July 2021 Energy News

Energy News JULY 2021

From the Field Photo Oilfield Hazards/ Archer County Photo by Nick Nichols

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RRC Receives Support from Legislature with Budget for Upcoming Fiscal Year

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RRC Improves Transparency, Access to Records via New PIPES Online System

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EPA Report Recognizes RRC’s Underground Injection Control Program

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Saving Life and Property RRC Reclaims Abandoned Mine in East Texas Neighborhood

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Green, Not Brown RRC’s Brownfields Response Program Works to Restore Open Spaces for Texans

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RRC Opposes Proposed Listing of Lesser Prairie Chicken Which Could Harm Oil and Gas

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Commissioners’ Corner

Upcoming Events RRC Regulatory Webinars

August, 2021 -Online

RRC Open Meeting

August 3, & 24, 2021

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RRC Receives Support from Legislature with Budget for Upcoming Fiscal Year Thanks in part to its energy resources, which the RRC oversees, Texas enjoys abundant economic benefits.

The oil and gas industry accounts for roughly 30% of the state’s economy, including $16.3 billion in royalties and taxes paid in 2019, according to the Texas Independent Producers and Royalty Owners Association.

The Texas Legislature, recognizing the importance of these resources to the state, showed continued support for the RRC by approving most of the Commission’s funding requests during its recent session, which ended on May 31.

The RRC’s budget for the upcoming fiscal year, which begins on Sept. 1, was approved at $144.4 million, which enables the agency to continue to fulfill its most critical mission of protecting public safety and the environment.

The agency regulates the broad spectrum of the state’s vital energy industry, including oil and gas; surface mining of coal and uranium; the alternative fuels of LNG, CNG, and LPG; intrastate pipelines and natural gas utilities. The Legislature’s funding allows the RRC to continue its important work in permitting, compliance and enforcement. The RRC will also be working on weatherization regulations to secure critical gas infrastructure.

RRC’s track record of meeting legislative targets speaks for itself with the agency, despite the pandemic, having already exceeded or on track to exceed legislative goals for the current fiscal year, which ends August 31. Examples of goals already exceeded include: • Number of oil and gas well and facility inspections performed: exceeded the 189,367 goal four months ahead of schedule in April.

• Number of accident and special pipeline investigations: exceeded the 1,200 target in April.

In recent years, the RRC has been working to modernize its computing systems and move away from its reliance on its aging mainframe system. In its last session, the Legislature provided $21.5 million in House Bill 2 for RRC’s Mainframe Transformation Phase 2. That project will move several permitting processes off the current mainframe system into a more robust cloudbased platform, which further improve efficiencies at the agency and make more data readily available to the public.

Challenges still lie ahead. Despite recent oil price hikes, there has been a slow recovery in drilling permit activity, which has not yet reached pre-pandemic levels. But the agency is keeping a watch on various points of data to track rebounds in the industry.

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RRC Improves Transparency, Access to Records via New PIPES Online System RRC’s technological updates took another major step this month with the launch of the new Pipeline Inspection Permitting Evaluation System (RRC PIPES).

RRC PIPES is a centralized cloud-based portal, which streamlines agency processes and provides a valuable tool for RRC’s Pipeline Safety staff and operators to upload documents, including inspection and incident reports, and complaints, while automatically making more documents available to the public.

Not only does the new system improve transparency, allowing the public to see inspection and violation information 24/7, but it reduces staff time spent working on data entry and processing open records requests, helping Pipeline Safety staff focus more of their efforts on the oversight of about 1,600 operators and 248,000 miles of intrastate pipelines which include: natural gas and LP-gas distribution lines; hazardous liquid and natural gas transmission lines; and hazardous liquid, and natural gas regulated gathering lines.

Inspection packages uploaded by pipeline inspectors are made publicly available once the internal review process has been completed and a letter has been sent to the operator.

The system also makes it easier for operators. It reduces the amount of paperwork they must mail to the RRC and allows for the payment of fees online.

Operators may, after becoming authenticated users, now submit and upload applications and other documents for review and approval by the RRC. “PIPES is the latest example of our work to modernize the Railroad Commission and take advantage of the most advanced digital tools available,” said Wei Wang, RRC Executive Director.

“Our goal is to find efficiencies where we can so staff can focus on their core duties. PIPES makes data more readily available for us to analyze and for the public to view. Online systems like PIPES help us better serve the public and help with the experience of operators in complying with our rules and requirements.”

Other recent advancements at the RRC include the launching of an award-wining database in 2019 called RRC OIL (Online Inspection Lookup), which is updated daily and allows the public to see inspection and violation information 24/7, and the CASES portal (Case Administration Service Electronic System) in 2020, which enabled the agency to process all hearings and enforcement case types electronically, reducing the reliance on paper and automatically making documents for the cases available to the public.

VISIT THE PIPES INFORMATION PAGE A user guide is available on the page.

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EPA Report Recognizes RRC’s Underground Injection Control Program RRC’s Underground Injection Control program earned recognition from EPA Region 6 via a recent report for protecting underground sources of drinking water and controlling seismic activity.

RRC’s UIC program, which handles the most Class II injection well applications in the nation, carries out state and EPA-approved rules on permitting, construction, and testing of underground injection wells.

Injection wells are used to dispose of waste fluid from oil and gas operations, especially saltwater; for brine mining; for enhanced oil recovery, which prolongs the life of oil and gas fields; and for hydrocarbon storage. Injection wells are located in underground formations geologically isolated from aquifers that are sources of drinking water.

In his letter accompanying the report, EPA Region 6 Water Division Director Charles Maguire wrote: The Railroad Commission continues to confront significant challenges in the program and has taken some innovative measures to address them in a year complicated by the Covid pandemic. We wish to thank you and your staff for your work in protecting underground sources of drinking water from underground injection activities under your authority. We appreciate the continued attention to issues related to permitting disposal wells in seismically active areas of the Permian Basin and the continued attention on problematic areas in East Texas resulting in a consistent system for evaluating seismic hazards near disposal wells and application of appropriate permitting conditions.

“We take a lot of pride in our UIC program, which is informed by the best available science to protect groundwater and control seismicity,” said Paul Dubois, RRC Assistant Director for Technical Permitting. “While we do like to be recognized for our efforts, we appreciate all critical feedback the EPA provides in its annual review of our program, which helps us to improve and better serve Texans.”

READ THE EPA REPORT

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Saving Life and Property RRC Reclaims Abandoned Mine in East Texas Neighborhood

When looking to buy a house in the city you want to live, you will understandably worry about how strong the structure is and if it will serve the needs of your family.

It’s where you expect to feel safe.

It’s unlikely that you will give much thought to hidden dangers under the potential home or property.

For residents of two homes less than half a mile south of the historic courthouse in Center in East Texas, what lurked underground turned out to be a hand-dug mine dating back to the 19th century.

Need Help with an Abandoned Mine?

The Railroad Commission is looking to help landowners who have abandoned coal mining features on their property.

Properties eligible for funds can get the mining features reclaimed and restored through RRC’s Abandoned Mine Land Program.

Thanks to the Railroad Commission’s Abandoned Mine Land Program, there is help for properties such as these in Texas that have been impacted by abandoned coal and uranium mines before federal mining laws took effect in 1975 and 1977.

In fact, the RRC responded to this neighborhood in Center in 2016 on an emergency basis to address subsidence next to one of the homes. The agency returned this year to finish addressing issues with the former lignite mine, which is about 40 feet deep in some places, focusing on the property next door to the one from 2016.

If you have features such as sinkholes, depressions, mine equipment or highwalls and suspect they may have been caused by past mining, please you can contact the AML program at AML@rrc.texas.gov.

If mines such as these are not properly addressed, the voids could lead to sinkholes that could swallow property and harm unsuspecting people.

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For the nearly $380,000 project in Center that began in April, there was noticeable subsidence at the property’s fence line. After RRC’s contractor carefully cleared vegetation and removed the fence, a sinkhole did, in fact, develop; however, experts do not believe the home on the property was at risk.

“It opened up this pit. I never saw anything like it before,” said George Perez, an RRC engineering specialist who worked on the project. “However many years those people had lived there, there were people playing or moving about in that area.”

The fence and roots served as the final support structure for that portion of the yard, and when they were removed, the sinkhole, which went down about 20 feet, appeared.

“It was fortunately in the right place that it posed the least amount of danger,” added Lee Hileman, an RRC engineering specialist who also worked on the project. “This is definitely something, in another situation, that could have been far more of a danger.”

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Saving Life and Property

continued

Before work started to fill in remaining portions of the mine with cement, the area had to be extensively studied with geotechnical surveying tools that could see into the ground and drilling boreholes to determine the exact locations of the voids.

Contractors also drilled horizontally under the house to ensure there were no voids there, either.

Fortunately, there were none, but each borehole was filled with cement as a precaution.

“I joked that she’s got the strongest foundation in Texas,” Hileman said.

Also during the boring, the contractor hit a hard lignite pillar, which was probably left to support the mine, and at the bottom of a void, found waterlogged lignite. The drilling auger even brought up a metal bracket from a depth of about 30 to 40 feet.

“I think it was probably used to support a wooden beam of some sort,” Perez said.

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Hileman believes the original miners were clued into this area because of a noticeable lignite seam next to the streambed, which is down a hill behind the properties.

When the weather permitted, it took about a month to complete boring and grouting of underground voids with 300 cubic yards of cement.

Lignite deposits are common in East Texas and typically appear in the Eocene layer. Many former mines, such as the one in Center, were lost to history and not recorded anywhere or remembered by locals.

While the Center mine was not extensive, RRC’s projects related to it only focused on the two properties. The agency would need to be granted rights of entry to other properties in the neighborhood if it were to do any additional assessments or work.

“Everything that was known was addressed,” Hileman said. “If such a time as other neighbors want to join in, we would go in and see if there is anything else.

After the critical period of stabilizing the underground voids, the fence was replaced and the property landscaped.

“Having people happy with our program is important to us,” Hileman said. “In my mind, it is important to leave the site attractive. Most of the work we do is under the ground. The homeowner is not going to be able to see that. If we take as good care with what they can see, hopefully they can be assured of what they cannot see.”

In addition to Hileman and Perez, Katherine Upham, a natural resources specialist with the AML program, did plant and animal surveys to ensure no threatened species or migratory birds were harmed.

Also, Patrick Shelton with RRC’s General Counsel and Matthew Bowman with the Procurement Division were instrumental in helping with bidding and contracts.

Both Hileman, who was trained as a geologist, and Perez, who went to school to be a civil engineer, both worked in the oil and gas industry before starting with the AML program last year.

“Leaving it looking nice is the icing on the cake,” Perez said. “For me, the big takeaway from it all is that the landowners feel safe and have peace of mind. I want to leave that place knowing that they are safe, knowing that there is no longer that danger. That is what is important”

The reclamation project in Center was the first one they have had the chance to take part in.

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Green, Not Brown RRC’s Brownfields Response Program Works to Restore Open Spaces for Texans

Without oil and gas, Texas would not be anywhere close to being as prosperous as it is today.

In fact, many of the projects are restoring the natural beauty of the land, creating places that people want to flock to and not away from.

And for those willing to navigate the huge technical hurdles of extracting these resources from the state’s abundant reserves, there’s plenty of benefits, but there’s also an obligation to do so responsibly.

“We seek projects that serve a greater good,” said Leslie Etzel, RRC’s Brownfields Response Program Manager. “It is personally satisfying to see these projects completed and people enjoying them.”

The Railroad Commission works diligently to uphold the state’s rules that protect public safety and the environment. Most operators do fulfill that obligation, yet there are some who do not, which could create potential hazards in their wake.

Among the resources that RRC has to address such hazards is its Brownfields Response Program, which began in 2002, and is supported

by EPA funding. Thanks to the program, the RRC is helping to restore properties with historic or abandoned oil and gas activities into something useful again.

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In order to create jobs and improve communities, numerous entities – including governmental bodies, nonprofits, universities, school districts, economic development corporations, and private landowners with community-supported projects – can apply for assistance.

The RRC provides free environmental assessments and cleanup for properties approved for the program.

In addition, the RRC supports these properties by writing letters of support for applicants seeking redevelopment funding from entities, such as HUD, EPA, USDA, and Texas Parks and Wildlife.

The following are Brownfields projects that healed lands green once again: 10

Site

County

Acres

BRP & State Funds Spent

Year Closed

Artist Boat

Galveston

207

$47,730

2019

Texas Forest Service

Montgomery

1,643

$188,522

2009

Turtle Bayou

Chambers

522

$763,655

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Andrews Bird Park

Andrews

4.5

$126,164

2006

Frank Gray Park/Bass Lake

Eastland

11.4

$34,721

2020

Artist Boat A 207-acre former historic oilfield site on West Galveston Island that is part of 1,400 contiguous acres of coastal land that Artist Boat, a nonprofit group, and the Costal Heritage Preserve are working to preserve and restore.

In 2013, the tract of land, owned by Artist Boat, entered RRC’s Brownfields Response Program based on historic oil and gas exploration activities identified at the site during a Phase I environmental site assessment. The RRC conducted additional environmental investigations, such as a Phase II ESA and an ecological risk assessment to determine the presence of contamination associated with historical oil and gas activities.

Results of the investigations concluded that there was no contamination that would have an adverse effect on human health or the surrounding environment; therefore, Artist Boat was issued a certificate of completion. The property is used for kayaking, hiking, camping, and educational purposes.

See more from the Artist Boat site in this video.

Texas Forest Service W.G. Jones State Forest, a 1,643-acre urban forest in Montgomery County, is home to the endangered redcockaded woodpecker.

The site was entered into the RRC’s Brownfields Response Program in 2006 because of the presence of several unplugged oil/gas wells. Several environmental investigations performed at the site noted hydrocarbon staining of soils in the immediate vicinity of the abandoned wells, as well as former pits associated with the wells.

Oil and gas regulatory funds, which are financed by industry fees, were used to plug and abandon the wells and to perform cleanup activities in three locations with hydrocarbon contamination in soils.

Plugging and abandonment activities, as well as cleanup activities, were completed in 2008.

In addition to being a state forest, the property also contains an ecology center, a wildlife refuge, a redcockaded woodpecker habitat preserve, an urban forest conference center, an urban forest learning center and a forest museum and history exhibition center sponsored by the private sector to promote growth, protection, preservation and management of the forest ecosystem.

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Green, Not Brown continued Turtle Bayou The 511-acre abandoned oilfield site located between Houston and Beaumont in Chambers County is now the location one of the state’s newest nature preserves: the Turtle Bayou Nature Preserve, which opened in October 2016.

The preserve borders Lake Anahuac and Turtle Creek Bayou.

It is part of the Turtle Bayou Oil Field discovered in 1952, which had legacy abandoned oil wells and former oilfield waste pits. The abandoned oil wells were plugged by RRC’s State Managed Plugging Program, which is financed by industry fees.

The project entered RRC’s Brownfields program in 2010 to help ensure the future preserve was cleaned up to standards necessary for a wetland habitat.

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The RRC conducted a Phase I ESA in 2010 and a Phase II ESA in 2011, which identified nine abandoned oil/gas wells and several saltwater disposal pits. Results of soil and groundwater sampling from the pits indicated elevated concentrations of metals and chlorides in shallow groundwater.

Given the proximity to Lake Anahuac and Turtle Creek Bayou, the RRC was concerned that these contaminates posed a risk to surface water quality. Because of that, the RRC conducted several groundwater, surface water, and sediment sampling events, as well as a biological study and an ecological risk assessment.

Surface water sampling at the site is still ongoing.

Andrews Bird Park A 4.5-acre property that was the location of an abandoned saltwater disposal facility with five wooden tank batteries and an associated pit.

The property made the perfect location for a bird viewing trail since part of the site includes a sedimentation lagoon, which is fed with treated water outflow from a water treatment plant and contains high organic content, supporting both wildlife and vegetation.

The site entered RRC’s Brownfield Response Program in 2004. Cleanup activities included tank removal and excavation of soils contaminated with hydrocarbons both on and adjacent to the property, as well as a NORM survey and groundwater sampling. Brownfields and State Managed Cleanup Program funds were used to assess and remediate the site.

The site closed as an RRC project in 2006 and was redeveloped into the bird viewing magnet it is today with grant funds from Texas Parks and Wildlife.

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Green, Not Brown continued

Frank Gray Park/Bass Lake The 11.4-acre Frank Gray Memorial Park in Gorman entered RRC’s Brownfields program in 2018 to assess its lake for contamination connected to a crude oil release in 1990, which occurred 1,700 feet north of the property.

The environmental investigation at the site required sampling of surface water in Bass Lake, lake sediments, soils around the bank, and groundwater beneath the site. Based on sampling results, an additional human health and ecological risk assessment was needed to ensure that consumption of fish from the lake, as well as recreational activities such as swimming were safe for park visitors.

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Results of the additional assessment found that conditions were acceptable for recreational use of the park. The site was closed as an RRC project in February 2020 following a property survey and the city of Gorman issuing a certificate of completion.

RRC Opposes Proposed Listing of Lesser Prairie Chicken Which Could Harm Oil & Gas With the federal government once again trying to list the lesser prairie chicken with its authority in the Endangered Species Act, the Railroad Commission is drafting comments in opposition to the proposed listing.

RRC’s commissioners in their June 22 meeting voiced their united opposition to the proposed listing, which would adversely affect oil and gas operations in the Permian Basin and possibly other parts of West Texas. Commissioners gave staff and the executive director authority to submit comments on their behalf on the proposed listing. Public comments are due Aug. 2.

While the RRC supports the conservation of the lesser prairie chicken, there are already extensive efforts by landowners to ensure its survival, a fact recognized by the country’s judicial branch.

In September 2015, a previous proposed listing of the lesser prairie chicken was ordered to be vacated by the Western District Court of Texas because U.S. Fish and Wildlife did not apply sufficient weight to voluntary conservation management plans that were in place and which all of the stakeholders were committed to following.

Since the court action in 2015, the lesser prairie chicken populations have increased. Efforts to maintain, implement and enhance conservation plans continue in the private sector, which is actively engaged in seeking out ways to enhance habitat and be protective in the field.

The current proposal divides the lesser prairie chicken into two distinct population groups: a northern segment and a southern segment. The northern segment includes the east side of Panhandle, and parts of Oklahoma, Kansas and Colorado, with the listing for this population group proposed to be Threatened. The southern segment includes the Permian Basin, along the western Panhandle border with New Mexico. The federal government is seeking to list this group as Endangered.

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

Chairman Craddick took time this month to receive updates from the Southern States Energy Board. This group serves as a collaborative interstate compact with 18 states and territories to provide a platform for energy-producing areas to share ideas and work together to boost economic growth through energy independence and technological advancement.

Additionally, as the Commission continues to move forward with implementation of legislation from the regular legislative session, Chairman Craddick is proud of the work that agency staff is doing to ensure that the Railroad Commission of Texas continues to be a leader in this state. From timeline planning, stakeholder involvement and interagency collaboration, the Railroad Commission of Texas is hard at work and will continue to see the implementation of these important bills through to the finish line and beyond.

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

In a recent op-ed, Commissioner Christian wrote: While no form of energy performed perfectly during Winter Storm Uri, the insistence that natural gas producers are the primary culprit for the February blackouts is pure hyperbole.

But more than just hyperbolic, it is hypocritical to blame a lack of natural gas for an electricity shortage during a weather emergency and then gleefully support Democrats who are trying to get rid of natural gas. You can’t do your best to stop the development of natural gas infrastructure and then be upset when there isn’t enough natural gas to power our society.

R E A D T H E CO M M I S S I O N E R’S O PfiE D

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

Texas is blessed with incredible natural resources, and as an elected official, I am charged with ensuring state government properly manages those resources to best serve our fellow citizens. The Permian Basin alone is home to nearly 300 trillion cubic feet of natural gas – enough to meet the household demand of the entire United States for 60 years. In other words, supply is not a problem. The key is ensuring that abundant supply is readily available for use at power generation facilities across the state. To achieve that goal, we must get serious about energy infrastructure investments. Moving natural gas from where it’s sourced to where it’s needed should be our top priority.

This past month I have been talking with lawmakers in Texas and Washington about the importance of incentivizing natural gas pipelines and processing facilities by simply allowing natural gas to qualify for the tax subsidies renewable energy is provided. By doing this we can help to reduce flaring while benefiting Texans and the environment.

So, how do we implement these solutions in a manner that benefits all Texans?

The state and federal government should consider leveling the playing field between renewables and abundant, affordable, and reliable Texas natural gas.

Equalizing these incentives could assist with necessary infrastructure investments that guarantee ample supplies of this important Texas resource are available whenever they are needed.

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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.

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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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