RRC's April 2022 Energy News

Energy News APRIL 2022

From the Field Photo

Coke County Photo from Barry Norris

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RRC Drone Training Program Wins National Award from Mining Commission

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New Curtailment Rule Prioritizes Natural Gas Supplies During Emergencies

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Abilene Inspectors Lend Expertise to Fighting Fires

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Thanks to Outreach Efforts, Rate of Pipeline Damage Continues to Decline

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RRC Introduces Online System for Alternative Fuel Program Registration

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LPG, CNG or LNG Employees Must Carry RRC-Issued Certification Cards

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Commissioners’ Corner

Upcoming Events RRC Open Meeting

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May 3, 2022

RRC DRONE TRAINING PROGRAM WINS NATIONAL AWARD FROM MINING COMMISSION The Interstate Mining Compact Commission recognized the Railroad Commission with a 2022 award for its drone training program – which highlights the safety and efficiency of the agency’s drones in regulating surface mining.

During its recent annual meeting, the IMCC, which comprises 26 states, presented the RRC with its National Mine Safety and Health Training Award in the State Category for Coal Surface Mining. The IMCC noted that the RRC promotes “a safe work place within the Lone Star State’s mining industry through innovative and effective training programs.”

The award recognized RRC video training that highlights Surface Mining and Reclamation Division’s use of drone technology in the field, including pre- and post-flight procedures, drone inspection efficiency, how drones and maintain safe distance between multiton mining equipment and inspectors.

“We are extremely honored to receive this award,” said Brent Elliott, RRC’s Director of the SMRD. “We are not just committed to adapting new technologies that improve on our ability to protect public safety and the environment, but the award shows our willingness to share what we know to help both industry and regulators alike.”

Jason Corley, Manager of SMRD Inspection and Enforcement, credits Inspector Cade Harris for putting the training together using video conference software.

SMRD, which has three drone pilots, has been using drones since July 2020 and have logged more than 100 mission flights.

“Drones have made a portion of what our inspectors do much more efficient than in recent times,” Corley said. “For instance, in collecting annual regrade lines and suitable material haulback placement progress – a task that could take half of an inspection – drones can now be flown effortlessly in mere minutes versus the hours of work it used to take. They allow us to see the big picture of ground conditions in a bird’s eye view.”

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New Curtailment Rule Prioritizes Natural Gas Supplies During Emergencies Changes Approved by Commissioners Go into Effect on Sept. 1 After nearly 50 years, the Railroad Commission will have a new curtailment rule that updates the state’s priorities for firm gas supplies and transportation during emergencies.

On April 12, commissioners adopted amendments to 16 Texas Administrative Code §7.455 to replace Order 489, which had been in place since 1973.

This latest action by the Commission continues efforts to ensure Texans that in energy emergency events, like Winter Storm Uri, their life-saving natural gas for food and heat will continue to flow.

The new curtailment rule is similar to an emergency order commissioners issued during Uri to prioritize natural gas deliveries for human needs, which in turn helped 99.95% of gas utility local distribution residential customers to maintain natural gas service during the storm.

Similar to last year’s emergency order, the new rule also cements gas deliveries to electric generation facilities as a top priority.

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The curtailment rule is triggered when a gas utility is unable to deliver all the gas it is contractually obligated to deliver (through what’s known as firm contracts) during emergency events and has to curtail its firm customers. In such situations, the rule sets the following order of priorities for firm deliveries: 1. Human needs customers and local distribution systems which serve human needs customers.

2. Electric generation facilities.

3. Industrial and commercial users of the minimum natural gas required to prevent physical harm and/or ensure critical safety to the plant facilities, to plant personnel, or the public when such protection cannot be achieved through the use of an alternate fuel.

4. Small industrials and regular commercial loads that use less than 3 million cubic feet of gas per day.

5. Large industrial and commercial users for fuel or as a raw material where an alternate fuel or raw material cannot be used and operation and plant production would be curtailed or shut down completely when natural gas is curtailed.

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increasing the reliability of the natural gas system in Texas.”

6. Large industrial and commercial users for fuel or as a raw material where an alternate fuel or raw material can be used and operation and plant production would be curtailed or shut down completely when natural gas is curtailed.

“One of the fundamental principles of the Railroad Commission of Texas is to prioritize the health and safety of Texans,” said Commissioner Christi Craddick. “Through the adoption of our curtailment order, we have honored the mission of this agency by prioritizing human needs natural gas customers. I am proud of the hard work by agency staff and stakeholders to ensure that natural gas is available to those who need it most during an emergency.”

7. Customers that are not covered by the priorities listed above.

The priority list helps ensure the availability of gas for human needs customers, and electricity generation facilities powered by natural gas. Human needs customers include residences, hospitals, water and wastewater facilities, emergency responder facilities, and locations where people may congregate in an emergency such as schools and places of worship.

“As we saw during Winter Storm Uri, it is essential that the delivery of gas is prioritized for human needs and electrical generation in emergency situations,” said Commissioner Jim Wright. “Today’s rulemaking updates longstanding Railroad Commission practices to ensure that those with firm contracts have the gas they need to keep our citizens safe.”

“The Commission’s curtailment order during Uri saved countless lives by ensuring the 99% of Texans that needed life-saving natural gas during the freeze – got it,” said RRC Chairman Wayne Christian. “It’s vital to have an action plan for emergencies, and that’s what curtailment does. The Commission today strengthened that plan by placing it in our rules and focusing on firm supply and transport of natural gas.

This will give market participants certainty of the plan and encourage them to obtain firm contracts,

The rule goes into effect on Sept. 1, 2022.

VIEW THE ADOPTED RULE

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ENERGY NEWS

Abilene Inspectors Lend Expertise to Fighting Fires RRC Pair Volunteers Time with Burkett VFD If you happen to find yourself in the volunteer fire department in the small North Texas town of Burkett, you will likely run into more than just a few Golsons.

The family of Golsons, including Justin and Travis, are passionate about fighting fires. The brothers, who are both inspectors for the Railroad Commission, have been fighting fires since they were old enough to do so.

Their father runs the department, and their wives are also volunteers.

“During the recent devasting wildfires in Eastland and other surrounding counties, Justin spent approximately 36 hours and Travis approximately 30 hours actively fighting these fires,” said Tammy Shelton, a team leader for RRC’s Critical Infrastructure Division who previously worked alongside the Golsons in the Oil and Gas Division’s Abilene District. “These gentlemen put their own lives in danger without hesitation every time the call comes in, and without men like Justin and Travis, the rural communities of Texas would be without any fire protection.”

Both of the Golson brothers are among many at the RRC who spend time volunteering to help their communities. Texas Government

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Code §661.905 and RRC policy allows employees who volunteer as firefighters, emergency medical service workers and search and rescue staff to attend up to five days of training per year and can be granted time off for emergency situations.

“You don’t do it for the money,” said Justin, who is the Abilene District’s H2S coordinator. “It is about just getting out and helping people.”

The area around Burkett, which is southeast of Abilene, is part of the state’s rolling plains and has abundant grasslands and farm fields, which can be subject to wildfires during windy and dry conditions.

That’s partly why the Burkett Volunteer Fire Department, which was created in 2003, is so important to the community. When the need arises, people living in the area come together to help each other out.

“It is truly amazing to see people do that, to save a neighbor’s house or a stranger’s house,” Justin said.

Without the volunteer fire department, response time would be double or even triple what it is now, the brothers said.

The people who volunteer understand local conditions very well, and the vehicles they use are specific for the terrain.

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When the grass dies, it dries out, which is even more of a fire hazard, he said.

“A lot of the big departments can’t get off pavement,” said Travis, who is the Abilene District’s cleanup coordinator. “The volunteers are mostly off road.”

The RRC is often called into command centers by the Texas Department of Emergency Management when there are large fires.

Because of the volatile nature of hydrocarbons, fighting fires is also important part of the RRC’s mission of protecting public safety and the environment. Statewide Rule 21 specifically addresses fire protection and is among the items inspectors are looking out for when on oil and gas leases.

“Being from the area and from inspecting oil and gas wells, we know where things are,” Travis said. “When we have a fire, we can let incident command know: ‘Look, this is what’s over here.

Just keep an eye on it and make sure you do not drive over the top of a flow line when a fire is burning there.’ They may not know there is an oil well in the back of a pasture that has a fire burning through.”

“When you go to tank batteries, and you are looking at the tanks and there are trees growing over the top, if that tree caught on fire, it could burn up and drop on the tank and blow up the tank,” Justin said. “If you have these pumpjacks with electricity and motors running, and Johnson grass that’s up to your neck, that’s a fire hazard. I had one in which I told the pumper he had to spray his weeds and get that stuff out of there, so it does not pose a fire hazard. When I came back the next time, it was all starting to turn yellow.”

It is not just hydrocarbons that pose a threat. In sour oil fields, if hydrogen sulfide is released, the Occupational Safety and Health Administration notes that just 700 parts per million of H2S would knock a person out instantly, and above 1,000 ppm would result in “nearly instant death.”

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ENERGY NEWS

“Probably a month ago, there was a fire at Pioneer on the old lease we used to pump. We knew the lease was sour,” Travis said, so the district notified the TDEM coordinator about the hazard. “They pulled their resources out for fear if a flow line caught on fire, it could vent sour gas and threaten the firefighters working there.”

In that fire, the brothers coordinated with the Texas A&M Forest Service and shared maps of where all the oil wells were.

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The inspectors also coordinate with oil and gas operators to make sure they are doing what needs to be done to mitigate fire risk.

“In the Pioneer fire, I called the pumper and said, ‘Hey, there is a fire out here,’” Travis said.

“He immediately went out and start shutting wells in to stop the flow of the gas and the oil. If something did catch on fire, it was just going to burn whatever was in the line and not continuously flow product out. That is one of the major things they do is shut wells in to minimize the amount of product that could be burned.”

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Being on the volunteer fire department means they know when something happens, and they use that knowledge as RRC inspectors.

“If there is a fire on an oil lease, the operator is supposed to call it in and let us know, and sometimes, they don’t always do that,” Travis said. “A lot of times, it is because they don’t know because they are not out there. When we get the page [as a volunteer fire firefighter], we know it’s there. Then we can start calling operators and say, ‘Hey, your tank battery is on fire or you have a fire burning through your lease. You need to get out here and call the commission and get everything started.’”

Working on a volunteer fire department is not without risks.

“You don’t get paid for this,” Justin said. “You don’t get insurance. If you get hurt, you are on your own.”

April is

But it is worth it to help the community when it needs it, he said.

And with the RRC supporting them, they know they can depend on their salaries and health insurance.

The brothers worry that many rural volunteer fire departments are in danger of shutting down because they don’t have new people stepping up to keep them staffed.

“We need the volunteers,” Justin said.

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ENERGY NEWS

THANKS TO OUTREACH EFFORTS, RATE OF PIPELINE DAMAGE CONTINUES TO DECLINE As the weather warms and people want to tackle projects outside, make sure you call 811 before you start digging. Not doing so is actually the leading cause of pipeline damage.

“The statistics show our outreach is working,” said Ricardo Gamez, a compliance analyst with the RRC Damage Prevention Program.

“While we would like to see further reduction in the total number of damages, the fact that the number of 811 calls to locate has increased year after year can be attributed to the increase in excavation occurring in our growing state.”

Governor Greg Abbott proclaimed April as Safe Digging Month and emphasized the importance of 811 to bring awareness of the serious public safety consequences should pipelines or other underground utilities be damaged anywhere in Texas.

Calling 811 is free but must be made at least two business days before digging. Locator personnel are dispatched to the digging site to mark the locations of underground pipelines and utilities with flags, spray paint or both.

Homeowners, excavators and contractors are required to call 811 before digging, which prompts utility operators to come and mark the location of underground cables and utilities, including pipelines.

Location requests can also be filed online at the Texas 811 website at https://www.texas811.org/.

RRC statistics show the effectiveness of calling 811 in preventing pipeline damage is better than it has ever been.

In 2020, the total number of 811 calls to locate was 3.78 million, which jumped to 4.31 million in 2021.

The rate of pipeline incidents actually dropped in 2021 to 2.21 incidents per 1,000 calls to locate; the rate was 2.5 incidents per 1,000 calls in 2020.

The rate has been steadily dropping since the first full year of recordkeeping started in 2008 when there were 6.44 pipeline incidents per 1,000.

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To see 2021 statistics in more detail, visit RRC’s Damage Prevention Statistics webpage.

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ENERGY NEWS

RRC INTRODUCES ONLINE SYSTEM FOR

ALTERNATIVE FUEL PROGRAM REGISTRATION With CERTS, registrants will receive two emails after registering online: • payment confirmation acknowledging receipt • registration confirmation for the class or exam event

To access the new the system, visit https://rrctx.force.com/events/s/ the RRC website at https://www.rrc.texas. gov/alternative-fuels/ under “Alternative Fuels Safety Events”

As of April 1, people seeking to register for RRC alternative fuel training, continuing education or exams must register with the new Certification Exam Registration and Training System (CERTS).

To view registration instructions, visit the CERTS homepage at https://rrctx.force. com/events/s/ under “Instructions on how to use RRC CERTS” to view and register for alternative fuels classes and exams.”

The online system allows individuals working in alternative fuels industries to register and pay for a class and/or exam in a single transaction. Formerly, registrants had to wait for a response from the RRC after registering and then pay for the event later.

If you have questions, contact the RRC Training Center at training-exams@rrc.texas.gov or 512-463-2682.

ACCESS CERTS ENERGY NEWS

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LPG, CNG OR LNG EMPLOYEES MUST CARRY RRC-ISSUED CERTIFICATION CARDS Businesses licensed to engage in LPG, CNG or LNG activities in Texas are required to provide their employees RRC-issued certification cards to their certified employees.

Certified employees are required to have the cards on hand and present it to RRC staff or agents upon request.

The licensee is advised to maintain a copy of their employees’ certification cards.

For more information view 16 Texas Administrative Code §9.10 of the LP-Gas Safety Rules on the Secretary of State website.

If you have questions, contact the RRC at training-exams@rrc.texas.gov.

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ENERGY NEWS

Chairman Christian CO M M I S S I O N E R S’ CO R N E R

In April, Chairman Christian traveled across the state, from Midland to Harlingen to Paris and Houston, talking with energy producers and consumers about rising costs, mitigating challenges and the importance of producing more Texas oil and gas for our nation and allies.

“From gasoline to groceries, inflation is soaring under the leftist leadership in Washington, D.C. We need to be realistic and practical. The price of crude oil has skyrocketed, inflation is rampant, and Europe is mired in its first ground war since World War II. We should be divesting from hostile countries and harnessing American oil and gas, especially right here in the Permian Basin,” said Chairman Christian.

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Commissioner Craddick CO M M I S S I O N E R S’ CO R N E R

In April, Commissioner Craddick spent time in Beaumont, Texas.

As one of the state’s largest refining communities, Beaumont is home to many facilities, including the ExxonMobil plant where Commissioner Craddick was able to take a tour and learn more about their BladeOne project. Upon completion in 2023, BladeOne will increase the facility’s refining capacity by 65% and be the first of its kind to process Permian crude oil. The vast majority of crude oil utilized in Texas’ refining facilities is known as “heavy” or “sour”.

The Permian Basin produces “light” or “sweet” crude, so this project will be a huge step forward for our state’s oil and gas industry.

Commissioner Craddick appreciates the opportunity to visit the site and looks forward to the completion of BladeOne.

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Commissioner Wright CO M M I S S I O N E R S’ CO R N E R

Commissioner Wright is committed to engaging with students and young professionals about the oil and gas industry and believes education plays a crucial role in the development of Americanmade energy.

In April, Commissioner Wright had the opportunity to meet with petroleum engineering students from the University of Texas where he discussed the Railroad Commission’s regulatory authority, the importance of the oil and gas industry to the Texas economy and why it is essential to have consistent, predictable regulatory policies to remain a global leader in energy production.

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Oil & 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.

V I E W C U R R E N T P RO D U CT I O N S TAT I S T I C S4

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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