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Energy News October 2019

RRC Unveils New Look This Fall Check Out Our Modern Logo

Calling all Number Geeks!

RRC Seeking Public’s Help to Find Texas’ Historic Underground Mines

RRC Accepting Comments on Pipeline Safety & LP Gas

Hank Hill Would be Proud RRC Alternative Fuels Sets Licensing Record

FY 2020 Boots on the Ground Classes Kick Off!

RRC Staff Assists with New Oil & Gas Exhibit at Texas History Bullock Museum

End of an Era Longest Serving RRC Employee to Retire

Staff Moves

RRC Around Texas

Commissioners’ Corner

Resources

Upcoming Events Nov. 19, 2019

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Open Meeting

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Austin, TX

RRC Unveils New Look This Fall Check Out Our Modern Logo Emphasizing the Commission’s modern duties and responsibilities, the Commission unveiled its new logo this month. RRC Chairman Wayne Christian led the call for the new design to increase the Commission’s transparency while honoring the heritage of Texas’ oldest regulatory agency. The RRC will phase in use of the new logo as new materials are purchased. See more about the new design in Chairman Christian’s section of this newsletter.

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Calling all Number Geeks!

Check Out RRCâ€™s New Interactive Statewide Maps

Ever wonder how much oil or gas is produced in your county? Or where the Commission has plugged abandoned wells in your area? Now you can find out by using the Commission’s two, colorful new interactive data maps unveiled this month. “Instead of having to create spreadsheets and conduct other extensive analysis, users can now quickly determine which county produced the most oil or natural gas in a year,” said Wei Wang, RRC’s Executive Director. “These are the first of several interactive data visualization tools we are planning to release in the upcoming months to better inform the public about the state’s energy production and our agency’s regulation.” The maps provide data 24-hours a day, seven days a week beginning with Calendar Year 2018. From January 2019 forward, the maps will be updated each month with year-to-date statistics. The Texas Oil and Gas Production Map is available at:

VIEW THE OIL & GAS PRODUCTION MAP4 The map includes the following features: • Total statewide oil (excludes condensate production, which is the liquid hydrocarbons produced from a gas well) and natural gas production (includes gas well gas and excludes casinghead gas, which is gas produced from an oil well); • Two bar graphs showing the top 10 crude oil and natural gas production counties; and • Individual county pop-up graphics showing county name, crude oil and natural gas production. The Interactive State Managed Plugging Well Location and County Data Map is available at:

VIEW THE WELL PLUGGING MAP4 Most operators plug their own wells when the wells are no longer productive. To protect land and water resources, the Commission uses industry fees paid into the Oil and Gas Regulation and Cleanup Fund to plug abandoned wells.

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READ THE HOUSTON CHRONICLE ARTICLE4

RRC Seeking Public’s Help to Find Texas’ Historic Underground Mines Railroad Commission staff are asking for the public’s help with their hunt for historic underground coal mine tunnels. Nearly 100 years ago Texans hand dug tunnels to reach shallow coal deposits in demand by railroads. At that time there were no mining regulations requiring permits, maps and reclamation. “Underground lignite mining occurred throughout Texas from the 1880s to the 1930s so the tunnels could be anywhere,” said Joseph Parks, manager for RRC’s Abandoned Mine Land and Reclamation program. AMLR staff is currently working with several landowners in Bastrop and Center to inventory and reclaim historic underground mine tunnels. Landowners at these sites contacted the RRC after

noticing areas of subsidence and sinkholes on their property indicating possible tunnels. The historic tunnels in Bastrop and Center are estimated to be about 10- to 20-feet below ground and vary in size from 5 feet by 5 feet to 10 feet by 10 feet with lengths of up to several hundred feet, Parks said. Once an underground tunnel is found and confirmed, the sites are prioritized with those posing a public safety risk ranked highest. In some cases, tunnels may have collapsed on themselves and no filling in will be needed, Parks said. In other cases, if voids are found during mapping the RRC can use federal grants to fill in the tunnels.

LEF T: A view of sunken land on a Bastrop property, evidence of an underground manmade mine. TOP: This orange tube scans the undeground for anomolous data.

or other remote sensing technology to identify and map voids underground. This geophysical data is then used for a Phase 2 geotechnical boring drilling plan to confirm tunnel locations. Once mapped, the tunnels are reclaimed and backfilled if necessary, with sandy clay fill material to remediate any potential public safety or environmental threats. After a landowner contacts the RRC, AMLR staff review University of Texas Bureau of Economic Geology lignite reports that detail where historical underground mining occurred in Texas. Staff then ask landowners to send in photos of land depressions and sinkholes. Once they have concluded underground mining may have likely occurred in a specific area, RRC staff will visit a site to confirm subsidence could indicate an underground tunnel. If a site is confirmed as a historic mining site, then third-party contractors experienced in professional engineering geotechnical and geoscience investigation services are hired by the Commission. In Phase 1, contractors use an electron magnet, direct current resistivity, ground penetrating radar

Funding for tunnel reclamation is provided through federal Abandoned Mine Land grants to the RRC. An Abandoned Mine Land fee is assessed on coal production in Texas based on the type of coal and the number of tons produced. Completing Phase 1 & 2 tunnel mapping is estimated to cost approximately $250,000 in Bastrop and $150,000 in Center. If you are a landowner who think you may have an historic underground mine tunnel, please contact the RRCâ€™s Abandoned Mine Land and Reclamation Program at 512-305-8830 or mining@rrc.texas.gov.

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RRC Accepting Comments on Pipeline Safety & LP Gas Now until noon Nov. 18 is your chance to comment on three Commission rulemaking proposals to amend: 1. ยง3.70 regarding production and flow lines, permit renewals, gathering pipelines and certain fees; 2. Various rules in Chapter 8 regarding HB 864 and HB 866 (2019) and HB 2982 (2013), gathering lines, federal updates, construction reports and penalties; and 3. Various rules in Chapter 9 regarding HB 2714 (2019), National Fire Protection Association (NFPA) updates, and other clarifications. The rule proposals are available at the link below. Comments may be submitted online.

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Hank Hill Would be Proud RRC Alternative Fuels Sets Licensing Record in FY 2019

More than 7,300 licenses in a year or 20 each day—that’s how many licenses the Commission’s Alternative Fuels licensing section issued in FY 2019 setting a record. Not stopping there, staff also registered the highest number of trucks—nearly 5,600—to distribute liquefied petroleum gas (propane), compressed natural gas (CNG) and liquified natural gas (LNG) in FY 19 (Sept. 1 ,2018 - Aug.31, 2019). RRC’s Alternative Fuels section protects public safety by overseeing operators’ compliance with Commission rules on propane, CNG and LNG. Companies installing, transporting, dispensing and selling alternative fuels must be licensed with the Commission. Individuals performing activities with alternative fuels must be certified by the Commission and all alternative fuel installations must be installed in accordance with the Commission rules. “I’m extremely proud of our staff’s hard work,” said April Richardson, director of the Commission’s Alternative Fuels Safety Department. “Not only did we set records for ensuring operators are properly trained and licensed to protect public safety, but we did it with a shortage of personnel when two experienced licensing specialists retired. Fortunately, two new licensing specialists were quickly hired, trained and completed their tasks well ahead of schedule.”

VIEW OTHER FY 19 HIGHLIGHTS4

FY 2020 Boots on the Ground Classes Kick Off! School’s back in session for the Commission’s hard-working Oil and Gas Division staff as Boots on the Ground Classes kick off for Fiscal Year 2020. This year basic oil and gas rules training is on the syllabus for all Oil & Gas Division field staff including new inspectors as well as veteran inspectors, technical staff and lead inspectors, directors and assistants. The program provides a clear understanding of the agency’s inspection process, oil and gas rules and necessary technical knowledge to provide consistent enforcement across Texas. “Protection of public safety and our environment is the Commission’s highest priority, and our oil and gas staff are on the frontline 24/7 across Texas carrying out this mission” said RRC’s Executive Director Wei Wang. “This is the second year we are continuing to invest in our employees with our Boots on the Ground core curriculum statewide to ensure consistent and accurate application of our rules among all district offices.” Technical staff and lead inspectors attended class Sept. 24-27 in San Anglo; inspectors with two to six-year tenure completed class Oct. 15-18 in Austin, and technical staff and lead inspectors took class Oct. 22-25 in Kilgore. Curriculum includes a review of the Commission’s oil and gas rules; in-the-field mock exercises for inspections; and responding to spills and complaints. Seven additional BOTG classes are planned statewide for the rest of FY 20. The Commission has filled a record number of 170 oil and gas inspector positions statewide. In Fiscal Year 2019 (Sept. 1, 2018 -Aug. 31, 2019) inspectors completed 133,187 oil and gas inspections, exceeding the Texas Legislature’s performance goal for FY19. Ensuring oil and gas is produced safely and responsibly involved a lot of time on Texas roads, with inspectors driving almost 4 million miles in FY 19.

RRC Staff Assists with New Oil & Gas Exhibit at Texas History Bullock Museum Don’t miss the latest exhibit at the Bullock Museum in Austin, which demonstrates how the energy industry impacts the nation and world. RRC staff shared their world-renown oil and gas expertise with the museum on the state’s hydrocarbon-rich geologic formations. An Oil & Gas Division Director also takes visitors on a lease inspection via video. Guests also can check out antique, linen oil and gas well map on loan from RRC’s mapping department. Texas Oil and Gas brings together the history of the oil boom with engaging scientific content and interactivity to share the story of how oil changed Texas. Inside the Exhibition • Explore the past, present and future of the oil and gas industry in Texas and how it impacts the country and the world. • Discover the wealth of early prospectors through artifact highlights such as a beaded opera cape, tuxedo, and alligator bag. • Learn the story of environmental impacts and technological advancements through unique objects including historic cartoons, a “Christmas tree,” portable well fluid tester and perforating gun. • Marvel at the scale of the industry while viewing a working pump jack and floor-to-ceiling wall of products made from oil. • Multi-media and interactive highlights include: • Short video interviews demonstrating the diversity of careers within the oil industry; • Touchable rock samples, crankable drill bits, and a UV box to demonstrate fluorescence; • Large-scale infographics explaining processes, geology, and distribution; and • Immersive flyover footage of two off-shore oil rigs.

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End of an Era Longest Serving RRC Employee to Retire

After 43½ years of service at the RRC, Ed Abrahamson, currently the employee with the longest service to the RRC, is retiring Oct. 31. Abrahamson is Director of the Utility Audit section in the Oversight and Safety Division’s Gas Services Department. All but 1½ years of his tenure at the agency has been in the regulatory oversight of the gas utility industry. In April 1976, Abrahamson joined the agency as a part-time clerk in the (Motor Carrier) Transportation Division (Audit Section) while finishing college. In October 1977 he moved to the then Gas Utility Division as an auditor in the Corpus Christi District. A year later he transferred back to Austin. Over the years, Abrahamson rose through the ranks of Auditor II, Auditor III and later Supervising Auditor. Then he was promoted to his current position. “Defending audit finds related to large, significant audit violations,” Abrahamson explains is his greatest accomplishment while at the RRC.

Staff Moves New Duties for Familiar Faces in Oil and Gas Joe Stasulli (left) and Lorenzo Garza (right) are the new Deputy Assistant Directors for the Oil and Gas Divisionâ€™s Administrative Compliance department. Stasulli possesses 23 years of experience with the RRC. He has extensive knowledge of Well Compliance, Production and other areas, including policies, functions and statewide rules, most of which he had a hand in developing and administering. Stasulli has also been primary business lead in projects such as online completion filing (Form G-1/ Form W-2), clearance of storage tanks (Form P-8), well status report (Form G-10/Form W-10), change of gatherer/purchaser (Form P-4) and many other ongoing projects for the department. Stasulli will oversee the P-5, Well Compliance and Production departments. Garza possesses 18 years of experience with the RRC. He has extensive knowledge of financial assurance, along with familiarity in Administrative Compliance departments including policies, functions and statewide rules. Garza has led the department in significantly decreasing the turnaround time on permits. He has also built a solid rapport with the RRCâ€™s Information Technology Services Division, Office of General Council and Hearings Division by being a subject matter expert for online system enhancements, complaints, protests and general inquiries. Garza will oversee the Drilling Permit and Mapping Departments.

RRC AROUND TEXAS Pipeline Damage Prevention staff took their important safe digging message to South Texas this month. RRC’s Ricardo Gamez educated more than 400 excavators Oct. 3 in Robstown and Oct. 4 in Bay City about RRC’s rule requirements to call 811 before digging 16 inches or deeper to have underground pipelines marked. RRC staff were starstruck by a major star’s appearance the Texas Municipal League Annual Conference Oct. 9-11 in San Antonio. While educating city representatives about Commission resources available to help assess and clean up former oilfield sites, RRC staff got to meet Smokey the Bear. Commission employees also spoke to attendees about the importance of calling 811 before digging to have underground pipelines marked.

Commissioners’ Corn

Chairman Christian unveiled an updated RRC logo this month to increase agency transparency and better reflect the Commission’s duties and responsibilities. “The RRC is an historic brand in Texas and we want to preserve that part of our history. It’s also a brand recognized around the world as the global leader in energy regulation,” said Chairman Christian. “Since the Commission is the lead agency in Texas working to ensure safe, responsible production and transportation of our energy resources, this new logo better communicates to Texans exactly who we are, and what we do to serve them.” The RRC will phase in use of the new logo (above) as new materials are purchased.