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Railroad Com m ission of Texas M ission St at em en t The Railroad Com m ission serves Texas t hrough: -
our st ew ardship of n at ural resources an d t he en viron m en t ; our con cern f or p erson al an d com m un it y saf et y; an d our sup p ort of en han ced develop m en t an d econ om ic vit alit y f or t he b en ef it of Texan s.
Year i n Revi ew, 20 18
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Our story in 2018 is one of exceeding expectations, smashing goals and meeting our mission to protect public safety and the environment, while ensuring the energy industry remains a healthy, vital part of our state?s economy. In 2018, we set some of the most aggressive goals in the agency?s regulatory history. We?re proud to report we met or exceeded virtually every one of those goals. While the Legislative Budget Board gave the Commission a goal of plugging about 900 abandoned wells this year, we plugged nearly 1,500. While oil and gas activity ramps up across the state, we?re significantly reducing our permit processing times so operators don?t face costly delays in the field. And, we?ve got more oil and gas inspectors in the oil field than ever before. As successful a year as we had in 2018, we expect even greater things in the New Year. Texas has led the way in making the United States the world leader in crude oil production, and we?re once again setting aggressive goals for our 750 Commission employees across the state who work tirelessly to ensure safe, responsible energy production. Texans deserve, and we demand nothing less for the people of Texas.
Ryan Sit t on Com m i ssi on er
Christ i Craddick Ch ai rm an 3
Wayn e Christ ian Com m i ssi on er
#From t h eFi el d Ph ot o b y Ken B. t ak en i n Cal d wel l Co.
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CONTENTS 1. COM M I SSI ONER FEATURES
4. HEARI NGS Hearin gs CY 20 18
Chairm an Christ i Craddick
p. 7
Com m ission er Ryan Sit t on
p. 8
p .23
5. OUTREACH
Com m ission er Wayn e Christ ian p . 9
Even t s/ I n t ern at ion al Delegat es p .25 Video: Cattle Raisers 2018
p .25
Brow n f ields Resp on se Program p .26 Pip elin e Dam age Preven t ion
2. PERM I TTI NG Fiscal Year St at ist ics
p . 12- 13
Video: Completing Your Form P-5
p .12
p .27
6. DI D YOU KNOW
Video: 1st Coal M ine Permit Closure p.13
3. COM PLI ANCE DATA
GROW Program
p .10
Video: M apping Services
p .11
Miles Driven b y I n sp ect ors
p .15
Oil an d Gas Dat a
p .14
Gas Ut ilit ies
p .18
Product ion Dat a
p .16
Alt ern at ive Fuels I n f o
p .22
Pip elin e Saf et y
p .17
Video: 2018 Regulatory Conference p .24
Adm in ist rat ive En f orcem en t
p .19
I T Milest on es
p .28
Phot os "From t he Field"
p .29
3. RENEWI NG TEXAS St at e Man aged Well Pluggin g
p .20
Sit e Rem ediat ion an d Clean up
p .21
Video: Karnes Co. AM L Project
p .21
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COM M ISSIONERS'
CORNER 2018
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CHAIRM AN CHRISTI CRADDICK It has been an incredible year for the Railroad Commission and our great state. Texas led the U.S. to become the world?s top producer of crude oil, surpassing Saudi Arabia and Russia. It is a great privilege to serve as your Chairman at such an historic time for the agency and our state?s growing energy industry. There?s much work ahead. In 2019, we?ll hire more inspectors, plug more abandoned wells, put more data online and speed up permitting and inspection times. We?re proud to ensure continuing safe, responsible and economically beneficial production of our state?s resources for many years to come.
" We' re m ak i n g su re we' re m ore t ran sp aren t an d m ore ef f i ci en t ." -Chairman Craddick
For Texas, Christi Craddick Chairm an 7
COM M ISSIONER RYAN SITTON I ?ve had an in credib le year servin g as your Texas Railroad Com m ission er. The RRC is f irin g on all cylin ders, keep in g p ace w it h t he en ergy in dust ry t hrough our aggressive goals in w ell p luggin g, p erm it ap p rovals an d f ield in sp ect ion s.
" Th e f u t u re of t h e en ergy i n d u st ry real l y i s t i ed d i rect l y t o t h e f u t u re of t h e St at e of Texas." -Commissioner Sitton
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This year I w as p roud t o p ub lish t he f irst - ever m arket out look f or en ergy b y a Railroad Com m ission er. To ef f ect ively an d ef f icien t ly regulat e t he in dust ry, it ?s crit ical w e un derst an d t he m arket f orces drivin g t he in dust ry, so w e rem ain n im b le an d resp on sive. I t is an in credib le t im e f or Texas an d t he RRC, an d I am hon ored t o p lay a key role m akin g sure t he in dust ry rem ain s st ron g, creat in g job s an d op p ort un it y f or Texan s b y saf ely an d resp on sib ly p roducin g our en ergy resources.
COM M ISSIONER WAYNE CHRISTIAN The Railroad Com m ission has b een hard at w ork t hroughout m y secon d year in of f ice, f ight in g t o en sure Texas t akes f ull advan t age of t he largest en ergy b oom our n at ion has ever seen . I n 20 18, our agen cy p lugged n early 1,50 0 ab an don ed w ells an d hired m ore f ield in sp ect ors t o en sure saf e, resp on sib le en ergy p roduct ion . Lookin g ahead, I w ill con t in ue m akin g sure t he Com m ission en f orces it s rules t o p rot ect t he p ub lic, w hile m ain t ain in g a f air an d p redict ab le regulat ory st ruct ure f or t he in dust ry. As a st aun ch def en der of t he f ree- m arket , I ?ll also con t in ue m akin g sure RRC rules are b ased on soun d scien ce, so op erat ors have t he regulat ory cert ain t y n ecessary t o creat e job s an d reven ue across Texas.
" I t ' s an ext raord i n ary t i m e t o b e i n oi l an d gas i n t h e St at e of Texas." -Commissioner Christian
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GROW At t he Railroad Com m ission w e un derst an d Texan s exp ect an d deserve t he very b est cust om er service f rom t heir st at e agen cies. To m eet or exceed t hat exp ect at ion t oday, an d in t he f ut ure, in 20 18 t he RRC laun ched an em p loyee develop m en t p rogram t o en sure t oday?s agen cy leaders have t he skills t hey n eed, an d t o p rep are t he leaders of t om orrow f or t he challen ges an d op p ort un it ies t hey w ill f ace. We call it t he GRoun dw ork, Op p ort un it y an d Wisdom , or GROW Program . Through various p hases of t he p rogram , em p loyees w ill p art icip at e in academ ic learn in g, han ds- on t rain in g an d key m en t orin g relat ion ship s t o develop an d p rep are f or agen cy leadership . Com b in e t his p rogram w it h t he m an y addit ion al t rain in gs an d classes f or our em p loyees, w e con t in ue t o b uild t he Best Agen cy I n Texas!
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#DIDYOUKNOW? From maps hand-drawn on cloth in the 1930s, up to the online digital GIS map viewer we use today, the RRC Mapping Services team maps the data of every oil and gas well in Texas. Watch this video and learn more:
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PERM ITTING The en ergy in dust ry is grow in g f ast in Texas; creat in g job s, t ax reven ue an d econ om ic op p ort un it y in com m un it ies across t he st at e. To keep p ace w it h t his grow t h an d en sure op erat ors don ?t suf f er cost ly regulat ory delays, in 20 18 t he Railroad Com m ission short en ed t he t urn aroun d t im e f or review in g drillin g p erm it ap p licat ion s an d ap p rovin g t hose t hat m eet RRC requirem en t s.
FORM P-5 Organization Report The P- 5 f in an cial assuran ce un it is w here it all b egin s f or oil an d gas op erat ors t hat do b usin ess un der t he regulat ion of t he RRC. To b et t er serve cust om ers, t he P- 5 un it creat ed t his in st ruct ion al video on how t o successf ully com p let e t he Form P- 5 Organ izat ion Rep ort : * Statistics on this page are for fiscal year 2018
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PERM ITTING SURFACE MINING AND RECLAMATION I n 1975, t he Texas Legislat ure gave t he Railroad Com m ission jurisdict ion t o regulat e surf ace m in in g f or coal an d uran ium . Com p an ies m in in g coal/ lign it e in Texas m ust ob t ain a Com m ission p erm it an d p ost a reclam at ion b on d f or each locat ion w here it p rop oses t o m in e in t he st at e. The RRC requires t hat m in ed lan d b e ret urn ed t o a con dit ion as good as or b et t er t han it w as p rior t o m in in g. Division f ield p erson n el m ake at least on e m on t hly visit t o each p erm it t ed area, checkin g f or com p lian ce w it h t he coal m in in g regulat ion s. For m ore in f orm at ion , visit t he SM RD hom e p age
1st Coal Permit Closes The f irst coal m in in g p erm it issued b y t he RRC w as t he The San dow Coal Min e n ear Rockdale,TX. Ap p roxim at ely 151 m illion t on s of lign it e w ere p roduced f rom t he San dow Min e sin ce t he Com m ission ap p roved of t he m in e?s p erm it m ore t han 40 years ago. This p erm it w as f orm ally closed out in August of 20 18. 13
* Statistics on this page are for fiscal year 2018
COM PLIANCE OIL AND GAS All regulat ed in dust ries un der Railroad Com m ission jurisdict ion m ust com p ly w it h t he agen cy?s rules an d ap p licab le law s, at all t im es. The Com m ission con duct s hun dreds of t housan ds of in sp ect ion s of oil an d gas f acilit ies, p ip elin e in f rast ruct ure an d surf ace coal m in es each year t o en f orce com p lian ce. I n 20 18, RRC m ade sign if ican t p rogress t ow ards t he goal of in sp ect in g each of t he 436,940 oil an d gas w ells in Texas a m in im um of on ce every f ive years. For m ore in f orm at ion , visit t he Com p l i an ce an d En f orcem en t hom e p age.
INSPECTION TOTALS by REGION
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* Statistics on this page are for fiscal year 2018
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#DIDYOUKNOW? I n FY 18, RRC I n sp ect ors d rove
Th at ' s eq u al t o d ri vi n g f rom El Paso t o Texark an a
6,593 t im es! 15
COM PLIANCE OIL AND GAS PRODUCTION STATS Top 10 Oi l Cou n t i es Coun t y
Top Oil Pr odu ct ion M on t h
March: 107.3 million Bbl
1. MI DLAND 2. KARNES 3. REEVES 4. MARTI N 5. LOVI NG 6. UPTON 7. LA SALLE 8. HOWARD 9. DE WI TT 10 . REAGAN
Oil (BBL) 127,362,626 98,220 ,165 78,856,980 71,951,0 65 66,757,515 57,817,772 55,627,191 46,588,157 44,618,799 44,325,429
Top 10 Gas Cou n t i es Coun t y
Top Gas Pr odu ct ion M on t h
May: 716.4 million Bcf
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1. WEBB 2. REEVES 3. TARRANT 4. KARNES 5. MI DLAND 6. PANOLA 7. LOVI NG 8. DI MMI T 9. DE WI TT 10 . LA SALLE
Gas (MCF) 825,740 ,151 493,919,622 439,272,542 322,819,60 8 285,0 0 5,899 276,533,480 274,30 7,252 270 ,513,666 252,182,0 19 230 ,489,652
* Statistics on this page are for fiscal year 2018
COM PLIANCE PIPELINE SAFETY The Pip elin e Saf et y dep art m en t w orks t o en f orce com p lian ce of f ederal an d st at e law s an d regulat ion s b y p ip elin e op erat ors. These regulat ory resp on sib ilit ies ext en d t o 1,387 op erat ors of in t rast at e gat herin g, t ran sm ission , dist rib ut ion , an d m ast er- m et ered syst em s. The Com m ission con t in ues t o lead t he n at ion in adop t in g an d en f orcin g saf et y rules t o en han ce t he in t egrit y of p ip elin es t hroughout t he st at e.
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* Statistics on this page are through 11/20/2018
#DIDYOUKNOW? GAS UTILITIES RRC?s Gas Services dep art m en t w orks t o m ake sure a con t in uous, saf e sup p ly of n at ural gas is availab le t o Texas con sum ers at t he low est , reason ab le p rice. The dep art m en t en ab les t he Com m ission t o help Texas cap it alize on t he st at e' s ab un dan t reserves as m arket s exp an d. I n 20 18, st af f in t he Gas Services dep art m en t b egan t o assess t he im p act of t he Tax Cut s an d Job s Act of 20 17 on Texas gas ut ilit y rat es. The goal is t o en sure com p an ies p ass on t o cust om ers t he savin gs result in g f rom t he corp orat e t ax reduct ion . The Act reduced t he corp orat e t ax rat e f rom 35 p ercen t t o 21 p ercen t as of Jan uary 1, 20 18. As a regulat ory agen cy, t he Com m ission ?s role is t o m ake sure Texas ut ilit ies im p lem en t t he t ax cut s in a w ay t hat b en ef it s con sum ers f irst . The dep art m en t also f ocuses on regulat ory p olicy an d an alysis, f in din g an d elim in at in g n at ural gas t ran sp ort at ion p rob lem s, an d oversight of in t rast at e gat herin g an d st orage services.
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COM PLIANCE ADMINISTRATIVE ENFORCEMENT The Railroad Commission of Texas assessed $9,249,026 in fines on 3,475 enforcement dockets involving the state?s oil and gas industry and intrastate pipeline safety for calendar year 2018. These include: - $76,60 3 in f in es assessed in p rot est ed docket s t hat w en t t o hearin g an d relat ed t o p ip elin e dam age an d oil an d gas violat ion s; -
$3,226,261 in p en alt ies f or Mast er Def ault Orders;
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$1,893,557 in f in es f or Mast er Agreed Orders; an d;
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$4,0 52,60 5 f or Pip elin e Dam age Preven t ion p en alt ies.
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RENEWING TEXAS STATE MANAGED WELL PLUGGING The Railroad Com m ission is deep ly com m it t ed t o p rot ect in g t he en viron m en t an d n at ural resources of our st at e. On e of t he m ost im p ort an t w ays t he RRC achieves t his is t hrough rest orat ion of lan d used in en ergy p roduct ion t o saf e, p roduct ive con dit ion . Alt hough m ost oil an d gas w ells t hat are n o lon ger p roduct ive are p lugged b y t he resp on sib le op erat ors, t he Railroad Com m ission adm in ist ers a p rogram t o p lug ab an don ed oil an d gas w ells. Fun din g f or t his w ell p luggin g com es f rom m on ey collect ed f rom in dust ry an d p laced in t he Oil an d Gas Regulat ion an d Clean up Fun d. No t axp ayer f un ds are used t o p lug ab an don ed w ells. I n 20 18, t he RRC set aggressive goals regardin g t hese dut ies an d f ar surp assed key legislat ive p erf orm an ce m easures.
AVG. COST per WELL
$16,245
20 * Statistics on this page are for fiscal year 2018
RENEWING TEXAS SITE REMEDIATION AND CLEANUP The Oil an d Gas Division adm in ist ers a p rogram t o clean up ab an don ed oilf ield sit es an d t o oversee t he op erat or clean up of oilf ield sit es. The p rim ary p rogram s are Op erat or Clean up , Volun t ary Clean up , St at e Man aged Clean up , an d Gran t Clean up p rogram .
Sou r ce of f u n ds Oil & Gas Regulation and Cleanup (OGRC) Fund: -
$3,116,660.00
Brownfields Response Federal Grant Program: -
$20,430.00
ABANDONED MINE LANDS I t is t he resp on sib ilit y of t he Ab an don ed Min e Lan ds (AML) p rogram t o reclaim an d rest ore lan d an d w at er resources an d t o p rot ect t he p ub lic f rom t he adverse ef f ect s m in in g con cluded b ef ore f ederal regulat ion s w ere im p lem en t ed in 1977. This p rogram is f ully f un ded b y t he f ederal Of f ice of Surf ace Min in g Reclam at ion an d En f orcem en t t hrough a p roduct ion t ax levied on act ive coal m in in g op erat ion s in Texas. For m ore in f orm at ion visit t he AM L hom ep age.
RESTORING TEXAS BEAUTY Wat ch t his video as t he AML t eam t ran sf orm s an ab an don ed uran ium m in e in Karn es Co. b ack in t o a saf e an d b eaut if ul lan dscap e.
Additional information on the Hackney Abandoned Uranium Mine Project in Karnes County, TX -
Uranium mine occupied approximately 9 acres of land 53,000 Cubic Yards of mine spoil was placed back into the pit Earthwork reclamation, water control, and clean cover placement. Total cost $629,505. Re-vegetation with native species and fencing for site protection. Total cost $34,845. 21 * Statistics on this page are for fiscal year 2018
#DIDYOUKNOW? ALTERNATIVE FUELS The Railroad Commission operates programs related to alternative fuels including liquefied petroleum gas (LPG, propane), compressed natural gas (CNG) and liquefied natural gas (LNG). The Alternative Fuels Safety (AFS) department conducts safety evaluations of stationary facilities and mobile equipment, licenses companies engaged in alternative fuel activities, and provides training to individuals working in the alternative fuels industries. This includes people licensed with the Commission to install residential propane systems for stoves, hot water heaters and home heating systems. The cylinders used to fuel gas grills many Texans enjoy for backyard barbeques are regulated by the Commission, and RRC plays a limited role with respect to alternative fuel school buses, mass transit vehicles, public transportation and special transit vehicles. More information is available on the Commission?s website at h t t p:/ / w w w.r r c.t exas.gov/ alt er n at ive-f u els/
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HEARINGS Texan s have a voice an d access t o due p rocess relat ed t o en ergy in dust ry act ivit ies t hrough t he Railroad Com m ission ?s Hearin gs Division . Cit izen s m ay p rot est various t yp es of ap p licat ion s f iled b y op erat ors, an d op erat ors m ay con t est f in es assessed or ot her en f orcem en t act ion s t aken again st t hem . On ce a m at t er is p rot est ed or con t est ed, p art ies m ay p art icip at e in t he hearin g p rocess. For m ore in f orm at ion visit t he Heari n gs h om ep age.
* Statistics on this page are for fiscal year 2018
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#DIDYOUKNOW? I n 20 18 t he RRC held it s f irst - ever Regulat ory Con f eren ce, com b in in g Oil & Gas an d Pip elin e Saf et y in t o on e com p rehen sive con f eren ce. More t han 70 0 in dust ry p rof ession als f rom all across t he st at e at t en ded t he sold- out con f eren ce. Wat ch t he video f or m ore:
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OUTREACH The Railroad Com m ission serves Texan s in m an y w ays t o en sure t he saf e, resp on sib le p roduct ion of t he st at e?s am p le en ergy resources, w hile en surin g t he en ergy in dust ry rem ain s a st ron g con t rib ut or t o t he st at e?s econ om ic vit alit y. I n 20 18, Com m ission st af f visit ed w it h Texan s in every corn er of t he st at e, an d en ergy p rof ession als f rom aroun d t he w orld t o in f orm an d educat e t hem on RRC' s successf ul regulat ion of t he en ergy in dust ry. For m ore on Out reach even t s con t act com m u n i cat i on s@rrc.t exas.gov
CATTLE RAISERS Ranchers and the oil & gas industry work in close proximity all over Texas. Railroad Commission staff were on hand at the 2018 Cattle Raisers Convention to educate ranchers about the many resources and extensive data available to them through the RRC. View the video for more:
In t er n at ion al Delegat es f r om -
I raq Can ada Mexico Basque Coun t ry Chin a Pakist an Czech Rep ub lic Argen t in a I n don esia
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Rom an ia Serb ia Moldova Macedon ia Hun gary Greece Bulgaria Alb an ia * Statistics on this page are for fiscal year 2018
OUTREACH BROWNFIELDS RESPONSE PROGRAM RRC?s Brow n f ields Resp on se Program (BRP) help s com m un it ies w it h hist oric oil an d gas op erat ion s in crease econ om ic op p ort un it ies an d en sure t he en viron m en t is clean an d saf e. Addit ion ally, BRP gran t f un ds can save local govern m en t s an d n on - p rof it s t housan ds of dollars on en viron m en t al sit e assessm en t s. "The Brow n f ields Resp on se Program p rovides econ om ic develop m en t op p ort un it ies t o com m un it ies b y p rovidin g t hem w it h en viron m en t al sit e assessm en t s at n o cost ," said Ashley Correll, Brow n f ields Resp on se Program Man ager. "Rein vest in g in Brow n f ield p rop ert ies p rot ect s t he en viron m en t , creat es job s, in creases p rop ert y values an d t ax reven ue, an d reduces b light an d urb an sp raw l." I n FY 20 18, RRC st af f at t en ded 19 out reach even t s across t he st at e t o raise aw aren ess of t his valuab le gran t p rogram . Det ails of t he Brow n f ields Resp on se Program can b e f oun d on lin e at h t t p :/ / b i t .l y/ RRC- BF- Program . You m ay also con t act t he RRC' s Brow n f ields Resp on se Program at 512- 463- 6765 or b y em ail: SR- VCP- BRP@rrc.t exas.gov.
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OUTREACH PIPELINE DAMAGE PREVENTION Texas is hom e t o m ore t han 466,0 0 0 m iles of p ip elin e. An yon e p lan n in g t o dig or excavat e 16- in ches or deep er is required b y Texas law t o call 811 b ef ore b egin n in g t heir p roject so un dergroun d ut ilit ies can b e m arked. "I n Texas, t he t op cause of p ip elin e acciden t s occurs w hen som eon e is diggin g or excavat in g. Our goal is t o educat e t he excavat ors an d t he gen eral p ub lic ab out t he rules w e have in p lace so t hey can w ork saf ely an d avoid cost ly p en alt ies," said Jam ie Ren ard, Pip elin e Dam age Preven t ion Program Man ager. ?The Com m ission recom m en ds callin g 811 p rior t o an y p roject t hat in volves diggin g or excavat ion , regardless of dep t h t o en sure t he saf et y of all Texan s.? I n 20 18, RRC Pip elin e Saf et y Division st af f p art icip at ed in t hroughout Texas t o in crease aw aren ess of t he im p ort an ce in f orm at ion on t he Com m ission ' s Pip elin e Dam age Preven t ion variet y of dow n loadab le, in dust ry- sp ecif ic b rochures, can h t t p :/ / b i t .l y/ RRCPi p el i n eSaf et y.
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30 out reach even t s of callin g 811. More Program , in cludin g a b e f oun d on lin e at
#DIDYOUKNOW ITS MILESTONES I n 20 18, RRC p rovided op erat ors w it h t he ab ilit y t o f ile t he Not ice of I n t en t t o Plug a Well (Form W- 3A) on lin e, an d st ream lin ed t he p ip elin e p erm it t in g on lin e p rocess t o allow op erat ors t o m ore easily sub m it ap p licat ion s an d p ay f ees. RRC?s p ub lic GI S view er is b ein g en han ced t o allow t he p ub lic t o dow n load a set of in f orm at ion ab out all w ells w it hin a circular area of review . RRC com p let ed an in sp ect ion an d en f orcem en t b usin ess p rocess review t o p rep are f or im p lem en t in g a n ew case m an agem en t syst em in t he com in g year. En han ced record- keep in g w as im p lem en t ed f or in sp ect ion violat ion s, b ot h m ajor an d n on - m ajor, t o sup p ort t he Com m ission ?s ab ilit y t o en f orce st at ew ide rules. RRC in sp ect ors received up graded lap t op s an d cell p hon es, p rovidin g t hem w it h n ew t echn ology w hile savin g t he St at e m on ey. Wat ch t he video b elow an d see how I TS b rought t he W- 3A f orm on lin e f or Texan s:
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Caldw ell Co.
Nu eces Co. Caldw ell Co.
#From t heField 29 www.web si t e.com
www.RRC.Texas.gov
Š 2018 Railroad Commission of Texas Certain logos depicted herein 30 are protected trademarks of the Railroad Commission