History of the Railroad Commission
Chronological Listing of Key Events in the History of the Railroad Commission of Texas (1980-1999)
January 7, 1980
In an emergency rule, the Commission adopts an amendment to the
curtailment program for natural gas that directs intrastate gas
companies to curtail all sa1es and deliveries to out-of-state
markets under surplus sales clauses when the needs of their Texas
customers are not met.
Docket No. 2336 (January 7, 1980).
February 16, 1980
The State of Texas,
through the Railroad Commission, became the first state in the
nation to be designated as the regulatory authority authorized by
the U.S. Department of Interior to administer the coal regulatory
program under the federal Surface Mining Control and Reclamation
Act of 1977.
February 29, 1980
Railroad Commission, with
the revision of this statewide rule, amends the section pertaining
to plugging wells. Plugging operations on each dry or inactive well
must be commenced within a period of 90 days after drilling or
production operations have ceased and must be pursued with
diligence until completed.
Texas Railroad Commission Rule 051.02.02.014, 5 Tex. Reg. 499
(1980).
April 8, 1980
Commission requires that all personnel involved in drilling
operations on lands which underlie fresh or marine waters in Texas
complete training in well control equipment and techniques in order
to ensure safe and environmentally sound drilling operations.
Texas Railroad Commission Rule 051.02.02.013, 5 Tex. Reg. 1152
(1980).
April 25, 1980
As amended, this rule
provides that Natural Gas Policy Act applications may be reviewed
and approved without a hearing, although hearings will be held when
an examiner's recommendation is adverse to the applicant, when an
intervention in protest is filed, when applicant makes a written
request for a hearing, or when the staff determines a hearing is
necessary.
Texas Railroad Commission Rule 051.02.03.004, 5 Tex. Reg. 1418
(1980).
May 19, 1980
Pursuant to the Resource
Conservation and Recovery Act of 1976, the Environmental Protection
Agency is required to develop regulations and programs for
controlling all significant quantities of hazardous wastes, from
generation to disposal. In a significant action, the EPA
temporarily delays imposition of the regulations for oil and gas
drilling muds, production brines, and utility waste, based on the
strong showing of congressional intent on this matter.
45 Fed. Reg. 33,063 (1980).
June, 1980
Oil and Gas Division reports
crude production in 1979 totaled 978,544,145 barrels, dropping
below the billion barrel mark for the first time in fifteen
years.
Railroad Commission, Oil and Gas Division, 1979 Annual
Report at p.13.
June 24, 1980
Under authority granted by
the Safe Drinking Water Act of 1974(P.L.93-532),the Environmental
Protection Agency issues rules to prevent underground injections
-although not to interfere with oil and gas production or
successful existing state programs, unless necessary - which
endanger efforts to maintain high quality drinking water sources
for the future. The Commission currently directs an Underground
Injection Control (UIC) program for Texas within the promulgated
federal guidelines.
45 Fed. Reg. 42,472 (1980).
October 14, 1980
Congress enacts the
Staggers Rail Act, designed to quicken the process of railroad rate
deregulation begun in 1976 with the Railroad Revitalization and
Regulatory Reform Act of 1976.
Pub. L. 96-448, 94 Stat. 1895 (codified in various sections of
11, 45, and 49 U.S.C.A. (1983)).
1981
James E. (Jim) Nugent becomes Chairman of the Railroad Commisison.
January 2, 1981
Buddy Temple succeeded John H. Poerner as a Railroad Commissioner.
June 17, 1981
House Bill 1379 gives the
Commission comprehensive authority to regulate underground
injection activities consistent with the Federal Safe Drinking
Water Act of 1974 and clarifies the Commission's jurisdiction over
underground hydrocarbon storage facilities.
1981 Tex. Gen. Laws, Ch.830.
November 4, 1981
Statewide Rule 37 is
amended to allow for administrative approval of unprotested
drilling and deepening applications.
16 TAC. '3.37, 6 Tex. Reg. 3911 (1981).
December 31, 1981
Texas Supreme Court holds
that the Commission has power and authority to hear and consider
applications for common carrier certificates to operate over
irregular routes and on irregular schedules.
Railroad Commission of Texas v. United Parcel Service, Inc.,
629 S.W.2d 33 (Tex. 1981).
September 20, 1982
Congress enacts the Bus
Regulatory Reform Act, designed to remove disparities between
intrastate and interstate bus rates, and to remove state regulatory
constraints on discontinuance of intrastate bus routes.
49 U.S.C.A. 10935 (1982).
1983
Mack Wallace becomes Chairman of the Railroad Commission.
January 1, 1983
Amendments
are made to Statewide Rule 13 detailing technical requirements for
the casing and cementing of oil, gas. and other wells subject to
the jurisdiction of the Commission.
16 T.A.C. '3.13, 7 Tex. Reg. 3982 (1982).
April 7, 1983
Legislature amends the Water
Code (see 1971 Tex. Gen. Laws, ch.58
supra) to give the Railroad Commission
jurisdiction over the in situ recovery of
tar sands.
1983 Tex. Gen. Laws, ch.184.
April 14, 1983
Pursuant to the Sunset Act,
the Legislature enacts a general law outlining the administration,
powers, duties, and continuation of the RRC, to be reviewed again
in 1995.
April 29, 1983
Legislature amends the Water
Code (see 1971 Tex. Gen. Laws,
supra) to require the Railroad Commission to
determine the feasibility of injecting substances other than fresh
water when injection well permits are sought for secondary recovery
projects.
1983 Tex. Gen. Laws, ch.996.
May 10, 1983
Senate Bill No. 617 gives
Commission authority to regulate compressed natural gas work and
operations, effective September 1, 1983.
August 29, 1983
Commission given safety
enforcement jurisdiction over pipeline transporters of certain
hazardous liquids. Gas Utility Division's Pipeline Safety Section
given responsibility to enforce the federal standards for
intrastate hazardous liquids pipeline operators.
September 1, 1983
Various sections of the
Natural Resources Code and the Water Code are amended to provide a
maximum civil penalty of $10,000 per day for pollution or safety
violations of rules or orders.
1983 Tex. Gen. Laws. ch.967.
Gas Utility Regulatory Act (GURA) created.
House Bill 593 gives the Commission exclusive jurisdiction over iron ore and iron ore gravel mining and reclamation operations in Texas.
House Bill 1445 amends Chapter 131 of the Texas Natural Resources Code to provide administrative penalties of up to $10,000.00 a day for each violation of a uranium mining permit resulting in air or water pollution or creating a threat to public safety.
The Commission is authorized to assess a $100 drilling permit
application fee for each new or materially amended application to
drill. This fee is placed in the state well plugging fund.
Tex. Nat. Res. Code '85.2021 (Vernon Supp. 1985)(original version at 1983
Tex. Gen. Laws, ch.967).
September 12, 1983
The Commission adopts
new '3.72,
Statewide Rule 85, which requires all transport of crude oil or
condensate by truck be accompanied by a cargo manifest identifying
the quantity, origin, destination, and transporter of the crude oil
or condensate. The rule also requires that vehicles used to
transport crude oil or condensate bear identifying marks.
16 T.A.C. '3.72, 8 Tex. Reg. 3815.
April 1984
Interstate Commerce Commission
notifies the Commission that it is de-certified under the Staggers
Rail Act. The effect of the decision is to exclude the Commission
from rail rate setting.
The Pipeline Safety Section of the Gas Utilities Division begins educational seminars for "master meter" operators of natural gas systems, such as those serving mobile home parks and apartment complexes. Evaluations of those systems given greater emphasis by safety inspectors.
April 23, 1984
Constitutionality of
Staggers Rail Act upheld.
State of Texas v. United States, 730 F.2d 339 (5th Cir. 1984),
cert. den'd, 105 S. Ct. 267 (1984).
May 1, 1984
Commission amends Statewide
Rule 8 as directed by the Texas Legislature in HB 2005. The rule
sets out procedures and conditions for authorization of use of salt
water disposal pits.
16 T.A.C. '3.8, Statewide Rule 8.
1985
Buddy Temple becomes Chairman of the Railroad Commission.
April 4, 1985
5th Circuit Court of Appeals
holds that the Bus Regulatory Reform Act empowered the Interstate
Commerce Commission to authorize the discontinuance of intrastate
bus routes, despite the refusal of the Railroad Commission to
permit it.
State of Texas v. United States, 756 F.2d 419 (5th cir.1985),
cert. den'd, 106 S. Ct. 129 (1985).
May 13, 1985
The Commission enters an order rejecting the application of
Phillips Petroleum Company for amendment of the Panhandle Field
rules but clarifies that Statewide Rule 79(7) is applicable to the
Panhandle Fields and that hydrocarbon liquids must be liquid in the
reservoir under current conditions, liquid in the wellbore and
liquid at the surface to be counted as crude oil is calculating
gas-oil ratio for purposes of classifying a well. The order
requires retesting of wells with low temperature extractors (LTX
units).
Docket No.10-77,314 (May 13, 1985).
May 16, 1985
Texas Legislature empowers the
Commission to issue state rules and orders to regulate rail safety,
as permitted by the Federal Railroad Safety Act of 1970.
Tex. Rev. Civ. Stat. Ann. Art. 6448a (supp.1986).
June 11, 1985
Gas Utility Regulatory Act
revised to permit gas utilities to reduce rates without prior
Commission approval.
June 15, 1985
Commission is given the sole
responsibility for the control and disposition of waste and the
abatement and prevention of pollution of surface and subsurface
water resulting from activities associated with the exploration,
development, and production of oil or gas or geothermal
resources.
1985 Tex. Gen. Laws, Ch.921 (H.B. No. 1867).
June 21, 1985
United States Court of
Appeals for the District of Columbia upholds the decision by the
Interstate Commerce Commission to de-certify the Commission from
participation in rail rate setting under the Staggers Rail Act.
Railroad Commission of Texas v. United States,765 F.2d 221
(D.C. Cir.1985).
August 26, 1985
Another revision to the Gas
Utility Regulatory Act gives the Commission 185 days from the date
a party to a rate proceeding appealed those rates to the
Commission, to fix new rates. Previously, the Commission was
required to fix the rates within 120 days.
Section 91.142 of the Natural Resources Code, as amended by
House Bill 1942, requires anyone performing any operation which is
under the Commission's jurisdiction to file an Organization
Report.
1985 Tex. Gen. Laws, Ch. 398.
September 1, 1985
Senate Bill 699 excludes
from Commission jurisdiction iron mining activities in progress on
or before September 1, 1985, and replaces the less than five acres
exemption with an exemption for operations on single contiguous
tracts no larger than 20 acres with the depth of mining restricted
to 30 inches or less.
House Bill 2431 requires filing with the Commission a copy of
each electric log made after September 1, 1985, in conjunction with
the drilling of a well. A log may remain confidential upon written
request to the Commission, for a period of one year with the
possibility of an extension of an additional two years.
1985 Tex. Gen. Laws, Ch.978, 10 Tex. Reg. 3242 (1985).
September 15, 1985
Statewide Rule 36 is
amended to ensure the public will be protected from the hazards of
hydrogen sulfide gas.
16 T.A.C. '3.36, 20 Tex. Reg. 2069 (1985).
October 9, 1985
Some members of the
Panhandle Independent Producers Group appeal the May 13, 1985
order, Docket No,10-77,314 concerning hydrocarbon liquids. The
Travis County District Court denies a temporary restraining order
and renders a declaratory judgment declaring that the Commission
correctly interpreted the substantive law of Texas as prohibiting
the use of natural gasoline as crude oil for well classification
purposes. The court also ruled that the May 13, 1985 order was void
for failure to follow rulemaking procedures.
Hufo Oils et al v. Railroad Commission of Texas, No.382,447
(District Court of Travis County, 250th Judicial District of
Texas, October 9, 1985).
October 18, 1985
The Federal Energy
Regulatory Commission adopts FERC Order No.436 to be effective in
November 1985. This order sets forth significant revisions in the
guidelines for interstate transportation of natural gas including
interstate natural gas transported initially by intrastate
pipelines. Under Order 436, transportation service is to be offered
on a non-discriminatory basis.
1986
James E. (Jim) Nugent becomes Chairman of the Railroad Commission.
January 1986
After passage of the
Department of Transportation's rules governing safety enforcement
for hazardous liquids pipelines, the Pipeline Safety Section of the
Gas Utilities Division began on-site evaluations of those pipelines
and began offering educational seminars to the operators of those
systems in May, 1986.
March 3, 1986
Clark Jobe succeeded Buddy
Temple as a Railroad Commissioner.
August 13, 1986
The plaintiffs in the
Hufo Oils case appealed the Travis County District Court
decision. The Austin Court of Appeals upheld the District Court
ruling that the Railroad Commission correctly interpreted the
substantive law of Texas as prohibiting counting natural gasoline
as crude oil for well classification purposes. The Court of Appeals
also ruled that the independent producers waived their argument
that the original hearing was an invalid attempt at rulemaking by
not raising the issue at the Railroad Commission level.
Hufo Oils et al v. Railroad Commission of
Texas No.14,603 (Tex. App.--Austin, Aug. 13, 1986, writ
requested) (Supreme Court case No. C-5937).
August 18, 1986
Statewide Rule 14 is
amended to allow for wells which become inactive on or after
January 1, 1986 but before January 1, 1988 to have one year instead
of 90 days in which to plug the well or bring it into compliance in
some other way.
September 1, 1986
The Commission's new
Statewide Rules 28 and 31 become effective governing gas well
testing and gas well allowables.
September 29, 1986
The Commission adopts an
amendment to '3.5. Statewide Rule 5, which allows an operator of an
existing well to request authorization to deepen inside casing or
to plug back in order to test other reservoirs prior to going
through the complete permit application process.
October 22, 1986
The Tax Reform Act of 1986
was enacted. The major provisions affecting gas utilities are (1)
the repeal of the investment tax credit retroactively to January 1,
1986; (2) the lowering of the top corporate income tax rate from
46% to 40% in 1987 and to 34% thereafter; and (3) the requirement
for utilities to accrue unbilled revenues related to cycle
billing.
January 6, 1987
John Sharp succeeded Clark
Jobe as a Railroad Commissioner.
January 12, 1987
Mack Wallace becomes Chairman of the Railroad Commission.
February 9, 1987
The Commission adopts new
Rules 30 and 34, pertaining to gas nominations and gas to be
produced and purchased ratably. The new rules become effective on
March 2, 1987.
June, 1987
The legislature enacts S.B. 595 and H.B. 908, bringing the most
comprehensive changes to motor carrier regulation since the Motor
Carrier Act of 1929. Tariff base rates are simplified and common
carriers are authorized to deviate from Commission-set base rates
up to 15 percent, depending on the weight of the shipment. The
bills also require most operators of commercial vehicles weighing
over 10,000 pounds to register them with the Commission and file
proof of insurance.
July, 1987
The legislature authorizes the
Commission to provide assistance in the prosecution of oilfield
thefts or related matters. Oil Field Theft Investigative unit
created by the Commission, effective September 1, 1987.
Appropriations Act, Chapt. 78, Art 1, 1987, Tex. Gen. Laws,
253, 1-122.
September 23, 1987
Kent Hance succeeded Mack
Wallace as a Railroad Commissioner.
October 1987
James E. (Jim) Nugent becomes Chairman of the Railroad Commission.
November 1987
John Sharp becomes Chairman of the Railroad Commission.
December 1987
Kent Hance becomes Chairman of the Railroad Commission.
January 1, 1988
In response to Senate Bill
595, the Commission prescribed simplified base rates for motor
common carriers. An average rate dropped almost 28% and carriers
were allowed to deviate from those rates by a prescribed
percentage.
January 11, 1988
James E. (Jim) Nugent becomes Chairman of the Railroad Commission.
February 2, 1988
The Commission approves
the procedure of administrative field rule changes in the shallow
fields of District 7B, 7C (McCulloch County only), and 9.
February 22, 1988
Statewide Rule 22 on
artificial lift is repealed. Exceptions are no longer required for
various tubing sizes and working barrel diameters. Allowables for
artificial lift wells will continue to be assigned based on other
Commission rules.
February 22, 1988
Statewide Rule 48 is
amended to allow special allowables on all secondary and tertiary
recovery projects, not just water flood projects. In some cases,
allowables may be assigned administratively, without a hearing.
March 1, 1988
The Enforcement Section of the Transportation Division began active
enforcement of the administrative penalties provisions of Senate
Bill 595, collecting almost $500,000 in fines by year's end.
March 14, 1988
Commission permits gas
utilities to include 1/2 of 1% of revenues as an allowable amount
for advertising in rate cases. Previously the Commission allowed
only 1 /5 of 1%.
April 1, 1988
Effective date of commercial
vehicle registration required by Senate Bill 595 and House Bill
908. Over 200,000 vehicles are registered by year's end.
April 1, 1988
A monthly stripout of allowables by gas purchaser and purchaser
system is introduced.
April 18, 1988
Statewide Rule 14 is amended
to make permanent the provision that dry or inactive wells have up
to one year before plugging must begin. A further amendment
contains an alternate method for obtaining a 14(b)(2) extension
beyond that year period by submitting a $100 annual fee.
July 6, 1988
The U.S. Environmental
Protection Agency determines that oil and gas waste need not be
regulated as hazardous waste under the Federal Resource
Conservation and Recovery Act. The EPA found that existing state
and federal regulatory programs were generally adequate.
July 18, 1988
Area determinations for tight
formations under the Natural Gas Policy Act (Section 107) no longer
require a hearing. Requests for determination may now be handled
administratively.
August 1988
Guidelines are issued requiring
drilling permit applications for cathodic protection holes which
penetrate the base of usable water.
November 14, 1988
Hearings are no longer
automatically required for the review of temporary field rules and
entity for density applications.
The Railroad Commission reorganizes and combines the Transportation Division and the Gas Utilities Division.
December 1, 1988
The Commission hires its
first hazardous materials railroad inspector.
S.B. 595
January 9, 1989
Kent Hance becomes Chairman of the Railroad Commission.
March, 1989
The legislature enacts H.B.
2945 which changes the gas utility tax base from 2 percent to 1/2
percent and allows certain before-tax expense deductions.
April, 1989
The legislature enacts S.B.430
which makes some of the same changes in motor bus regulation that
were made to motor carrier regulation by S.B. 595.
May 1, 1989
Panhandle Fields Amended Final
Order, Docket No.10-87,017, becomes effective, clarifying rules and
regulations for the Panhandle Field of District 10. Appendix 1 of
the order establishes the criteria operators must meet for each
well to establish a presumed compliance with the field rules which
prohibit perforating oil wells in dry gas horizons and prohibit
perforating gas wells in oil-productive horizons. Presumed
compliance is to be established by May 1990.
June 1, 1989
Statewide Rule 37, "Statewide
Spacing Rule," is revised to extend life of drilling permits from
one year to two years.
September, 1989
"Clean Air" legislation
passed by the 71st Legislature requires vehicles to be capable of
using compressed natural gas (CNG) or liquefied petroleum gas
(LPG). Some 635,500 vehicles in Texas could be affected.
1989 Texas Gen. Laws, Ch.1190.
November 1, 1989
Statewide Rule 38, "Well
Densities," is revised to allow for some drilling density
exceptions to be granted administratively rather than by hearing.
Permits granted with such an exception are valid for two years
rather than the previous one year.
November 28, 1989
Statewide Rule 42, "Oil
Discovery Allowable," is revised to increase daily oil well
discovery allowables and extend the discovery status period for oil
wells according to depth and whether the well is onshore or
offshore.
February 20, 1990
Statewide Rule 50,
"Enhanced Oil Recovery Projects - - Approval and Certification for
Tax Incentive," is adopted to govern the state's first production
incentive program. Enabling legislation was approved by the 71st
Legislature to encourage secondary/tertiary recovery of oil.
Certified projects, becoming active on or after September 1, 1989,
with application filed by January 1, 1994, may receive a reduced
severance tax rate of 2.3 percent of market value (1/2 of regular
rate) for up to 10 years.
June 1, 1990
Statewide Rule 86, "Horizontal
Drainhole Wells," is adopted, setting out spacing, density,
allowables, procedural, and administrative regulations for the
state's horizontal drainholes. There were 146 horizontal oil well
completions in the Pearsall (Austin Chalk) Field - - focal point of
horizontal drilling - - since May 1989, during which time that
field's daily average production went from less than 10,000 barrels
to almost 120,000 barrels.
June 12, 1990
Statewide Rule 105,
"Certification for Severance Tax Exemption for Gas Produced from
High-Cost Gas Wells," is adopted. The requirements are set out for
certification under the state's second incentive program. Passed
into law during the 71st Legislature, the program exempts from
state severance taxes gas produced from high-cost gas wells (as
defined under the 1978 Federal Natural Gas Policy Act) for a period
as long as from September 1991 to August 2001. Such wells must be
spudded or completed between May 24, 1989 and September 1,
1996.
September 1, 1990
Emergency Statewide Rule
87, "Emergency Oil Allowables," is adopted, allowing many of the
state's oil wells to increase production up each well's capacity
for the months of September, October, and November. This is in
response to U.S. Department of Energy request to lessen impact of
any disruption of supplies from the Mid-East resulting from Iraq's
invasion of Kuwait.
October 19, 1990
331st District Court
(Travis County) issues "Order for Issuance of Temporary Injunction"
in suit OXY USA, Inc. filed against the Railroad Commission of
Texas challenging the validity of the Commission's General Market
Demand order that continues the 86 percent market demand factor for
non-exempt prorated wells in the East Texas Field. The order
establishes a 100 percent factor for October and November.
November, 1990
The Commission adopts rules
which require drug testing for persons in safety sensitive
positions with pipeline companies.
November 1, 1990
Statewide Rule 32, "Gas
Well Gas and Casinghead Gas Shall Be Utilized for Legal Purposes,"
is revised to permit venting instead of flaring in certain
circumstances and to expressly include casinghead gas with
gathering systems and plants associated with the production of
casinghead gas within the scope of the rule.
December 19, 1990
James E. (Jim) Nugent becomes Chairman of the Railroad Commission.
January 3, 1991
Robert Krueger succeeded Kent
Hance as a Railroad Commissioner.
January 23, 1991
Lena Guerrero succeeded
John Sharp as a Railroad Commissioner.
February 11, 1991
Bob Krueger becomes Chairman of the Railroad Commission.
March 25, 1991
The legislature enacts H.B.
2505, which imposes fees on first sale of odorized liquefied
petroleum gas (LPG) and assigns the Commission new duties of
researching and educating the public on alternative fuels.
Tex. Nat. Res. Code Ch. 113, Subchapter I
April 23, 1991
Lena Guerrero becomes Chairman of the Railroad Commission.
August 26, 1991
The Commission creates a
new Alternative Fuels Research and Education Division to administer
H.B. 2505.
August 26, 1991
The Commission given
jurisdiction over Aggregate Quarry and Pit Safety.
Texas Nat. Res. Code c.133.
September 1, 1991
Statewide Rule 22,
"Protection of Birds," is adopted to require operators to screen,
net, cover, or otherwise render harmless open-top tanks and pits
that are likely to collect oil. An amendment effective November 1,
1991 restricted the requirement to open-top tanks 8 feet or more in
diameter.
September 1, 1991
Implementation of the Oil
Field Cleanup Fund and program authorized by Senate Bill 1103 of
the 72nd Texas Legislature. The Cleanup Fund replaces the Well
Plugging Fund and receives monies from a variety of new fees paid
by industry (drilling permit application fees graduated according
to depth, lease severance reconnection fee, discharge permit
application fee, and a regulatory fee of 5/16th of a cent per
barrel of oil produced and 1/30th of a cent per mcf of gas
produced). The fund's projected $10 million will be used to plug
wells for which no responsible operator can be located or where the
responsible operator lacks financial resources for plugging and to
clean up surface pollution. The legislation also created a
hazardous oil and gas waste regulatory program to be funded by fees
levied on generators of such waste with the fee determined by the
type and quantity of waste generated.
S.B 1103
October 30, 1991
The Commission adopts
aggregate Quarry and Pit Safety Regulations.
January 1, 1992
The saltwater hauler
regulatory program is expanded to become the Oil and Gas Waste
Hauler Program under Senate Bill 1103 (see 9/1/91, above). The
saltwater hauler bond is replaced by a $100 permit application and
renewal fee with revenues dedicated to the Oil Field Cleanup
Fund.
S.B. 1103
January 31, 1992
The State of Texas Energy
Policy Partnership is introduced. Under the joint guidance of the
Governor's Energy Office and the Railroad Commission, STEPP brings
together some 300 participants to develop recommendations for a
state energy policy. With representatives from government, consumer
groups, industry, environmental groups, and academia all areas of
Texas energy resources and demand are to be examined. A report is
to be presented to the 73rd Legislature, Spring 1993.
February 1992
Shut-in wells, those with
shut-in-wellhead pressure, become subject to the plugging
provisions of Statewide Rule 14(b)(2). Once such a well has been
inactive for a year, it must either be plugged, put back into
production, or have a 14(b)(2) extension based on a financial
assurance.
February 25, 1992
Statewide Rule 5,
"Application to Drill, Deepen, Reenter, or Plug Back," is amended
in response to Senate Bill 1103 to require that a drilling permit
cannot be issued to an organization if there is an outstanding
final order finding a safety or pollution violation against the
organization, its officers or any organization that those officers
are or were associated with.
March 1, 1992
Statewide Rule 14 "Plugging,"
is amended to require that wells that are at least 25 years old and
inactive one year or more must pass an annual fluid level test.
Mechanical integrity testing is required every five years,
beginning January 1, 1997 on wells that are both 25 or more years
old and inactive for ten or more years. Requirements for plugging
of horizontal wells are included in the amendment.
March 18, 1992
Statewide Rule 50, "Enhanced
Oil Recovery Projects," is amended as a result of Senate Bill 3
(72nd Legislature) to allow incremental production from expansions
of existing Enhanced Oil Recovery ("EOR") projects to be eligible
for consideration of taxation at the lower EOR severance tax
rate.
The Commission adopts definitions and rules for administering,
collecting, reporting and paying LPG delivery fees.
16 TAC ''15.1-15.2; 15.21-15.27
July 1, 1992
Statewide Rule 31, "Gas Well
Allowables," is amended to discontinue prior system of determining
market demand for prorated gas fields using nominations filed by
the initial purchaser or user of gas. Under the new system, the
Commission calculates market demand using as a base the actual
production levels from that same month for the preceding year. The
amended rule also defines a well's "capability" as the lesser of
the well's latest deliverability test or its highest monthly
production within the six most recently reported production months.
Statewide Rule 30, "Gas Nominations Required," is repealed as part
of the revisions to the gas proration system.
September 1992
The Commission's regulatory
program for the management of oil and gas wastes exempt from the
Federal Resources Conservation and Recovery Act (RCRA) is reviewed
by an Interstate Oil and Gas Compact Commission (IOCC) committee
made up of representatives from other states' regulatory agencies.
Along with reviews of other states' programs, this is to ensure
that programs are in place that the federal government will
recognize as successfully managing such wastes.
October 2, 1992
Jim Wallace succeeded Lena
Guerrero as a Railroad Commissioner.
December 31, 1992
The well category
determination program of the federal Natural Gas Policy Act (NGPA)
of 1978 ends. Under the federal Natural Gas Wellhead Decontrol Act
of 1989, the Commission no longer makes determinations on pricing
categories.
January 5, 1993
Barry Williamson succeeded
Jim Wallace as a Railroad Commissioner.
February 10, 1993
Mary Scott Nabers
succeeded Bob Krueger as a Railroad Commissioner.
February 22, 1993
James E. (Jim) Nugent becomes Chairman of the Railroad Commission.
April 26, 1993
The Commission approves a well plugging priority system that
includes additional environmental, wildlife, and human health
factors.
June 4, 1993
The Commission kicks off a
waste minimization education program for oil and gas operators by
conducting an all day workshop for industry participants.
August 31, 1993
The Commission sets a new
record in the number of wells plugged with state funds. A total of
1,404 wells were plugged during Fiscal Year 1993, exceeding the
previous record of 714 wells plugged during Fiscal Year 1986.
September 1, 1993
Texas Aggregate Quarry
and Pit Safety Act was amended to allow counties with populations
greater than 2.4 million to promulgate regulations for aggregate
quarries and pits in unincorporated areas which are not regulated
by the Commission, to clarify definitions, to provide for revised
application and transfer requirements, to provide for barrier
requirement waivers for abandoned or inactive pits subject to
regulation due to public road construction prior to August 31,
1991, to revise fees for governmental entities and to limit
governmental liability.
Nat. Res. Code, '' 133.003, 133.041, 133.042, 133.045-.047, 133.051,
133.088 and 133.091-.093.
Implementation of Senate Bill 1313, 73rd Legislature, significantly lessened the regulation of motor carriers by the Commission. The Bill's provisions included the expansion of commercial zones, the lessening of entry requirements for disadvantaged business applicants and certain other categories of applicants, the shortening of time periods for unprotested tariff amendments to become effective, and the establishment of shortened time periods for contested case hearing procedures and decisions.
The legislature enacts S.B.576/H.B.2008 giving the jurisdiction to the LP-Gas Division to regulate the liquefied natural gas (LNG) industry to the same extent that it regulates the LPG and CNG industries.
Statewide Rule 50, "Enhanced Oil Recovery Projects" is amended to extend the time for filing applications for the Enhanced Oil Recovery Project authority from January 1,1994 to January 1, 1998. Additionally, it provides operators an opportunity for a tax incentive for qualifying "Co-Production Projects". Application period open from September 1, 1993 until January 1, 1994. (Senate Bill 466/ House Bill 2723.)
September 1, 1993
The legislature enacts
H.B.2822 authorizing the Commission to establish consumer rebate
and incentive programs for LPG appliances and equipment and
limiting the proportion of the Alternative Fuels Research and
Education Fund usable for such programs to not more than 25 percent
of the funds available.
September 13, 1993
The Commission adopts
Statewide Rule 84, relating to agency procedures for determining
whether a natural gas supply emergency exists.
November 1, 1993
Commission adopts
Statewide Rule 91, "Cleanup of Soil Contaminated by a Crude Oil
Spill." This rule establishes standards and procedures for cleanup
of most crude oil spills.
November 16, 1993
Commission adopted
amendments to Quarry and Pit Safety Regulations to update
application procedures, provide new definitions, provide barrier
requirement waivers, and provide reduced fees for governmental
entities.
16 TAC ''
11.1004, 11.1005, 11.1021, 11.1033, 11.1034, 11.1038, 11.1040,
11.1043 and 11.1081
November 24, 1993
Commission adopts
Statewide Rule 83, concerning 3-year inactive wells. Allows an
operator to obtain Commission certification of a wellbore as a
3-year inactive well to qualify for a tax exemption provided in the
Tax Code. Adoption of this incentive measure will result in an
estimated $1.3 billion boost to the Texas economy.
December 1, 1993
The LP-Gas Division is
awarded a Department of Labor grant to train defense and
defense-related industry workers displaced from their positions due
to reductions in defense spending and military base closures in the
Dallas/Ft. Worth area to convert vehicles to alternative fuels and
place them in jobs in Texas as alternative fuel vehicle technicians
and fleet managers.
December 1, 1993
The LP-Gas and Alternative
Fuels Research and Education (AFRED) Divisions were awarded a State
Energy Conservation Office grant to conduct classes for automotive
mechanics statewide on conversion of vehicles to LP-gas.
January 1, 1994
Commission adopts Statewide
Rule 95, "Underground Storage of Liquid or Liquefied Hydrocarbons
in Salt Formations," Statewide Rule 96, "Underground Storage of Gas
in Productive or Depleted Reservoirs", and Statewide Rule 97,
"Underground Storage of Gas in Salt Formations." These rules impose
new requirements for protection of public safety for operations
involving storage of natural gas and liquid or liquefied
hydrocarbons in underground salt formations and depleted
reservoirs.
The Commission implements the streamlined Salvage Program Procedures authorized under House Bill 2705, 73rd Legislature, 1993. This salvage program generated $256,126 in its first year, by allowing the Commission to sell equipment from abandoned oilfield sites.
February 3, 1994
A U.S. District Court
judge in Houston enjoined the Commission from administratively
processing applications, holding hearings, or issuing orders or
operating authority to disadvantaged businesses under the
provisions of Senate Bill 1313, codified as section 4(f) of the
Texas Motor Carrier Act.
February 17, 1994
Commission adopts Statewide Rules 26, 52, & 71, eliminating the
need for obtaining ex- exceptions to use Lease Automated Custody
(LACT) equipment and other devices to effect custody transfer of
oil and condensate.
July 6, 1994
The Commission's Oil and Gas Division is awarded two grants from
the Natural Resource Trustees to conduct GIS (Geographic
Information System) projects on the coastal area of Texas.
July 18, 1994
Commission adopts rules
establishing the Propane Alternative Fuels Advisory Committee to
advise the Commission on matters relating to the Alternative Fuels
Research and Education Division. 16TAC§15.30.
August 22, 1994
Commission adopts rules
establishing a voluntary consumer rebate program for purchasers of
LPG water heaters. 16TAC§§15.101-15.165
August 23, 1994
The Federal Aviation
Administration Authorization Act of 1994 (Pub. L. 103-305)
preempted any state, effective January 1, 1995, from enacting or
enforcing any law related to prices, routes, or services of motor
carriers except those laws relating to transporters of household
goods and laws relating to safety, insurance, and highway route
controls based upon the weight or hazardous nature of cargo being
transported.
August 26, 1994
The Trucking Industry
Regulatory Reform Act of 1994 (Pub. L. 103-311), effective upon
enactment, prohibited states from enforcing any law relating to
intrastate fares on interstate motor bus carriers over routes
authorized by the Interstate Commerce Commission.
September 30, 1994
Commission's Oil and Gas
Division enhances it's automated mapping system by completing the
digital base map consisting of the Original Texas Land Surveys and
the Offshore State Tracts.
November 21, 1994
Commission establishes a
voluntary media rebate program for LPG retailers.
16TAC§§15.201-15.245
December 10, 1994
Carole Keeton Rylander
succeeded Mary Scott Nabers as a Railroad Commissioner.
December 12, 1994
The Commission adopted
new regulations for the registration of commercial carriers,
effective January 2, 1995, to comply with the recent federal
preemption legislation and to ensure adequate insurance and safety
practices by such carriers over Texas highways.
Commission adopts Rule 94 "Disposal of Oil and Gas NORM Waste." This rule establishes requirements for disposal of oil and gas waste that is contaminated with naturally occurring radioactive material (NORM).
December 19, 1994
Commission adopts
Statewide Rule 3.101, "Certification for Severance Tax Exception
for Gas Produced from High-Cost Gas Wells". This allows for more
efficient processing of severance tax exemption applications.
December 21, 1994
Barry Williamson becomes
Chairman of the Railroad Commission.
1995
The Commission initiated its
Computational Technology Initiative (ACTI) collaborative activities
with Texas A&M University and Lawrence Livermore National
Laboratory. The goal of ACTI, a Department of Energy funded
initiate, is to use technology for providing the global community
with oil and gas information as a means of promoting further
domestic exploration and production.
February 5, 1997
The Commission streamlined
the approval process for plugging non-leaking wells with state
funds by eliminating the requirement of issuing a final order
directing the operator to plug a well prior to approving it for
plugging with state funds. The result was the approval of 2,155
wells for plugging with state funds in fiscal year 1997, the second
highest number of approvals since the inception of the Well
Plugging Program in September 1983.
January 3, 1995
Charles R. Matthews
succeeded James E. (Jim) Nugent as a Railroad Commissioner.
February 1, 1995
Rule 94 "Disposal of Oil
and Gas NORM Waste" becomes effective.
August 1995
Area-of-review variance
procedures for permitting underground injection wells approved by
the Commission for the East Texas Field. Rather than well-by-well
AORs, this might allow wells in a basin, producing trend, region,
or field to be exempted from AOR through a variance program. The
Permian Basin and Gulf Coast areas are being studied next to see if
a variance standard can be developed.
The Oil and Gas Division's Environmental Services group is awarded the U.S. Environmental Protection Agency's Regional Administrator's Environmental Excellence Award for its Waste Minimization Program.
September 1995
New procedures introduced
for gas fields to change between prorated and AOF status
procedures. A field may go to AOF status if each operator of active
gas wells in the field certifies that there is 100 percent market
demand for productive capacity of all the operator's active gas
wells in the field and that productive capacity is produced.
September 1, 1995
High Cost-Gas incentive
program changes as a result of 74th Legislature. Certification
applications must be filed with the Commission and tax applications
with the Comptroller within 180 days of first production.
Pursuant to SB 3, passed by the 74th Legislature, the Commission transferred all remaining motor carrier regulatory functions to the Texas Department of Transportation, thus ending over sixty years of Commission regulatory oversight of this industry.
October, 1995
Commission reorganization
included the dissolving of the Transportation/Gas Utilities
Division and the Liquefied Petroleum Gas Division in favor of a new
Gas Services Division and a new Rail Division.
October 1, 1995
Oil and Gas Division reorganized into Production Services,
Permitting, Environmental Services, Regulatory Compliance (Field
Operations), and Well Plugging sections.
November 7, 1995
The Commission approves
Statewide Rule 98, "Management Standards for Hazardous Oil and Gas
Waste," effective April 1, 1996. The rule creates management
standards for generators and transporters of hazardous oil and gas
waste, paralleling the federal hazardous waste regulations under
Subtitle C of the Resources Conservation and Recovery Act. The
program is to be supported by site fees from large and small
quantity generators. Most sites, though, will be classified as
conditionally exempt small quantity generators.
November 21, 1995
Carole Keeton Rylander
becomes Chairman of the Railroad Commission.
December 1995
RRC now offers operators
option of electronic report filing on eight high-volume forms.
January 1, 1996
Texas Experimental Research and Recovery Activity C TERRA C is inaugurated. The
program allows operators an alternative to plugging mechanically
sound, non-polluting wells that can't be produced economically. For
a fee based on the avoided plugging cost, the operator places the
well in the hands of the commission. It is then made available for
research aimed at increased recovery. The operator may retrieve the
well from TERRA if circumstances change, making production once
again viable.
January 31, 1996
Commission establishes a
voluntary highway signage rebate program for propane and natural
gas retailers through the Alternative Fuels Research and Education
Division, under a $31,000 grant from the U.S. Department of Energy.
16TAC§§15.301-15.350
February 1996
Contract signed for the Oil
and Gas Data Infrastructure Project. With support of U.S.
Department of Energy's Advanced Computational Technology Initiative
(ACTI), the Commission with partners ranging from Texas A&M
university, Texas Independent Producers and Royalty Owners
Association, to the State of California, and the national
laboratories, is combining database, Internet, and World Wide Web
technology to make existing oil and gas data readily available for
on-line analysis.
The 10,000th well is plugged under the Commission's plugging program that began in September 1983. This program is financed from fees and levies paid by the oil and gas industry. In 1961, the first well was plugged with state funds.
February 29, 1996
The Commission certifies
the last "3-Year Inactive" well under the incentive offering tax
exemptions to wells returning to production after being three or
more years inactive.
March 26, 1996
After public hearings around
the state and months of input from interested parties, the
Commission voted to oppose the Union Pacific Railroad=s merger application
before the federal Surface Transportation Board to acquire the
Southern Pacific Railroad for $3.9 billion.
April 1, 1996
Statewide Rule 98,
AManagement Standards for Hazardous Oil and Gas Waste@ became
effective.
January 7, 1997
Charles R.
Matthews becomes Chairman of the Railroad Commission.
January 10, 1997
Rule 93 "Water Quality
Certification" becomes effective. §401 of federal Clean Water Act
provides that states must certify that certain federal licenses and
permits comply with applicable state water quality requirements.
Rule 93 governs issuance of §401 certifications by the Railroad
Commission of Texas.
Amendments to Rule 8 "Water Protection" regarding Texas Coastal Management Plan (TCMP) becomes effective. These amendments added a new subsection (j) which applies only to activities that occur in the coastal zone and that are subject to the TCMP.
February 1997
Completed ARC/Info for county
boundaries and statewide water coverage. Currently converting
statewide survey coverage.
Governor Bush designates the Railroad Commission as a primary member of the federal Regional Response Team for emergency response and planning. The Governor also designates the Commission as an agency that can file Oil Pollution Act claims directly with the federal trust fund.
February 13, 1997
Rule 49, 52 and 53 were
amended to exempt certain low volume oil wells from annual testing
requirements.
April 8, 1997
Former two-term Governor
William P. Clements receives inaugural Texas Energy Pioneer Award,
kicking off the annual State of the Industry meeting in Austin. The
new award will recognize and honor outstanding energy industry
leaders.
April 21, 1997
Rule 38 was amended to expedite administrative approval of
applications.
May 1, 1997
Rule 31 was amended to expand category of special allowable gas
wells providing regulatory relief for marginal gas wells.
May 6, 1997
The Commission approved its
first-ever million dollar state-funded plugging order authorizing
$1,405,400.00 to plug 148 wells including 26 wells in Matagorda
Bay.
May 20, 1997
Commission issues final order
in GUD 8664, Lone Star City Gate Rate Case.
June, 1997
HB1611 required all public
schools to conduct pressure tests on their piping systems prior to
the school year. The Commission enacted emergency rules in July to
cover the testing process.
June 16, 1997
HB3194 is enacted requiring
some gas pipelines to receive construction permits from the
Commission.
June 23, 1997
Rules 26 and 27 were amended
to incorporate provisions of SB 1357 passed in the last legislative
session relating to surface commingling.
August 18, 1997
The Railroad Commission of
Texas adopts new Substantive Rule Section 7.59, concerning gas
transportation standards and code of conduct.
August 31, 1997
The Commission set new
fiscal year records in plugging 1,578 wells and completing cleanup
activities at 213 sites with state funds.
September 1997
Oil & Gas, with ITS support, completed the LAN/WAN connection
for all district offices. Public computer inquiry has been upgraded
from mainframe technology to PC based. This effort was assisted by
funding from the Department of Energy.
September 1, 1997
Legislature enacts S. B.
925 aligning Texas' system of administering LPG delivery fees more
closely with the system set out in the federal Propane Education
and Research Act of 1996 (P.L. 104-284, October 11, 1996) and
requiring that 50 percent of funds available in the Alternative
Fuels Research and Education Fund be devoted to consumer rebate and
incentive programs.
September 1, 1997
Commission reorganizes Alternative Fuels Research and Education
Division to implement S.B. 925.
September 1, 1997
Rule 37 was amended to
simplify and reduce notification requirements.
Two-year inactive well incentive program implemented as a result of new legislation adopted in the 75th legislative session. Any well that has no more than one month of production since September 1995 is eligible for a 100% tax exempt status on the production if brought back on to production. A comprehensive list of eligible wells was sent to the operator of record at the end of August 1997.
Incremental production tax incentive program for low producing oil leaes implemented as a result of legislation adopted in the 75th legislative session. Any oil lease that produced less than or equal to 7 BOE per well per day in 1996 may be eligible for a 50% tax reduction for 5 years on any incremental production if an incremental production technique is used. A comprehensive list of all eligible oil leases was sent to the operator of record at the end of August 1997.
September 16, 1997
Oil and Gas Division
reorganized into Permitting & Production Services,
Environmental Services, Regulatory Compliance (Field Operations),
Well Plugging, and Information Management Services.
September 16, 1997
The Commission approved increased expenditure authority levels for
Commission Oil and Gas Division directors. The Director of the Oil
and Gas Division was granted authority to approve up to $25,000 for
well plugging operations and $25,000 for assessment and cleanup
activities. The Assistant Directors for Well Plugging and Site
Remediation were granted authority to approve up to $10,000 for
well plugging operations and $10,000 for assessment and cleanup
activities, respectively. The District Directors were granted
authority to approve up to $5,000 for pre-plugging and emergency
cleanup expenditures. The new expenditure authority further
streamlined the approval for plugging wells and remediating sites
with state funds in addition to enhancing the Commission’s ability
to respond to emergency situations more effectively and
efficiently.
October, November 1997
The Oil and Gas
staff worked with partners in industry to conduct nine Production
Incentive and Technology Seminars (PITTS) across the state in
district office locations. In addition to Commission presentations
on tax incentives, gas services, and district office information,
each seminar included presentations from industry speakers on
production incentives and technologies of interest in that area.
Participants were provided electronic demonstrations of new
information technology and a vast amount of information handouts
and brochures from the Commission, the Comptroller’s office, and
various industry associations were available.
October 3, 1997
The Commission conducts the
first of seven hearings around the state concerning the rail safety
and service crisis involving the Union Pacific Railroad at Houston.
Besides the initial hearing in Austin, other hearings followed in
Fort Worth, El Paso, San Antonio, Corpus Christi, and
Harlingen.
November 29, 1997
The Commission filed its
service recovery plan with the federal Surface Transportation Board
in Ex Parte No. 573, Rail Service in the Western United States. The
three part plan, designed to restore acceptable rail service to the
Houston/Gulf Coast area which deteriorated to a crisis state as a
result of Union Pacific Railroad’s failure to smoothly absorb the
Southern Pacific in the merger of the two.
December 29, 1997
The Commission
establishes a voluntary manufactured housing incentive program
through the Alternative Fuels Research and Education
Division. 16TAC§§15.401-15.450
January 5, 1998
Commission retitles
16TAC§§15.101-15.165 (the Alternative Fuels Research and Education
Division's water heater rebate rule) as Propane Consumer Rebate
Program, makes LPG dryers eligible for rebates, and amends the rule
to comply with S.B. 925.
March 16, 1998
Commission repeals old LPG
delivery-fee and loading-rack registration rules (16TAC§§15.1,
15.2, 15.21-27) and simultaneously adopts new delivery-fee and
odorizer/importer registration rules (§§15.1-15.100) implementing
S.B. 925, 75th Legislature. 16TAC§§15.1-15.100
March 17, 1998
Adopted amendment to Rule 46
(Fluid Injection) to provide for the issuance of area permits to
cover enhanced recovery projects areas. The benefits for area
permits are the streamlining of permitting of additional injection
wells in the permit area, which allows operators to reconfigure
injection patterns more quickly than under the current rule
requirements.
Extended Statewide Rule 50 (Severance Tax Reduction of 50% for Enhanced Oil Recovery Projects) from January 1, 1998 to January 1, 2008.
April 1998
The first version of the Texas
ACTI production query was released on the Commission web site with
1996-97 data.
April 22, 1998
Ken Lay, Chairman and CEO of
Enron Corporation receives the second Texas Energy Pioneer Award
for his outstanding contribution and leadership in the energy
field. The recipient of the first Texas Energy Pioneer Award was
former Texas Governor Bill Clements.
May 1998
The Commission began calculating a
supplemental production factor each month to be applied to the
preliminary reported statewide total for oil and gas well gas in
order to more accurately estimate final production.
May 31, 1998
New Rule 30, Memorandum of
Understanding between the Railroad Commission of Texas and the
Texas Natural Resource Conservation Commission becomes effective.
MOU updates existing MOU between the two agencies concerning
jurisdiction over management of waste from oil and gas exploration,
development, production, and refining. The new rule greatly
streamlines procedures and better clarifies jurisdictional
boundaries so that the public and the regulated community know
which agency to contact on a particular problem or incident. The
new rule also includes agreements between the agencies on certain
issues to ensure that our actions are coordinated, consistent, and
comprehensive.
May 31, 1998
New Rule 30, Memorandum of
Understanding between the Railroad Commission of Texas and the
Texas Natural Resource Conservation Commission becomes effective.
MOU updates existing MOU between the two agencies concerning
jurisdiction over management of waste from oil and gas exploration,
development, production, and refining. The new rule greatly
streamlines procedures and better clarifies jurisdictional
boundaries so that the public and the regulated community know
which agency to contact on a particular problem or incident. The
new rule also includes agreements between the agencies on certain
issues to ensure that our actions are coordinated, consistent, and
comprehensive.
June 5, 1998
The Commission established a
Rail Advisory Committee, consisting of railroads, shippers, and
public officials, to study and make recommendations on a variety of
rail issues, including service, competition, safety, and
infrastructure requirements. The Committee met throughout the
fall, and concluded its task December 1, by making a number of
recommendations to the Commission regarding the formulation of a
state rail policy and the establishment of a state rail
program.
June 30, 1998
Statewide Rule 83 (Tax
Exemption for 3-year Inactive Wells) was revised to include the two
year inactive well program. Under this program, any oil or gas well
which has shown no more than one month of production in the last
two years, and is brought back into production, may be eligible for
up to a ten year severance tax exemption. As of December 1998,
73,502 wellbores have been designated as eligible for this
exemption and 1,478 wellbores have been certified for the ten year
tax exemption
July 8, 1998
The Commission filed its rail
service recovery plan with the U.S. Surface Transportation Board in
the special oversight proceeding related to the merger of the Union
Pacific/Southern Pacific Railroads. The "consensus plan" was
filed in association with the Society of the Plastics Industries,
Inc., Chemical Manufacturers Association, Texas Chemical Council,
Kansas City Southern Railroad, and Texas Mexican Railroad.
The plan called for unrestricted three railroad competition in the
Houston/Gulf Coast area, expanded neutral switching, and
competitive access for captive shippers.
July 14, 1998
Carole Keeton Rylander becomes Chairman of the Railroad Commission.
August 1998
As a cost reduction item, gas
supplements created in AOF fields to cover production are no longer
mailed to operators.
August 10, 1998
Amendments to Rule 9
(Disposal Wells) and 46 (Fluid Injection into Productive
Reservoirs) became effective. These amendments amended the
notification requirements for permit applications and codified the
Commission’s requirements for pressure test to determine mechanical
integrity.
August 31, 1998
The Commission set new
records in fiscal year 1998 for well plugging, site remediation,
and salvage operations. A total of 1,604 wells were plugged and 281
sites were remediated with state funds. The Salvage Program
generated $1.16 million for the Commission’s Oil Field Cleanup
Fund.
September 1998
Electronic Compliance and
Approval Process (ECAP): The Railroad Commission of Texas, in
partnership with the oil and gas industry, proposed a strategy for
improving efficiency in regulation and significantly reducing
administrative operating costs for both. ECAP will ultimately
enable the filing of all compliance permits (approximately 150,000
annually) and performance reports (approximately 2,000,000) through
the Internet from a desktop computer. Total annual savings for the
industry in Texas based upon only 25% utilization of electronic
filing is expected to be $17.5 million. The drilling permit
application process has been selected as the pilot step because it
encompasses the first step in a well’s life cycle and because it
will provide an infrastructure and solutions to technical elements
such as security, authentication, submission of electronic plats,
electronic signature, archiving and storage, and electronic
transfer of applicable fees. Once developed, the completion
application, organization permits, injection permits, pit permits,
etc.
Advance Computational Technology Initiative (ACTI): Production figure from 1993 to the current production month became available on the web site. In addition to production totals, the relational data base environment of the Internet allows the data to be sorted in ways unavailable in the Commission mainframe. The public can access production totals by county, by field, by district, by lease, and by operator.
September 1, 1998
The Commission approved
the use of a revised extended service, multiple well plugging
contract designed to increase efficiencies in the bidding process
and to achieve some economies of scale by bidding multiple leases
with multiple wells under one contract. The revised contract
allowed to the Commission to reduce the number of invitations to
bid and attain overall lower plugging costs.
September 22, 1998
Statewide Rule 28
(Potential and Deliverability of Gas Wells to be Ascertained and
Reported) was revised to increase the number of gas wells exempted
from semiannual G-10 testing. Non-commingled gas wells with
deliverabilites between 101 to 250 MCF a day in fields with no
special field rules were exempted. Approximately 1000 wells were
affected by this change.
The use of a revised well plugging priority system was approved by the Commission. The revised system improved on the previous system by placing additional emphasis on risk factor addressing environmental and safety concerns and allowed the Commission to focus its well plugging efforts on wells posing a greater threat to the environment.
November 1998
A new spot audit process of
Form T-1, Page 2 was initiated in lieu of monthly auditing of every
report.
The P-5 Financial Assurance Unit was connected, via the Internet, to the offices of the Secretary of State and the Comptroller of Public Accounts. This procedure enabled our unit to expedite the processing of the P-5 filings.
January 4, 1999
Tony Garza succeeded Barry
Williamson as Railroad Commissioner .
January 4, 1999
Michael L. Williams succeeded
Carole Keeton Rylander as Railroad Commissioner .
January 26, 1999
Tony Garza becomes
Chairman of the Railroad Commission.
September 14, 1999
Michael Williams becomes
Chairman of the Railroad Commission.
1999
15,000th well is plugged under the
Commission's plugging program.
