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Energy News March 2020

From the Field Photo Hutchinson County Photo by Randy Milligan

RRC Working to Keep Texans Safe During COVID-19 Pandemic

Know Before You Dig

Successful Pilot Webinar for Alternative Fuels Safety Training is in the Books

Public Gets Access to Even More RRC Mapping Data

New Online Filing Available! Form H-5, Disposal/Injection Well Pressure Test Report

Updated Geologic Information Now Available

Commissionersâ€™ Corner

Upcoming Events Apr. 21, 2020

VIEW MORE RRC EVENTS4

Open Meeting

VIEW OPEN MEETING WEBCASTS4

Austin, TX

RRC Working to Keep Texans Safe During COVID-19 Pandemic As Texans settle into social distancing and sheltering in place in different regions of the state, the Railroad Commission has taken steps to ensure continued oversight of the state’s critical energy infrastructure. Here are some of the key highlights from each agency division: OIL AND GAS. RRC oil and gas inspectors continue to inspect oil and gas facilities across Texas to ensure compliance with health, safety, and

environmental protection regulations. Drilling permits, and completion and production reports are being processed within required time frames. The Oil and Gas Division continues to respond to reported incidents to ensure appropriate remediation. In addition, RRC’s Oil and Gas Division issued a Notice to Operators informing that they may request a waiver of RRC’s regulatory requirements. Each waiver request will be considered on a case-by-case basis.

OVERSIGHT AND SAFETY. RRCâ€™s Pipeline Safety Division has received guidance from the US Pipeline and Hazardous Materials Safety Administration (PHMSA) regarding the processing of regulatory waiver requests. RRCâ€™s Pipeline Safety Division has issued a Notice to Operators informing how to apply for a waiver request. In the meantime, pipeline safety inspectors are performing records reviews remotely through web-applications. Site inspections are being conducted in person with inspectors riding in separate vehicles. The Alternative Fuels Services (AFS) department has issued a Notice to Operators informing CNG, LPG, and LNG licensees that waiver requests may be submitted for companies operating with an expired license, which was due for renewal in February or March, or individuals who have passed an alternative fuels safety exam but have not received their certification card. AFS will continue to perform inspections while practicing social distancing, and continue to process license applications, installation completions reports, and certification exam results. The AFS department has cancelled all in-person classes and exam events. Free online training classes have been made available to the licensee community. Finally, the Gas Utilities

Department has issued a Notice to Operators for requesting a waiver of RRC regulatory requirements. SURFACE MINING. The Surface Mining and Reclamation Division (SMRD) issued a Notice to Operators informing them of their ability to request an extension to deadlines and required performance of operations. Requests will be reviewed by SMRD on a case-by-case basis. SMRD staff are continuing site inspections while practicing social distancing. Further, SMRD staff continue to process permit applications for mining and reclamation activities.

VIEW THE NOTICES TO OPERATORS4

Know Before You Dig With many areas of Texas under local stay-at-home orders because of COVID-19 concerns, you may have some extra time on your hands to get your back yards ready for the summer or for other landscaping projects. But please don’t forget an important safety reminder before you dig. You need to call 811 if you’re digging deeper than 16 inches, in order to know where underground pipelines and utility lines are located.

The call helps prevent injuries, pipeline damage, service outages in your neighborhood, or potential fines and costly repairs. In the current COVID-19 situation Texas 811 continues to provide the same level of critical public safety service as before. State law requires all excavators, contractors and homeowners to call 811 at least two days prior to digging. Tell the operator where you’re planning to dig, and your affected pipeline and local utility companies will send locators to your dig site to mark the approximate location of buried lines with flags or paint. The call to 811 is free and invaluable to you, your family and neighbors.

Successful Pilot Webinar for Alternative Fuels Safety Training is in the Books Earlier this month the RRC launched a more efficient way for individuals in the Liquified Petroleum Gas (LPG) industry to get vital safety training. The Commission conducted its first webinar for LPG dispenser operators to receive continuing education safety training. The individuals who received training perform services for a variety of activities Texans are involved in. They fill propane cylinders used for barbecue pits and deep fryers, as well as cylinders used for forklifts and industrial equipment. They also fill propane tanks used in vehicles as an alternative to gasoline, and in recreational vehicles that use it to supply their appliances. “This was an initiative we took as we continue to look for ways to serve the alternative fuels industry better,” said April Richardson, Alternative Fuels Safety Director. “The online training is an easy way for us to reach a large audience across the state at one time and save individuals the time and money they would have spent travelling to Austin for the training.” Another continuing education safety training webinar is scheduled in April with additional classes being added. The webinars will be posted on the agency’s Calendar of Events which can be found on the RRC website at https://rrc.texas. gov/all-events.. This online training will also be valuable in gov/all-events instances where large gatherings in one place may be prohibitive, such as the current COVID-19 situation in Texas.

VIEW ADDITIONAL CLASSES4 Individuals seeking a new certification are still required to take their initial training in person.

Public Gets Access to Even More RRC Mapping Data AUSTIN – The Railroad Commission of Texas has a vast amount of information related to the energy industry in the state, and the agency constantly strives to give the public easy access to that information. In the latest transparency initiative development, the Commission has added new layers of data to the RRC’s Public Geographic Information System (GIS) Map Viewer. The public can now view information on Voluntary Cleanup Program (VCP) and Brownfield Response Program (BRP) sites around Texas – two programs designed to incentivize the remediation and redevelopment of abandoned oil and gas sites.

In addition, more layers have been added to the Environmental Permits information that is already available on the GIS Viewer. The new information shows Commercial Waste Disposal Sites and Discharge Permits that are related to oil and gas activities. “Protecting the natural resources and the environment is a critical part of our agency’s mission in the energy industry,” said Wei Wang, RRC Executive Director. “The GIS data we added helps residents, operators and local governments easily access information related to the variety of work we do in remediation, cleanups and waste disposal around Texas.”

The VCP and BRP data on the interactive map includes information such as project size, project status, and Certificate of Completion for closed sites. Communities, engineers and banks can find the information very useful if they are planning any redevelopment initiatives near these sites. The RRCâ€™s Environmental Permit and Support Unit (EPS) will have a GIS map layer that identifies discharges, and all commercial waste management facilities, which includes disposal, reclamation, recycling and separation facilities. The new data will allow anyone to view information including the operator name, permit numbers and the types of wastes received and processed

at the facility. Oil and gas operators and waste haulers can use the information to locate the most convenient authorized disposal facilities. The new data is housed in the Public GIS Viewer at https://gis.rrc.texas.gov/ GISViewer, and the user guide is available in the application as well as on the Public GIS Viewer webpage at https://rrc.texas. gov/about-us/resource-center/research/ gis-viewers/.

VIEW THE GIS VIEWER4

VIEW USER GUIDE4

New Online Filing Available! Form H-5, Disposal/Injection Well Pressure Test Report As part of the Texas Oilfield Relief Initiative, the Railroad Commission of Texas (RRC) has implemented online filing of the Form H-5, Disposal/Injection Well Pressure Test Report, using the RRC Online System. This continues the work initiated by the Commission last year to provide more online filings to better serve Texans and the industries we regulate.

VISIT RRC ONLINE4 While the RRC will continue to accept hard copy filings of the Form H-5, operators are strongly encouraged to file online for efficient and timely filing. Beginning May 1, 2021, RRC will no longer accept hard copy filings of the Form H-5. If an operator files a hard copy of the report, they must mail the original report and attachments to the appropriate oil and gas district office. The form is available for download from the RRC website.

Instructions for uploading scanned images of the pressure test charts as attachments to the online Form H-5 are available on the RRC website.

HOW TO UPLOAD IMAGES4 To access the Form H-5 in the RRC Online System, the organization’s designated Security Administrator must add the Disposal/Injection Well Pressure Test (H-5) filing right to each user’s RRC Online System account. Companies needing to set up security administrator rights to file online should refer to the instructions on RRC’s website.

ONLINE FILING INSTRUCTIONS4 For more information on the online Form H-5, view an instructional video on the RRC’s YouTube channel or reference the Disposal/Injection Well Pressure Test Report (H-5) User Guide available on the RRC website.

WATCH THE TUTORIAL4 VIEW OIL AND GAS FORMS4 VIEW THE H-5 MANUAL4

Updated Geologic Information Now Available The Railroad Commission’s highest priority is protection of the public and our natural resources. Providing industry with up-to-date information helps ensure compliance with Commission rules. As part of that effort, the Railroad Commission has updated geologic formation information for most Texas counties. Geologic formation information is provided to oil and gas operators as a guideline for compliance with Commission rules relating to casing, cementing, drilling, well control and completion requirements. One change to geologic formation information is the removal of the formation depth (or “tops”) estimates from all the county formation lists. Most changes are to the county formation lists for districts 8 and 8A, where formations have been added. The geologic formation information will also be updated within the Drilling Permits (W-1) application in the RRC Online System. As of February 10, 2020, updated geologic formation information must be used for all recently approved drilling permits. Approved drilling permits not drilled by February 10, 2020 must reference the appropriate, updated county list(s) prior to completion. Drilled and completed wells where the Form W-2, Oil Well Potential Test, Completion or Recompletion Report, and Log, or Form G-1, Gas Well Back Pressure Test, Completion or Recompletion Report, has not been filed must reference the appropriate county list(s) in effect when the well was completed. The updated geologic information is available on the agency’s website. This data is categorized by Commission District, on a spreadsheet with tabs for each county within that District.

VIEW UPDATED GEOLOGIC INFORMATION4

Chairman Christian COMMISSIONERSâ€™ CORNER

Chairman Christian issued a published opinion on the flux in the oil markets and industry. We Must Stabilize Worldwide Oil Markets Never in my life have I seen such uncertainty in the world. What am I supposed to do? How long will it last? What will happen next? As COVID-19 wreaks havoc on our healthcare system and economy, there are no easy answers. American businesses and workers are justifiably worried about its impact on public health and the economy, and their own health and personal finances. As a result, people are suffering. Over the last month, our stock market has gone from record highs to multi-year lows at

an unprecedented pace. Stocks have dropped faster in recent weeks than they did during the Great Depression. In the energy sector, reduced demand and a poorly-timed feud between Saudi Arabia and Russia has driven oil prices to 20-year lows. As the regulator charged with overseeing the oil and natural gas industry for the State of Texas, I am very concerned about the impact that international oil market instability has on the Texas economy, state budget, and the hundreds of thousands of Texans, who rely on the oil and gas industry for a paycheck.