The commission met to discuss new state rule proposals concerning horizontal wells, new federal rule proposals concerning water reclamation, and other agenda items.
 
Item 1. SURFACE MINING AND RECLAMATION. Docket No. C14-0007-SC-38-F: Application by Texas Municipal Power Company (TMPA) for release of reclamation liability, Phases I, II, and III for 18.9 acres, and Phases II and III for 36.4 acres, Gibbons Creek Lignite Mine V, Permit No. 38D, Grimes County, Texas.

  • $450k eligible bond reduction, all requirements have been met
  • Approved

 
Item 2. Docket No. C13-0020-SC-03-F: Application by Luminant Mining Company LLC for Phase I release of reclamation obligations for 90.9 acres and Phases II and III releases for 2,099.2 acres within its Permit No. 3F, Big Brown Mine, Freestone County, Texas.

  • Approved

 
Item 3. OIL AND GAS. O&G 20-20-0297645: In Re: P-5 Organization Report of RJW Operating LLC (Operator No. 739805); Motion for Rehearing.

  • Staff holds motion for rehearing was not timely filed and supporting documents have not been filed, recommendation is to deny motion for rehearing
  • Approved

 
Item 4. O&G 20-0297925: In Re: P-5 Organization Report of Cibolo Production, LLC (Operator No. 153402); Motion for Rehearing.

  • Not discussed

 
Items 5-27. Oil and Gas Consent Agenda.

  • Approved

 
Items 28-45. Inactive Well Items.

  • Approved

 
Items 46-60. Master Default Orders.

  • Approved

 
Items 61-233. Agreed Enforcement Orders.

  • Approved

 
Item 234. RULES PROPOSAL. Proposed amendments to §3.86 relating to certain procedures for horizontal drainhole wells and conforming amendments to §§3.5, 3.31, 3.38, 3.40, 3.45, 3.51, and 3.52; O&G Docket No. 20-0298484.

  • Proposed amendments to Chapter 16 TAC
  • Also update commission requirements for drilling horizontal wells
  • Commissioner Sitton comments that rules are very complicated and wishes to work with staff to move these rules forward
  • Looking to bring this issue back to commission after new year
  • Approved

 
Item 235, 236 not discussed.
 
Item 237. INTERNAL AUDITOR. Proposed Internal Audit Plan for Fiscal Year 2016.

  • Agency wide risk assessment has been conducted covering many factors
  • Audit plan is proposed, any audits not conducted in FY 2016 will be moved into 2017
  • Approved

 
Item 238. 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.
Surface Mining and Reclamation Division

  • OSM proposed massive stream regulation changes, 1,200 pages long
  • Staff have worked to develop comments on these proposed rule changes
  • Same changes include baseline data collection and operation plans, definitional revisions, coal mining operations in Appalachia
  • Changes are not necessary for Texas, Texas reclamation rules are some of the best in the nation
  • Would mean significant increases in permitting time and cost
  • New rules would require biological function to be restored for bond release
  • Will significantly impact ability of state to regulate
  • Commissioner Craddick comments that administration seemed to be working with Texas at first and then changed its mind
    • Last time RRC was consulted was in 2011, recently received a letter to re-engage with the process
  • Commissioner Sitton comments that rules changes were driven by problems in Appalachia, seems that agency rolled these changes out through the entire nation despite differing topography. Do any of the IMCC states think this is a good idea?
    • Not to staff knowledge
  • Commissioner Porter highlights massive economic impact and detrimental impact on state regulatory and bond authority
  • Moved to incorporate IMCC comments on the rules changes as RRC official comment on federal rules proposal
    • Approved

 
Item 239. OIL AND GAS DIVISION. Proposed revision of P-16 Data Sheet, Acreage Designation.
Oil and Gas Division

  • Optional datasheet for acreage data needed for drilling
  • Proposed rule 40 would require this form to be included, staff proposes minor changes to this form to conform with rules changes
  • Minor changes including removal of optional language, data to be recorded will not change
  • If UFT doesn’t progress these changes will not move forward
  • Approved to be posted for comment

 
Item 240. OVERSIGHT AND SAFETY DIVISION. Modification to Distribution Annual Report – Summary of Gas Handled.

  • Modifications were placed on RRC website for comment, none have been received
  • Approved