By Morgan Evans – October 9, 2023
Regulators in Texas’ oil and natural gas sector plan to streamline and modernize the way the exploration and production (E&P) industry manages oilfield waste.
For the first time since 1984, the Texas Railroad Commission (RRC) is updating the Statewide Rule 8, which regulates oil and natural gas waste pits and disposal methods. The rule “will undergo a substantial review to better reflect modern waste management practices and recent advancements in production methods,” stated RRC spokesperson Patty Ramon.
Currently, most waste permits are managed individually “in commission staff guidance documents or used as best practices, and incorporating them into the existing commission rules is appropriate,” said Ramon. Produced water and other E&P waste are typically injected into disposal wells.
If the new regulations are approved, companies will be required to construct, operate, monitor, and record wastewater wells, as well as study the surrounding groundwater. The rules would also limit the locations for wastewater management. An online database for applications, permits, and information requirements would also be created.
The Commission’s goal, according to them, is to “streamline” waste storage practices and promote the treatment and recycling of produced water. Oil and gas companies could also undertake pilot projects to reuse waste, including drilling cuttings.
The updates are also seen as necessary following legislation enacted in 2021. Under the Texas Senate Bill (SB) 601, the RRC was required to adopt rules to encourage recycling of oil and gas waste and permits for commercial recycling fluid waste.
Texas’ mining and extraction sector accounts for about 2% of the state’s yearly water use, according to the RRC. Hydraulic fracturing in the Permian Basin in 2019 generated around 3.93 billion barrels of wastewater, according to the Texas Produced Water Consortium.
Significant Impact
The Texas Independent Producers and Royalty Owners Association (TIPRO) expects the regulations to impact the economics of oil drilling operations, according to TIPRO President Ed Longanecker.
“Based on TIPRO members’ feedback, these changes could have a significant impact on the economics of oil and gas drilling projects in Texas, especially for smaller operators and low-producing wells,” he said. The trade group wants to “strongly encourage all Texas operators to carefully review the regulatory changes” and participate in the public comment period.
Commission Shift, a nonprofit organization dedicated to reforming oil and gas oversight in Texas, also reacted.
Campaign organizer Alyssa Wallace stated that there are “serious concerns” among people living near oilfields. Residents are particularly worried about the “proximity of oil and gas landfills to schools and workplaces, and the lack of law enforcement in these hazardous areas,” she said.
Virginia Palacios, Executive Director of Commission Shift, told IGN: “When it comes to operators, we know that these wells can be properly managed, but that’s not always the case, and if we want to create equal conditions among all operators, we need them to support rules that make each of them a good neighbor.”
Draft rules are available for comments until November 3.
