The Texas Railroad Commission is expected to decide whether it will allow for a new oil and gas disposal facility in Shelby County, Texas.
In July 2021, the Railroad Commission’s Oil & Gas Division approved a draft permit to build the facility in Paxton, Texas. The 73-page application outlined safety and environmental measures, including provisions for authorized waste disposal, groundwater monitoring, and stormwater management.
Sources tell Lone Star Standard that at least one buyer of the facility is actively pursuing it, if the permit is approved.
In a letter to Shelby County Commissioners Court, former State Representative and CEO of the American Energy Institute argued that "this shortage of disposal capacity is becoming a major barrier to fully tapping the potential of the Haynesville Shale."
He added that investing in new disposal facilities would help reduce these burdens and better position the community for growth as production trends shift.
The Haynesville Shale, the third-largest shale gas-producing region in the U.S., accounts for 14% of the nation’s dry natural gas production, according to a report from the U.S. Energy Information Administration. However, the region is facing a shortage of waste disposal capacity.
Six months after the initial approval, nearby landowners contested the permit. An administrative law judge subsequently recommended that the Railroad Commission deny the permit.
The final decision now rests with the Railroad Commission’s three elected commissioners: Christi Craddick, Wayne Christian, and Jim Wright.
In a later filing, McBride Operating LLC, which proposed the facility, argued that the Paxton facility would address the region’s disposal needs, reduce costs for operators, and attract new investments to the area, positioning the region as a key contributor to the nation’s energy future.
The filing states the new facility is to "help address the industry’s significant need for disposal of solid oil and gas waste in East Texas, McBride engaged the respected global environmental and engineering services firm Wood PLC to assist with locating and designing a suitable facility.”
Opponents of the facility, including local resident Terry Allen, have raised concerns about potential environmental risks. Allen, who has long opposed McBride, criticized the company’s compliance record, calling it "horrible."
He also warned that approving the project could harm the local environment and risk alienating residents who may feel the company is untrustworthy.
Established in 1891, The Railroad Commission of Texas was originally formed to prevent discrimination in railroad charges and institute viable tariffs, according to its website. In 2005, the Commission transferred its remaining regulatory authority to the Texas Department of Transportation. It is now the primary agency responsible for regulating and enforcing the state's energy industries.
