers not ship outside Texas. The mandate from Governor Greg Abbott asks producers to "take all reasonable steps" that Texas-produced natural gas be available for local power generation.

The Texas Railroad Commission, the state's regulator, though, probably does not have the authority to interfere with contracts between companies to export gas out of state, said Commissioner Jim Wright in an interview on Thursday. Texas producers with extra natural gas are already selling into the local market whenever possible because prices for the commodity are so high, Wright said.