Capitol Complex Construction

If you are planning to visit the Railroad Commission’s Austin offices in the William B. Travis state office building, please be aware of changes to traffic patterns and the availability of metered parking in the area due to the Capitol Complex Construction project.  Click here for additional information.

Severance/Seal Order Definition List

Notices Issued: On identification of a rule violation, the Commission sends a notice to the operator by certified mail.  The notice advises the operator of the violation and provides a deadline for correction (generally, 30 days).  The letter also advises the operator that if the violation isn't corrected by the deadline, a severance or seal order will be issued prohibiting the operator from producing, moving oil or gas, or otherwise using the well(s) affected.
Resolved without Severance/Seal Order:  If the violation is corrected prior to the deadline given in the notice, no further action is taken and the matter is closed. 
Resolved after Severance/Seal Order:  After the deadline has passed, a severance order (for oil leases) or seal order (for gas wells) is issued.  That order prohibits the operator from producing, selling hydrocarbons, or otherwise using any of the wells under the order until the violation has been corrected and a statutory fee has been paid. 
Unresolved Notices:  Indicates violations that have not yet been resolved.  This includes matters where the deadline contained in the notice has not yet passed, and matters where severance/seal orders are in place but corrective action by the operator is still required.  In cases where the severance/seal order has been issued, the Commission may proceed (or may have already proceeded) to further enforcement action.
Severance Fee Revenue:  Total receipts during the period of statutory fees required following the issuance of a severance or seal order.  Note:  Fees received during this period may be related to orders issued previously, and may be for violations that have not yet been corrected.  This revenue is deposited into the Oil & Gas Regulatory and Cleanup Fund and is used, among other purposes, to plug orphaned wells and clean up pollution at abandoned sites.
Severance/Seal Orders issued by Fiscal Year:  Total number of severance and seal orders issued during the fiscal year.  Note: Severance and seal orders issued in a given fiscal year may be based on certified letters issued in prior years and, therefore, won't reconcile directly with the certified letter figures from that year.  Discrepancies due to timing issues of this type will offset over consecutive years.

Last Updated: 3/8/2016 1:45:20 PM