RRC Energy News April 2023

From the Field Photo

Plugging an orphan well in District 03

Photo from Peter Fisher

P. 3 94th Annual West Texas County Judges and Commissioners Conference P. 4 RRC Showcases Speedy Work Utilizing Federal Funds for Multiple Environmental Protection Projects P. 6 RRC’s Pipeline Damage Prevention Page Gets Streamlined to Better Serve Residents and Excavators P. 8 RRC Highlights its Extensive Environmental Work at Earth X Conference and Expo P. 10 Commissioners’ Corner

94th Annual West Texas County Judges and Commissioners Conference

An important outreach initiative the RRC takes part in are visits with local elected officials. In April, RRC staff attended the 94th Annual West Texas County Judges and Commissioners Conference which was held in Lubbock. The conference helps the elected officials with information on regulations, legislative updates and other relevant topics that affect their daily operations.

Railroad Commission staff provided support and outreach to county officials who may deal with questions about oil and gas updates in their respective region. The information and contacts the RRC provides help them not only in their daily work, but whenever emergency situations arise as well. It’s part of the collaboration the RRC strives to maintain with local leaders around the state to help protect residents and the environment.

Larry Snelson and Derek Lawrence from the Lubbock regional Pipeline Safety office, along with Scott Sroufe from the Communications Division attended the conference on behalf of the RRC.

Larry Snelson at the West Texas County Judges and Commissioners Conference

RRC Showcases Speedy Work Utilizing Federal Funds for Multiple Environmental Protection Projects

The U.S Secretary of the Interior Deb Haaland and members of the Houston Congressional delegation got a first-hand look at the agency’s substantial work and expertise in plugging orphaned oil and gas wells during a visit with RRC staff in Houston.

The Commission intervenes to plug wells when an operator has gone out of business, and collects on the operator’s financial assurance, then seeks reimbursement through legal proceedings. Most operators fulfill their obligations and responsibly plug their wells to prevent leaks and protect the environment after a well has stopped production. 88% of wells plugged were plugged by operators in 2022.

Texas was the first state in the country to begin plugging orphaned oil and gas wells using an initial grant from the federal Infrastructure Investment and Jobs Act last October. The federal grant has been used to plug over 500 wells thus far.

The federal funds supplement the RRC’s annual well plugging through the State Managed Plugging Program.

The commission has submitted comments on draft guidance for formula grants that was issued by the Department of the Interior. Since the next set of federal well plugging funds will come from these grants, the RRC is concerned

the draft requirements place administrative burdens that surpass the legislation that authorizes funding. There’s also concern about a proposed phased approach to releasing formula funds, as opposed to releasing the total amount at one time.

“Among all oil and gas producing states, we’re a leader in addressing orphan wells, and the Legislature has passed several measures to create incentives to reduce orphan wells in Texas,” said Wei Wang, RRC Executive Director. “We’ve built great momentum using federal funds to plug wells, and we urged Secretary Haaland to help us keep the momentum. Less than two percent of oil and gas wells in the state are orphaned, and getting the formula funds quickly will help us proceed without unnecessary interruptions.”

In the meeting staff also highlighted yet another first-in-the-nation project using other federal grants from the Department of the Interior. RRC’s Abandoned Mine Land Program received funds from the Investment and Jobs Act and completed a reclamation project in Bastrop, making it the first project in the nation completed with those funds.

The agency’s comments on the draft formula grant guidance for orphaned well plugging can be found on the RRC website.

Clay Woodul, RRC Assistant Director of the Oil and Gas Division for Field Operations, shows Interior Secretary and members of Congress an orphaned well to be plugged in Houston.

RRC leadership team briefing with Interior Secretary and Congressional delegation.

RRC’s Pipeline Damage Prevention Page Gets Streamlined to Better Serve Residents and Excavators

Safe Digging Month in April was a great opportunity for the RRC to remind residents and businesses about the importance of calling 811 to avoid hazardous or costly repairs to underground utilities or pipelines when digging.

Line locators have 2 days to arrive and mark any underground utility lines with flags or paint, after 811 has been called. Excavation work can safely begin once the area has been marked.

In April, the Commission streamlined the agency’s Pipeline Damage Prevention web page to make it easier to find resources needed to start any new projects that require digging, and to report any damages to gas pipelines. This page can be helpful for homeowners, electricians, landscapers, plumbers, and for anyone who is digging in Texas.

The chart below shows that telecommunicationsrelated work accounted for the largest portion of damages to struck gas lines that were reported to the RRC last year.

“When we looked at the number of gas pipeline damages reported from 2020 to 2022, the percentage of incidents from telecom work doubled from 12 to 24 percent,” said Karley Bisbano, RRC Manager for Pipeline Damage Prevention. “It may be because of increased telecommunications demand and network expansion around the state. Whatever the project is, we can’t overemphasize the importance of calling 811 to confirm it’s safe before costly repairs or injuries occur.”

Anyone planning to dig more than 16 inches in depth must call 811 at least 2 days before beginning a project so that underground utilities can be properly marked, per state law.

As a safety precaution, we recommend calling the number even when digging less than 16 inches.

Violating damage prevention rules results in penalties starting at $1,000 per offense. It is best to call to have the area assessed before you begin unearthing expensive utility work, even if you are not sure whether your project qualifies as a violation.

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

RRC Highlights its Extensive Environmental Work at EarthX Conference and Expo

The Railroad Commission of Texas participated in the EarthX Conference and Expo in Dallas during Earth Day weekend to spread awareness of the commission’s extensive work safeguarding Texans and regulating the state’s oil and gas industry.

Hundreds of attendees showed up at the RRC booth to discuss the agency’s’ history and extensive work reducing the environmental impacts of the oil and gas industry which the RRC has overseen for more than a century in Texas. Many were also surprised to hear about the many uses of hydrocarbons in different everyday products.

The Commission has carried out a mission of protecting the environment and the state’s energy production for more than 130 years. The RRC took this opportunity to inform the public concerning relevant improvements and figures surrounding energy in Texas.

Recent statistics show that despite growth in the energy industry, it has not had adverse effects on air quality. There’s been almost a 10% decrease in energy-related carbon dioxide emissions, while total energy production in the U.S. increased by 42% from 1999-2019, according to the Association of Air Pollution Control Agencies. There has been a 78% reduction in six major pollutants regulated by the EPA since 1970.

RRC Commissioner Wayne Christian attended the conference and spoke on a panel called Conservation: A Conservative Perspective.

“Contrary to popular belief, fossil fuel usage and a clean environment are not mutually exclusive,” said Commissioner Christian. “In the last 100 years, fossil fuels have helped to save human lives from the elements, provided more food to the starving, lifted people out of poverty, and helped enable our modern, technological way of life in the 21st century. With about 3 billion people on this planet needing access to reliable energy, global energy strategies should be about empowering access to fossil fuels not limiting them.”

The RRC has been recognized nationwide for several of its programs such as; groundwater protection, orphaned well plugging, abandoned mine land restoration, surface mining reclamation, and seismicity monitoring. The agency has evolved over the years utilizing state-of-the art technology, inspections, and staff expertise to protect groundwater and the safety of residents in a growing state.

Commissioner Christian speaks on panel

School group at RRC Expo booth

Chairman Craddick

COMMISSIONERS’ CORNER

In April, Chairman Craddick spent time speaking with industry groups about the Railroad Commission, the state Legislature, and federal policies. At the Texas Independent Producers and Royalty Owners Annual Convention, she highlighted some of the important legislation moving through the process at theCapitol that impacts not only the agency, but the industry as a whole. These include the agency’s budget, and bills related to water policy, severance taxes, and geothermal regulation.

Later, Chairman Craddick was honored to speak at TCU’s Global Energy Symposium in Fort Worth. She shed light on international energy markets, domestic policies that are harming American oil and gas production, and the state’s regulatory climate. Visiting with industry leaders keeps the agency informed and Chairman Craddick was honored to take part in these great events.

Commissioner Christian

COMMISSIONERS’ CORNER

Commissioner Wayne Christian presided over his 100th Open Meeting of the Railroad Commission of Texas since assuming office in January 2017. In that time, he has ruled on 27,905 agenda items while the RRC has been commended for its consistent and predictable regulations, quick permitting times, and environmental conservation efforts. You can read more here.

On Earth Day, Commissioner Christian and the RRC Team spent a few days at Earth X, an energy & environment conference highlighting the importance of responsibly using our Godgiven natural resources. The Commissioner spoke on a panel titled “Conservation: A Conservative Perspective” with former state representative Jason Isaac, from the Texas Public Policy Foundation, and his bright son, Aidan, discussing the vital role that fossil fuels play in our society. You can learn more here.

The Commissioner also released another episode of Wayne’s World: Energizing Texas! It features Gideon Powell (CEO Cholla Petroleum) and a variety of topics including ESG, Bitcoin, and more. You can listen here.

Commissioner Wright

COMMISSIONERS’ CORNER

In April, Commissioner Wright addressed the Energy Workforce and Technology Council Annual Conference in Austin. In his remarks, Commissioner Wright noted that the future success of the U.S. oil and gas industry hinges on the industry’s ability to recruit and retain a highly skilled workforce.

“The success of our domestic energy industry is directly tied to our ability to recruit, train, and maintain a stable workforce,” said Commissioner Wright. “The importance of having a highly trained talent pool has implications far beyond the energy industry – ultimately it impacts the state’s bottom line.”

Oil & Gas Production Statistics Enforcement Actions

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

VIEW CURRENT PRODUCTION STATISTICS 4

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.

VIEW LATEST ENFORCEMENT ACTIONS 4

Public GIS Viewer

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