Below is the HillCo client report from the August 25 House Energy Resources Subcommittee on Seismic Activity hearing.

The committee met to hear testimony from the Railroad Commission of Texas and members of the public regarding induced seismic activity.
 
 
Chair Myra Crownover noted that at the last meeting there was consensus that fracking is not likely to be the reason for the seismic activity; there was also consensus that disposal well activity may need more investigation as it relates to seismic activity.
 
Rep. Phil King read a letter submitted by Linda Stokes Mayor of Reno, TX

  • Thanked the committee and the Railroad Commission (RRC) for acting quickly
  • Citizens are grateful that attempts are being made to investigate the seismic activity
  • Efforts made so far represent a good first step on a long journey
  • The industry needs to be incentivized to recycle frack water

 
Dr. Craig Pearson, Seismologist, Texas Railroad Commission

  • There have been no felt earthquakes in the Azle/Reno area for months
    • There have been unfelt earthquakes though
  • Typically felt earthquakes are below the 3.0 magnitude range; most activity has been in the 0-1.0 magnitude range
  • The industry response to the RRC data request was excellent
  • Data received on pressures and volumes as well as proprietary data has helped tremendously in trying to understand what is happening in the region
    • Should be seeing publications from that data by the end of the year
  • Two rule amendments have been published for comment by RRC since the last subcommittee meeting
  • As the rules existed before, protections were mainly to regulate the movement of water upward
  • With new seismicity issues, lateral water movement must be addressed as well
  • There are four primary changes
    • New requirement for permit applicants to estimate the area of influence that a disposal well will have; calculations and formulas are very straightforward
      • Applicant must do a search of USGS database to find earthquakes that have happened in the past in that area
    • Grants authority for RRC staff to require permit applicants to provide additional information that shows geological conditions that may cause fluid movement
    • If nearby seismic activity is shown or believed to have been caused by disposal well activity, RRC staff can suspend, modify or terminate operations without commissioner approval
      • Modifications will be a first step but this change was made to allow for quick response
    • RRC can require an operator to provide more frequent monitoring and reporting of disposal well activities
  • Crownover asked when the comment period closes
    • Probably around September 29
  • Rep. Terry Canales asked what the process will be to determine if an operation needs to be suspended, modified or terminated
    • That language already existed in the rules; it must be done after notice and opportunity for a hearing are given
  • King complimented the industry, RRC and scientific community for coming together to work on the solution in such an expedient manner

 
Scott Anderson, Environmental Defense Fund

  • Commended RRC for the proposed rule
  • It will not prevent all problems but it does put the commission in a much better position to evaluate and avoid problems in the future and to move expeditiously to address problems
  • Suggests that the legislature and commission continue to study the issue
  • May also want to keep an eye on the possibility of beefing up the current fixed monitoring stations in Texas
  • In Oklahoma, the state has contracted with scientists to map all of the critically stressed faults in the state; Texas may want to consider similar action
  • Seismicity induced by hydraulic fracturing is not as big an issue as that induced by disposal wells but it may be worth keeping an eye on

 
Mari Ruckel, Texas Oil and Gas Association

  • Still working to fully develop comments on the proposals
  • Rep. Lon Burnam noted he believes part of the concern was that there were so many seismic events and now they have dropped off; what occurred to reduce the activity
    • Reno and Azle demonstrate that the industry can work with the RRC to address these problems
  • Burnam is interested in hearing about how the numbers changed as far as how much was being injected and how often
  • King noted he thinks that information will probably be in the reports the RRC is coming out with in the near future

 
Cyrus Reed, Sierra Club Lonestar Chapter

  • Texas can and should take action on induced seismicity; the RRC can handle the issue but the legislature should be monitoring
  • Long term, the state should move away from disposal of large amounts of water underground
  • The formation of this committee is a good step
  • RRC hiring a seismologist was a good step as well
  • The proposed rules are another good step that has been taken by the commission
  • Would like to see more details in the rule about type of information that would be asked for by the agency
  • There was a previous rulemaking on disposal wells that was withdrawn that was not about induced seismicity but did have a lot more requirements that are not in new proposed rules; should look at those mechanical integrity testing and public information requirements
  • RRC could come up with their own monitoring of seismic activity
  • The rule proposal is very clear on new permits but not as much on existing permits
  • There is no mention of funding; permit fees will likely have to be increased to fund extra work that will have to be done at RRC