The Railroad Commission of Texas met on June 28, 2022, to discuss regular agenda items, as well as several matters brought before the Commission by various parties. A copy of the Commission’s agenda can be found here. An archive video of the hearing can be found here.
This report is intended to give you an overview and highlight of the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.
Item 1: Case No. 00008714:Â Application of Legend Gas Pipeline LLC to implement a rate pursuant to Natural Gas Policy Act Section 311.
- Motion to approve recommenders’ application; passes
Item 2: Case No. 00008188:Â Application filed by TX Pipeline Webb Co Lean SYS, LLC pursuant to Natural Gas Policy Act Section 311 for Review of the Reasonableness of a Transportation Rate.
- Motion to approve recommenders’ application; passes
Item 3: Case No. 00008972: Application of Texas Gas Service Company for Test Year 2021 Annual Interim Rate Adjustment for the Unincorporated Areas of the West Texas Service Area.
- Motion to approve recommenders’ application; passes
Item 4: Case No. 00009645:Â Petition for review of Municipal Rate Action of the Town of Rose Hill Acres and City of Clarksville City regarding CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Entex and CenterPoint Energy Texas Gas’ 2021 Interim Rate Adjustment.
- Staff recommends passing item at next meeting; tabled
Item 5: MR-21-00007290: Application by Dos Republicas Coal Partnership for Phase I Release of Reclamation Obligations on 309.8 acres, Permit No. 42B, Eagle Pass Mine, Maverick County, Texas.
- Wright – The current bond amount will not be reduced, correct?
- Correct
- Motion to approve recommenders’ application; passes
Item 6: MR-21-00007975: Application by The Sabine Mining Company for Phases I, II, and III Release of Reclamation Obligations on 11.1 acres, and Phases II and III Release of Reclamation Obligations on 362.4 acres, Permit No. 33I, South Hallsville No. 1 Mine, Harrison County, Texas
- Motion to approve recommenders’ application; passes
Item 7-8: OG-21-00008190: Commission called hearing to show cause why Votaw Production Company LLC’s (Operator No. 887576) well should not be plugged with state funds for the Young Lease (02180), Well No. 3, Housh Field, Tyler County, Texas; District 03.; and the Swearingen Lease (11186), Well No. 1, Housh Field, Tyler County, Texas; District 03.
- Staff recommends the wells be plugged and the plaintiff request be denied
- Motion to approve recommenders’ recommendation; passes
Item 9-11: Complaint of Kelly Matlock and Brent Homan that TAM2 Squared Operating, LLC (Operator No. 835623) does not have a good faith claim to operate Loftin D, Loftin E, and Prideaux A
- Staff recommends the wells be plugged and the plaintiff request be denied
- Motion to approve recommenders’ recommendation; passes
Item 12: OG-21-00007051: Complaint of Hankey Family Limited Partnership that Origin Production Company, Inc. (Operator No. 625625) does not have a good faith claim to operate the Vickery, Artie (04096) Lease, Dale-McBride Field, Caldwell County, Texas; District 01.
- Wright – Would like to spend more time on this item
- Item tabled to next meeting
Item 13: OG-21-00006770: Application of Drillogix Exploration LLC (Operator No. 228368) pursuant to 16 TAC §3.46 for a permit to inject fluid into a reservoir productive of oil and gas for the LN (32399) Lease, Well No. 6, Jones County Regular Field, Jones County, Texas; District 7B; Motion for Rehearing.
- Staff recommends the plaintiff’s request for a rehearing be denied
- Motion to approve recommenders’ application; passes
Item 14: OG-21-00007189: Complaint of Hanging H Ranch, Inc. against NGL Water Solutions Permian, LLC (Operator No. 609265) regarding Permit Nos. 115973, 115974, 118733, and 118753, Fox SWD (50264) Lease, Well Nos. 1, 2, 3, and 4, Mason, N. (Delaware Sand) Field, Loving County, Texas; District 08.
- Staff recommends approving Hanging H Ranch’s request
- Motion to approve recommenders’ recommendation; passes
Item 15: OG-21-00007638: Complaint of Randall Christian that Breitburn Operating L.P. (Operator No. 090732) does not have a good faith claim to operate the Christian, B C Gas Unit (Gas ID No. 154970), Well No. 1, White Oak (Cotton Valley Sand) Field, Gregg County, Texas; District 06.
- Staff recommends denying plaintiff’s request
- Motion to approve recommenders’ recommendation; passes
Items 16-20: Commission called hearing to show cause why Petrolia Group, L.L.C. (Operator No. 660810) is not legally required to plug the Bennie, Tery, Martin, Willie B., J.L. Morris, and Nichols. O.H.
- Staff recommends motion be denied and the wells be plugged
- Motion to approve recommenders’ recommendation; passes
Items 21-58: Applications of Capitan Energy, Incorporated.
- Christian – Would like to study this item more
- Item tabled until next meeting
Items 59-153: Oil and Gas Consent Agenda
- Motion to approve Oil and Gas Consent Agenda; passes
Items 154-155: Master Default Orders
- Motion to approve all Master Default Orders; passes
Items 156-247: Agreed Enforcement Orders
- Motion to approve all Agreed Enforcement Orders; passes
Items 248: Executive Director Report: Issues related to the management and operation of the agency, and personnel matters.
- Executive Director – Wei Wang
- Provides update on RRC receiving award from Groundwater Protection Council, relating to using AI and machine learning algorithm to determine permitting decisions
- Looking at groundwater, existing well locations, and injection well locations, ensures a consistent way to make permitting decisions
- Currently no pending USC permit applications, review time currently is 20 days, down from 100 days in 2018
- Can make decisions more quickly and allows staff to feel more confident about decisions
- Christian – It is such an honor to represent RRC staff that are champions of great work and environmental conservation
- Craddick – Fourth award of the year, very impressive, great team at the RRC
- Wright – Thanks RRC staff and Texas Produced Water Consortium
Item 249: Approval of certain agency contracts pursuant to the Commission’s Delegation of Authority.
- 13 contract renewals for oil and gas, 1 contract renewal for mediation, contracts will be in place for FY 2023
- Staff recommends approval of contracts
- Motion to approve agency contracts; passes
Item 250: Revisions to Form CI-D, Acknowledgement of Critical Customer/Critical Gas Supplier Designation, and Form CI-X, Critical Designation Exception Application, and associated form attachments.
- Motion to approve and adopt revisions to form CI-D and CI-X; passes
Item 251: Pending and/or contemplated litigation, rulemakings, and other actions initiated by or involving the U.S. Environmental Protection Agency, U.S. Department of Interior, U.S. Department of Transportation, and other federal agencies that may impact the State of Texas, including, but not limited to, the energy, pipeline, and natural resource industries.
- Rule change necessary due to changes in regulations by the EPA, rule has been published, comments due August 8
- Craddick – I’m assuming we are watching air emissions nonattainment for the Permian Basin?
- Yes, it was on EPA’s agenda last week, not sure where it is going right now
- Christian – Governor published a letter on this last week, I assured our Congressional friends that the RRC is looking out for Texans wherever possible
Item 252: Proposed new rule 16 Texas Administrative Code §3.66, relating to Weather Emergency Preparedness Standards.
- Proposed rules implement Sections 5 and 21 of SB 3 (87R)
- Staff recommends approving proposed rule for publication in Texas Register
- Wright – Very interesting to track temperatures back in the 1920s, 30s, 40s
- Christian – There is value to do a long-term review when looking at temperature changes, we can’t just look back at the last 10, 20, or even 50 years, must look back further
- Motion to approve publication of rule 16 Texas Administrative Code §3.66, relating to Weather Emergency Preparedness Standards; passes
Item 253: Adoption of amendments to 16 Texas Administrative Code (TAC) Chapter 9, relating to LP Gas Safety Rules, and adoption of the following associated Alternative Fuels Safety Forms: LPG Form 7, LPG Form 7A, LPG Form 7T, LPG Form 16P, and PERC Based Training Application.
- Staff recommends adoption
- Rules implement SB 1583 (87R) and SB 1688 (87R)
- Motion to adopt amendments to 16 Texas Administrative Code (TAC) Chapter 9 and its related forms; passes
Item 254: Oil Field Cleanup Program Quarterly Status Report, Fiscal Year 2022, 3rd quarter.
- 3Q FY 22 plugging operations are completed
- $4.2M total cost, 969 total wells plugged
- Craddick – How far are we?
- 1037 wells plugged, 37 wells past our goal, just working on getting all invoiced
Item 255: Adoption of Revisions to Form P-16, Acreage Designation.
- Received 5 comments on posted form, staff recommends approving the form with changes
- Motion to adopt revisions to Form P-16; passes
Item 256: Revisions to Form R-3, Monthly Report for Gas Processing Plants.
- Office of General Counsel has stated form does not need to be published for public comment
- Motion to adopt revisions to Form R-3; passes
Item 257: Public Comment
Virginia Palacios, Commission Shift
- Provides overview of Commission Shift, whose goal is to eliminate inactive and working well sites
- RRC can be illegible for $331M in federal funds
- Asks the RRC to consider implementing full cost bonding of orphan wells
- There is a growing backlog of inactive wells in Texas, RRC is plugging wells but not fast enough
- Consider changing bonding requirement and rules involving inactive well planning extensions
Items 258-259: Executive Session
- Commission adjourns and enters executive session
- Commission did not reconvene after Executive Session, no action taken on items discussed