Oil & GasRegulating the exploration, production, & transportation of oil and natural gas in Texas
Oil & Gas ANNOUNCEMENTS
RRC Adopts Revisions to Form PR, Monthly Production Report
March 02, 2021
The Railroad Commission of Texas (RRC) has adopted revisions to the instructions to Form PR, Monthly Production Report. The revisions support the RRC’s regulation of flaring and venting of produced natural gas. The proposed revisions are to the Form PR Instructions, how operators need to complete the form, not to the structure of the form itself.
The adopted revisions include three changes to the Form PR Instructions.
- “Disposition Code 4”, which was used to report the volume of gas that was vented or flared, has been discontinued.
- Two new disposition codes have been implemented to allow operators to allocate gas. For gas that was flared, use “Disposition Code 10”. For gas that was vented, use “Disposition Code 11”. This change will allow the RRC to quantify the legal disposition of gas that was flared and vented.
- When an operator allocates gas to Disposition Codes 10 or 11, the operator will be required to enter one or more two-letter codes to the existing “REMARKS” field on the form. Those two letter codes correspond to the authority under which the gas was flared or vented, and include the following:
- AR – Authorized by Rule
- AE – Authorized by Exception
- EP – Exception Pending
- EX – Exempt
The former Form PR Instructions required an operator to “Indicate why the gas was vented or flared in REMARKS on Form PR”. The revised form makes these remarks uniform by requiring categorization of the authorization for the release.
Form PR is being adopted now, but the implementation will be delayed providing operators and the RRC time to make changes to their production reporting systems. Operators will continue to use the existing Form PR until the phased implementation, which will be as follows:
- On September 1, 2021, Disposition Code 4 will no longer be accepted. Gas that is flared must be allocated to Disposition Code 10 and gas that is vented must be allocated to Disposition Code 11.
- On January 1, 2022, operators must report the applicable 2-letter authorization codes in the “REMARKS” field on the form.
To view the Form PR and its instructions, visit the RRC website at https://rrc.texas.gov/oil-and-gas/oil-and-gas-forms/.
What we do
The Railroad Commission, through its Oil and Gas Division, regulates the exploration, production, and transportation of oil and natural gas in Texas. Its statutory role is to:
- prevent waste of the state's natural resources,
- to protect the correlative rights of different interest owners,
- to prevent pollution, and
- to provide safety in matters such as hydrogen sulfide.
The division accomplishes these goals by permitting and reporting requirements; by field inspections, testing programs and monitoring industry activities in the field; and through programs to remediate abandoned wells and sites through the use of fees and taxes paid by industry.
The Oil and Gas Division is headquartered in Austin, Texas with nine district offices spread over the state.
Drilling Permit Processing Time as of March 01, 2021Expedited Permits: approximately 2
Standard Permits: approximately 4