Latest news with #RailroadCommission
E&E News
07-07-2025
- Business
- E&E News
Texas oil and gas regulator launches ‘DOGE' task force
Texas' oil and gas regulator will get the 'DOGE' treatment after Commissioner Wayne Christian said he's forming the Delivering Oil and Gas Efficiently Task Force. Unlike the federal employee purging instituted by the so-called Department of Government Efficiency, Christian said in a statement that the state Railroad Commission's effort is not about cutting personnel. Instead, he said, the task force will focus on cutting delays and updating the agency's systems. 'As a lifelong conservative, I believe government works best when it's limited, efficient and accountable,' Christian said in a statement last month. 'The DOGE Task Force is about making sure our agency runs smarter — not bigger — and that we continue to serve the people of Texas with excellence.' Advertisement Christian's office did not respond to a request for comment last week. It's unclear who will serve on the task force.
Reuters
10-06-2025
- Business
- Reuters
New Texas wastewater rules could boost costs for oil producers
HOUSTON, June 10 (Reuters) - New guidelines on permitting for wastewater disposal wells in Texas are threatening to drive oil producers' costs higher as companies face weak crude prices, marking the latest challenge for the industry that has seen output growth slow as it matures. The U.S. is the world's largest oil producer, with output surging to a record 13.4 million barrels per day (bpd) over the past decade as technological advancements allowed companies to tap its vast oil reserves. Growth is slowing, however, as the best resources are depleted, pushing operators into less profitable drilling locations that produce more water. New rules by the state's energy regulator, the Railroad Commission of Texas (RRC), which took effect June 1, aim to focus produced water disposal permitting efforts on ensuring injected fluids stay in the disposal formations in the Permian Basin, the country's largest oilfield. They follow concerns that produced water, a byproduct of oil and gas extraction that operators inject into the ground, could leak out of disposal wells and contaminate ground and surface freshwater. The new guidelines limit maximum injection pressure at the surface and limit how much water can be injected based on reservoir pressure. "These stricter Railroad Commission regulations could present operational and financial challenges for Texas oil and gas producers, particularly smaller operators with limited resources," said Linhua Guan, CEO of Surge Energy America, one of the largest private U.S. crude producers with operations in the Permian. Produced water gathering and disposal costs will rise roughly 20-30% for parts of the Delaware formation in the Permian Basin, where most injection happens, over the next few years, according to water consultancy, B3 Insights. Costs could hit around 75 cents to $1 per barrel of water, B3 said. The Delaware sub-basin produces five barrels of water for every barrel of oil, according to Christine Guerrero, a veteran petroleum engineer and strategic advisor to asset manager Octane Investments. Shallow formation pressure in the Delaware, on average, has increased three times faster since 2018 than in the Midland sub-basin of the Permian, according to B3 Insights, due to huge volumes of water being injected there, helping induce earthquakes. The new guidelines will likely curb some operators' local options for saltwater disposal, requiring more infrastructure to transport water over greater distances, and new disposal sites in new regions, according to Jonathon VandenBrand, senior vice president, commercial at Western Midstream (WES.N), opens new tab, which operates 54 saltwater disposal wells and has 2 million bpd of produced water takeaway capacity in the Delaware. The guidelines could also require operators to collect additional regional data to satisfy regulatory requirements, with added costs potentially reaching tens or hundreds of thousands of dollars, VandenBrand said, adding this could increase the duration of securing permits, likely affecting smaller operators most. The new regulations come as producers are already grappling with crude prices that are hovering under $65 a barrel - a level many need to turn a profit - as OPEC+ raises its production and U.S. President Donald Trump's trade war drives economic concerns. If oil prices stay low, the rising cost of water management will stress breakeven costs in the peripheral parts of the basin, but less in the core, explained Kelly Bennett, CEO of B3 Insights, adding that some drilling in the less profitable, tier two and three locations will likely be put on pause owing to weak margins. Some groups argue the new rules are a step in the right direction but there is more to be done. "While the new guidelines represent an improvement and may aid in identifying potential locations for this breakthrough, they do not go far enough," said Julie Range, policy manager for Commission Shift, a Texas watchdog group.
Bloomberg
22-05-2025
- Science
- Bloomberg
The Biggest US Oil Field Is at Risk of Poisonous Water Leaks, Texas Warns
Texas regulators are warning that wastewater from fracking in the biggest US oil basin is causing a 'widespread' increase in underground pressure — a development that risks hindering crude output and harming the environment. Shale oil wells in the Permian Basin generate millions of gallons of chemical-laced water, which drillers then pump back into the earth. Landowners and activists have said for years that this process causes toxic leaks. Now the state's powerful oil and gas regulator, the Railroad Commission of Texas, is acknowledging the scale of the problem and imposing restrictions that could increase crude production costs.
Yahoo
22-05-2025
- Business
- Yahoo
Environmental challenges in the E&P and midstream sectors
May 21—Join law firm Troutman Pepper Locke for an in-depth Continuing Legal Education (CLE) presentation focused on pressing environmental issues facing the E&P and midstream sectors. This timely program will address the recent changes in Railroad Commission rules governing waste and pit permitting and will also provide insights into steps the industry should take to adapt to these new regulations. Additionally, they will explore ongoing air quality issues and the implications of the new EPA administration's policies on the oil and gas industry. The event is scheduled from 3 p.m. to 6 p.m. June 18 at Midland Country Club, One Wildcatter Way, Midland. Troutman Pepper Locke's expert panel will provide a comprehensive overview of the regulatory landscape, discuss compliance strategies, and offer practical advice for navigating these challenges. This presentation is essential for legal professionals, environmental consultants, and industry stakeholders who need to stay informed about the latest developments in environmental regulations affecting the E&P and midstream sectors, event information said. AGENDA 3 p.m. — 3:10 p.m. — Welcome and Introduction — Overview of the program and objectives 3:10 p.m. — 3:30 p.m. — New Waste and Pit Permitting Rules by the Railroad Commission — Detailed analysis of the new permitting rules — Implications for oilfield operations — Compliance strategies and best practices 3:30 p.m. — 3:50 p.m. — Ongoing Air Quality Issues in the E&P and Midstream Sectors — Overview of current air quality challenges — Regulatory requirements and enforcement trends — Mitigation strategies and technological solutions 4:10 p.m. — 4:30 p.m. — Navigating the New EPA Administration — Key policy changes and regulatory priorities — Impact on the oil and gas industry — Strategies for compliance and advocacy 4:30 p.m. — 5 p.m. — Panel Discussion — Interactive discussion on the topics covered — Experts in the field share hands on experience and valuable insights 5 p.m. — 6 p.m. — Happy Hour — Networking opportunity with speakers and attendees — Light snacks and beverages provided
Yahoo
08-05-2025
- General
- Yahoo
Texas has thousands of abandoned oil and gas wells. Who is responsible for cleaning them up?
LULING — Just six minutes from 5,700-person town's historic city center, where an old oil museum still nods to the boom days, the ground groans as oil workers pull steel tubing — each piece is longer than a bus — out of a well drilled in 1983 that stopped pumping profits last year. Rain pours on this quiet Texas field, but the crew doesn't stop their steady pace. The job has become all too familiar. They're sealing one of thousands of unplugged orphaned oil and gas wells scattered across the state — abandoned holes left behind by companies that went bankrupt or just walked away. The last company to own this particular well was Geomeg Energy Operating Co., an Aransas Pass-based oil and gas company. This March project was a snapshot of what plugging a well looks like: part routine, part roulette. Sometimes workers find corroded cement casings, pressurized gas, or unexpected debris that can turn a cleanup into a days- or weeks-long job. 'Even the simplest well can take time,' said Nicholas Harrel, a state managed plugger with the Texas Railroad Commission. From the air, the wells look like pinpricks across the Texas landscape. But on the ground, they can erupt like geysers, leak methane, and threaten water supplies with toxic chemicals like hydrogen sulfide, benzene and arsenic. Abandoned oil wells are piling up across Texas, posing a growing environmental threat and saddling taxpayers with cleanup costs that have already reached tens of millions of dollars. In West Texas, at least eight orphaned wells have blown out since late 2024, spewing brine, a salty liquid laden with chemicals from drilling, and toxic gas. One leaked for more than two months before it could be capped. Another has created a 200-foot-wide sinkhole. 'We have more orphan wells coming on than we are plugging,' Railroad Commission Chair Christi Craddick said. 'We've exceeded our plugging numbers every year, but we still have more orphan wells that keep coming.' Who's responsible for cleaning up these wells, and what happens if Texas falls behind? Here's what to know. Orphan wells are oil, gas, or injection wells with no clear owner — either because the company went bankrupt or disappeared. These wells have been inactive for at least 12 months, meaning the wells do not produce oil or natural gas. Some of them are unplugged. Texas has nearly 8,900 orphan wells, according to the Railroad Commission's most recent list. Many are concentrated in oil-rich areas like the Permian Basin, including Reeves, Crockett, and Pecos counties. Pecos has more than 600 of them — the most of any county. Frio County, southwest of San Antonio, follows with close to 500 orphan wells. Many were plugged with inappropriate materials or using practices that are now obsolete. Older wells — especially those drilled before the 1950s — are more likely to have been abandoned and documentation on who last owned a well can be hard to find. The Railroad Commission of Texas, the state's oil and gas regulator, is responsible for ensuring that operators plug wells properly. Once a well stops producing oil or gas, operators are supposed to plug their own wells within 12 months. But when they don't — in some cases because they went bankrupt — the responsibility can shift to the state. The agency then evaluates how dangerous the orphan well is — to the environment and public safety — and places the well on a list to be plugged by contractors the agency hires. The Luling well was added to the Railroad Commission's list in October 2024 — one of five wells scheduled for plugging in the area. A big concern is air pollution, particularly methane, a powerful greenhouse gas that traps heat in the atmosphere and accelerates climate change. These wells often leak methane, as well as hydrogen sulfide — a toxic colorless gas that smells like rotten eggs. This gas is especially dangerous: it can cause headaches, dizziness and at high concentrations can be fatal. For years, experts and ranchers have warned about the rising threat that unplugged wells pose to rivers, lakes and groundwater when they leak oil, gas, drilling fluids, and fracking wastewater, also known as 'produced water' a toxic mix of salt, hydrocarbons, arsenic, radium and other naturally occurring chemicals. Unplugged wells can create pathways for those chemicals to migrate into groundwater zones. A spokesperson with the Railroad Commission said they are unaware of any cases of groundwater contamination from orphan wells in Texas. The risks aren't just slow-moving — some are explosive. The common industry practice of injecting the massive amounts of fracking wastewater into deep wells can put pressure on underground geological formations. In some cases this pressure has led to increased earthquakes. In other cases, researchers have linked injections to well blowouts — sudden eruptions of water and gas that migrate underground until they hit an old well and burst from the earth. Blowouts can happen in any well. However, orphan wells and older, plugged wells are less likely to withstand the pressure and blow. Last year in the West Texas town of Toyah, a well erupted and spewed a foul-smelling, hydrogen-sulfide-laced plume that took 19 days to contain. Residents had headaches and wore masks to protect themselves. Harrel, the Railroad Commission well plugger, said that while the Luling well is a 'non-emergency' well, meaning it did not pose an immediate threat, it was still a concern because fluid was rising in the well and could eventually threaten groundwater. The Luling well is located in a field called Spiller known to have higher hydrogen sulfide levels. A 2024 study found that at least 20 wells in a Luling oilfield were releasing dangerous amounts of hydrogen sulfide gas. Residents report smells as far as Austin — 50 miles away. The Railroad Commission operates a State Managed Plugging Program, which is partly funded by the Oil and Gas Regulation and Cleanup Fund that receives bonds, enforcement penalties and permitting fees paid by operators. However, critics say those funds often fall short of actual cleanup costs. The agency has plugged more than 46,000 wells through the state plugging program since its inception in 1984. The commission said it has budgeted $22.75 million a year to plug 1,000 wells a year. For the past five fiscal years the agency has plugged an average of 1,352 wells per year. But that money doesn't go nearly far enough. The cost to plug just two emergency wells this fiscal year hit $9 million, nearly 40% of the state's entire annual plugging budget, according to Craddick, the agency chair. To keep up, the commission has increasingly relied on federal support. The Bipartisan Infrastructure Law, passed by the U.S. Congress in 2021, included a $4.7 billion nationwide injection to plug orphan wells on public and private lands. Through that law, Texas received $25 million in 2022 from the U.S. Department of the Interior and another $80 million in early 2024 to plug orphan wells. Combined with state funding, those dollars helped plug over 2,400 wells in 2023–24. However, federal funds are uncertain with changes in administrations. Meanwhile, plugging costs have also skyrocketed. Just a few years ago, Craddick said it cost around $15,000 to plug a well. Today, the average is closer to $57,000, and that number jumps dramatically for wells with high water flow or hazardous leaks. For example, a blowout near Odessa in late 2023 took more than two months and $2.5 million to contain and plug. The RRC warned last year that it can no longer sustain the growing cost and scale of the problem and requested an additional $100 million in emergency funding from lawmakers — about 44% of its entire two-year budget — just to keep up with the backlog, tackle urgent sites and cope with rising costs due to inflation. Lawmakers are considering this as part of the overall state budget. The costs of plugging a well vary by region and are based on how deep the wells are, according to Harell. While the Luling well's cost has not been finalized, according to the commission's cost calculation information, the well's cost will be about $24,000. The agency prioritizes wells that are actively leaking or pose immediate threats to the environment, groundwater and people. They might be releasing toxic gases like hydrogen sulfide, flooding land with contaminated water, or dangerously pressurized. These wells must be plugged right away, regardless of the cost, according to the commission. While Craddick noted at a hearing in February the state had 15 priority wells, a commission spokesperson said the number of priority wells fluctuates every day, with typically zero to five wells classified as emergency at any given time. 'If the fluid level in the well, the hydrocarbons and produce water in the well, gets up too close to that freshwater aquifer then it imposes a higher risk to contaminating that groundwater aquifer, so we wanna make sure that we get to those as wells first,' said Travis Baer, an oil and gas division district director at the Railroad Commission. The Luling well is categorized as a 2H priority well — still high risk but not a full-blown emergency. At the Luling field, red trucks and equipment surround a rusted pump jack, a mechanical device used to extract oil from an underground well to the surface. One of the trucks has two tanks that hold cement, another carries a cement mixer and a pressure pump. The process starts with a site assessment: Crews glance at hand-held devices hanging from their neck to test for dangerous gases like hydrogen sulfide and determine the wind direction so they can position themselves upwind. Once the site is secure, three workers wearing hard hats remove equipment inside the 2,000-foot-deep well — steel rods and tubing used to carry oil or gas to the surface. Almost two hours later, the workers were still pulling out tubing. Baer, the division district director, said these materials are often salvaged and sold to help offset plugging costs. Next, they assess the well's structural condition and measure how high fluids have risen inside. Once the well is fully evaluated, crews identify the underground zones that once produced oil or gas — known as perforations. A cast iron bridge plug (mechanical plug) is dropped down the hole, tightly sealed to provide a solid base and prevent fluids from leaking. 'This gives us a permanent bottom, it stops gas migration into our cement plug. So we know we're getting the best plug on bottom to seal off the perforations in the zone,' said Randy Niedorf, a well plugger with the company Bulldog Oil Well Service. Then, cement is pumped deep into the well. It flows to the bottom and rises up around the casing, sealing the wellbore and blocking any potential pathways for gas or liquid to migrate. Multiple cement plugs are installed along the well's depth, including near groundwater layers, to ensure complete isolation of oil and water zones. The final step is land restoration. Once the well is sealed, crews clean up the site. The Luling well was plugged in two days and all five wells in the area were plugged in about a week. First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!
