Texas Railroad Commission Publishes Proposed New Environmental Rules for Informal Comment
Published on 04 Oct 2023
•
Texas, USA (National/Federal)
•
by Practical Law Oil & Gas
PRACTICAL LAW
•
04 Oct 2023
The Railroad Commission of Texas published proposed revisions to its environmental and water protection rules for informal comment.
On October 2, 2023, the Railroad Commission of Texas (RRC) announced proposed changes to its rules governing oil and gas waste management and other environmental and water protection issues. The RRC is seeking informal public comment on the proposed rules in anticipation of a future formal rulemaking.
The RRC is accepting informal comments on the proposed rules through Friday, November 3, 2023. The RRC will hold an in-person hearing on the proposed rules on October 26, 2023 at 1701 N. Congress, Room 1.111, Austin, Texas 78701, followed by an October 27, 2023 online hearing. Details regarding participation in the hearings and submitting comments are included in the RRC's press release regarding the rule.
The RRC anticipates proceeding with a formal rulemaking proposal in early 2024.
Background
The RRC regulates many aspects of upstream and midstream oil and gas operations in Texas, including the handling and disposal of many oil and gas wastes and related environmental practices.
If not properly managed, oil and gas operations can cause significant pollution of soil, groundwater, and surface waters. Oil and gas operations generate many wastes, including drilling mud and other drilling fluids, drill cuttings, hydraulic fracturing (fracking or fracing) fluids, and produced saltwater. Federal regulations exempt most wastes associated with the exploration and production of oil and gas from Resource Conservation and Recovery Act (RCRA) requirements that apply to hazardous wastes (exempt oil and gas wastes). However, these exempt wastes often contain hydrocarbons and other harmful and toxic substances. In Texas, exempt oil and gas wastes are regulated by the RRC.
Rule 8 and Other RRC Environmental Rules
The RRC regulates many oil and gas waste handling and environmental practices under Statewide Rule 8 (16 Tex. Admin. Code § 3.8). In its present form, Rule 8:
Prohibits pollution resulting from activities under RRC jurisdiction.
Regulates:
surface impoundments used in oil and gas operations (pits); and
other oil and gas waste disposal and management practices and facilities.
Defines permissible disposal methods for exempt oil and gas wastes.
Requires permits for oil and gas waste haulers.
Prescribes recordkeeping requirements for transporting oil and gas wastes.
Separate RRC rules govern subsurface injection and disposal of oil and gas wastes (Statewide Rules 9 and 46, see 16 Tex. Admin. Code §§ 3.9 and 3.46) and the reclamation of tank bottoms and other hydrocarbon wastes (Statewide Rule 57, see 16 Tex. Admin. Code § 3.57). The RRC has also adopted separate rules for commercial recycling of oil and gas wastes (see 16 Tex. Admin. Code §§ 4.201 to 4.293). However, many key RRC requirements for oil and gas wastes remain in Rule 8.
Current Views of RRC Environmental Regulation
Many stakeholders believe Rule 8 is outdated and has not kept pace with current environmental standards and oil and gas industry practices, leading to frequent calls for revisions.
Because of the development of unconventional oil and gas plays using horizontal wells and fracing, many drilling and well completion practices have changed in recent decades. Texas oil and gas operators generate large quantities of oil and gas wastes, particularly during drilling and completion. This has resulted in increased need for commercial oil and gas waste disposal and recycling services. Commercial solid oil and gas waste disposal facilities are currently permitted under Rule 8. However, Rule 8 lacks detail regarding many aspects of this process. Many current waste management permit application requirements and permit conditions have been developed in RRC guidance documents or by RRC practice and are not reflected in RRC rules.
There has also been significant recent controversy and public criticism regarding oil and gas waste management facilities and the RRC's environmental policies in general. As the numbers of large waste handling facilities have grown, landowner and citizen group protests have become common. The RRC's commissioners are frequently criticized by environmental and citizen groups as being too closely tied to the oil and gas industry.
Several recent laws enacted by the Texas legislature also require the RRC to adopt various changes to its waste management rules.
The Proposed New Rules
RRC Waste Management Rules
The proposed rules would create a new subchapter of 16 Texas Administrative Code Chapter 4 titled Oil and Gas Waste Management. The proposed subchapter includes much of the current content of Statewide Rules 8 and 57, in addition to many new provisions.
Among other key provisions, the proposed rules contain:
New requirements for certain types of RRC-authorized pits commonly used in oil and gas drilling, completion, and production operations, including:
construction, operation, and closure requirements;
RRC registration requirements; and
groundwater evaluation and monitoring requirements.
Expanded rules governing waste management permits that are intended to supplement Rule 8 requirements and reflect current RRC practice, including rules for:
permit terms, renewals, transfers, and amendments;
contents of permit applications;
recordkeeping, reporting, and monitoring;
facility and pit closure plans;
permit processing, protests, and hearings; and
additional requirements for commercial facilities.
Additional provisions governing pits that require RRC permits, including for:
siting;
design and construction;
monitoring; and
closure.
Expanded requirements for disposal of wastes by mixing with soils (landfarming).
Additional requirements for oil and gas waste haulers and transportation of oil and gas waste, including for:
oil and gas waste characterization and documentation;
waste manifests;
special waste authorizations; and
recordkeeping.
Under the current proposal, Rules 8 and 57 would remain in 16 Texas Administrative Code Chapter 3, but would be amended to refer to the new substantive provisions in Chapter 4.
RRC Commercial Recycling Rules
The proposed rules would also make certain changes to the RRC's existing commercial recycling rules, including changes intended to encourage:
Recycling of fluid oil and gas wastes.
Beneficial recycling and reuse of drill cuttings.
These changes are modest in scope compared to the waste management rule changes.
Practical Implications
If adopted, the proposed rules would clarify and modernize many RRC environmental requirements. They would also create new regulatory requirements for well operators, particularly regarding pits used in drilling and completion activities. However, in many respects the proposed rules largely codify existing RRC practice, particularly regarding the processes for permitting commercial waste management facilities. The proposal is therefore likely to be viewed unfavorably by citizen and environmental groups who are critical of the RRC's environmental policies.