RRC Energy News - October 2023

Energy News OCTOBER 2023

From the Field Photo Roberts County

Photo from Randy Milligan

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Deadline Approaches for Comments on Major Overhaul of Waste Management Rules

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RRC Relays Important Concerns on Two Federal Proposals That Could Severely Affect the Oil & Gas Industry

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Railroad Commission Completes Yet Another Impressive State Fiscal Year Exceeding Critical Performance Goals

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RRC Receives Prestigious IOGCC Award for the Second Time

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Commissioners’ Corner

Upcoming Events RRC Open Meeting

Wednesday, November 15, 2023

V I E W O P E N M E E T I N G W E B CA S T S4

ENERGY NEWS

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Deadline Approaches for Comments on Major Overhaul of Waste Management Rules The RRC is proposing significant changes to statewide rules governing water protection and waste management with revisions that include streamlining Statewide Rule 8 into the Commission’s existing Chapter 4 regulations concerning environmental protection.

Proposed changes include updating requirements on the design, construction, operation, monitoring, and closure of waste management units, and improving the Commission’s ability to track and collect data with respect to oilfield waste transported throughout Texas.

The changes can provide clear direction to operators and RRC staff that will help protect environmental resources and communities across Texas.

The agency has published draft rules for informal comment, and the comment deadline is this Friday, November 3. The draft rules and a link to submit informal comments can be found here:

READ THE DRAFT RULES

Staff will review and consider informal comments prior to formally proposing the rule for public consideration in the Texas Register.

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ENERGY NEWS

RRC Relays Important Concerns on Two Federal Proposals That Could Severely Affect the Oil & Gas Industry Comments sent to two federal agencies on species listings Dunes Sagebrush Lizard

its analysis on incomplete data and outdated assumptions. For example, the Service did not use demographic data to evaluate the extinction risk for the lizard, and instead used information from the shinnery oak duneland habitat, making its conclusions speculative. The Service has confessed that it was unable to obtain relevant data from several counties that are within the DSL’s habitat range citing the evasive nature of the species and limited access to private property.

The RRC submitted comments on the U.S. Fish and Wildlife Service’s (Service) Proposal to List the Dunes Sagebrush Lizard (DSL) as an endangered species.

Because the DSL has been identified in the Permian Basin, the listing could restrict the production of oil and natural gas in Texas, causing a major burden for the industry.

That burden can affect the state’s economic vitality. Texas leads the nation as the largest producer of oil and natural gas, while coming in 9th for the largest economy in the world. According to the U.S. Department of Energy, the oil and gas industry was responsible for 12.3 million American jobs at the beginning of 2020 and the U.S. trade deficit was $305 billion less that same year because of the production of domestic oil and natural gas.

In addition, the proposal is based, in part, on conclusions about the negative relationship between well pad density and DSL population. However, these conclusions were based on outdated studies and assumptions that did not consider modern drilling technologies.

The Service’s reliance on antiquated studies carried over into its assumptions about future impacts to the DSL from oil and gas operation, making them similarly unreliable.

The RRC opposes listing the DSL as endangered because the Service based

ENERGY NEWS

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The Service also disregarded the Texas Conservation Plan that has been initiated to conserve the DSL – a plan that key stakeholders in the region have undertaken to protect DSL habitat while balancing the vitality of the energy industry for the state.

natural gas with no scientific proof for an enormous area that covers almost half the country.

The current proposal raises significant red flags because the Service does not have sufficient scientific data and observations that have been fully reviewed by peers.

A study by American Petroleum Institute found that increased exports of LNG could support between 220,000 and 452,000 more jobs for the U.S. labor market and add up to $73 billion to the U.S. economy by 2040. The Gulf Coast is essential to Texas being the leading state for energy exports, including liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, coal product exports and petroleum.

READ THE DSL COMMENT LETTER

Rice’s Whale The Commission also submitted comments in response to the National Marine Fisheries Service (Service) proposal to assign a vast region of nearly 28,270 square miles in the Gulf of Mexico as a critical habitat for the Rice’s whale without ample evidence.

The RRC recognizes that biodiversity and conservation of the environment are both important; but a proposal to designate such a vast area as a critical habitat with grave ramifications needs reasonable consideration and more scientific evidence.

The misguided proposal can lead to considerable barriers when transporting oil and gas products, which would have a detrimental effect on the Texas economy.

It is important to clarify that what the Service is proposing can seriously limit energy production in the Gulf of Mexico, which will affect the supply of crude oil, petroleum products, and liquified

READ THE RICE’S WHALE COMMENT LETTER

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ENERGY NEWS

Railroad Commission Completes Yet Another Impressive State Fiscal Year Exceeding Critical Performance Goals The RRC has once again exceeded regulatory goals in its critical mission to protect communities and the environment as Fiscal Year 2023 has come to an end. Texas has also continued to be the top energy producing state in the country while maintaining a record of excellence.

The Legislature set a target of 1,000 orphaned wells to be plugged in fiscal year 2023, and the RRC plugged a total 1,750 wells, that includes 730 orphaned wells using federal grants and 1,020 wells with oil and gas funds. RRC’s Oil and Gas Division worked tirelessly to surpass their goals in its award winning Well Plugging Program for the seventh year in a row.

For several consecutive years, the Commission has maintained a high-level of meeting or exceeding expectations from the Texas Legislature’s annual performance measures in its essential work regulating the oil and gas industry, intrastate pipelines, surface mining, and alternative fuels.

ENERGY NEWS

The Commission’s Pipeline Safety Division also exceeded their annual goal in specialized pipeline inspections, which consists of pipeline integrity management reviews, new construction inspections, operator program evaluations, and other inspections to establish safe transportation through the state’s extensive pipeline system.

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Category

Legislative Target

Achieved

Number of orphaned wells plugged

1,000

1,750

Number of oil and gas well and facility inspections performed

345,000

424,952

Number pipeline specialized program evaluations performed

1,650

2,275

Average number of days to process a drilling permit

3

3

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“I’m proud of the RRC staff and hard work they have put in for another successful year to ensure public safety while meeting the critical energy needs of our great state and the nation,” said Wei Wang, RRC Executive Director.

“Texans expect results from our agency. They deserve it, and our staff delivers it daily. Exceeding the performance goals set by the Legislature is a great example of how we have been providing that service consistently. That is our bottom line.”

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ENERGY NEWS

RRC Receives Prestigious IOGCC Award for the Second Time The RRC’s nationally recognized well plugging program received the Chair’s Environmental Partnership Award from the Interstate Oil and Gas Compact Commission (IOGCC) this month. The accolade was for completing an intricate project earlier this year that ensured the safety of boaters at the Big Thicket National Preserve.

The National Park Service (NPS) reached out to the Commission to cut surface casings on four prior plugged wells by operators 40 years ago in the Neches River. The lengthy, underwater surface casings had become exposed over the years and posed a risk to boaters.

Contractors and divers removed river debris and cut the steel casings at the riverbed to ensure they were safely removed.

ENERGY NEWS

According to an IOGCC report in 2021, Texas had one of the lowest increases in the orphan well population among oil producing states since 2018, while also being the number one oil and gas producer in the nation. The RRC’s plugging program constantly works to protect communities and the environment across Texas and has been proven by the agency exceeding well plugging goals set by the Legislature for the last seven consecutive years.

“The Commission’s well plugging program has been recognized nationwide and this award is yet another example of the reputation we have gained in our commitment to protecting Texans and the environment,” said Wei Wang, Executive Director. “We were pleased to lend our expertise and successfully remove the hazards at Big Thicket which keeps the area safe for people to visit and enjoy for years to come.”

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Diver working on surface casing in Big Thicket Preserve

RRC Executive Director Wei Wang received the IOGCC Environmental Partner Award on behalf of the Commission on Tuesday, October 17, 2023.

The NPS and Laredo Construction, the contractor that worked on the project, also received the award along with the RRC. The IOGCC has recognized the RRC for its exceptional work at a national park twice now. The Commission received the Environmental Partnership Award

in 2021 for well plugging work at Padre Island National Seashore – a frequent destination for visitors on the Texas coast.

WATCH A VIDEO OF THE BIG THICKET PROJECT

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ENERGY NEWS

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

In October, Chairman Craddick had the privilege of speaking to the Houston Business Forum. This group of business leaders represents a variety of industries and sectors, such as healthcare, transportation, and energy.

Chairman Craddick shared a Railroad Commission update and provided insights into the oil and gas regulatory climate in Texas. Speaking with groups like the Houston Business Forum is always an honor, and Chairman Craddick was pleased to join them this month.”

ENERGY NEWS

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

This month Commissioner Christian traveled to Washington, DC to speak at the 2023 Energy Summit, hosted by the Maryland and Virgina Hispanic Chambers of Commerce. Also in attendance was Virginia Governor Glenn Younkin. Governor Younkin and Commissioner Christian both spoke about the importance of increasing domestic oil and gas production to create reliable and affordable energy for Americans.

While in DC, the Commissioner visited with several members of the Texas Congressional delegation, including Senator John Cornyn and Senator Ted Cruz. Commissioner Christian presented them with vital information about how important the oil and gas industry is to Texas, the hard work that the Railroad Commission is doing to ensure the industry remains responsible and robust, and reminding them to keep up the hard fight against the Biden Administration that wants to shut down fossil fuel production.

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ENERGY NEWS

The Commissioner also spoke to the Domestic Energy Producers Alliance annual conference in San Antonio. Christian thanked the members for their hard work producing energy for Americans and encouraged them to stand against the radical environmentalists who want to end their business. Chairman Harold Hamm was there to present Commissioner Christian with a copy of his book, which tells the story of how his company pioneered hydraulic fracturing and horizontal drilling that revolutionized US oil & gas drilling.

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Lastly, Christian released another episode of the podcast feature CO2 Coalition Executive Director, Greg Wrightstone.

LISTEN TO THE COMMISSIONER’S PODCAST

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ENERGY NEWS

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

In October, Commissioner Wright traveled to Ft. Worth to attend the annual meeting of the Texas Alliance of Energy Producers where he discussed efforts to update the Commission’s groundwater and environmental rules under Statewide Rule 8 to better align with the significant advancements in drilling activity and industry practices since the last major overhaul of the rule in 1984.

Commissioner Wright also attended the Interstate Oil and Gas Compact Commission (IOGCC) Annual Conference in Park City, Utah, where he accepted the Environmental Partnership Award on behalf of the Railroad Commission’s State Managed Plugging Program for their work in the Big Thicket National Preserve earlier this year.

ENERGY NEWS

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ENERGY NEWS

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.

V I E W LAT E S T E N F O RC E M E N T ACT I O N S4

Public GIS Viewer

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

LA U N C H T H E P U B L I C G I S V I E W E R4