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2011-12-14 / Oil and Gas Report

Oil & Gas Report

Where the RRC has jurisdiction…and where it doesn’t
Leon Zabava

The Railroad Commission of Texas is an important adjunct to the oil and gas industry. They fulfill an important role in looking after interests of individuals and the state as a whole. There are areas they have jurisdiction over and others where they are not to be looked to as the decision makers.

To begin, we’ll take a look at what areas the Commission exercises jurisdiction. The Railroad Commission of Texas is the state agency with primary jurisdiction over the oil and natural gas industry, pipeline transporters, natural gas and hazardous liquid pipeline industry, natural gas utilities, the LP-gas industry, and coal and uranium surface mining operations. It is also responsible for research and education to promote the use of LP-gas as an alternative fuel in Texas. The Commission exercises its statutory responsibilities under provisions of the Texas Constitution, the Texas Natural Resources Code, the Texas Health and Safety Code, the Texas Utilities Code, the Coal and Uranium Surface Mining and Reclamation Acts, and the Pipeline Safety Acts. The Commission also has regulatory and enforcement responsibilities under federal law including the Surface Coal Mining Control and Reclamation Act, the Safe Drinking Water Act, the Pipeline Safety Acts, the Resource Conservation Recovery Act, and the Clean Water Act. The commission’s responsibilities include: preventing waste of oil and gas resources; protection of surface and subsurface water; and ensuring all mineral interest owners have an opportunity to develop their fair share of the minerals underlying their property.

Here are areas where the Railroad Commission does not have jurisdiction over and who to contact.

The Railroad Commission does not have jurisdiction over roads, traffic, noise, odors, leases, pipeline easements, or royalty payments.

Concerning roads and traffic, the Railroad Commission does not have jurisdiction over, and exercises no regulatory authority with respect to private or public roads or road use. Permits issued by the Commission for oil and gas exploration, production, and waste disposal do not limit any independent authority of a municipality, county or other state agencies with respect to road use.

The Texas Department of Transportation does oversee the construction and maintenance of state highways within their jurisdiction. In addition, TXDOT is responsible for issuing access permits to well sites from a roadway on the state highway system.

In a specific updating from TxDOT to RRC on May 23, 2011, these guidelines were stated.

The Texas Department of Transportation requests that the Texas Railroad Commission add language to its hard and electronic copies of permits, user guides, websites and other resources notifying oil and gas well drillers of the need for a permit from the TxDOT. TxDot’s goal is to remind drillers that there are additional requirements before drilling activity can begin.



With regards to accessing a well site, if an operator or service provider of any well equipment for the well must access the well site from a roadway on the state highway system (Interstate, U.S. Highway, State Highway, Farm-to-Market, Ranch-to- Market, etc.), an access permit is required from TxDOT. Permit applications are submitted to the respective TxDOT Area Office serving the county where the well is located.

If access is available from a roadway not on the state highway system (city street or county road) then an access permit from TxDOT is not required. Please check with the respective local government jurisdiction to determine if local permits are needed.

Regarding water transport to a well site, if any operator intends to transport water to the well site through a temporary pipeline laid above the ground on the state’s right-of-way, an additional TxDOT permit is required. Permit applications are submitted to the respective TxDOT Area Office serving the county where the well is located.

Regarding noise, the Commission has no statutory authority over noise or nuisance related isssues. Noise and nuisance related issues would be governed by local ordinances. For more information concerning local ordinances, please visit the Texas Online portal for links to cities and counties in Texas.

The Railroad Commission does not have regulatory authority over odors. However, for a well within the city limits, the city may enact ordinances regarding odors or other nuisances. In addition, the Texas Commission for Environmental Quality (TCEQ) has jurisdiction over air contaminants.

In a future article I’ll discuss oil and gas exploration and surface ownership - also info regarding royalty payments.

From time to time, I will bring you more information regarding the Railroad Commission of Texas and where other applicable regulations apply. LEON ZABAVA keeps us informed on the happenings in the oil and gas fields in our area. He can be reached at lzabava@pleasantonexpress.com

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