News

AUSTIN – Building upon the agency’s reputation as a global leader in oil and gas regulation, Railroad Commission of Texas leadership shared their knowledge and expertise with an Argentine delegation, June 24.

The delegation consisted of more than 30 members of the national legislature, government officials, industry executives and municipal leaders who were visiting Texas as part of an American Chamber of Commerce in Argentina (AmCham Argentina) tour of the state.

The visit to the RRC headquarters included an overview of the agency’s history and jurisdiction of the energy landscape and discussion of the operations of the different RRC divisions, before diving into an in-depth question and answer session with the guests. Members of the delegation asked about a variety of topics, including pipeline safety, seismicity, produced water, carbon capture and how the agency engages with both members of industry and government partners at the local, state and federal levels.

“The meeting gave us the chance to explain how our role as a regulator is to help ensure a predictable regulatory environment,” said RRC Executive Director Wei Wang. “Texas has a great story to tell the world about how we are able to develop uniform regulation across the state that promotes economic growth while also protecting Texans and the environment.”

RRC leaders also took time to highlight the Commission’s training initiatives such as its “Boots on the Ground” program, and innovations in emergency responses through the use of drone technology.

RRC Executive Director Wei Wang speaks to the delegation

Members of the Argentine delegation

This visit is just the latest example of how the RRC remains a leader in the global conversation on energy production and regulation.

Last month, the commission held a meeting with a division head at the German Federal Ministry for Economic Affairs and Climate Action. That discussion centered around hydrogen production and supply in the Lone Star State. Thanks to Texas’ safety and compliance regulatory framework, the state stands as a leader in conventional hydrogen production, and pure hydrogen pipelines – extending more than 1,000 miles – have been operating safely in Texas to support the industry’s infrastructure.

AUSTIN – At today’s open meeting of the Railroad Commission of Texas, Commissioner Jim Wright was unanimously elected to serve as Chairman of the Commission. Following the vote, Chairman Wright released the following statement: 

“It is a high honor to serve the citizens of Texas as Railroad Commissioner and a true privilege to be able to do so alongside my two highly accomplished and devoted colleagues, Commissioners Craddick and Christian. I want to thank them for their dedication to the residents of our state and for entrusting me to serve as Chairman of this Commission.

“As Chairman, I look forward to working with my fellow commissioners, state leadership and our federal partners to ensure Texas energy continues to be the envy of the world. Working together, our state’s clean and abundant natural resources will fuel America’s economy and help secure the growing energy needs here at home and abroad.”

AUSTIN – The Railroad Commission of Texas assessed $1,888,364 in enforcement docket fines against operators and businesses at the Commissioners’ open meeting on Wednesday.  The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

Master Default Orders for operators that failed to appear at Commission enforcement proceedings can be found on the RRC Hearings Division web page.

Master Agreed Orders in which operators were ordered to come into compliance with Commission rules can be found on the RRC General Counsel web page.  

Below is a summary table of fines assessed.

In the absence of timely motions for rehearing, decisions are final as stated in these final orders.

AUSTIN – The U.S. Department of the Interior Office of the Inspector General has released an audit report showing the Railroad Commission of Texas successfully used federal grant funding for orphaned well plugging and complied with all related laws and regulations.

The RRC utilized its 40 years of well plugging expertise to expend a $25 million Initial Grant from the Infrastructure Investment and Jobs Act (IIJA) passed by Congress. The agency plugged more than 760 orphaned wells through the Initial Grant.

The Inspector General concluded that “We found that the State of Texas properly expended IIJA orphaned well initial grant funds and fulfilled program goals in accordance with applicable laws, Federal regulations, and grant terms…We make no recommendations as there are not reportable findings.” The audit also noted that the RRC “performs enhanced monitoring on all the contractual work performed on the well-plugging using IIJA funds” submitting daily reports on all completed work and costs as well as performing three levels of review to ensure invoice accuracy.

 

The majority of oil and gas wells that are no longer producing are plugged by the responsible operators. If an operator is non-compliant or goes out of business the well is considered orphaned, and the Railroad Commission administers a program to plug the wells.  The IIJA grants supplement state funds that are used annually to plug orphaned wells across the state.

The RRC is now utilizing the first phase of IIJA Formula Grants to plug wells. However, the formula grants include administrative hurdles that are not specified in the IIJA, such as reviews of Endangered Species Act compliance and compliance with the National Historic Preservation Act, that significantly delay plugging projects. In fact, in the first 12 months of the IIJA Formula Grant, the RRC plugged 45 percent fewer wells using federal funds than were plugged during the first 12 months of the IIJA Initial Grant due to the reviews.

“We are proud to remain a leader in well plugging efforts nationwide and look forward to working with the new Secretary of the Interior to expeditiously plug wells in Texas,” said RRC Executive Director Wei Wang. “According to a recent Interstate Oil and Gas Compact Commission study, thanks to RRC’s robust state managed plugging program, Texas has seen one of the lowest increases in orphaned well population. We would urge our federal partners to examine and remove the red tape implemented by the previous program staff.   Texas stands ready and we are more than capable of accomplishing this important work efficiently.”

A copy of the Department of the Interior Inspector General Report can be found at https://www.doioig.gov/reports/audit/infrastructure-investment-and-jobs-act-orphaned-well-initial-grant-awarded-state.