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Below and attached is the RRC hearing report today. They discussed concerns about flaring exemptions for Steward Energy II under items 9, 10 and 11The Railroad Commission of Texas met on March 8 to discuss the approval of a well permit, as well as staff updates and consent agendas. Items 2-71 were taken up together. A link to the hearing and the agenda can be found here.

 

This report is intended to give you an overview and highlight of the discussions on 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: Application of Trinity Operating (USG), LLC (Operator No. 870209) pursuant to 16 TAC §3.9 for a non-commercial permit to dispose of oil and gas waste by injection into a porous formation not productive of oil and gas for the Johnston Ranch (17738) Lease, Well No. 10H, Pearsall (Austin Chalk) Field, Frio County, Texas; District 01. 

  • RRC Staff – Application is protested by Evergreen Underwater Conservation District; claims the well will endanger the ground water in the region because the well has a short-surface casing and the injection interval lacks geological confinement
  • Trinity proposed to convert a horizon well into a vertical injection well; failed to prove the injection interval is confined and failed to prove it is in public interest
  • Staff examiners recommend permit denial for these reasons
  • Motion to deny the permit passes

 

Items 2-71: Oil and Gas Consent Agenda

  • Christian – Proud of industry for reduction in flaring volumes
  • Troubled by item 9 and somewhat 10 and 11; operator failed to request a renewal flaring’s exceptions making it illegal without commission approval

 

Item 9: OG-21-00006431: Application of Steward Energy II, LLC (Operator No. 819609) pursuant to 16 TAC §3.32 for an exception to flare gas for the Browning State – Savage 551 Facility, Flare Exception 30778, Commingle Permit 8A-5508, Platang (San Andres) Field, Yoakum County, Texas; District 8A.

 

Item 10: OG-21-00006432: Application of Steward Energy II, LLC (Operator No. 819609) pursuant to 16 TAC §3.32 for an exception to flare gas for the Great Hambino 466 – Hair Splitter 454 Facility, Flare Exception 37741, Commingle Permit 8A-5539, Platang (San Andres) Field, Yoakum County, Texas; District 8A.

 

Item 11: OG-21-00006433: Application of Steward Energy II, LLC (Operator No. 819609) pursuant to 16 TAC §3.32 for an exception to flare gas for the Smokin Train 520 – Sandman 470 Facility, Flare Exception 37742, Commingle Permit 8A-5489, Platang (San Andres) Field, Yoakum County, Texas; District 8A.

  • Christian – Request oil and gas operators to investigate these cases moving forward and ensure operators are only flaring with commission approval
  • Item 9, the operator isn’t connected to any takeaway and has requested to flair 100% of the natural gas; cannot support an operator that has not made a good faith decision
  • Flaring is to be used as an exception not a norm; item 9 will expire in a month and commissioner will not approve another exemption unless good faith measures are taken
  • Items 2-71 approved

Item 285: Approval of certain agency contracts pursuant to the Commission’s Delegation of Authority.

  • Staff – Commission must approve contracts greater than or equal to $1 million; staff asks commission to approve agency contracts
  • Contracts are approved

 

Item 286: 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.

  • No reports on federal or environmental activity for oil and gas
  • Keeping eye on West Virginia v. EPA Case will determine the scope of coal and gas industry