Texas Railroad Commission
The Texas Railroad Commission is getting a facelift designed to benefit public and industry interests.
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Railroad Commissioner Christi Craddick gave more details this week on the Texas Oilfield Relief Initiative, a new project designed to make the state’s energy regulatory body more efficient and effective. Craddick says that the initiative will still ensure public and environmental protections while also reducing the regulatory administrative burden on industry.
“With the current industry downturn, at stake is the survival of the state’s small producers and the oil industry’s many marginal wells, which make up 85 percent of total U.S. oil wells and 18 percent of the nation’s total oil output,” said Judy Stark, Panhandle Producers and Royalty Owners Association Executive Vice President. “During this critical time, Commissioner Craddick’s initiative will provide relief to Texas’ independent producers, the backbone of both our state and nation’s oil industry. For that, PPROA’s members are truly grateful.”
Industry officials and interest groups have been quick to praise the initiative, including representatives of the Texas Independent Producers and Royalty Owners Association, Panhandle Producers and Royalty Owners Association, Texas Alliance of Energy Producers, Permian Basin Petroleum Association and the Texas Oil and Gas Association.
Details of the Texas Oilfield Relief Initiative that will reduce adminstrative burdens include:
- Identify agency reports and filings that can be reduced or eliminated
- Amend rules to modify gas well deliverability reporting requirements
- Reduce the need for G-10 filings except for surface commingled production
- Allow a calculated well shut-in pressure to be provided when filing Form G-10 for gas wells
- Amend production requirements for marginal and stripper wells
- Revise “Active Oil Well” definition from ten barrels of oil (BO) per month for 3 consecutive months to five BO per month for 3 consecutive months or any reported production in each month for a consecutive 12 month period (SWR 15)
- Revise “Active Gas Well” definition from 100 mcfg per month to 50 mcfg per month or any reported production in each month for a consecutive 12 month period (SWR 15)
- Implement a revised internal inspection priority system
- Reviewing washout factors to determine whether different washout factors should be used in certain areas of the state to calculate cement tops
- Identify counties or portions of counties in which the usable quality water protection depth is constant.
- Issue guidance for implementation of the Texas Environmental, Health & Safety Audit Privilege Act, permitting operators of new property to identify and remedy violations resulting previous to their ownership
- Conduct an extensive review of all Railroad Commission forms required determine whether data collected is currently used or no longer necessary. Eliminate forms no longer useful to the Commission’s regulatory functions to reduce regulatory administrative burden on staff and industry.
- Simplify the complete duplication of a drilling permit application with a sworn statement of no changes to the original application