RRC Energy News May 2023

EnergyNews

From the Field Photo

SMP plugging in Harris County

Photo from Andy Truong

P. 3 RRC Prepares for Hurricane Season with Joint Exercise

P. 4 RRC Becomes First State to Use Bipartisan Infrastructure Law Grants to Complete Abandoned Mine Project

P. 6 Coalition of Oil & Gas States Adopts Texas Resolution Urging Congress to Direct DOI to Follow the Law

P. 8 Well Plugging Contractor Wins Prestigious Small Business Administration Award P. 10 Commissioners’ Corner

RRC Prepares for Hurricane Season with Joint Exercise

The RRC works year-round to ensure the state’s natural gas supply flows to help Texas residents with heating and electricity generation. We successfully did so through two storms this past winter helping ensure ample natural gas supply, and the agency is now preparing for the upcoming hurricane season.

The RRC joined the Texas Division of Emergency Management and several other state agencies to plan for hurricane season in a full-scale simulation several weeks ago. There were 40 separate exercise sites participating to strengthen capabilities, plans, and procedures to foster cross agency response to severe storms.

All of RRC’s Safety and Emergency Management Team were part of the multi-day exercise.

“ This helped us test our internal capability, our internal processes and procedures,” said Christopher Cabrera, RRC Operations Project Manager. “ We want to make sure what’s important to us as an agency is also important to the rest of the state emergency response. Which means that by ensuring the natural gas supply chain, the readiness of that, we add value.”

RRC Becomes First State to Use Bipartisan Infrastructure Law Grants to Complete Abandoned Mine Project

The Railroad Commission’s Abandoned Mine Land (AML) program helps property owners around the state to reclaim and restore valuable land and water resources after mining.

The program began in 1977 and more than 100 projects have been completed. AML’s work in various projects consists of earthwork, burial or treatment of unsuitable spoil, and installation of erosion, water control structures, and revegetation. Abandoned, underground mine openings are usually closed by either backfilling, capping, or metal gating.

The RRC’s expertise working with abandoned mines helped Texas become the first state in the country to use federal grants from the Bipartisan Infrastructure Law to complete an abandoned mine reclamation.

AML staff worked quickly on a property in Bastrop to prevent an encroaching danger to a home. Every time a bad storm hit the

area, an abandoned mine pit kept eroding and eventually would have led to the home caving in. The reclamation work included creating a channel to drain storm water off the property and planting native species to benefit wildlife.

The Commission worked with a company that employs current and former coal miners on the reclamation. The agency also took all steps necessary before the project began to ensure no environmental damage would occur.

“ With the goal of leaving the subsidence feature and toad habitat, we worked with the U.S. Army Corp of Engineers on our wetland’s determination and exclusion zone which ultimately deemed our project to have no impact,” said Joe Parks, RRC Surface Mining and Reclamation Assistant Director. “AML also worked with the Texas Parks and Wildlife Department and the U.S. Fish and Wildlife Service to review our programs best management practices.”

Watch a video of the AML project and an interview with the property owner here

Mine Pit Before Reclamation

Work at the Abandoned Mine

Mine Pit After Reclamation

Coalition of Oil & Gas States Adopts Texas Resolution Urging Congress to Direct DOI to Follow the Law

Since last October, Texas has been utilizing another set of grants from the Bipartisan Infrastructure Law for important environmental projects. Federal funds are being used to plug orphaned oil and gas wells, and the RRC has plugged more than 600 wells so far using the Initial Grant of $25 million the state received to plug wells. The federal funds supplement the RRC’s extensive State Managed Plugging program for orphaned wells.

The next phase of federal funding would be from formula grants distributed to states.

The Interstate Oil and Gas Compact Commission (IOGCC) recently approved Resolution 23.053, which was offered by Texas Railroad Commissioner Jim Wright, urging the U.S. Department of the Interior to follow the statutory language passed by Congress with respect to formula grants for orphan well plugging.

The IOGCC is comprised of more than 30 oil and gas producing states. The IOGCC resolution further endorses action by Congress to ensure states are provided the necessary flexibility and deference to utilize grant funds in accordance with existing state programs for the purpose of plugging and restoring as many orphan wells and well sites as possible.

“ Taxpayer dollars – regardless of their origin –should always be used efficiently and effectively to achieve the desired result. Unfortunately, the Department of the Interior’s draft formula grant guidance fails to adhere to the intent of Congress and would result in fewer wells being plugged than otherwise could be” said RRC Commissioner Wright. “ This resolution, unanimously approved by member states across the political spectrum, reinforces the shared desire for taxpayer funds to be utilized to plug as many orphan wells as possible and asks that the Congressional delegations of IOGCC member states take action to achieve our shared goal of plugging orphan wells.”

Earlier this year, the RRC submitted comments on the draft formula grant guidance issued by the Department of the Interior.

The RRC maintains the draft guidance place unnecessary administrative burdens that go beyond the scope of the legislation that authorized the well plugging funds. There’s also concern about a proposed phased approach to releasing formula funds, versus releasing the total amount at once.

Well Plugging Contractor Wins Prestigious Small Business Administration Award

A big congratulations to one of our well plugging contractors!

Freddy’s Well Service recently won the SBA San Antonio District Office Family-Owned Business of the Year award.

The award honors a family-owned and operated business that has demonstrated success and contributed to their local community.

Freddy’s Well Service has been involved in oil and gas well plugging, testing, welding, and maintenance of wells for more than 30 years. The company is a well plugging contractor with the RRC, and has completed plugging 30 orphaned wells so far this fiscal year.

“ We’re still in awe, it was something that came from the very beginning as a total surprise,” said Diana Flores, the company’s Executive Director. “It was so important to receive recognition like this, but the state has helped us so much. We have worked so well with them, and I love the interaction I have with them. I am just so proud of my husband Richard.”

Richard and Diana Flores Receive SBA Award

Chairman Craddick COMMISSIONERS’

CORNER

In May, Chairman Christi Craddick visited Midland, Texas. While she was there, she had the opportunity to speak to the Natural Gas Society of the Permian Basin. This group is made up of industry professionals that account for a wide array of sectors and specialties. Chairman Craddick spoke with the group about federal regulations, state legislation, and agency updates that impact this critical industry. Visiting the heart of the Permian Basin is always a highlight, and Chairman Craddick always looks forward to visiting with the people who make this industry and our economy run.

Commissioner Christian

COMMISSIONERS’ CORNER

In May, Commissioner Christian released a new episode of “Wayne’s World” discussing the importance of fossil fuels on power grids. You can listen here.

The Commissioner also put out several press releases including a criticism of EPA’s power plant emissions mandate, a critique on a environmental jobs report , and cheered support for the U.S. Supreme Court ruling reining-in EPA’s overreach on Waters of the US.

Commissioner Wright

COMMISSIONERS’ CORNER

In May, Commissioner Wright visited Houston where he spoke at the Energy Security Conference Annual meeting. In his remarks, Commissioner Wright discussed the importance of U.S. energy production in the global economy and the specific challenges faced by energy producers, pipeline operators, and refineries to prevent acts of theft or sabotage.

Commissioner Wright then travelled to Dallas where he met with EPA Region VI officials to introduce the Railroad Commission’s new Office of Public Engagement and discuss the state’s pending Class VI primacy application.

The following day, Commissioner Wright attended the Oilfield Water Markets Conference in Ft. Worth where he participated in a panel discussion on seismic activity in the Permian Basin. The Commissioner highlighted the RRC’s work to improve data collection with respect to injection wells and emphasized the importance of establishing pilot projects to find alternative uses for produced water.

Commissioner Wright participating in the Oilfield Water Markets Conference panel discussion

Commissioner Wright speaking at the Oilfield Water Markets Conference

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.