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2020

Year in Review RAILROAD COMMISSION OF TEXAS

ADAPTABLE, COLLABORATIVE, PROTECTIVE, EFFICIENT.

The Railroad Commission of Texas’

natural gas utilities and the number

COVID-19 pandemic, and we here at

duties and responsibilities are the

of abandoned well sites cleaned up

the Railroad Commission are no dif-

most diverse and widespread they’ve

with the use of state managed funds.

ferent. The RRC is 800 people strong,

been in the agency’s 130-year history.

The agency continued its efforts to

and their talents are being used on

Even so, the Commission, which

modernize IT systems, transforming

the right projects, at the right time

regulates the energy industry in

outdated processes into cutting-

regardless of where they work in the

the state, has remained unified and

edge platforms that allow business

Commission.

focused in our mission to protect the

operations to continue as usual

public, environment and economy of

despite the impact of the COVID-19

Texas. The COVID-19 pandemic made

pandemic.

the Railroad Commission continues

These accomplishments make us

and successfully meet our mission to

all safer and couldn’t have happened

protect the safety of communities and

without the close teamwork reflected

the environment throughout Texas. We

in our One Agency, One Team culture.

are proud we have kept our operations

Life as we knew it was put on pause

running as normal with essential staff

as people across the world have dealt

coming into offices around the state

with drastic changes in the face of the

and other employees teleworking.

2020 one of the most challenging years ever for the entire country, including the Commission. Yet even with the impact of the COVID-19 pandemic, the Railroad Commission went above and beyond targets set by the Texas Legislature in protecting public safety and the environment.

to meet and exceed legislative goals

Our inspectors, engineers,

Thanks to staff’s unity and

geologists, accountants, attorneys,

commitment, the agency exceeded

computer scientists, programmers

target numbers for inspections of oil

and other trained professionals are

and gas wells, pipeline infrastructure,

deeply committed to serving our

alternative fuels facilities and coal

fellow Texans.

surface mining sites. RRC surpassed goals in the number of field audits of

2020 RAILROAD COMMISSION YEAR IN REVIEW

As the 2020 Year in Review shows,

We are One Agency, One Team.

COMMISSIONER VIDEOS: Chairman Craddick ��4 Commissioner Sitton ��4 Commissioner Christian ��4

ADAPTABLE RRC’s Information Technology Services Division Rises to Challenge �� 7 RRC Recommends Temporary Halt of Gas Disconnections �� 8 RRC Alternative Fuels Safety Training Moves Online �� 9 Industry Training ��10 Pipeline Damage Prevention – Know What’s Below ��10 Pipeline Safety ��10 Alternative Fuels ��10 Hearings Division ��11 RRC Staff Training/Professional Development ��11 Oil and Gas Division ��12 RRC Communications ��13

COLLABORATIVE RRC Sends Good News to City of Gorman ��14 Brownfields Outreach ��16 RRC Conducts Extensive Inspections of Major New Pipeline Project �� 17 EPA Report Recognizes Railroad Commission’s Underground Injection Control Program ��17 Railroad Commission Restores Somerset Abandoned Mine Site ��18 Fluid Injection Well Files Dating Back to 1960s Now Fully Digitized ��20

PROTECTIVE Railroad Commission Balances Protections While Facilitating Development of Energy Resources ��22 RRC Orphan Well Program Beats Legislative Goal for Fourth Straight Year ��23 RRC Oil and Gas Inspections Exceed Expectations for Fiscal Year 2020 ��24 Railroad Commission Adopts New Pipeline Safety Rules ��25

EFFICIENT Oil and Gas Monitoring and Enforcement Plan Finalized ��26 RRC Increases Transparency in Hearings Process ��27 Railroad Commission Launches Drone Program to Enhance Emergency Response ��28 Office of General Counsel ��30 O&G Administrative Compliance ��30 O&G Technical Permitting ��30 RRC Increases Transparency with Interactive Data Online ��31 Railroad Commission Further Enhances Its Efficiency ��32

2020 RAILROAD COMMISSION YEAR IN REVIEW

COMMISSIONER VIDEOS: CHAIRMAN CRADDICK

“

We’ve done more inspections, kept up with well plugging and our staff has done an amazing job, so that has kept us on track.

“

COMMISSIONER SITTON single person that I've dealt with “hereEvery is so committed to doing the job right and doing it well. “

COMMISSIONER CHRISTIAN

“

The Department of Energy is working with us very closely to make it a national pilot program in energy training.

2020 RAILROAD COMMISSION YEAR IN REVIEW

“

2020 RAILROAD COMMISSION YEAR IN REVIEW

ADAPTABLE Our daily lives were put on hold in 2020 as the world dealt

to all staff and enabled Zoom, Microsoft Teams and Skype

with the COVID-19 pandemic. The Railroad Commission

for Business tools for Commission conferences, hearings,

was no different. However, we kept operations running by

and virtual meetings. The agency’s Operations Division

adapting to evolving conditions while remaining service

contracted with professional services for sanitizing and

oriented. Every aspect of how the Commission conducts

disinfecting Commission offices. Employees were able to

business was adapted quickly and efficiently to allow it

carry out their work safely—both at home and in RRC offic-

not only to meet but exceed goals and expectations.

es—without interruption.

Amidst the challenges of COVID-19, RRC was well prepared and rapidly ramped up technology and personal protective equipment for a smooth transition to telework. Information Technology Services deployed laptops or desktop remote access

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC’S INFORMATION TECHNOLOGY SERVICES DIVISION RISES TO CHALLENGE The agency continued its efforts to modernize IT systems during FY 2020, transforming paper processes and

• Increased the number of employees with laptops

outdated systems to cutting-edge platforms with online

from

public access. New online portals and online forms

462 employees to 732;

• Increased GOTOMY PC licenses from

enabled the regulated communities and the general public

120 to

219 for employees with home computers;

to continue their business with the Commission as usual

• Provided guides and training for online resources,

despite the impact of the COVID-19 pandemic.

including Skype for Business, Microsoft Teams and Zoom; and

During FY 2020, RRC upgraded internet speed for every district office. Availability for all

• In less than 2 months, researched, selected, and

Commission systems and networks have

prepared agency staff to use Zoom Enterprise

consistently been above 99 percent throughout

Videoconferencing for public meetings.

the year. RRC also achieved 100 percent compliance with the new cybersecurity statute (HB 3834, 86th Legislature) before the required

On April 14, 2020, the Commission held a virtual meet-

deadline. Our success in this area is a clear

ing to discuss proration. The meeting lasted more than

demonstration of the agency’s commitment

10 hours and included more than 50 speakers providing

and ability to continue its mission in trying

comment. The meeting was watched online by almost

times.

30,000 viewers, including people in 49 states and 86 countries.

In March when Gov. Greg Abbott issued his disaster declaration and executive

Virtual Commission Conference meetings followed

order in reaction to COVID-19, non-

according to schedule beginning April 21 and the Hear-

essential Railroad Commission staff

ings Division was transitioned to virtual hearings. This

began teleworking. RRC’s Information

could not have been accomplished without the swift

Technology Services Division was

and thorough work of RRC’s ITS Division.

challenged with ensuring all employees had capabilities to work remotely, and quickly implemented these solutions:

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC RECOMMENDS TEMPORARY HALT OF GAS DISCONNECTIONS Shortly after the beginning of the COVID-19 pandemic, the

Recently, three of the large gas utilities in the state have

Railroad Commission recommended that gas utilities tem-

reinstated the disconnection process with Texas Gas

porarily suspend disconnecting residents facing financial

Service and CenterPoint reaching out to customers

constraints during the COVID-19 state of disaster.

with large past due amounts in September and Atmos in November.

Gas utilities began voluntarily suspending disconnections, and in a Notice to Operators, the RRC authorized utilities to

The notice that had been sent earlier to gas utilities can

create accounting mechanisms to track COVID-19-related

be found online here.

expenses, such as uncollected debt, employee personal protective equipment, occupational health costs, and cleaning supplies. RRC committed to working with utilities to help provide relief to residents facing hardships across Texas. If those utilities come to the RRC for rate change hearings in the future, the agency will thoroughly review the accounting of expenses accrued due to COVID-19 and determine whether they can recover those costs when rates are set.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC ALTERNATIVE FUELS SAFETY TRAINING MOVES ONLINE Because of the impact of COVID-19, the Commission

The Commission launched an initiative to provide webinars

embarked on several online training sessions and explored

to ensure LPG dispenser operators would receive continu-

ways to provide more online training as part of the agencyâ€™s

ing education safety training.

future outreach to the oil and gas industry. Alternative Fuels

The online training provided an easy way for RRC to reach

Safety provides training and testing for propane (LPG) and

a large audience across the state at one time while saving

testing for compressed natural gas (CNG) and liquefied

individuals the time and money they would have spent trav-

natural gas (LNG).

eling to Austin for the training.

One example is the safety training required for individuals

The Alternative Fuels training center began virtual training

in the Liquified Petroleum Gas (LPG) industry. These indi-

on March 12. To date, almost 75 online webinars have

viduals perform services for a variety of activities including

been conducted with almost 900 students in attendance.

filling propane cylinders used for barbecue pits and deep

In October, AFS began offering certification examinations

fryers, as well as cylinders used for forklifts and industrial

online and the online classes were expanded to include

equipment. They also fill propane tanks used in vehicles as

initial courses of training.

an alternative to gasoline, and in recreational vehicles that use it to supply their appliances.

Beginning in June, the Railroad Commission resumed training classes and exams at the Alternative Fuels Training Center by appointment only. Some time-saving changes were implemented to LPG Form 16, and safety precautions were strictly followed, including limiting the number of individuals allowed in the training facility to 25 percent of normal capacity.

2020 RAILROAD COMMISSION YEAR IN REVIEW

INDUSTRY TRAINING

PIPELINE SAFETY

While the annual regulatory conference was postponed due

Between March 15 and Aug. 31, the Pipeline Safety

to COVID-19, the Commission hosted the first online Oil and

Department conducted 3,032 evaluations, the majority

Gas Regulatory Webinar series (July 2020) covering a vari-

of which were done virtually. This compares to 2,523

ety of topics in 18 sessions with 1,080 total attendees and

during the same time frame in 2019. The remote hiring of

3,720 total views through Aug. 31. Archived webinar videos

six Pipeline Safety Inspectors after the COVID pandemic

and handout materials can be found online here.

began in March, resulted in an all-time high of 70 inspectors. Senior Pipeline Safety Inspectors continued to receive virtual training allowing them to grow and ensure

PIPELINE DAMAGE PREVENTION – KNOW WHAT’S BELOW

consistency of inspections statewide.

Since teleworking began, Pipeline Damage Prevention

ALTERNATIVE FUELS

Program (PDPP) staff attended 20 educational outreach

The Alternative Fuels department continued to conduct

events, all held virtually. PDPP also hosted the Big 4

inspections and nine of the 14 Alternative Fuels Inspec-

distribution operator meeting for the first time, also done

tors significantly exceeded their individual inspection goal

virtually. This quarterly meeting of the four largest gas

of 1,400.

service companies in Texas, Atmos Energy, CenterPoint Energy, Texas Gas Service and CPS Energy, features roundtable discussions related to their damage prevention programs and initiatives. Additionally, PDPP staff reduced

Additionally:

the damage prevention incident review time from 55 days to 8 days.

• Pipeline mileage fees collected increased from $3.1 million in FY2019 to $4.1 million in FY2020;

RRC’s Pipeline Safety T-4 Permitting group reduced the inoffice average number of days to review a T-4 permit by 38 percent, from 11.1 days down to 6.9 days. This group also

• PDPP conducted 55 outreach events including 28 virtual events, compared to a high of 40 events in previous years;

processed 5,929 permit actions, an increase of 15 percent from the previous fiscal year, and improved the processing time from 8.3 days to 7.6 days. The group also updated the RRC website to include A Guide to Shapefile Submissions.

• Outreach efforts resulted in a 70 percent decrease in mileage fee non-compliance rates and an all-time low for damage per thousand locates of 2.5 per thousand; and • Participated in five educational webinars that drew an audience of over 1,000 from all parts of the state and resulted in collection of fees totaling $5.9 million, including T-4 renewal and mileage fee, an increase from the $4.48 million collected during the previous fiscal year.

2020 RAILROAD COMMISSION YEAR IN REVIEW

HEARINGS DIVISION

2,091 1,594 150

RRC’s Hearings Division processed 2,091 total new cases in FY 20, an increase over the previous three years. The total number of dockets closed was 1,594. Of those closed, 1,531 were Oil and Gas dockets which equates to just over 150 per examiner. Working with ITS, Hearings established a virtual Zoom hearing process for all hearing types, including complex protested dockets for Oil and Gas, Surface Mining and Gas Utility dockets.

Total New Cases Total Dockets Closed Dockets Per Examiner

RRC STAFF TRAINING/PROFESSIONAL DEVELOPMENT The Commission had one of the lowest turn-over and vacancy rates in recent history. During fiscal year 2020, the Commission filled 221 job vacancies, hired 139 new employees, and maintained the headcount of 850 at the end of the fiscal year. Additionally, the Biennial Employee Survey showed significant increase in employee morale, satisfaction and engagement.

From March through August 2020:

71.8%

• More than 600 of the Commission’s 850+ employees (71.8 percent) participated in remote or online training, maintaining the pre-Covid-19 training attendance rate of approximately 73 percent;

• Deployed the Texas CAPPS Enterprise Learning Management System (LMS) module over the summer to maintain and manage training schedules and records, while streamlining training coordination efforts; and

• By the end of calendar year 2020, seven RRC employees in the GROW program received Executive Leadership Certifications from the Texas Executive Education program at the University of Texas McCombs School of Business.

2020 RAILROAD COMMISSION YEAR IN REVIEW

OIL AND GAS DIVISION Prior to COVID-19, the Oil and Gas Division hosted a

RRC’s chief geologist represented the Commission on

variety of in-person educational training opportunities.

the Texas Radiation Advisory Board and the Coastal Ad-

In March, the focus shifted to virtual learning. The need

visory Board; reviewed and prepared comments on U.S.

for educational offerings was not diminished and only

EPA proposed regulations, and participating in numer-

the format changed. Over the course of the year, the Oil

ous national oil and gas endeavors including the EPA’s

and Gas Division:

National Policy for Oversight of Permitting effort and the National Petroleum Council’s Carbon Capture, Utilization,

• Conducted eight One Agency, One Team workshops;

and Storage study report.

• Hosted four regional conferences for industry in Corpus Christi, Houston, and Fort Worth with a virtual webinar taking place for the Midland conference; • Conducted six Boots on the Ground sessions providing staff training to 82 participating oil and gas inspectors.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC COMMUNICATIONS The Communications Division took charge of ensuring

Communications staff participated in 18 public

all RRC stakeholders â€“ including industry, legislators, the

conferences and stakeholder events and coordinated

general public, and RRC employees â€“ were kept apprised

another 28 public appearances by Commission staff, prior

of important information in a clear and timely manner.

to the pandemic shutdown. When operations went virtual,

A COVID-19 website page was created, collating all RRC

Communications staff provided support for Oil and Gas

actions to assist operators in response to the pandemic.

and Pipeline Safety educational webinars for industry

Internally, a COVID-19 resource page was targeted to

operators. Throughout the year, Communications staff

RRC staff providing them with resources for effective

published monthly newsletters sharing agency news,

teleworking and well-being.

initiatives, and events.

Communications also conducted extensive design, development, and data migration for an enhanced RRC website to be launched in FY 2021. Numerous instructional videos were created, and Communications staff responded to more than 2,000 stakeholder inquiries averaging approximately eight inquiries every workday.

2020 RAILROAD COMMISSION YEAR IN REVIEW

COLLABORATIVE One of the Railroad Commissionâ€™s core values is collaboration. By working across divisions and departments within the agency, the Commission improves efficiency and not only meets but exceeds expectations. Collaborative efforts extend beyond the walls of the agency as we work with other governmental agencies, industry, community groups and more to protect the public and our natural resources.

RRC SENDS GOOD NEWS TO CITY OF GORMAN The Railroad Commission worked with city leaders

risks associated with consumption of fish at the lake is

in Gorman to revitalize the once popular Bass Lake.

within protective concentration thresholds.

Located in Frank Gray Memorial Park in Eastland County,

The project in Gorman is another example of how RRC

the lake was the site of a crude oil spill in 1990. Cleanup

strives to help communities across Texas safeguard the

occurred immediately following the incident. In 2018,

environment, and today, the lake can be enjoyed by all

the city entered the Railroad Commissionâ€™s Brownfields

Texans for recreational purposes.

Response Program to assess the lake for any potential lingering hazards related to the oil spill.

The RRC receives grant funding from the EPA for the Brownfields program, which allows the Commission to

RRC staff worked with an environmental engineering firm

conduct free environmental assessments and cleanups,

to conduct a site assessment and analyze samples of

if necessary, at abandoned oil and gas sites. Local gov-

surface water and sediments from the lake, soils along

ernments and non-profits can apply for the program. More

the bank and groundwater from an onsite water well.

information on the BRP and other environmental cleanup

Test results for compounds related to the oil spill were

programs can be found in the Environmental Cleanup

all within protective concentration levels, and RRC issued

category of the Oil & Gas section on our website.

a Certificate of Completion to the city, noting that any

2020 RAILROAD COMMISSION YEAR IN REVIEW

BROWNFIELDS OUTREACH Oil and Gas Brownfield Program and Pipeline Damage Prevention Department participated in approximately 40 public outreach events. As a result, more candidate sites are identified for remediation using Brownfield grant funds.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC CONDUCTS EXTENSIVE INSPECTIONS OF MAJOR NEW PIPELINE PROJECT

COMMISSION’S UNDERGROUND INJECTION CONTROL PROGRAM

RRC inspectors conducted critical inspections of the

The Railroad Commission continues to make positive

Permian Highway Pipeline (PHP), one of the largest

strides with its Underground Injection Control program,

pipeline projects under construction in Texas in 2020.

ensuring the protection of underground sources of drinking

Stretching more than 400 miles from the Permian Basin to

water and the control of seismic activity, according to a

the Houston area, the pipeline will bring West Texas’ natural

recent report from the EPA.

gas to the world market. Given the sheer scale of the PHP and its route through the

The report titled,

sensitive Texas Hill Country, RRC engaged in a comprehen-

2019 EPA Region 6

sive response to ensure that the pipeline is constructed in

End-Of-Year Evaluation

a manner protective of public health and the environment.

Railroad Commission of

Oil and Gas and Pipeline Safety inspectors conducted over

Texas Underground In-

150 inspections, investigated 16 formal complaints and

jection Control Program,

witnessed activities related to construction of the pipeline

can be found on RRC’s

in calendar year 2020.

website

RRC staff in Government Relations, Office of General Coun-

RRC’s UIC program pro-

sel, and Communications worked closely with area resident

tects the state’s drinking

groups and the pipeline company, as well as city, county

water and controls seismic

and state officials to provide information throughout the

activity through enforce-

construction process. Other entities, including the Texas

ment of EPA-approved rules

Commission on Environmental Quality and Army Corps of

on permitting, construction, and testing of underground

Engineers, also played a role in oversight of the pipeline’s

injection wells. Injection wells are used to process waste

construction.

fluid from oil and gas operations, especially water with high levels of brine; for brine mining; for enhanced recovery,

New pipelines are important to efficiently and safely

which prolongs the life of oil and gas fields; and hydrocar-

transport large amounts of natural gas and oil. Pipelines

bon storage. Wells are located in underground formations

also help reduce flaring by alleviating potential backing

geologically separate from aquifers that are sources of

up of supply at the point of production. RRC inspectors

drinking water.

at construction sites ensure the operator is compliant with agency rules to prevent the pollution of surface and

The EPA’s report acknowledges the efforts of Railroad

groundwater resources.

Commission staff to responsibly manage injection wells to protect our natural resources and mitigate any seismic

EPA REPORT RECOGNIZES RAILROAD

activity because of them. RRC will continue to work with our federal counterparts to build on and improve our work to help protect Texans.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RAILROAD COMMISSION RESTORES SOMERSET ABANDONED MINE SITE Shallow coal mines are often associated with the English

AMLâ€™s latest project in the Somerset area was completed

countryside in the 18th to early 20th centuries. But Texas,

in August 2020 at a cost of almost $300,000. It involved

too, has its fair share of those types of mines, such as ones

a four-acre area where the historic Kirkwood and Kinney

around the Somerset community south of San Antonio. Ini-

lignite mines had been in operation.

tially dug in the latter half of the 19th century, these mines

Contractors collapsed tunnels, filled the holes, graded

have been causing problems more than a century after they closed.

the property, and then hydromulched the site with native

Thanks to the Railroad Commissionâ€™s federally funded

surface and others sinking. The perimeters of such sink-

Abandoned Mine Land Program (AML), hazards such as

holes are unstable, and the mined-out rooms are prone to

these are being methodically addressed.

collapse, especially during periods of high rainfall. It took

species. Some of the shallow tunnels were exposed to the

about two months to complete the project.

2020 RAILROAD COMMISSION YEAR IN REVIEW

The Somerset project involved a stormwater permit from the Texas Commission on Environmental Quality to ensure no runoff from the site. An environmental survey was done on the property, including a bird survey, to ensure no endangered species were threatened. A biologist was on site during the work in case any species needed to be relocated. RRC’s AML program deals with mines that were abandoned before laws that regulated such structures began appearing in the 1970s. The AML program receives federal funds

More information on RRC’s AML program can be found in

thanks to the Surface Mining Control and Reclamation Act,

the Surface Mining section of RRC’s website.

which was passed by Congress in 1977.

2020 RAILROAD COMMISSION YEAR IN REVIEW

FLUID INJECTION WELL FILES DATING BACK TO 1960S NOW FULLY DIGITIZED When a governmental body is as old as the Railroad

Paper takes up a lot of space, and because of its physical

Commission, a lot of paperwork can accumulate â€“

needs, it is not the most accessible of filing systems. But

especially with technical documents.

as technology became more powerful and affordable, it began to make a lot of sense to digitize such massive records, which the Railroad Commission has been doing.

2020 RAILROAD COMMISSION YEAR IN REVIEW

In August 2020, the Commission completed digitization of Underground Injection Control well files, which date as far back as the 1960s. The estimated 8,500 files, which include permitted fluid injection files, oil and gas records, and docket files, can now be accessed through the Injection/ Disposal Permit Query. Digitizing the UIC records helps the Railroad Commission to be more effective at protecting public safety and the environment. The information is plotted on a map showing the location of all injection wells, allowing RRC inspectors to have a more complete picture of potential sources of pollution that may need to be examined closely. There are other benefits as well. Applicants for new injection well permits are required to identify other wells within a certain radius, and the digital record makes the process easier to complete. It helps RRC permitting staff with their technical reviews of applications and ensures all needed information is accessible to them. It also allows RRC to be more responsive to open records requests by putting UIC information at a person’s fingertips with an internet connection, saving time for them and staff. It took about eight years to complete and was a collaboration between the agency’s RRC’s UIC section, Central Records, and Information Technology Services, and was funded in part by the EPA.

2020 RAILROAD COMMISSION YEAR IN REVIEW

PROTECTIVE Protection of public safety and the environment is the Railroad Commission’s highest priority. Field inspections, well plugging activities, enforcement actions and more resulted it the Commission not only meeting but exceeding goals set by the Texas Legislature. The Commission remains committed to ensuring Texas’ energy resources are used in a way that is beneficial and safe for all Texans.

RAILROAD COMMISSION BALANCES PROTECTIONS WHILE FACILITATING DEVELOPMENT OF ENERGY RESOURCES The Texas economy is dependent on its oil and gas

and an integrated online system connecting the work

industry, but so are we in our everyday lives.

of technical specialists and agency field staff.

It is the Railroad Commission’s job to ensure we safely

As the Railroad Commission takes these important

benefit from these valuable resources. In its role regulating

steps, there have been some recent positive trends.

the state’s energy production and ensuring its natural

While the amount of natural gas produced from oil

resources are extracted responsibly, the agency has

and gas wells dropped by 13 percent from June 2019

been taking advantage of operational and technological

to May 2020, the rate of produced gas that was flared

efficiencies to achieve its goals.

went down by an even greater 79 percent over the 12-month period. More importantly, the flaring rate

In 2020, RRC commissioners took actions to further

of casinghead gas, which is the gas produced from

address flaring with revisions to the Application

oil wells, decreased by 85 percent, and the ratio of

for Exception to Statewide Rule 32. The agency’s

casinghead gas flared to the amount of crude oil pro-

commissioners approved a revamped Form R-32,

duced decreased by 82 percent.

Application for Exception to Statewide Rule 32, which had previously been titled Statewide Rule 32 Exception Data

The sharp decline in the flaring rate suggests that

Sheet and will be used by oil and gas operators to apply for

decreased flare volume was caused by more than

an exception to flare gas during oil and gas operations. The

simply a decrease in production. RRC will continue

form provides specific guidance on when an exception to

analyze the monthly data. That information, along with

flare would be permissible, under which circumstances, and

the modifications to the Statewide Rule 32 application

for how long. The Commission has created better reporting

will help us continue a comprehensive approach to

requirements to record for how much each flare releases

regulating flaring.

2020 RAILROAD COMMISSION YEAR IN REVIEW

Commission Plugs Abandoned Oil and Gas Wells Using Industry Fees In Fiscal Year 2017, the goal was to plug 875 wells, and the agency plugged 917 wells. In Fiscal Years 2018 and 2019 the performance goal was to plug 979 abandoned wells each year, and the agency plugged 1,364 and 1,710 respectively. The agency plugged 1,477 orphan wells in Fiscal Year 2020, which exceeded the target of 1,400 set by the Legislature.

RRC ORPHAN WELL PROGRAM BEATS LEGISLATIVE GOAL FOR FOURTH STRAIGHT YEAR The Railroad Commission’s abandoned oil and gas well

The work done in the most recent fiscal year continues a

plugging program has exceeded its performance goal for

positive trend in the RRC’s work in exceeding performance

the fourth year running.

targets.

With the fiscal year ending on Aug. 31, the agency plugged

To improve the State Managed Plugging Program, RRC

1,477 orphan wells in Fiscal Year 2020, which exceeded the

streamlined internal processes, which, along with improved

target of 1,400 set by the Legislature.

employee retention, has contributed to the success of the program despite limitations brought on by the COVID-19

The State Managed Plugging Program is an important

pandemic.

part of RRC’s critical mission to protect public safety and the environment. Given the energy industry downturn, the

See what the State Managed Program is doing in your neck

program also helps to employ oilfield service company

of the woods with RRC’s interactive data visualization map.

workers throughout Texas. These employees are contracted and supervised to plug abandoned orphan wells

More information about the State Managed Plugging Pro-

by the Railroad Commission.

gram can be found via this link.

The State Managed Plugging Program is paid through industry fees rather than by taxpayers. This program addresses wells that are no longer productive and are considered orphaned in accordance with state laws and regulations. Railroad Commission staff prioritizes which orphan wells to plug based on potential risks to public safety and the environment.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC OIL AND GAS INSPECTIONS EXCEED EXPECTATIONS FOR FISCAL YEAR 2020 In April, Oil and gas inspectors at the Railroad Commission

347,000 inspections

of Texas surpassed annual inspection targets, even with more than four months remaining in the fiscal year.

2,107 avg. per Inspector

The Texas Legislature sets performance measures tied to agency budgeting for each state fiscal year. For Fiscal Year

Inspected 33% of well population

2020 the target for oil and gas well and facility inspections was 189,367. Ultimately, 347,617 inspections were conducted, an amount equal to 33.4 percent of the total well

1% of wells not inspected

1,540 Oil & Gas violations

population. Inspections include responding to incidents and com-

258 abandoned wells

plaints; conducting routine well inspections; and witnessing critical well operations, including setting surface casing to

602 severance/seal orders

protect groundwater, mechanical integrity tests and well pluggings.

Plugged 1,477 orphan wells

More than 317,000 oil and gas well and facility inspections (more than 91 percent of the total inspections performed) found no violations. Each RRC inspector averaged 2,107 inspections during fiscal year 2020.

The Field Operations section of the Oil and Gas Division:

Only one percent of wells across the state have not been inspected in the last five years, exceeding the five percent legislative performance measure.

• performed more than 347,000 inspections exceeding the performance measure goal of 189,367;

The Commission has an online tool, RRC OIL, that allows

• averaged 2,107 inspections per inspector, 895 more than that goal of 1,199;

the public and oil and gas operators to lookup inspection

• reduced the percent of wells not inspected in last five years down to 1 percent, exceeding the goal of 5 percent;

and violation data recorded during inspections of oil and gas leases, wells, facilities and other sites.

• inspected 33.4 percent of the total well population, surpassing the goal of 22.5 percent; • referred 1,540 oil and gas rule violations for legal enforcement, exceeding the goal of 1,300; • investigated, assessed or cleaned up 258 abandoned sites, exceeding the goal of 230 by 12 percent, and averaging 104 days to complete cleanup; • initiated 602 severance/seal orders, surpassing the goal of 425; and

LAUNCH RRC OIL

2020 RAILROAD COMMISSION YEAR IN REVIEW

• plugged 1,477 orphan wells, exceeding the target of 1,400 set by the Legislature. Wells were plugged in an average of 46.75 days with an aggregate depth of 3,216,698 feet.

RAILROAD COMMISSION ADOPTS NEW PIPELINE SAFETY RULES In February 2020, pipeline safety rules were adopted by the Railroad Commission prohibiting natural gas distribution pipeline operators from installing underground cast iron, wrought iron or bare steel pipelines. Other new pipeline safety requirements require operators to report and remediate accidents on gathering lines.

Local distribution gas pipeline operators transport natural gas to households and businesses through thousands of miles of small-diameter distribution pipes. RRC’s new pipeline rules also require these natural gas distribution pipeline operators to replace any known existing cast iron pipelines by Dec. 31, 2021.

The Commission adopted these amendments weeks before a statutory deadline for House Bills 864 and 866 passed by the 86th Legislature in 2019.

RRC’s Chapter 8 Pipeline Safety rules can be found here.

RRC’s Pipeline Safety Department exceeded all inspection goals set by the Texas Legislature: • 3,561 standard inspections completed (target 3,013)

3,561 standard inspections

• 2,014 accident and specialized inspections completed (target 1,100)

2,014 accident and specialized inspections

Additionally, Pipeline Safety: • Ended the fiscal year with 70 inspectors, a new record high;

70 Inspectors

• Also ended the year with 63 inspectors qualified to perform standard comprehensive inspections, the highest level ever compared to approximately 50 in previous years; and

63 standard comprehensive Inspectors

• Completed business and testing phases of the RRC PIPES system.

completed business and testing phases

Surface Mining & Reclamation Division: • completed 417 inspections exceeding the legislative performance goal for the first time in five years;

417 inspections

• received 188 permit actions and completed 254 between March 1 and Aug. 31; and

254 permit actions Mar-Aug 31

• despite the COVID-19 pandemic processed mail, financial instruments, and public and staff records requests, ensuring productivity, and efficiency within the division.

2020 RAILROAD COMMISSION YEAR IN REVIEW

EFFICIENT Over the past year, the Railroad Commission improved efficiencies, increased transparency, streamlined processes and reduced the administrative burden on industry. Automated datasets made information used frequently by the public easily accessible, and interactive data is now available online in an easy to understand format. All this was accomplished while remaining fully committed to RRC’s mission and responsibility to Texas.

OIL AND GAS MONITORING AND ENFORCEMENT PLAN FINALIZED In June, the Railroad Commission released its latest strategic priorities in regulating the state’s oil and gas industry. The RRC’s FY 2021 priorities are outlined in the Oil and Gas Monitoring and Enforcement Plan. Texas’ oil and gas industry is vital to the state’s budget and economy and contributes toward the country’s security by helping it be energy independent. By ensuring the industry operates in a manner that protects public health and the environment, the Railroad Commission helps protect this critical resource that all Americans rely upon. The annual planning document outlines how the agency will continue to build upon its current success to ensure all wells in the state are inspected at least once every five years and documents ongoing enhancements to agency operations.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC INCREASES TRANSPARENCY IN HEARINGS PROCESS New Online Portal Benefits the Public and Energy Industry

RRC CASES has also helped the agency’s Hearings

In 2020, the Railroad Commission of Texas launched the Case

Division adapt to the current COVID-19 pandemic

Administration Service Electronic System (RRC CASES) public

because it allows administrative law judges and

portal. Since that time, improvements have been made with

technical examiners to access dockets in CASES

more data accessible online.

without having to retrieve a hard copy file.

The CASES portal processes all Railroad Commission

CASES not only make RRC’s hearings documents

hearings and enforcement case types. The system now

available for anyone to view, but it also makes it easier

includes dockets from the agency’s Oil and Gas Division,

for operators to submit case files electronically. As

Oversight and Safety Division, and the Surface Mining and

public servants, RRC strives to serve the public better,

Reclamation Division. When the first phase of the RRC CASES

and CASES is a digital tool that helps the agency

portal launched in March, it processed a smaller number of

accomplish that goal.

case types originating from the Oil and Gas Division.

Parties to a case or their representatives can save time

With more documents now readily accessible to the public

and money by filing electronically through CASES. Legal

than ever before, the Railroad Commission has been able

Enforcement dockets can also be viewed by the public

to further expand the transparency of its functions, decrease

and authenticated users can also upload or download

reliance on paper records, and streamline agency processes

files to the docket. Also, the updated CASES system

such as open records requests. Once documents are

now allows entities to pay administrative penalties

approved for digital filing, they are available for the public

via the portal.

to view.

For more information, visit the RRC CASES page.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RAILROAD COMMISSION LAUNCHES DRONE PROGRAM TO ENHANCE EMERGENCY RESPONSE

Taking advantage of 21st century technology, the Railroad

gression of mining in active operations which can change

Commission launched a statewide drone inspection team.

drastically from month to month. Aerial images will also

Drones help inspectors to quickly respond and inspect

help in the oversight of reclamation activities in previously

sites that are unsafe or inaccessible during emergencies

mined areas.

such as fires, flooding and other natural disasters. Drones

With drones, RRC inspectors can now immediately monitor

can also assist in situations, such as the current COVID-19

well blowouts, oil spills, and other emergency incidents, and

pandemic, where they provide an alternative to in-person

quickly cover large areas of ground in responding to those

inspections.

situations where time is of the essence.

Nineteen inspectors in the agency’s Oil and Gas Division

RRC’s drone team flew 32 missions in FY 2020. These mis-

and Surface Mining and Reclamation Division received

sions enhanced the agency’s operation efficiency in emer-

remote pilot certification from the Federal Aviation Administration.

gency response and routine inspections.

The RRC’s first drone emergency response was April 28

RRC’s drone program operates in compliance with federal regulations and state laws established to ensure safety and

following reports of an incident in Reeves County west of

the protection of individual and property owners’ privacy.

Midland. The affected area could not be physically inspected because the road to the site was under water. A licensed

RRC is also a member of the State Emergency Operations

RRC pilot launched a drone and determined a possible

Center. The agency’s drone fleet can be a critical resource

source of release using aerial and thermal images. The

in helping state emergency response by providing aerial

operator was contacted to immediately remediate

views of inaccessible areas.

the site.

A list of frequently asked questions (FAQ) and answers is

During the summer, SMRD used drones for emergency

also on the RRC’s Drone Program page

responses and inspections. Drones can document the pro-

2020 RAILROAD COMMISSION YEAR IN REVIEW

LEGISLATIVE IMPLEMENTATION

OFFICE OF GENERAL COUNSEL

The 86th Legislature (2019) passed several bills affecting

RRC’s Office of General Counsel (OCG) also stayed busy

agency operations. Immediately following the legislative

with a wide variety of legal issues and responsibilities. OGC

session, and after the bills were signed by Governor Greg

initiated the Warrant Hold program resulting in more than

Abbott, the agency used a project management approach

$800,000 in additional penalty payments with another $2

to ensure timely compliance with the new laws. Some of

million committed to payment plans. OGC transitioned 100

the key efforts by the agency include:

percent of all new dockets to RRC CASES and developed reports to track metrics. The Damage Prevention backlog was reduced by more than 1,000 dockets, and a new investigator position was established to coordinate with industry

• Implemented programming and procedural changes for processing applications for severance tax exemptions for two-year inactive wells and notified operators of the eligibility to apply for a severance tax exemption (SB 533);

and law enforcement. OGC also procured game cameras for each district office to monitor sites and prevent theft of assets belonging to the Commission. They processed 1,564 open records requests in fiscal year 2020, an increase over the previous two fiscal

• Approved rules implementing new pipeline safety requirements relating to the replacement of certain pipe types and operator notification to the Commission regarding certain pipeline incidents (HB 864 and HB 866);

years. Another important aspect of their work is the regularly scheduled Commissioner Conference meetings both before and after the pandemic began. OCG provided support for

• Updated Memorandum of Understanding between RRC and the Texas Commission on Environmental Quality relating to the permitting of discharges of produced water, hydrostatic test water, and gas plant effluent (HB 2771);

Commissioner Conferences and supported the transition to

• Adopted rules streamlining the processes for liquefied petroleum gas (LPG) licensure (HB 2714); and

The Commission’s Well Compliance department completed

the Zoom online format.

O&G ADMINISTRATIVE COMPLIANCE a pilot project to scan P-5 Organization Report Forms to Neubus. The P-5 forms for the 2019 renewal year are now available online. Completion packets, specifically

• Achieved full compliance with requirement that agency staff complete cybersecurity training (HB 3834).

Form G-1 and W-2, saw a reduction in review time from over 40 days at the beginning of the fiscal year to a review time of five days by the year’s end. Drilling permits successfully transitioned to a remote work environment while maintaining legislatively mandated processing times. System enhancements to the Online Drilling Permit reduced the number of manual reviews by nearly 80 percent. GIS Mapping launched a project to scan and enhance historic well location maps for research purposes and to preserve historic maps.

2020 RAILROAD COMMISSION YEAR IN REVIEW

O&G TECHNICAL PERMITTING Technical Permitting transferred a high-cost gas program

In March, the Commission added more data to its Public

to the Groundwater Advisory Unit. This included a backlog

Geographic Information System (GIS) Map Viewer allowing

of more than 2,100 ST-1 applications, many of which were

the public to view information on Voluntary Cleanup Pro-

more than a year old at time of transfer. The results speak

gram (VCP) and Brownfield Response Program (BRP) sites

for themselves.

around Texas. The two programs are designed to incentivize the remediation and redevelopment of abandoned oil

GAU staff reduced the backlog entirely, and today, GAU

and gas sites.

staff typically process complete ST-1 applications within The VCP and BRP data on the interactive map includes

2–3 weeks.

information such as project size, project status, and CertifThe Engineering Unit reduced completions backlog from

icate of Completion for closed sites. Communities, engi-

more than 4,000 in February to less than 600 by the end of

neers and banks can find the information very useful if they

August. The average age of completion packets decreased

are planning any redevelopment initiatives near these sites.

from 61 days to 32 days. More layers were also added to the existing EnvironmenEnvironmental Permits eliminated the backlog of legacy

tal Permits information on the GIS Viewer. The new in-

permit applications. Today, 94 percent of environmental

formation shows Commercial Waste Disposal Sites and

permit applications are processed within established time

Discharge Permits, allowing anyone to view information

frames, exceeding the goal of 90 percent.

including the operator name, permit numbers and the types of wastes received and processed at the facility. Oil and gas operators and waste haulers can use the information

RRC INCREASES TRANSPARENCY WITH INTERACTIVE DATA ONLINE

to locate the most convenient authorized disposal facilities. Data from RRC’s Site Remediation and Abandoned Mine

In 2020, the Railroad Commission made great strides in

Land (AML) programs were added to the website in July.

laying out large amounts of data in an easy-to-understand

Each data visualization project includes bar graphs, an

format. A series of interactive data projects launched

interactive Texas map, a list of counties, and other options

throughout the year help the public and energy industry

to fine tune a search. The AML program works to reclaim

operators easily see key aspects of the important work we

and restore land and water resources as the result of aban-

do in protecting the safety of Texans and the environment.

doned mines.

Interactive data maps showing oil and gas drilling permit

Visit the Data Visualization page

approvals and the number of wells spudded (when operators begin drilling a well) were among the first to be released in January. Information is displayed by counts, operators, county locations and on a statewide level. As one of the first steps of the well completion process, the number of wells spudded in a month may provide a snapshot of drilling in a particular area. RRC’s Well Compliance Department uses this data to monitor and regulate well completion activity on a monthly basis.

2020 RAILROAD COMMISSION YEAR IN REVIEW

RAILROAD COMMISSION FURTHER ENHANCES ITS EFFICIENCY 2020 saw the continuation of the Railroad Commission’s

ground water quality in Texas. On average more than a

Oilfield Relief Initiative The initiative is intended to improve

thousand of these forms are mailed to the agency each

efficiencies for the agency and reduce the regulatory

month. The new online filing option for Form H-15 saves

administrative burden on industry, while ensuring the RRC

time for staff and industry.

continues to protect the public and environment.

Operators are required to conduct tests on wells older than

Oil and gas operators may now file Form W-3, Plugging

25 years in each year that a well is inactive. The test results

Record, online. Operators are required to file the Form W-3,

are submitted in H-15 forms to ensure an inactive well does

Plugging Record, with the RRC 30 days after plugging a

not pose a pollution threat to ground water.

well. When filing the Form W-3 online, an operator can also

Operators have been asking for an easier filing option

submit attachments, including cementing reports (Form W-15) and electric log status reports (Form L-1).

for these important forms and the Railroad Commission

When the Form W-3 is submitted online using the RRC

long-term goal to make the agency’s operations efficient

Online System, the system will generate a print-friendly

and reduce administrative burdens for both the agency

PDF. All reports will be available to view in the RRC Online

and the operators. Online filing is also beneficial in unique

System after being reviewed by the RRC.

situations such as the current COVID-19 pandemic in which

delivered. These online filings represent another step in our

we try to minimize in-person contact to maintain the safety

Online filing of Form W-3 began in April 2020. Two months

of staff and the public.

later, the Railroad Commission made yet another form available for online filing. Oil and gas operators can now

For more information on filing the Form W-3 online,

go online to easily file Form H-15, Test on an Inactive Well

operators can view an instructional video on

More than 25 Years Old. This test is vital to protecting

the RRC’s YouTube channel

2020 RAILROAD COMMISSION YEAR IN REVIEW

RRC’S FREE DATASETS DRAWS MORE THAN 33 MILLION DOWNLOADS IN FY 2020 Last year, RRC automated the creation of various datasets

Before automation, it could take days after the agency

of information frequently requested by the public that

received an open records request to create the customized

involve programmers from Information Technology Ser-

set of data and deliver it via a CD-ROM or through a File

vices having to write computer code to pull and customize

Transfer Protocol or FTP site. Instead of processing these

electronically stored data.

sorts of requests, the ITS technician dedicated to this task now spends time providing customer service.

The datasets—more than 50, in fact—are now automatically made available through a webpage aptly titled, Data Sets

Visit the Data Sets Available for Download page.

Available for Download. The page is broken down in the following categories: Boundary Ventures, Notices of Hearing, Digital Map Data, Drilling Permit Data, Oil and Gas

The Executive Office began a project in FY 2020 to provide the public with data visualization experience on RRC’s website. Eight interactive maps were released in 2020. Since release, the interactive maps garnered nearly 8,000 unique page views for oil and gas production data and nearly 1,400 unique page views for the abandoned well plugging data.

Field Data, Production Data, Oil and Gas Regulatory Data, Oil and Gas Well Data, Severance Tax Incentive Data, and Underground Injection Control Data. Making the data available for download triggered a wider use of our data. The information, which is available around the clock at no charge, has been so popular with the public that in Fiscal Year 2020 the agency recorded about 33.37 million downloads of the datasets. In August, the agency averaged nearly 152,000 daily downloads totaling a collective 304 gigabytes of data per day.

RRC’s Central Records Department completed preparing 1.7 million documents, identifying nearly 1.2 million documents to be imaged— some that are nearly 100 years old, detailing the East Texas oilfield records since 1924. Since the Commission began digitizing agency records, close to 25.5 million documents were imaged from paper. Between original and digitized records, more than 51 million images totaling approximately 62 terabytes of data were uploaded for online access.

Before the website with the datasets, the agency usually received fewer than 7,000 such requests annually, mostly from businesses that would reimburse RRC for staff time and programming costs. Now the information is being used by groups that would normally not have the means to pay for its creation, such as college students, especially geographical information systems students looking for shapefiles. The datasets also benefit journalists, who use the information to either provide more detailed analytical business reporting or to hold the agency and its regulated industry more accountable, which serves the public interest.

2020 RAILROAD COMMISSION YEAR IN REVIEW