Texas Railroad Commission Overhaul in the Works
For the third time in six years, the Texas Railroad Commission will be up for legislative scrutiny when the Legislature convenes in Austin January 2017. But members of the state agency that regulates oil and gas in Texas, along with their critics, are going to be ready for it.
Last week, Commissioner Christi Craddick announced her “Oilfield Relief Initiative,” a plan to improve efficiency at the state’s oil and gas regulatory agency and reduce its regulatory administrative burden.
During Craddick’s tenure, the commission has evaluated its methods and rules, and pushed through an overhaul of its outdated technology systems.
“These initial ideas brought forth in the initiative will save extensive time for our staff and tens of millions of dollars for oil and gas operators,” she said in a news release. “This initiative serves as phrase one of a long-term effort to streamline our operations.”
Ben Sheppard, president of the Permian Basin Petroleum Association, said in the statement that the streamlining efforts are especially timely given the current industry downturn.
Among Craddick’s proposals:
- Identify agency reports and filings that can be reduced or eliminated
- Amend production requirements for marginal and stripper wells
- Revise its internal inspection system to allow commission inspectors to prioritize drilling rig inspections and hydraulic fracture treatments in sensitive areas
- Review all commission forms required for application and reporting purposes to determine the efficacy of collected data
The commission moved forward on several initiatives Aug. 9, including amendments to statewide Rule 3.15, which addresses the definition of "inactive" wells. Other recommendations will be reviewed at subsequent meetings of the commission. Kimberly Corley, executive director of the commission, said she hopes to have all recommendations finalized by the end of the year.
Similar to other state agencies, the Railroad Commission is subject to a “Sunset” review once every 12 years – the point of which is to determine whether the agency continues to serve a purpose or should be eliminated, also known as "sunseted" in legislative vernacular. The Railroad Commission has been on the agenda for review since 2011, which will be four sessions ago based to the Texas Legislature’s meeting schedule of 140 days every odd-numbered year. In total, when the Legislature convenes in 2017, it will be the third time in six years that the commission is under review.
But it’s not enough for some long-time critics of the agency. A study from Public Citizen, an environmental lobbying group, said Aug. 17 that other states continue to “outshine” Texas when it comes to regulating the oil and gas industry.
“Other oil and gas states have stronger mandates to protect public health and the environment. States that do better in regulating the industry require more frequent inspections and have fines large enough to deter violations,” said Carol Birch, legislative counsel for Public Citizen’s Texas office, in a news statement. “Other states also have stronger ethics protections − Oklahoma, for example, strictly limits campaign contributions from the oil and gas industry to prevent conflicts of interest. Compare that to Texas, whose commissioners take industry contributions all year long, even when not running for election.”
Public Citizen said in the statement that the group studied nine states in which oil and gas is a major participant in the local economy.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- The Rigzone Interview: Private Equity Cash Focuses on Oil, Gas Development
- Could Argentinian Politics Beat the Vaca Muerta?
- The Rigzone Interview: Oil, Gas Goes Digital for Safety, Speed
- Deal Of The Month: EQT, Rice Energy Merge in Mega Marcellus $6.7B Gas Deal
- OpEd: OPEC Production Cuts Fail, Markets Pay for Underestimating US Shale
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- Brazil Court Reinstates Petrobras Chair to Divided Board
- Russian Ships to Remain Banned from US Ports
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally