The Railroad Commission of Texas (RRC) this week adopted an overhaul of its regulations governing oil and gas waste management facilities. The new regulations revise how Texas companies manage so-called “pit rules,” and represent the biggest changes in over four decades, according to the commission.
During an open meeting on Dec. 18, RRC commissioners voted to impose tighter restrictions on the design, construction, operation, monitoring, and closure of waste management units. The RRC says the measures are expected to improve data tracking for oilfield waste transportation, and ensure more transparency and accountability in the industry.
Industry executives have characterized the new rules as changing to "permit by decree,” where companies must seek permission from agencies to carry out tasks rather than the "permit by rule” approach they say has allowed the Texas energy industry to thrive.
According to the RRC, the new rules will better protect Texas’ water resources. The commission says the rules will still allow the oil and gas industry to adopt modern waste management practices. The changes affect traditional oil and gas waste as well as waste produced from geothermal operations, carbon sequestration, and brine mining wells—areas that fall under the RRC’s jurisdiction.
The Commission approved the rules after a public comment period that ended on October 15.
In a letter to the RRC as part of the comment process, Tommy Taylor of Fasken Oil and Ranch, Ltd., a prominent family-owned oil and gas company in Midland, objected to the revisions. He argued that the rules could particularly burden smaller operators and ranchers, and will increase costs without substantial environmental benefits.
"These new requirements would place an undue financial burden on smaller operators and ranchers, who may not have the resources to meet these extensive standards,” he wrote. According to Taylor, the RRC action is "ultimately jeopardizing their ability to operate."
To enforce the new standards, the RRC has created an environmental permit compliance team to review facility reports and conduct inspections. The approach has alarmed some companies that have characterized the agency as adopting "Biden-era” government approaches while the state and nation appear to favor more market-driven approaches promised by Republicans who have increased their hold on Congress, the White House, and the Texas legislature.
RRC Chairman Christi Craddick said that the oil and gas industry has "evolved dramatically since the 1980s,” and that she was “proud” of the new rules, which she said was Texas’ “first overhaul of waste management rules in 40 years.”
Commissioner Wayne Christian labeled the RRC action as "a win for Texas energy and for commonsense, balanced regulation.” He said opposition to the new rules largely came from “radical environmental groups” who he said aim to curb oil and gas operations.
However, hundreds of individuals provided comments to the commission, representing industry, ranchers, and small business operators, while a relatively small number of comments were provided by environmental groups. A large number of the non-environmental commenters raised objections to the new RRC rules.
Commissioner Jim Wright said the RRC action keeps regulations in step with industry advancements. He said in a public statement that the oil and gas industry in Texas "has grown and changed in ways unimaginable,” and that the RRC modernized the pit rules "in a way which aligns with the Railroad Commission’s mission, and which will serve our state and citizens well.”
Industry representatives have pointed out that Wright’s biographical information on the RRC website says that he founded "a group of environmental management companies that service the energy industry.”
The RRC regulates the oil and gas industry, gas utilities, pipeline safety, safety in the liquefied petroleum gas industry, and surface coal and uranium mining. Despite its name, it ceased regulating railroads in 2005.
