2020 May Energy News

Energy News May 2020

From the Field Photo ‘Storm’ Tom Green County Photo by Nuno Selvera

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RRC Adds More Efficiency to Assist Oil and Gas Operators

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Railroad Commission Launches Drone Program to Enhance Emergency Response

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Training and Exam Appointments Available at Alternative Fuels Training Center

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We’re Always Here to Help

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Commissioners’ Corner

Upcoming Events June 16, 2020

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Open Meeting

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Austin, TX

RRC Adds More Efficiency to Assist Oil and Gas Operators To help operators quickly and easily submit vital information on inactive wells, the RRC made yet another form, Form H-15, available for online filing. This is the second online form the Commission has released in two months; Form W-3, Plugging Record was launched in April.

Oil and gas operators can now go online to easily file Form H-15, Test on an Inactive Well More than 25 Years Old. This test is vital to protecting ground water quality in Texas. On average more than a thousand of these forms are mailed to the agency each month. The new online filing option for Form H-15 saves time for staff and industry.

Operators are required to conduct tests on wells older than 25 years in each year that a well is inactive. The test results are submitted in H-15 forms to ensure an inactive well does not pose a pollution threat to ground water.

“Operators have been asking for an easier filing option for these important forms and we delivered,” said Wei Wang, RRC Executive Director.

“This is another step in our long-term goal to make the agency’s operations efficient and reduce administrative burdens for both the agency and the operators. Online filing is also beneficial in unique situations such as the current COVID-19 pandemic in which we try to minimize in-person contact to maintain the safety of staff and the public.”

While the RRC will continue to accept hard copy filings of the Form H-15, operators are strongly encouraged to file online for efficient and timely filing. The Notice to Operators, which includes instructions for online filing, can be found on the RRC website at https://rrc.texas.gov/ media/57836/notice-to-operators_form-h-15-online.pdf.

VIEW THE NOTICE TO OPERATORS4

Railroad Commission Launches Drone Program to Enhance Emergency Response The RRC has recently unveiled major programs that will not only benefit agency operations in the long-term, but will also be greatly valuable in unique situations such as the current COVID-19 pandemic.

One of those significant initiatives was launching a statewide drone inspection team. Drones will help inspectors to quickly respond and inspect sites that are unsafe or inaccessible during emergencies such as fires, flooding and other natural disasters.

Drones can also assist during the current pandemic where it would be safer to avoid in-person contact for the sake of the health of inspectors responding to emergencies and operators they may interact with.

The RRC’s first drone emergency response was April 28 following reports of an incident in Reeves County west of Midland.

The affected area could not be physically inspected because the road to the site was under water. A licensed RRC pilot launched

High Altitude View

a drone and determined a possible source of release using aerial and thermal images.

We then contacted the operator who sent personnel to the site by boat to investigate, and they took multiple samples from the well pad for analysis. The wellbore area was dug out and monitored for leakage.

“Our very first flight mission in Reeves County is a great example of how drones will enable inspectors to do their jobs quickly and safely in emergencies, which ultimately helps further protect residents and the environment,” said RRC’s Executive Director Wei Wang. “Whether it’s through information technology or other new tools, the Commission has always been looking at ways to enhance our operational efficiency.

With drones, our inspectors can now immediately monitor well blowouts, oil spills, and other emergency incidents, and quickly cover large areas of ground in responding to those situations where time is of the essence.”

Possible well location

The agency also flew a drone mission on May 19 near Portland, Texas as part of a water quality investigation. The mission gave an aerial view of land on both sides of a creek where a physical inspection was impossible to perform due to vegetation along the creek. The drone allowed us to look for any signs of oil and gas waste that might be impacting the creek. The drone inspected two miles of the creek and did not observe any signs of oil and gas waste impact.

Nineteen inspectors in the agency’s Oil and Gas Division and Surface Mining and Reclamation Division (SMRD) have received remote pilot certification from the Federal Aviation Administration.

Beginning this summer, SMRD will use drones for emergency responses and inspections. Drones can document the progression of mining in active operations which can change drastically from month

Thermal image of possible well location

to month. Aerial images will also help in the oversight of reclamation activities in previously mined areas.

The RRC’s drone program will operate in compliance with the Code of Federal Regulations as well as state laws established to ensure safety and the protection of individual and property owners’ privacy.

The RRC is also a member of the State Emergency Operations Center. The agency’s drone fleet can be a critical resource in helping state emergency response by providing aerial views of inaccessible areas.

A list of frequently asked questions (FAQ) and answers is also on the RRC’s Drone Program page at https://rrc.texas.gov/ about-us/resource-center/faqs/drone-program-faqs/.

VISIT OUR DRONE PAGE4

Training & Exam Appointments Available at Alternative Fuels Training Center As the state steadily moves forward from the COVID-19 pandemic, the Commission will begin conducting training classes and exams again at the Alternative Fuels Training Center (Training Center), but by appointment only.

Individuals must register for exams and training events and receive confirmation that they are registered before arriving at the Training Center.

In addition to the in-person events, the RRC is also continuing its successful webinars for continuing education training for individuals.

The Alternative Fuels Safety Department is posting times and dates for these important exams, training events and webinars on its Calendar of Events.

VIEW EVENTS4

Due to restrictions related to COVID-19 the number of individuals allowed for testing and training at the Training Center is limited to 25% of our normal capacity; therefore, walk-in examinees are not allowed. Individuals who are not registered will not be allowed in the building.

Individuals who do not submit the paperwork and payment required per their registration email will lose their registration slot and receive a cancellation notice. Paperwork and payment must be received by the deadline given in the email notice to retain the registration.

For individuals who fail an exam, same day re-testing will not be available. They must register for another exam event to retake the test.

For the safety of our staff and others attending the event, there are precaution checks individuals need to follow to be at the Training Center. Those can be found in VIEW ANNOUNCEMENTS4 the announcement on the RRC website.

Note on LP-Gas Training Forms Some time-saving changes have now been implemented to LPG Form 16. The forms have been revised to combine the class attendance form used to collect information for individuals who attend an LP-gas training class and one or more LP-gas certification exams. Now, individuals who attend a class and take an exam only need to complete one form and allows that information to be retrieved from one form.

RRC offices are more than four walls in a central location. Our field inspectors and district offices across Texas are a critical part of keeping the RRC

Andrea Meyer

fully functional during the COVID-19 Pandemic. Here are just a few of our staff members ensuring the safety of their community throughout the state.

Andrea Meyer is a dedicated Oil and Gas Field inspector in the San Angelo community. Snapping this photo before putting on her mask, she spends her day inspecting leases in three counties, ensuring oil wells remain in compliance and safe.

The Houston District Office is hard at work! Virtual meetings are a

The Houston District Office

key component as staff coordinates and schedules inspections, site remediations and more ensuring operations run smoothly.

Mary Sue Yarbrough is the office manager for the Corpus Christi District Office. She’s the glue that holds the area together as she coordinates with operators, teleworking staff, and inspectors and answers questions via the office phone or processing paperwork.

Mary Sue Yarbrough

Chairman Christian COMMISSIONERS’ CORNER

Christian Votes No on Proration, Provides Regulatory Relief to Industry The RRC hosted a virtual open meeting on May 5 where the commissioners discussed common carrier pipeline and refinery storage capacity, the report produced by the Blue Ribbon Task Force for Oil Economic Recovery, and proration.

In response to Chairman Christian’s request at the April 21st Open Meeting, the RRC received reports from 19 refineries and 70 common carrier pipelines regarding their unfilled storage capacity figures. The refineries reported having 18,414,733 barrels capacity remaining and the pipelines reported having 52,770,925 barrels of capacity remaining.

Next, the Blue Ribbon Task Force for Oil Economic Recovery presented their report outlining steps the Railroad Commission of Texas and other government entities could take to provide industry relief during the current oil and gas downturn. The Task Force focused on operations, permitting, timelines, tax policy and deadlines, storage capacity, and pipeline capacity, among other issues, and assembled the attached recommendations for the Commission’s consideration.

READ THE REPORT4

Chairman Christian COMMISSIONERS’ CORNER

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“I want to thank the task force for their long hours identifying solutions in such a short period of time,” said Christian. “This is what makes me proud of Texas: The business community working together to solve problems by developing solutions.”

In response to the report and staff recommendations, Chairman Christian offered and passed two orders suspending certain fees and creating an exception to Rule 95 to allow underground oil storage in alternative formations. You can read the orders here.

READ CHAIRMAN CHRISTIAN'S ORDERS4 Prior to the meeting, Christian sent letters to the various agencies and legislative bodies mentioned in the report, encouraging them to review it and determine whether or not they can implement any of the relief outlined.

In an editorial in the Houston Chronicle last week (Read ( Read the Houston Chronicle), Chronicle), Chairman Christian announced he would not vote in favor of government mandated cuts to oil production. During the meeting, he presented a motion to dismiss Pioneer and Parsley Energy’s verified complaint to determine reasonable market demand for oil in the State of Texas. The motion passed 2-1.

READ THE HOUSTON CHRONICLE EDITORIAL4 “Over the past few weeks it has become increasingly obvious to me that we need to restore regulatory certainty to the oil and gas industry and move past the discussion on proration,” said Christian. “This motion ensures Texas companies, rather than the government, can decide for themselves what level of production cuts make sense for them to make while they weather the storm of market instability.”

Commissioner Craddick COMMISSIONER’S CORNER

On May 12th, Commissioner Craddick participated in a live online discussion with the Texas Tribune about the Texas energy sector, the response to the coronavirus and how the Texas Railroad Commission is working to inspect, permit and encourage recovery and growth. To watch or read a recap of the interview, please visit this link https://www.texastribune.org/2020/05/04/craddick-oil-virtual-event/

VIEW THE VIDEO4

Commissioner Sitton COMMISSIONER’S CORNER

Following five and a half years of dedicated work for Commissioner Sitton and the RRC, his Chief of Staff Jared Craighead has moved on to the banking sector.

Jared helped oversee major initiatives and responses to regulatory issues the RRC and the state’s energy industry have faced.

Jared worked with Commissioner Sitton and agency staff on numerous projects during his time at the RRC, including modernizing the Commission’s Information Technology infrastructure via the mainframe project, and the Commission’s approach to seismicity. Most recently, Jared led within the agency on Commissioner Sitton’s flaring report.

Bryan Preston, Commissioner Sitton’s Director of Public Affairs, will take over as Chief of Staff.

Oil and Gas Production Statistics

View monthly production totals of crude oil, condensate and total oil; and of gas well gas, casinghead gas, and total natural gas.

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Enforcement Actions

The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety. View RRC’s Latest Enforcement Actions here.

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Public GIS Viewer

The Public GIS Viewer allows users to view oil, gas and pipeline data in a map view.

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