Energy News August 2020
From the Field Photo Pumpjacks Photo by Kathryn Ware
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Railroad Commission Refining Oversight of Oil and Gas Industry Agency Balances Protections
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Fluid Injection Well Files Dating Back to 1960s Now Fully Digitized Resource Is Available to the
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Railroad Commission Restores Somerset Abandoned Mine Site
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Remember to Call 811 Before Digging
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We Are RRC
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Commissioners’ Corner
While Facilitating Development of Energy Resources
Public Via Online Databases
Upcoming Events September 22, 2020 V I E W M O R E R RC E V E N T S4
Open Meeting V I E W O P E N M E E T I N G W E B CA S T S4
Online
Railroad Commission Refining Oversight of Oil and Gas Industry Agency Balances Protections While Facilitating Development of Energy Resources
Not only is the state’s economy dependent on its oil and gas industry, but so are we in our everyday lives, in ways which may not occur to many of us. For instance, Texas lignite coal provides the raw material for activated carbon, which is used in water filters, air purifiers, and even kidney dialysis machines. It is the Railroad Commission’s job to ensure we can benefit from these valuable resources. In its role regulating the state’s energy production and ensuring its natural resources are extracted responsibly, the agency has been taking advantage of operational and technological efficiencies to achieve its goals. On Aug. 4, RRC commissioners took actions to further address flaring with proposed revisions to the Application for Exception to Statewide Rule 32, while the Commission creates better reporting requirements to record for how much each flare releases and an integrated online system connecting the work of technical specialists and agency field staff.
The proposed changes to the application are within parameters of existing rules and can be viewed at https://rrc. texas.gov/about-us/resource-center/
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forms/proposed-form-changes/. As the Railroad Commission takes these important steps, there have been some recent positive trends. While the amount of natural gas produced from oil and gas wells dropped by 13% from June 2019 to May 2020, the rate of produced gas that was flared went down by an even greater 79% over the 12-month period. More importantly, the flaring rate of casinghead gas, which is the gas produced from oil wells, decreased by 85%, and the ratio of casinghead gas flared to the amount of crude oil produced decreased by 82%. “The sharp decline in the flaring rate suggests that decreased flare volume was caused by more than simply a
decrease in production,” said Paul Dubois, RRC Assistant Director for Technical Permitting. “We will continue analyzing the monthly data that comes in. That information, along with the proposed modifications to the Statewide Rule 32 applications will help us continue a comprehensive approach to regulating flaring.” Growth of the energy industry and protection of environment are not mutually exclusive. According to the Association of Air Pollution Control Agencies’ 2019 report, the six major pollutants regulated by the EPA decreased by 73% from 1970 to 2017, while the U.S. economic growth increased by 262%. In order for the United States to be independent of oil and gas from troubled parts of the world and to protect itself from being held hostage to the politics of such places, it needs Texas. Texas is blessed with an abundance of oil and gas resources. According to a U.S. Geological Survey assessment in 2018, portions of the Delaware Basin in Texas and New Mexico’s Permian Basin area contain an estimated 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids. In 2016, USGS es-
timated that the Midland portion of the Permian Basin contains 20 billion barrels of oil, 16 trillion cubic feet of associated natural gas, and 1.6 billion barrels of natural gas liquids. In the Energy Information Administration’s Texas State Energy Profile, which was last updated in July, the state is still the largest energy producer in the United States, accounting for more than 40% of crude oil production and 25% of natural gas production. Natural gas accounts for more than half of Texas’ electric production and 38.5% of for the nation, according to the EIA. And because of Texas’ rich resources, the cost of electricity in the state is much cheaper than other parts of the country. In fact, it costs 49% less than California and 43% than New York. 2020 has been a year that has upended people’s lives and drastically affected many industries, including the oil and gas industry. Even during the midst of a global pandemic and economic hardships, the Railroad Commission remains committed to continuing its important work.
Fluid Injection Well Files Dating Back to 1960s Now Fully Digitized Resource Is Available to the Public Via Online Databases
When a governmental body is as old as the Railroad Commission, a lot of paperwork can accumulate – especially with technical documents. Paper takes up a lot of space, and because of its physical needs, it is not the most accessible of filing systems. But as technology became more powerful and affordable, it began to make a lot of sense to digitize such massive records, which the Railroad Commission has been doing. The latest digitation project, which finished in August, was for Underground Injection Control well files, which date as far back as the 1960s.
The estimated 8,500 files were packed in about 100 boxes. The documents, which include permitted fluid injection files, oil and gas records, and docket files, can now be accessed through the Injection/Disposal Permit Query via http:// webapps2.rrc.texas.gov/EWA/ewaMain.do;jsessionid=YxtPfEevgCvpDkmta2-aAFat--4clZM23RJ4orCL2tBjl4D41_3d!-750418501.
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“We now have all UIC files and permits added to our mainframe system,” said Margot Buyens, a permit specialist in the UIC section. “It adds all the pieces to the puzzle.” The imaged files include permit applications, permits, water board letters, maps, logs, notifications, hearings, protests, and more. The last boxes will be imaged soon, and all files will be accessible through the online research query and on the Public GIS Viewer. One of the benefits of digitizing the UIC records is that it helps the Railroad Commission to be more effective at protecting public safety and the environment. The information is plotted on a map showing the location of all injection wells, including historic ones, thus providing a resource for the agency’s inspectors. “For example, if there is some kind of pollution complaint reported, these wells can now be identified on the Commission’s GIS map as injection wells,” said Susan Moore, a program specialist in the Oil and Gas Division. This allows the inspector to have a more com-
plete picture of potential sources of pollution that may need to be examined closely. Moore notes that the digitized files can help with reservoir studies. Also, if there is a new injection well permit application, the applicant is required to identify other wells within a certain radius, and the digital record makes the process easier to complete. It helps permitting staff with their technical reviews of applications and ensures all the information that they need is readily accessible to them. There are other benefits as well. Previously when a person submitted an open records request for physical UIC files, it could have been time-consuming for staff to locate what was requested and scan it in. Now, with the files digitized, that UIC information is at a person’s fingertips with an internet connection, which saves valuable time for them and staff. “We have provided people with a lot of data that they might have not known about,” Moore said.
In the online research queries, people can search for fluid injection wells in a number of ways, including district, lease, operator, field, county, and more. And this is not just for historic UIC files. All applications are entered directly into the computer system, making the online record complete. Getting to this point, however, has not been easy. As is sometimes the case with paper files, they may not have been filled out legibly or completely in places. Or perhaps some papers in historic files became separated from the rest, making it difficult to determine in which file they belonged. For files such as these, staff had to spend time researching to figure out exactly what permit was associated with the documents. “We were going back and making sure we cleaned up all of the data entry for the records,” Moore said. “In some cases, the lease name had been deleted from the mainframe records. The lease names were researched and added back
to the mainframe. We wanted to make sure that anything that received an injection permit is in the mainframe.” While the project to digitize these records was important, the staff who worked on it still needed to complete their regular duties with the agency. It took about eight years to complete and was a collaboration between the agency’s UIC section, Central Records, and Information Technology Services. Of special note, Mark Wright from ITS worked on the project for eight years, and Darlene Cottle from UIC spent considerable time organizing the boxes to be processed. Moore, who spent most of her time with the RRC as part of the UIC section, retired from the agency in August after 33 years of service. She “stayed on,” as she put it, because she wanted to see the project through. “It was near and dear to me to have everything in place before I retired,” she said.
Railroad Commission Restores Somerset Abandoned Mine Site
Shallow coal mines are often associated with the English countryside in the 18th to early 20th centuries. But Texas, too, has its fair share of those types of mines, such as ones around the Somerset community south of San Antonio. These mines were initially dug in the latter half of the 19th century in the sandy Wilcox Formation, which has been causing problems more than a century after they closed.
TO P TO B OT TO M: Restoration in progress, before restoration, and after restoration.
Thanks to the Railroad Commission’s federally funded Abandoned Mine Land Program, hazards such as these are being methodically addressed.
“For the underground mines, you try to figure where the tunnels were,” said Katherine Upham, a Natural Resources Specialist with the RRC AML program. “You follow the sink holes.” AML’s latest project in the Somerset area was completed in August at a cost of about $299,000. It involved a four-acre area where the historic Kirkwood and Kinney lignite mines had been in operation. Contractors collapsed tunnels, filled the holes, graded the property, and then hydromulched the site with native species. It took about two months to complete the project.
The AML program rates known abandoned mines via a priority scale, depending on the threat to public safety. “It is a safety issue,” Upham said. “If a mine is extremely dangerous, those are a Priority 1.” The recent Somerset project was a Priority 1. Some of the shallow tunnels were exposed to the surface and others sinking. The perimeters of such sinkholes are unstable, and the mined-out rooms are prone to collapse, especially during periods of high rainfall. “The sinkholes were close to a county road,” said Joe Parks, manager of the AML program
A B OV E: Restoration in progress
and a former mine supervisor with three decades of experience. “That was the reason for the safety level.” Other projects around Somerset were completed in 1994 and 2017. Depending on the complexity of the project, it may require geotechnical surveys. The site determines what kinds of permits and approvals are necessary. In the recently completed Somerset project, it involved a stormwater permit from the Texas Commission on Environmental Quality to ensure no runoff from the site. An environmental survey was done on the property, including a bird survey, to ensure no endangered species were threatened. A biologist was on site during the work in case any species needed to be relocated. RRC’s AML program deals with mines that were abandoned before laws that regulated
such structures began appearing in the 1970s. The AML program receives federal funds thanks to the Surface Mining Control and Reclamation Act, which was passed by Congress in 1977. The federal act established national coal mining and reclamation standards and created the Abandoned Mine Land Reclamation Fund to reclaim abandoned mine lands that had been abandoned. The Texas Abandoned Mine Land Reclamation Program stipulates that if all coal and uranium mining ceased before June 20, 1975, and all other mining before Aug. 3, 1977, they can be eligible for RRC’s AML program, which has remediated more than 60 mines since the early 1980s. It often isn’t until the subsurface is exposed before something like the recent Somerset project is discovered. “It is a needle in a haystack,” Upham said.
Remember to Call 811 Before Digging Ripping into the wrong thing below your property can be a costly mistake. That’s why Texas811 is such an important resource. Texas homeowners, excavators, and contractors are required by law to call 811 at least two days before digging. A caller tells the location of the dig, and affected pipeline and utility companies in the area will send locators to the dig site to mark the approximate location of buried lines with flags or paint. “The ultimate goal of Texas811 is to focus on safety and drive down damage,” said Jamie Renard, the Railroad Commission’s Pipeline Damage
Prevention Manager. “A homeowner may not know what’s buried underground. There could be pipelines, water and sewer lines, electric cables, and other utilities.” The number of 811 calls has risen considerably. In 2008, there were more than 1.8 million calls, but in 2019, that went up to more than 3.6 million. The call to 811 is free and invaluable to families and neighbors. Homeowners can also file an online request to locate on the Texas811 website at https://www.texas811.org/.
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A free, one-hour online training is also available for interested excavators to learn about the regulatory requirements of the 811 process, which includes requesting underground facility locations, line locator response to your request, incorporating safe excavation practices to avoid damage, fundamental incident investigation techniques, documentation, and reporting. Here is the webinar schedule: • Every Monday 11 a.m.-noon https://register. gotowebinar.com/rt/3415485945563573518
• Thursdays, 10 a.m.-11 a.m. https://register. gotowebinar.com/rt/1118292794302815756
• Every Tuesday, 10 a.m.-11 a.m. https://register. gotowebinar.com/rt/4597577491773756429
• Every Friday, 8 a.m.-9 a.m. https://register.gotowebinar.com/rt/7713407629287524878
• Every Wednesday, 7 a.m.-8 a.m. https://register. gotowebinar.com/rt/7593514680483569419
• En Español, every other Thursday, 9 a.m.10a.m. https://register.gotowebinar.com/ rt/4474629003347063564
• Every Wednesday, 1 p.m.-2 p.m. https://register. gotowebinar.com/rt/8407930639799601423
Behind the screens, the Railroad Commission is adapting to keep the agency running at full capacity. We’ve turned some paper processes completely digital, doubled down on safety procedures, and learned new programs to increase our efficiency and communication with the public. Here are a couple standout staffers from the RRC who have gone the extra mile:
Callie Farrar Executive Assistant to RRC Commissioners
Callie Farrar is the Executive Assistant to our RRC Commissioners; her busy workload includes being the moderator of our virtual Commissioners’ Conferences during COVID-19. She has helped guide the online meetings and all the speakers who have testified online since the spring. Londa Burford is the light of Administrative Compliance! She’s in the office processing P-5s, acting as the face of the agency by responding to telephone requests and more. Her hard work helps keep the RRC fully functional.
See more featured We Are RRC Twitter
Londa Burford Administrative Compliance
Chairman Christian CO M M I S S I O N E R S’ CO R N E R
As always, Chairman Christian remains focused on ensuring Texas has a vibrant oil and gas industry while protecting the environment. To that end, Chairman Christian has recently taken action on oil dumping. In July, Chairman Christian passed a resolution at a meeting of the Interstate Oil and Gas Compact Commission (IOGCC) urging Congress and President Trump to take action to prevent the dumping of Middle Eastern oil in the United States. Arguing for passage of his resolution, Chairman Christian said, “More than 100,000 oil and natural gas jobs in the United States have been lost according to Rystad Energy Group. Our federal government must push back against international efforts that harm American energy dominance.” A press release on the IOGCC resolution can be found here: https://www.rrc. state.tx.us/about-us/commissioners/christian/news/072120oildumping/
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Commissioner Craddick CO M M I S S I O N E R S’ CO R N E R
Last month, alongside the standard agency operations, the Railroad Commission prepared for Hurricane Laura. While damage to the Texas coast was less than expected, residents of East Texas face significant clean-up efforts. Commissioner Craddick commends the efforts of staff as protocols and procedures were enacted to put our agency in the best position to handle the aftermath in the most efficient way possible. We will continue to provide assistance to all Texans impacted by Hurricane Laura. Additionally, Commissioner Craddick provided several industry updates to a variety of groups focused on issues related to COVID-19, public utilities, well plugging, and upgrades to the RRC IT system. As we near the next legislative session, communication on the issues that matter most to the Texas energy industry are more important than ever and she looks forward to continuing the dialogue.
Commissioner Sitton CO M M I S S I O N E R S’ CO R N E R
Commissioner Ryan Sitton continues to be a voice for data-driven solutions to issues, and was interviewed on CNBC. He detailed the challenges facing producers in the current environment.
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Oil and Gas Production Statistics
View monthly production totals of crude oil, condensate and total oil; and of gas well gas, casinghead gas, and total natural gas.
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Enforcement Actions
The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety. View RRC’s Latest Enforcement Actions here.
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Public GIS Viewer
The Public GIS Viewer allows users to view oil, gas and pipeline data in a map view.
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