The Wise
Report
Henry M. Wise,
P.G.
October 1, 2011
The Texas
Board of Professional Geoscientists (TBPG) has published the proposed rules
discussed in last week's Wise Report in the Texas Register. It can be found
at:
http://www.sos.state.tx.us/texreg/sos/PROPOSED/22.EXAMINING%20BOARDS.htm...
Editorial
Comments Follow:
There has been quite a bit of controversy that's
developed over Section 851.33 Permissive Professional Geoscience Practice and
Section 851.34 Non-exempted Geoscintific Work. Both of these sections represent
a major revision and help to define what are considered to be geological
practices that will or will not require a PG seal. These rules incorporate
recommendations from the Oil and Gas Workgroup. The PG board is looking to the
geological community of Texas to help improve the wording of these proposed
rules. I believe this is badly needed, as several geologists, including myself,
misunderstood the intent, based on the way things were worded, and thought they
were planing on regulating O&G, minerals, and climate change studies.
Upon re-reading the rules, I
remembered a discussion I had a couple of weeks earlier, after the last TBPG
board meeting, when I saw a preliminary version of the rule changes, that the
proposed rules under Section 851.33 Permissive Professional Geoscience Practice
were supposed to be voluntary. That is, if O&G, mineral, and other exempt
geologists want to seal their work, those listed here are what should be sealed.
Section 851.34 Non-exempted Geoscientific Work lists work that must be sealed by
a PG.
I think what we're dealing with,
for Section 851.33, is a situation where there is insufficient definition of
what a permissive professional geoscience practice is and why it needs a rule. I
believe most people will look at it and at first glance assume, like we did,
that O&G, etc. geologists will need to be registered to conduct their
business. This is not the case. This section lists reports that may be sealed
on a volutary basis. It is not required. The wording for this section needs
revision to make it perfectly clear.
Section 851.34 is supposed to
clarify which geologic reports in the exempted fields, when used in the Public
Sector, need to be sealed. I also believe that some, if not most of this is
coming from complaints to the SEC in recent years about bad reserve estimates
estimates resulting in inflated stock prices, etc. Again, I'll remind you that
these rules were written after consulting with the Oil & Gas Workgroup.
It's my understanding that the
major oil companies are infavor of these changes and that the independants/small
O&G companies are not.
I believe that much of this
controversy could have been avoided by more preliminary outreach by the TBPG to
the geologic community. It's great that they did form an O&G Workgroup for
this, but most people didn't know there was an O&G workgroup, let alone
who's on it. You have until October 30, 2011 to make comments to the TBPG.
Please make all comments as specific as possible, including improvements in any
or all wording, and your reasons for it. I know the TBPG will welcome your
comments and will take them into consideration for improving these
rules.
For those of you who don't believe that these
rules are needed, you should state your reasons to the Board at this time. I
would remind you that, in my opinon, unfortunately, the day is coming whereby
reserve estimates will need to be sealed by either a PE or a PG. The PE's are
already positioning themselves for this. As reported in a previous Wise Report,
HB 2067 (http://www.capitol.state.tx.us/BillLookup/history.aspx?LegSess=82R&Bill=HB2067)
was passed and signed, and allows out-of-state PE's to perform reserve
estimates. Geologists aren't mentioned in this bill. While geologists may
still be allowed to perform reserve estimates, if the Federal Government ever
decided that a licensed individual needs to sign and seal these estimates, PEs
are the only ones in this state that could legally do it.
-------------------------------------------------------------------------------------------------------------
The TCEQ has several new
publications of interest:
Cl