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RAILROAD COMMISSION OF TEXAS
Oil and Gas
Regulatory Overview
May 2016
RRC Mission
Our mission is to serve Texas by our stewardship of natural resources and
the environment, our concern for personal and community safety, and
our support of enhanced development and economic vitality
for the benefit of Texans.
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RRC History
Established 1891• Texas’ oldest regulatory agency
• almost 100 years regulating oil & gas
• Led by 3 statewide elected officials
Commissioner Ryan SittonChairman David PorterCommissioner Christi Craddick
RRC Jurisdiction
Regulates:
• Oil and natural gas industry
• Intrastate pipelines, natural gas and hazardous liquid pipeline industry
• Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and Liquid Natural Gas (LNG)
• Natural gas utilities
• Coal and uranium surface mining operations
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RRC Service PopulationsTexas is the number one oil and gas producing state with almost 279,000 active oil and gas producing wells*
• Texas leads the nation in crude oil and natural gas production.
• Approximately 2.5 million barrels of crude oil are produced daily.
• Production is at a level not seen since 1986.
*Source: March 2016 RRC Well Distribution TableNOTE: This is a dynamic number that changes over time.
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RRC Service Populations
• Approximately 274,300 persons are employed in Texas’ oil and gas exploration
• The Texas oil and gas industry contributes about $206 billion annually to the state's economy.
• In Texas there are 218 counties with oil or gas production.
•Source: December 2015 RRC Texas Petrofacts
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RRC Partnerships
Working with other agencies
• Texas Commission on Environmental Quality• Texas General Land Office• Texas Parks and Wildlife• Texas Department of Public Safety• Texas Dept. of Transportation• Texas Dept. of State Health Services• Office of the Attorney General• Texas Historical Commission
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Pipeline Safety
• 431,997 total pipeline miles in Texas
• 217,065 miles of pipeline under direct RRC safety oversight• RRC regulates intrastate pipeline in Texas• interstate pipeline regulated by Pipeline and Hazardous
Materials Safety Administration (PHMSA)• Oil and Gas Division responds to spills
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RRC Expertise
The Railroad Commission is recognized throughout the United States and the world as a
leader in developing a workable regulatory structure for the energy industry
Iraq
China
South Africa
Canada
Japan
India
Poland
Republic of
Indonesia
Spain
Argentina
Nigeria
Italy
Australia
Mexico
Ukraine
Kurdistan
Brazil
Algeria
Egypt
Tunisia
Morocco
Latvia
Estonia
Uruguay
Norway
RRC Jurisdiction
Regulated facilities:
• Activities associated with oil and gas exploration and production• drilling and production operations at well sites• transportation of crude, natural gas, and produced water
by pipeline• oil and gas waste haulers on public roadways• oil and gas waste management facilities
• Memorandum of Understanding with TCEQ (Statewide Rule 30)
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RRC Jurisdiction
Oil and Gas Regulation:
• Water protection
• Public safety
• Waste prevention
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RRC Jurisdiction
Water Protection:
• Well construction requirements• strings of steel casing and
cement• surface casing set below
depth of usable quality water
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RRC Jurisdiction
Water Protection (cont.):
• Well plugging/site remediation
• Prevention and cleanup of spills
• Management of wastes• on well sites• at disposal facilities
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RRC Jurisdiction
Public Safety:
• Blowout and spill prevention and response
• Hydrogen sulfide safety• regulatory threshold of 100 ppm H2S
(Pipeline and LPG safety addressed through Oversight and Safety Division.)
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RRC Jurisdiction
Waste Prevention:
• Spacing of wells
• Production allowables
• Controls on venting and flaring of gas
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RRC Enforcement ProcessEnforcement of regulations:
• Inspections• operators not notified prior to routine inspections• frequency varies depending upon nature of operations,
environmental sensitive area, history of violations, etc.• operators are asked to notify RRC of specific activities so
an inspector can be on site to witness
• Complaints• may conduct joint inspection with complainant
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RRC Enforcement Process
Enforcement of regulations:
• Well severance• prohibits operator from transporting or selling any oil or
gas from the lease
• 2005 – 2015: • 62.5% of violations corrected upon receipt of notice• 32.4% were resolved following issuance of a severance/seal
order
• extremely effective enforcement tool • allows the Commission to act swiftly• reduces financial cost of enforcement
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RRC Enforcement Process
Enforcement mechanisms:
• Violations• notice of violation(s) issued
• referral for further enforcement• upon failure to correct violation• serious violations may be referred immediately
• enforcement action may include:• assessment of a penalty• well severance • revocation of permit to operate in Texas
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Contact information
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NAME EMAIL
Kimberly Corley
Executive Director
Santos Gonzales, Assistant Director, Field
Operations, Oil & Gas Division
Gaye Greever McElwain,
Communications & Public Outreach
Contact Information
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David J. Porter, Chairman
Christi Craddick, Commissioner
Ryan Sitton, Commissioner
1701 N. Congress Ave.
P.O. Box 12967
Austin, TX
78711-2967
RAILROAD COMMISSION OF TEXAS
Oil and Gas
Rule Addendum
May 2016
RRC Statewide Rules
Some specifics:
• Statewide Rule 8 (§3.8 Water Protection)• no person subject to RRC may cause or allow pollution
of surface or subsurface water• no person may dispose of oil and gas waste except as
authorized or permitted by RRC
• Statewide Rule 13 (§3.13 Casing, Cementing, Drilling, Well Control, and Completion Requirements)
• strict well construction requirements • Groundwater Advisory Unit sets protection depths for
each well
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RRC Statewide Rules
Some more specifics:
• Underground Injection Control (UIC)• delegated to Texas by U. S. Environmental Protection
Agency (EPA)• Safe Drinking Water Act• protects surface and groundwater
• permitting• well construction• well monitoring• Mechanical Integrity Testing (MIT)• field inspections
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RRC Statewide Rules
Recent developments:
• Inactive wells• Hydraulic fracturing• Recycling• Well construction• Disposal wells
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Inactive Wells
September 2010-July 2012: New and amended provisions of Statewide Rule 15
• Surface equipment removal requirements
• Inactive well plugging requirements
• Financial assurance requirements
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Hydraulic Fracturing
January 2012: New hydraulic fracturing fluid disclosure requirements (Statewide Rule 29)
• Information must be listed on FracFocuswebsite: http://fracfocus.org/
• Ground Water Protection Council• Interstate Oil and Gas Compact Commission
• Texas is one of the first states in the nation to require disclosure.
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Recycling
April 2013: Amended recycling rules (Statewide Rule 8)
• Encourage recycling in the oil field
• Reduce water use
• Create rules for authorized fluid recycling
• Streamline recycling permits
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Well Construction
May 2013: Amended casing/ cementing requirements (Statewide Rule 13)
• Provides consistent and clear well construction regulations
• Updates to cement quality, cementing, well equipment and well casing centralizers
• Updates requirements for well control and blowout preventers.
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Disposal Wells
Oct. 2014: Amended disposal well rules to address operations in areas of seismic activity
• Applicants must provide seismic data in permitting process
• Clarify RRC authority to modify, suspend or terminate a disposal well permit
• Ability to require additional information
• reported volumes, pressures, pressure front boundaries, etc.
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Injection/Disposal Wells
Disposal Well
First injection well in Texas permitted in 1936
Injection/Disposal Wells
Injection well:
• Produced wastewater returned to oil/gas reservoir for secondary or enhanced oil recovery
Disposal well:
• Produced wastewater injected into a “non-productive zone”
– underground rock formation not productive of oil or gas
– isolated from usable quality drinking water
– sealed above & below by impermeable strata
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Injection/Disposal Wells
Commercial Disposal Wells
• Primarily operate to provide disposal services to other operators
– includes associated storage and/or receiving facilities
• Vast majority are injection wells, not disposal wells
– 34,200 currently active*
– 26,100 injection
– 8,100 disposal
*As of July 2015
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