The surge in production in the Eagle Ford during the past few years has brought with it increased state tax revenues, new businesses and a wealth of job opportunities. But it has also brought questions about road wear, water use and demand for skilled labor. On top of that, the number of permits issued by the Texas Railroad Commission has exploded in the region from 94 in 2009 to more than 4,000 permits in 2012. These competing factors give the Texas Railroad Commission a tough job as it scrambles to adapt to rapid change in the region.
“It is critical that the Railroad Commission continually update its rules and regulations as we fight to maintain our status as the premier oil and gas regulatory agency in the nation,” Texas Railroad Commissioner David Porter said at Hart Energy’s DUG Eagle Ford conference. His talk hinged on the findings of the commission’s Eagle Ford Task Force report, which was released earlier this year. The report was intended to help legislators understand the issues that have grown up with the Eagle Ford.
It appears to be doing its job. Since the report was released, the Texas Legislature set aside $225 million for 83 miles of county roads in South and West Texas, and next year voters will decide whether or not to allocate $1.2 million each year from the rainy-day fund for road construction and maintenance.
In addressing the issue of water usage, Porter said the commission had revamped its rules on recycling permits to reduce the usage of fresh water.
“Major changes to the rule include eliminating the need for a commission recycling permit if operators are recycling fluids on their own leases, or transferring their fluids to another operator’s lease to recycle,” Porter said. “The changes also clearly identify recycling permit application requirements and reflect existing standard field conditions for recycling permits. “Removing some of the obstacles that have hindered water recycling efforts in the past will undoubtedly help operators shift toward more recycling and conservation going forward.”
He said the commission also recently amended its rules on well casing, cementing and construction “to further protect against any potential water contamination.” In addition, the commission has begun examining its rules regarding injection and disposal wells.
“My goal is to guarantee that every oil and gas well drilled in the state follows the best practices already being implemented by the oil and gas industry across Texas,” Porter said.
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