Last week, the U.S. Environmental Protection Agency (“EPA”) issued its final report addressing the input received by various stakeholders relating to the management of wastewater from the oil and gas industry.  The report entitled Summary of Input on Oil and Gas Extraction Wastewater Management Practices Under the Clean Water Act is the culmination of a stakeholder engagement process that began in 2018 (“Final Report”).
Continue Reading EPA Issues Final Report on Oil and Gas Extraction Wastewater Management

Yesterday, the Railroad Commission of Texas voted by a 2-1 margin to dismiss the request that had been filed in late March of this year by two producers to determine reasonable market demand for oil and the need for curtailment of oil production in Texas.
Continue Reading Railroad Commission of Texas Votes Against Mandatory Oil Production Cuts

In the midst of an oil market experiencing an extraordinary downturn but citing a need for further review and coordination with other states and the federal government, the Railroad Commission of Texas delayed a vote on oil production cuts at an open meeting held yesterday. Although no decision on proration was made, the establishment of a Blue Ribbon Task Force for Oil Economic Recovery was announced. The Task Force will be comprised of various Texas oil and gas trade associations charged with expeditiously exploring options that can be undertaken at the state level to assist operators and save jobs. During the meeting, a number of initiatives undertaken to date that provide relief to oil and gas operators were also highlighted, including those involving extensions of deadlines for various requirements and the consideration of enforcement discretion under certain circumstances.
Continue Reading Railroad Commission of Texas Delays Vote on Oil Production Cuts

With oil prices plummeting and markets battered by the disruptions caused by the COVID-19 pandemic, two oil and gas producers filed a joint motion late last month for the Railroad Commission of Texas to consider curtailing oil production, an extraordinary remedy that has not been employed since the 1970s. In response, the RRC convened an initial public meeting yesterday to consider the request and comments filed by more than 50 stakeholders with, not surprisingly, wide-ranging views on the subject. Due to the significance of the issues under discussion and the potential impact on not only oil and gas producers, but also the midstream and downstream sector, the ten-hour long meeting drew a substantial audience across the country and the globe.
Continue Reading Railroad Commission of Texas Considers Oil Production Cuts

Following Governor Abbott’s recent proclamation of a state of disaster in Texas due to the COVID-19 pandemic, both the Texas Commission on Environmental Quality (TCEQ) and the Railroad Commission of Texas (RRC) have issued guidance for regulated entities relating to environmental compliance concerns as well as other useful information relative to agency operations during these uncertain times.

Continue Reading TCEQ and RRC Issue COVID-19 Regulatory Guidance

Texas policymakers continue to focus on produced water beneficial reuse. On January 22, 2020, the Texas Senate Committees on Natural Resources and Economic Development and Water and Rural Affairs held a joint hearing to consider Lt. Governor Dan Patrick’s 2019 interim legislative charge related to one of the most pressing matters facing the state—future water supply issues. This interim charge requires that these legislative committees make recommendations to promote the state’s water supply, including the development of new sources.
Continue Reading Texas Policymakers Continue Focus on Produced Water Beneficial Reuse

After conducting a “listening tour” in 14 cities across the state, the Texas Water Development Board (TWDB) has recently released proposed new rules for flood mitigation funding.  The proposed rules implement new legislation and measures[1] adopted in the aftermath of recent notable flooding events experienced in Texas, including Hurricane Harvey, a storm that resulted in an estimated $125 billion in damages.  As a result, the state will now play a significant role in funding flood mitigation infrastructure.  The new measures include, among other things, the TWDB’s implementation of the legislative transfer of about $800 million from the state’s rainy day fund, mainly funded by oil and gas taxes, to a newly-established flood infrastructure fund (FIF).  
Continue Reading Texas Water Development Board Releases Proposed Flood Mitigation Funding Rules for Public Comment

The Railroad Commission of Texas has authority to issue permits for discharges associated with oil and gas operations in the state, but it does not yet have delegation of the NPDES permitting program. Thus, to the extent that produced water discharges are not currently barred under federal regulations, facilities seeking authorization for these discharges to waters of the US must obtain authorization from both EPA and the RRC. This article highlights Texas efforts underway to obtain NPDES delegation for produced water discharges.
Continue Reading Texas Moving Forward with NPDES Delegation for Produced Water Discharges

On May 15, EPA released its draft Study of Oil and Gas Extraction Wastewater Management under the Clean Water Act. The Draft Study addresses the results of an extensive review initiated last year to evaluate the management of oil and gas wastewaters generated at onshore facilities and to assess the need for additional discharge options for onshore oil and gas wastewater under the Clean Water Act. Although EPA has not yet adopted any recommendations for regulatory action, it is evident that EPA is continuing to take a hard look at the merits of authorizing broader discharges of produced water to surface waters than those currently allowed for onshore discharges under the CWA effluent guidelines (and generally referred to as the zero discharge standard).
Continue Reading Expanded Produced Water Discharge Options – On the Horizon?

The US Environmental Protection Agency has recently determined that no revisions to existing RCRA Subtitle D regulations for the management of oil and gas wastes are necessary. This conclusion follows EPA’s completion of an extensive review to fulfill the requirements of a Consent Decree entered by the US District Court for the District of Columbia that settled litigation filed by certain environmental organizations over EPA’s alleged failure to update its rules for management of oil and gas wastes. EPA’s findings, released on April 23, 2019, are set forth in a report titled, Management of Oil and Gas Exploration, Development and Production Wastes: Factors Informing a Decision on the Need for Regulatory Action. This means that, at least for now, EPA’s longstanding position on regulation of oil and gas wastes remains unchanged.
Continue Reading EPA Determines Revisions to Federal Regulation of E&P Wastes Unwarranted