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The Railroad Commission of Texas met at 9:30 a.m. on Tuesday, August 3rd to take up a number of items. Agenda items concerned gas services, surface mining and reclamation, oil and gas, and other administrative matters. A recording of this meeting and its 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.

 

Gas Services

Agenda Item 1

Case No. 00005921: Application of Atmos Energy Corp., Mid-Tex Division for Test Year 2020 annual interim rate adjustment for the unincorporated areas.

  • Adjustment represents incremental monetary increase, of which a portion is recoverable. Recommended adjustment does not cover any cost related to the winter storm
  • Motion to approve Item 1 prevails unanimously

 

Agenda Item 2
GUD No. 10980: Application filed by Border Pipeline, LLC pursuant to NGPA §311.

  • Staff recommends approval
  • Motion to approve Item 2 prevails unanimously

 

 Agenda Item 3
Case No. 00006942: Petition for review of municipal action of the City of El Paso regarding Texas Gas Service Company, a Division of One Gas, Inc.’s interim rate adjustment for calendar year 2020.

  • Reasonable that commission approves TGS’s appeal; staff recommends approval of this petition for review
  • Motion to approve Item 3 prevails unanimously

 

Agenda Item 4
Case No. 00005306: Application filed by Permian Highway Pipeline, LLC pursuant to NGPA §311 for review of the reasonableness of a transportation rate.

  • Applicant provided testimony and supporting data; staff recommends approval of the requested rate
  • Motion to approve Item 4 prevails unanimously

 

Agenda Item 5
OS-20-00005136, consolidated: Statement of intent of CoServ Gas, Ltd., to increase rates in the unincorporated areas of Collin, Denton, and Kaufman Counties, Texas.

  • Dawson – CoServ is seeking a rate increase; recommendation is to approve the settlement.
  • Motion to approve Item 5 prevails unanimously

 

Agenda Item 6
GUD No. 10606: Formal complaint of CNOOC Energy USA, LLC, against Williams MLP Operating, LLC and Mockingbird Midstream Gas Services, LLC.

  • Staff – Involves discrimination claims against Williams; case was remanded and hearing was reopened with new evidence presented, Williams filed exceptions to the PFD.
  • Christian – This case is very complex; request that we move this item to the August 24th calendar
  • Craddick – Agrees with Christian, would like to continue reviewing the item

 

Surface Mining and Reclamation

Agenda Item 7
MR-20-00004617: Application by Luminant Mining Company LLC for release of Phase II and III reclamation obligations on 497.38 acres, Permit No. 50C, Kosse Mine, Limestone and Robertson Counties, Texas.

  • Luminant has satisfied all requirements for release. Recommended that request for release be approved
  • Motion to approve Item 7 prevails unanimously

 

Agenda Item 8

MR-21-00005511: Application by The Sabine Mining Company for release of Phase I reclamation obligations on 269.3 acres, Permit No. 55A, Rusk Mine, Harrison, Rusk, and Panola Counties, Texas.

  • Recommended that request for release be approved
  • Motion to approve Item 8 prevails unanimously

 

Oil and Gas

Agenda Item 9

OG-20-00002649: Application of Abraxas Petroleum Corporation (Operator No. 003125) pursuant to 16 TAC §3.46 for a permit to inject fluid into a reservoir productive of oil or gas for the 9406 JV-P Taurus (Gas ID No. 154400) Lease, Well No. 1, Taurus (Devonian) Field, Ward County, Texas; District 08.

  • Noncommercial well will reduce disposal and transport costs. Recommend approval of the application
  • Wright – Recuses himself from the item
  • Motion to approve Item 9 prevails unanimously (Wright not voting)

 

Agenda Item 10

OG-20-00004889: Application of Rocking R Investments, Inc. (Operator No. 723456) for a waiver of the plat certification requirement pursuant to 16 TAC §3.86(g)(6) for the Adams, P.E. & J. E. (05146) Lease, Well Nos. 14 and 15, and the Ft. Terrett Ranch/Canyon LM/ U. (05803) Lease, Well No. 23H, Fort Terrett Ranch (Canyon 2800) Field, Sutton County, Texas; District 7C.

  • Staff recommends that commission denies Rocking R’s request
  • Motion to approve examiner’s recommendation prevails unanimously

 

Agenda Items 11 & 12

OG-19-00001387: Single Signature P-4 Filing of Tesuque Oil and Gas LLC (Operator No. 844127) for the Petroforce-Bruce (18278) Lease, Well Nos. 7, 8, 9, 10, 11, and 12, MinervaRockdale Field, Milam County, Texas, to change the operator from TruStar Operating Company Inc. (Operator No. 872136) to Tesuque Oil and Gas LLC; District 01.

OG-19-00001388: Single Signature P-4 Filing of Tesuque Oil and Gas LLC (Operator No. 844127) for the Petroforce-Carmona (17663) Lease, Well Nos. 1, 2, 3, 4, 5, 6, and 7, MinervaRockdale Field, Milam County, Texas, to change the operator from TruStar Operating Company Inc. (Operator No. 872136) to Tesuque Oil and Gas LLC; District 01.

  • Staff recommends that Tesuque’s applications be approved
  • Motion to approve items 11 & 12 prevails unanimously

Agenda Items 13 &14

OG-20-00004359: Application of Lone Star Mineral Development, LLC (Operator No. 507234) for approval of a Single Signature P-4 for the La Pita (Gas ID No. 262265) Lease, Well No. 2R, Gavilan (Miocene) Field, Cameron County, Texas, to change the operator from Dallas Petroleum Group, LLC (Operator No. 197688) to Lone Star Mineral Development; District 04.

OG-20-00004376: Application of Lone Star Mineral Development, LLC (Operator No. 507234) for approval of a Single Signature P-4 for the La Pita (Gas ID No. 264705) Lease, Well No. 3, Port Isabel, SE (Freeland) Field, Cameron County, Texas, to change the operator from Dallas Petroleum Group, LLC (Operator No. 197688) to Lone Star Mineral Development; District 04.

  • Documentation relied on by Dallas Petroleum doesn’t describe the surface tract at issue. Recommended that commission finds that Dallas Petroleum did not file a good faith claim to operate the wells
  • Motion to approve examiner’s recommendation for Items 13 & 14 prevails unanimously

 

Agenda Item 15

OG-21-00006627: In Re: P-5 Organization Report of Womack Operating, LLC. (Operator No. 936324); Motion for Rehearing.

  • Staff opposes the motion because one well remains non-compliant; recommended that the motion be denied
  • Motion to approve the examiner’s recommendation for Item 15 prevails unanimously

 

Agenda Item 16

OG-21-00006632: In Re: P-5 Organization Report of Amen Oil LLC (Operator No. 016944); Motion for Rehearing.

  • 25 wells remain noncompliant; recommended that the motion be denied
  • Motion to approve the examiner’s recommendation for Item 16 prevails unanimously

 

Agenda Item 17

OG-21-00006633: In Re: P-5 Organization Report of Bacon Energy (Operator No. 042398); Motion for Rehearing.

  • Joe Menefe – Staff opposes the motion. 43 wells remain non-compliant; recommended that the motion be denied
  • Motion to approve the examiner’s recommendation for Item 17 prevails unanimously

 

Agenda Item 18-150

Oil and Gas Consent Agenda

  • Wright – Shorter terms allow commissioners better direction with operators and their flaring trends, Asking respective examiners to follow up with particular operators, at least one instance in item 90, where an operator has contaminants in natural gas; if this operator should contact a third-party vendor to use its gas effectively
  • Christian – Flaring has been an issue; over the last 3 years, we’ve reduced flaring in Texas over 1% a year.
  • Motion to approve Items 18-150 prevails unanimously

Agenda Item 151-175

Rule 15 Inactive Well Items

  • Craddick – Item 158 is now in compliance
  • Motion to approve Items 151-175 prevails unanimously

 

Office of General Counsel

Agenda Item 176-183

Master Default Orders

  • Motion to approve Items 176-183 prevails unanimously

 

Agenda Item 184-326

Agreed Enforcement Orders

  • Motion to approve Items 184-326 prevails unanimously

 

Administrative Matters

Agenda Item 327

Executive Office – Executive Director Report: Issues related to the management and operation of the agency, and personnel matters.

  • Wei Wang, Executive Director RRC – Have met or exceeded at least 10 of the performance measures for the year thus far; exceeding inspections, well plugs, pipeline inspections.
  • Wright – Is this based on budget year or calendar year?
    • Wang – Budget year

 

Agenda Item 328

Office of General Counsel – 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.

  • David Cooney – EPA will be proposing methane emission rules at the end of September; we plan to work closely with TCEQ to formulate state comments, we filed comments opposing proposal to list the lesser prairie chicken as endangered.

 

Agenda Item 329

Oversight and Safety Division – Proposed changes to POPS CL Form.

  • Staff is requesting approval on the item, proposed changes will replace 12 templates that operators must download and edit & proposed changes will prompt the user to only submit the necessary information.
  • Motion to approve staff’s recommendation prevails unanimously