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AUSTIN – The Railroad Commission of Texas has begun work to plug an orphaned oil and gas well in a North Central Houston neighborhood to further protect residents and the environment in the area.

The orphaned well is in a cement yard near the intersection of Aldine Westfield and Lone Oak roads.  

When a well ceases production, most operators fulfill their obligations responsibly and plug their wells. For those that do not, the RRC steps in to plug the wells as part of its core mission protecting community and environmental safety. 

The plugging work at the Houston orphaned well will ensure that no hydrocarbons can leak from the well and pollute groundwater in the area. There has been no evidence of prior pollution.

Pictures of the orphaned oil and gas well in Houston

“We have decades of expertise in plugging orphaned wells in diverse locations around Texas,” said Clay Woodul, RRC Assistant Director of the Oil and Gas Division for Field Operations. “Whether it’s in rural areas or urban settings, we work with contractors to protect private property when moving rigs and other plugging equipment and work as quickly as possible to finish projects.”

The work at the Houston site is expected to take 1-2 weeks.

The well plugging is part of a $25 million federal grant the RRC received to plug orphaned oil and gas wells in Texas. The RRC anticipates plugging about 800 wells this fiscal year using that federal grant, in addition to at least 1,000 wells also scheduled to be plugged through the State Managed Plugging Program (SMP) this fiscal year.

Since 1984, the SMP, which is funded through oil and gas industry revenue including fees and financial securities paid by the industry, has plugged more than 44,000 wells to date.

NOTE TO MEDIA: Because the orphaned well is on private property and because of the utmost need for safety around heavy equipment, the RRC does not allow people who are not associated with the well pluggings close to the work that is being done.

AUSTIN –– Crude oil and natural gas production as reported to the Railroad Commission of Texas (RRC) for December 2022 came from 161,489 oil wells and 87,023 gas wells.

Crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate, which is reported separately by the RRC.

For additional oil and gas production statistics, including the ranking of each Texas County by crude oil, total gas and condensate production, visit the RRC’s website at https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/production-data/texas-monthly-oil-gas-production/.

TABLE 1 - December 2022 STATEWIDE PRODUCTION*

AUSTIN – The Railroad Commission of Texas issued a total of 700 original drilling permits in February 2023. The total includes 620 permits to drill new oil or gas wells, 5 to re-enter plugged wellbores and 71 for re-completions of existing wellbores.

The breakdown of well types for total original drilling permits in February 2023 is: 151 oil, 44 gas, 472 oil and gas, 28 injection, two service, and three other permits.

In February 2023, Commission staff processed 567 oil, 150 gas and 246 injection completions for new drills, re-entries and re-completions.

Detailed data on drilling permits and well completions for the month can be found at this link:

https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/drilling-information/monthly-drilling-completion-and-plugging-summaries/

TABLE 1 – JANUARY 2023 TEXAS OIL AND GAS NEW DRILLING PERMITS AND COMPLETIONS BY RAILROAD COMMISSION OF TEXAS DISTRICT*

*A district map is available on the Railroad Commission of Texas website at https://rrc.texas.gov/media/3bkhbut0/districts_color_8x11.pdf.

AUSTIN – The Railroad Commission of Texas assessed $639,143 in fines involving 204 enforcement dockets against operators and businesses at the Commissioners’ Conference on Tuesday. The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

Sixteen dockets involved $153,399 in penalties after operators failed to appear at Commission enforcement proceedings. Master Default Orders can be found on the RRC Hearings Division webpage.

Operators were ordered to come into compliance with Commission rules and assessed $40,644 for oil and gas, LP-Gas or pipeline safety rule violations. Pipeline operators and excavators were assessed $445,100 for violations of the Commission’s Pipeline Damage Prevention rules. Master Agreed Orders can be found on the RRC General Counsel webpage.

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

AUSTIN – At their Feb. 28 open meeting, RRC Commissioners unanimously voted to refer two actions by the Environment Protection Agency (EPA) to the Texas Attorney General to challenge their validity.

In 2018 the Texas Commission on Environmental Quality submitted the state’s robust Interstate Transport State Implementation Plan (SIP) for National Ambient Air Quality Standards for ozone – a plan to ensure that emissions within the state would comply with the “good neighbor” provisions of the Clean Air Act and not affect air quality in other states. The EPA disapproved the plan in February 2023, but not before proposing a federal implementation plan (FIP) plan almost a full year prior to disapproving the state plan.

The RRC is concerned that the EPA was ready to ignore the state’s expertise on regional factors, and circumvented procedures in the Clean Air Action by proposing a federal plan before its final disapproval of the SIP. 

Not only that, but the proposed FIP also introduces restrictive emissions standards for stationary engines that are used in the pipeline transportation of natural gas. As the state’s oil and gas regulator, the RRC is concerned about how the proposal could hinder a vital industry that contributes significantly to the Texas economy and the state budget. 

“When the federal government oversteps in the business of Texas, it is our responsibility to push back,” said RRC Chairman Christi Craddick. “This federal administration has yet again proven that they do not value the profoundly beneficial impact of the oil and gas industry in Texas, and this vote is the first step for the Railroad Commission of Texas in fighting back against unreasonable and unjust attempts to harm this state.”

“The Biden Administration is pulling every pseudo-environmental lever they can to shut down oil and gas production – especially in Texas – where it’s cheap, plentiful, and responsibly produced,” said Commissioner Wayne Christian. “Biden’s EPA first tried it in the Permian Basin last year through non-attainment, with faulty emissions reports, to no success. Now they are trying it through an overreaching, one-size-fits-all approach with their regional haze rule. Contrary to popular belief, fossil fuel usage and a clean environment are not mutually exclusive; in fact, according to the EPA themselves major pollutants are down 78% in the last fifty years alongside increased fossil fuel consumption. I hope the Texas Attorney General will fight this onerous proposal and return the rights back to states and local officials, who know best how to take care of their own land and air.” 

“There is a disturbing trend emerging from the Biden Administration with respect to blatant federal overreach and repeated attempts to undermine the authority and sovereignty of our state,” said Commissioner Jim Wright. “Texas has a long and proud history of protecting our natural resources and our environment and is more than capable of acting in the best interest of our citizens without Washington bureaucrats looking over our shoulder.”

A copy of the Commission’s order approving referral of these actions to the Texas Attorney General can be found at https://www.rrc.texas.gov/media/nundcgus/2023_02_28_12_15_53.pdf

AUSTIN – The Railroad Commission of Texas has filed comments on draft guidance issued by the U.S. Department of the Interior (DOI) for utilizing formula grants to plug orphaned oil and gas wells.

Several aspects of the draft guidance have caused concern for the RRC because it could hinder the state’s efforts to use as much funding as possible for important work that protects residents and the environment.

Among the concerns is the fact that the DOI may end up changing formula funding calculations for states, which could mean Texas could get less than the approximately $318 million that was originally due to the state.

The guidance also has program requirements for states that go beyond the scope of the federal legislation that authorized the well plugging funds. These requirements are burdensome and sometimes unrealistic to implement, which will inevitably hamper the momentum of the state’s plugging efforts resulting in less wells being plugged than could be.

The comments submitted by the RRC are guided by the agency’s expertise in plugging orphaned oil and gas wells. That expertise was key to Texas’ first in the nation status utilizing federal funds to plug orphaned wells, when work began in October 2022 with the state’s $25 million initial grant.  

Adding unnecessary requirements to the next phase of federal funding, the formula grants, can hinder the state’s ability to plug as many orphaned oil and gas wells as possible.

“As Chairman of the Railroad Commission, I believe it is crucial for this agency to thoroughly assess all strings attached to federal money. When dealing with the federal government, we always read the fine print,” said RRC Chairman Christi Craddick. “The Commission is responsible for ensuring health and safety standards for all Texans while overseeing responsible stewardship of our state’s abundant natural resources. The Department of Interior’s draft guidelines are extremely concerning and our comments reflect our commitment to prioritizing Texas. Money intended for well plugging efforts should be used for just that – not bureaucratic red tape. Advancing the Biden administration’s political agenda at the expense of Texans is unacceptable, and this agency will continue to push back on all unreasonable regulations put forth by the federal government.”

“President Biden’s Interior Department needs to stop playing politics with taxpayer dollars and allow Texas and other oil and gas states to get to work plugging more wells and producing much-needed reliable energy,” said RRC Commissioner Wayne Christian. “Texas is not only the national leader in producing oil and natural gas, but is also a leader in plugging abandoned wells, protecting groundwater, and reducing flaring. Taxpayer dollars should ALWAYS be used with the utmost care—Biden’s Interior Department needs to walk back their overreaching guidance which only adds onerous regulations making abandoned well plugging more costly and less timely.”

“Taxpayer dollars – regardless of their origin – should always be used efficiently and effectively to achieve the desired result,” said RRC Commissioner Jim Wright. “Based on the draft guidance issued by the DOI, it would seem that plugging as many orphan wells as possible is low on the Department’s priority list. The words “innovation” and “federal government” rarely appear in the same sentence. Instead of handcuffing states with top-down, bureaucratic red tape and unrealistic requirements that increase plugging costs, the DOI should seek to empower states like Texas by providing them with the flexibility to achieve our shared mission of reducing the orphan well population.” 

A copy of the RRC comments sent to DOI can be found on the RRC website at https://www.rrc.texas.gov/media/4ilhvfga/iija-draft-formual-grant_rrc-texas-comments_2_24.pdf.

AUSTIN – The Railroad Commission of Texas joined the Texas Commission on Environmental Quality in filing comments this week on the Environment Protection Agency’s (EPA) proposed supplemental rule to regulate methane and greenhouse gas emissions in the oil and gas industry.

In the comments, the state expresses concerns that the proposed rule exceeds EPA’s statutory authority under the Clean Air Act and will significantly limit domestic energy supply. At a time of energy fluctuations due to international conflict, the United States cannot afford to clamp down on its most important oil and gas producing state. 

Texas also commented that the proposal also lays out unrealistic assumptions and artificially high metrics to estimate the climate benefits of the rule, whereas in practice, the rule would place an unjustifiable burden on states and the energy industry for little real benefit to the global climate.

In addition, the RRC is concerned that EPA did not provide sufficient time for affected stakeholders to review and comment on the extreme breadth of its proposal. The proposed rule was published immediately before the holiday season, on December 6, 2022, amidst several other significant regulatory proposals. Despite receiving numerous requests to extend the comment period, EPA declined to provide additional time. 

“The EPA’s overreaching methane rules and unrealistic timeline are yet another example of the Biden administration’s attempt to shut down the oil and gas industry in Texas,” said RRC Chairman Christi Craddick. “I stand with my fellow Railroad Commissioners and partners at the Texas Commission on Environmental Quality in opposition to this attack on the industry that provides so much to our state.”

“President Biden's EPA continues its relentless fight to shut down oil and gas. The EPA’s proposed rule on methane will make reliable energy scarcer and more expensive at a time when we desperately need more of it," said RRC Commissioner Wayne Christian. "From killing the Keystone XL pipeline project, to freezing federal leasing, to supporting ESG, to implementing onerous regulations, Biden is why energy is so expensive. An unburdened and unleashed Texas oil and gas industry is the path to energy security. We only need the administration to get out of the way! If the EPA moves forward, it's imperative that Texas and other states challenge them in the court and those rules get thrown out." 

“The EPA methane rule is yet another example of the Biden Administration saying one thing and doing another,” said RRC Commissioner Jim Wright.  “In his State of the Union remarks, President Biden placed special emphasis on the need to increase domestic manufacturing, lower utility bills, and create American jobs.  Unfortunately, the EPA’s methane rule will have the opposite effect. Not only does this rule threaten Texas energy production, it does so by disproportionately impacting small and medium producers who live and work in their community, buy supplies, hire locally, and are important contributors to their local economies.”

The joint comments submitted by the RRC and Texas Commission on Environmental Quality can be found at https://www.rrc.texas.gov/media/hhvontzl/epa-comments_021323.pdf.

AUSTIN - Railroad Commissioner Wayne Christian issued the following statement regarding news of Russia's plans to cut oil production by about 5% next month, the equivalent of 500,000 barrels per day:

“As President Biden doubles down on his anti-oil and gas agenda, our enemies overseas smell blood in the water and are using their production as leverage against the West.  We have the natural resources, the technology, and the manpower to be energy independent. We just need the federal government to get out of the way.

“Mr. President — I commit to you today that if you stop your war against domestic oil and gas production, Texas can make up this 500,000-barrel difference and more. There truly is no downside! You even admitted so in your State of the Union address that we will need more oil for the foreseeable future. Let’s start here at home. We can defend our national security and our European allies, all the while increasing supply, reducing costs, creating jobs, stimulating our economy, and protecting our environment!

“As former Vice Chair and current member of the Interstate Oil and Gas Compact Commission (IOGCC), I’m confident that Texas is not alone in the promise to increase production. I’m sure that North Dakota, Louisiana, Pennsylvania, and others can easily help make up any impact on the oil market that this move by Russia may have on global prices.

 “President Biden, you can save lives by unleashing American producers. Europe is in the midst of an energy crisis with concerns whether people will freeze to death this winter. Furthermore, high energy prices hurt the poorest populations and nations the most, with 80% of the world relying on fossil fuels. Putin’s threat to drive up oil prices will do so much more than hurt the West and continue his brutal war, it will have resounding unintended consequences to the children and the poor in developing nations that struggle just to get by each day.”

According to the International Monetary Fund (IMF), Europe is facing an unprecedented energy crisis, as critical natural gas has been cut by more than 80% multiplying electricity costs by 15 times.

A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. Prior to his time at the Commission, Christian served seven sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren. You can learn more about Chairman Christian here.

AUSTIN – The Railroad Commission of Texas issued a total of 840 original drilling permits in January 2023. The total includes 743 permits to drill new oil or gas wells, 6 to re-enter plugged wellbores and 80 for re-completions of existing wellbores.

The breakdown of well types for total original drilling permits in January 2023 is: 197 oil, 57 gas, 550 oil or gas, 29 injection, and seven other permits.

In January 2023, Commission staff processed 147 oil, 214 gas and 229 injection completions for new drills, re-entries and re-completions.

Detailed data on drilling permits and well completions for the month can be found at this link:

https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/drilling-information/monthly-drilling-completion-and-plugging-summaries/

TABLE 1 – JANUARY 2023 TEXAS OIL AND GAS NEW DRILLING PERMITS AND COMPLETIONS BY RAILROAD COMMISSION OF TEXAS DISTRICT*

*A district map is available on the Railroad Commission of Texas website at https://rrc.texas.gov/media/3bkhbut0/districts_color_8x11.pdf.

AUSTIN – Crude Crude oil and natural gas production as reported to the Railroad Commission of Texas (RRC) for November 2022 came from 160,768 oil wells and 70,246 gas wells.

The RRC reports that from December 2021 to November 2022, total Texas reported production was 1.5 billion barrels of crude oil and 11.2 trillion cubic feet of total gas. Crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate, which is reported separately by the RRC.

For additional oil and gas production statistics, including the ranking of each Texas County by crude oil, total gas and condensate production, visit the RRC’s website at https://wwwrrc.texas.gov/oil-and-gas/research-and-statistics/production-data/

AUSTIN – For the second time this winter, the state’s natural gas supply chain was tested and performed as needed to keep heating and lights on for millions and millions of Texans.

Winter Storm Mara swept through Midland, the Dallas-Fort Worth area, and into San Antonio, covering several gas production basins in the state. The key elements of gas supply – production, pipeline transportation and underground storage – all performed up to par during the arctic blast.

Texas’ daily onshore gas production, for example, averaged more than 25 billion cubic feet (Bcf) per day from January 31 to February 2. As shown in the chart below, that exceeded the daily average seen during Winter Storm Elliott in late December, and the daily production gas production of all last winter.

The state’s underground storage facilities had an estimated 392.4 billion cubic feet (Bcf) of natural gas as of January 2023. In addition, pipeline operators packed the pipeline system with natural gas ahead of the storm.

All told, there was more than enough gas to meet the demand during Mara. According to data from S&P Global natural gas demand for residential and commercial heating peaked at 4.23 Bcf and demand for electricity generation peaked at an estimated 6.46 Bcf for power generation, both on January 31.

The RRC does not regulate the price of natural gas, but it should be noted that there were no unusual spikes in prices with the cash basis market price averaging below $3 per MMBtu at the Waha trading hub in West Texas during Mara. Market data suggests that price actually declined by $0.60 per MMBtu on February 1 indicating strong supply in the region.

The Commission has been committed to ensuring the delivery of natural gas to protect Texans this winter, and we will continue that work to ensure peace of mind for residents.

AUSTIN – The state's natural gas supply continues to hold steady to help provide heating to homes and fuel for electricity generation during the ongoing winter storm.

The RRC is keeping up its round-the-clock contact with operators and other state agencies during Winter Storm Mara. Natural gas utilities are reporting no service issues providing home heating; several have pre-deployed trucks with compressed and liquid natural gas as backups for residential heating but have not needed to utilize them yet.

Oil and gas operators along the natural gas supply chain, from production to pipelines to underground storage, are maintaining stable operations, and there is adequate natural gas supply in the state.

The RRC’s Emergency Management Team continues to work with operators and other state agencies to handle requests for assistance given the severe icy conditions gripping different parts of Texas.

Icy roads are contributing to yet another day of dangerous driving conditions in Texas this week. The RRC urges operators and residents to heed warnings from state and local emergency officials and stay safe. We will continue our work to ensure Texas gets through this week’s winter storm.

AUSTIN – The Railroad Commission of Texas’ preparations for Winter Storm Mara began well ahead of time as we began tracking the approaching weather last week; activated the RRC Emergency Management Team on Sunday; and also issued a notice to operators on Sunday on the incoming impact to the state.   

The agency has been meeting daily for the last three days with gas utilities that serve residences, and held conference calls this morning with those utilities as well as the state’s major oil and gas producers and pipeline operators.

All facets of the gas supply chain - production, pipeline transportation and underground gas storage - are reporting no major issues. Preliminary estimates from S&P Global indicate daily production of 25 billion cubic feet.  Gas supply remains steady throughout the supply chain.

The RRC is committed to helping ensure there is adequate gas supply for home heating and power generation to protect millions of Texans during the winter storm.

We are also working at the State Operations Center, side by side with agencies such as the Public Utility Commission, ERCOT and the Texas Department of Transportation to address any requests for assistance oil and gas operators have.

Operators are dealing with icy road conditions in several parts of the state that could affect movement of crews and equipment, and the RRC is working directly with state and local partners to address those issues. We want to remind operators and all Texans to be mindful of road conditions and stay safe.

AUSTIN – The Railroad Commission of Texas assessed $630,917 in fines involving 161 enforcement dockets against operators and businesses at the Commissioners’ Conference on Wednesday. The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

Nine dockets involved $73,667 in penalties after operators failed to appear at Commission enforcement proceedings. Master Default Orders can be found on the RRC Hearings Division webpage.

Operators were ordered to come into compliance with Commission rules and assessed $44,600 for oil and gas, LP-Gas or pipeline safety rule violations. Pipeline operators and excavators were assessed $512,650 for violations of the Commission’s Pipeline Damage Prevention rules. Master Agreed Orders can be found on the RRC General Counsel webpage.

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

The RRC’s commitment to ensure the resilience of natural gas infrastructure during cold weather was tested last month during Winter Storm Elliott with sub-freezing temperatures that lasted several days during the Christmas weekend. The numbers are in and show that there was ample natural gas supply to help the state’s electricity supply chain and keep Texans safe.

The U.S. Energy Information Administration analysis below shows the Electric Reliability Council of Texas (ERCOT) energy mixes for electricity generation in the state for the past year. As the chart reflects, natural gas fired electric generation reached the highest peak for the entirety of 2022 on December 23 during Winter Storm Elliott, surpassing that of the peak days last summer.

Furthermore, data from S&P Global Platt shows the daily average of Texas onshore natural gas production during Elliott was 24.89 Billion cubic feet (Bcf) which was even more than the daily average from the prior winter.  

Data source: S&P Global Platts

The RRC will continue its diligent work to inspect natural gas facilities supporting the electricity supply chain throughout this winter and ensure infrastructure is hardened against extreme weather conditions.  Just as what was done during Elliott, staff will work around the clock to help ensure Texans’ safety in any upcoming cold weather.

AUSTIN – Crude oil and natural gas production as reported to the Railroad Commission of Texas for October 2022 came from 161,356 oil wells and 80,281 gas wells.

The RRC reports that from November 2021 to October 2022, total Texas reported production was 1.5 billion barrels of crude oil and 11.2 trillion cubic feet of total gas. Crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate, which is reported separately by the RRC.

For additional oil and gas production statistics, including the ranking of each Texas County by crude oil, total gas and condensate production, visit the RRC’s website at https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/production-data/texas-monthly-oil-gas-production/.

AUSTIN – The Railroad Commission of Texas issued a total of 869 original drilling permits in December 2022 compared to 842 in December 2021. The December 2022 total includes 797 permits to drill new oil or gas wells, four to re-enter plugged wellbores and 45 for re-completions of existing wellbores.

The breakdown of well types for original drilling permits in December 2022 is 161 oil, 71 gas, 598 oil or gas, 27 injection and 12 other permits.

In December 2022, Commission staff processed 815 oil, 167 gas and 231 injection completions for new drills, re-entries and re-completions, compared to 605 oil, 99 gas and 211 injection completions in December 2021.

Total well completions processed for 2022 for new drills, re-entries and re-completions are 13,415 compared to 9,269 recorded in 2021.

Detailed data on drilling permits and well completions for the month can be found at this link:

https://www.rrc.texas.gov/oil-and-gas/research-and-statistics/drilling-information/monthly-drilling-completion-and-plugging-summaries/

TABLE 1 – DECEMBER 2022 TEXAS OIL AND GAS NEW DRILLING PERMITS AND COMPLETIONS BY RAILROAD COMMISSION OF TEXAS DISTRICT*

*A district map is available on the Railroad Commission of Texas website at https://rrc.texas.gov/media/3bkhbut0/districts_color_8x11.pdf.

AUSTIN – In yet another move to improve transparency, the Railroad Commission has launched an interactive map of ongoing orphan well plugging with the use of federal infrastructure funding.

The data visualization allows users to choose what they see on the map, including which county to view, the fiscal year, and whether the wells have been plugged or have had a work order issued to be plugged.

The RRC received a $25 million initial grant to plug abandoned oil and gas wells from the U.S. Department of the Interior in 2022. Texas was the first state in the country to start plugging abandoned oil and gas wells using federal funds with projects in Refugio County in October (video).

The funds are part of the federal Infrastructure Investment and Jobs Act, which dedicated the funds to plug abandoned oil and gas wells.

So far, the agency, which has the critical mission of protecting public safety and environment, has already plugged 128 orphaned wells with the federal funding and plans to plug about 800 abandoned wells by the end of the fiscal year.

“Thanks to our well-established well plugging program, we were able to hit the ground running to start plugging wells with the federal funds,” said Clay Woodul, RRC Assistant Director of the Oil and Gas Division for Field Operations. “The data visualization allows anybody with access to the Internet to see our progress plugging wells the federal funds.”

RRC’s State Managed Plugging Program, which utilizes revenue from industry fees and fines, has exceeded performance measures set by the Texas Legislature for six consecutive fiscal years.

The RRC may receive up to $318 million in additional formula funding from the federal government to plug orphaned wells. More information and links can be found via the following webpage: https://www.rrc.texas.gov/oil-and-gas/environmental-cleanup-programs/federally-funded-well-plugging/.