The RRC’s Blue Ribbon Task Force, founded during the RRC’s April 21 meeting, presented their recommendations to the commissioners to expand storage and waive certain fees for producers to allow for more flexibility during COVID-19. The following fees and surcharges are waived for a year with the intent of incentivizing construction of other storage facilities:
Additionally, the RRC granted an exception of Statewide Rule 95 to allow for the storage of crude oil in formations that are not salt formations (in formations where it would make sense to do so); applicants will need to show that the storage is confined to prevent the escape of crude oil.
The Blue Ribbon Task Force’s full list of recommendations can be found here. The accompanying letter sent to the RRC from the task force can be found here.
The RRC granted additional waivers and exceptions for:
- SWR 8(d)(4)(H): allows operators with authorized pits to submit a notification to the appropriate district office for an extension of the deadline for dewater, backfill and compact authorized pits. Expires one year from today, unless terminated or extended.
- SWR 13(d): extends the 180 day limitation on administrative approvals of alternative casing and tubing programs. Expires one year from today, unless terminated or extended.
- SWR 14(b)(2): extends the 1-year deadline to plug wells to two years for wells reporting production in February 2020, and subsequently shut-in with no reported production from March 1, 2020 to March 1, 2021; will not limit authority of RRC to require plugging of leaking well. Expires one year from today, unless terminated or extended.
- SWR 107(b): allows legal enforcement division to exercise discretion in assessment of penalties of violations of commission rules occurring between March 1, 2020 and March 1, 2021 that do not implicate health, environmental or safety concerns. Expires one year from today, unless terminated or extended.
Additional requests were made for the BRTF to report back on at the June RRC meeting:
- Look into how to address flaring: how much is out there and what regulatory action (if needed) should be enacted