The Wise Report
Henry M. Wise, P.G.
November 9, 2019
The Railroad Commission of Texas proposes amendments to §3.40, relating to Assignment of Acreage to Pooled Development and Proration Units. The amendments are proposed to allow the same surface acreage to be assigned to more than one well in an unconventional fracture treated (UFT) field when mineral ownership is severed at different depths below the surface.
Currently, §3.40 prohibits acreage from being assigned to more than one well in a field, except in limited circumstances. The Commission recognizes significant changes have occurred in the exploration and production industry in Texas, and certain rule changes are needed to uphold the Commission's statutory requirements to prevent waste and protect correlative rights. Specifically, the Commission has determined there are circumstances in which the assignment of acreage to more than one well in a field is necessary to prevent waste and protect correlative rights. The basis for this determination arises from primarily two factors: (1) severed ownership of mineral rights at depth, and (2) technological advances that have unlocked heretofore inaccessible hydrocarbon resources in UFT fields. For more information go to: https://www.sos.state.tx.us/texreg/archive/November82019/Proposed%20Rule...
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On June 12, 2019, the Texas Commission on Environmental Services determined that the rules in 30 TAC Chapter 39, Subchapters A - E; Chapter 50, Subchapters A - C; Chapter 55, Subchapters A and B; and Chapter 80, §§80.3, 80.5, and 80.251 are obsolete and no longer needed because no applications that were declared administratively complete before September 1, 1999 and thus subject to these rules remain pending with the commission (June 28, 2019, issue of the Texas Register (44 TexReg 3304)). As a result, the commission is proposing, in a concurrent rulemaking, to repeal obsolete rules in Chapters 39, 50, 55, and 80 (Rule Project Number 2019-119-039-LS) which then necessitates updating other rules, primarily to remove obsolete text and update cross-references.
As part of this rulemaking, the commission is concurrently proposing amendments in 30 TAC Chapters 33, 35, 39, 50, 55, 60, 70, 80, 90, 205, 285, 294, 305, 321, 330 - 332, 335, and 350, and new sections in Chapter 39, to make necessary changes due to the proposed repeals. In addition, this rulemaking addresses public notice requirements for certain applications that are not subject to contested case hearing but are currently subject to rules in Chapter 39, Subchapters A and B, without regard to the specified date of administrative completeness. The public notice requirements for those applications would be relocated to proposed new Chapter 39, Subchapter P. Section 334.484 is proposed to be amended by updating an obsolete cross-reference. For more information go to: https://www.sos.state.tx.us/texreg/archive/November82019/Proposed%20Rule...
Henry M. Wise, P.G.
The Wise Report
11/9/2019