Move places previously unregulated flowlines under Railroad Commission scrutiny
AUSTIN, TX, Feb. 18, 2009 -- The Texas Railroad Commission (RRC) last week approved rules that will place natural gas production and flow lines in heavily populated areas under the state’s safety jurisdiction.
Production and flow lines typically are low-pressure pipelines that transport natural gas from a well to a gathering line. A gathering line gathers natural gas from several wells and delivers it to a gas plant or transmission pipeline. Previously, production and flow lines in urban populated areas were unregulated under federal law and had no safety requirements.
The rules, which become effective on March 2, will now require that production and flow lines in populated areas be operated and maintained according to state pipeline safety rules. These rules address several factors including design, construction, operating pressures and testing, emergency response and damage prevention.
Additional pipeline rules also became effective on Feb. 4 that will require natural gas distribution pipeline operators to submit leak reports every six months to the Railroad Commission. These rules were adopted by the three Railroad Commissioners at a Jan. 15, 2009 conference.
The new rules require natural gas distribution pipeline operators to submit online reports covering all leaks repaired on their pipeline systems every six months beginning in July 2009. The reports also must list leaks identified and the number of unrepaired leaks remaining on pipelines.
Under the new rules, new pipeline construction reports also will now be required to be filed with the Commission on new liquefied petroleum gas (LPG-propane) distribution systems. Previously, new construction reports were only required for new natural gas and hazardous liquid pipeline systems.
Commenting on the Commission’s regulation of production and flow lines, Chairman Victor Carrillo said, “As drilling and production has expanded into urban areas, such as Fort Worth and the Barnett Shale region, adopting these enhanced pipeline safety rules will help to assure the public that pipelines transporting natural gas from wells located in heavily populated areas continue to be under the watchful eye of the state’s regulatory agency.”
Commissioner Elizabeth Ames Jones said, “Overall, these new rules help raise the bar on already high standards set by the Railroad Commission in pipeline safety for decades now. This action adds to our agency’s numerous firsts as Texas is now the first state in the nation to regulate all pipelines in heavily populated areas.”
Commenting on the new leak reporting requirements, Commissioner Michael L. Williams said, "This requirement is a preventative measure that further ensures the safety of our citizens. The leak reports enable the Commission to gather data from pipeline systems across the state. We will then review this information to identify and address any trends or potential problems with the state's infrastructure more comprehensively."
In addition to new rules adopted this year, the Commission also adopted rules last year that increase the frequency of natural gas inspection leaks and shorten natural gas leak repair time frames. The rules, which became effective September 2008, require Grade 1 leaks to be repaired immediately, as they are considered hazardous to people or property nearby. Grade 2 leaks must be reevaluated monthly and repaired within 6 months. Grade 3 leaks must be reevaluated within 15 months and repaired within 3 years. Grades 2 and 3 leaks receive a lower level grade only if the gas leak is considered non-hazardous due to its location and magnitude of the leak. Non-hazardous leaks pose no danger of explosion. Previously, Grade 1 leaks required immediate repair, and Grade 2 and Grade 3 leaks were scheduled for repair some time in the future.
Source: RRC Release
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Apache receives approval to drill the Tarter Coleman #2
Jan. 21, 2009 -- The Texas Railroad Commission (RRC) received two drilling permit requestsfor Upshur County in January, both from the Apache Corporation, and both for recompletions.
On Jan. 7th, Apache filed to recomplete the W.F. Smith #3, a 12,100 foot well in the Cotton Valley Sands field. That permit was approved on Jan. 13th.
Apache also filed, on Jan. 30th, to recomplete the Hargest Gas Unit #1, a 16,000 foot well in the Cotton Valley Sand. Approval for that permit has not been issued.
The RRC also approved a permit filed last month by Maximus Operating for the Tarter Coleman #2, a new 12,500 foot well in the Cedar Springs field.
Upshur County Well Completions and Potential Testing
None in Jan. 2009
New leases Built in Upshur County:
Apache reported to the RRC on 01-02-09 that surface construction was complete at the Wright Unit #3 well.
McBee Operating Co. reported to the RRC on 01-15-09 that surface construction was complete at the Spencer Gas Unit #1 well.
XTO Energy reported to the RRC on 01-13-09 that surface construction was complete at the Will McKnight Gas Unit #1 well.
Pipeline Permitting, Construction and Operating In Upshur County:
None in Jan. 2009
Monthly Production Totals For Upshur County:
For the month of November, 2008, the RRC reports that combined production of Upshur oil and gas leases were 9,890 barrels of oil, 2,732,125 MCF of natural gas, and 27,624 barrels of condensate.
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Valence, XTO and Apache receive permits to drill new wells in Upshur.
The Texas Railroad Commission approved permits in December granting the three operators permission to drill wells in excess of 12,000 feet deep in the hunt for more natural gas.
Two of the new wells will be in the Cherokee Trace field, and one in Cedar Springs.
On 12-29-08, Maximus Operating, LTD submitted a permit request to the Railroad Commission to drill a new oil/gas well, the Tarter Coleman #2. It will be drilled to a depth of 12,500 feet in the Cedar Springs field, 8.21 miles NE of Gilmer.
Permits Approved To Drill New Wells In Upshur County:
On 12-02-08, the RRC approved a permit to Valence Operating to drill a new gas well, the JB Orr #3. It will be drilled to a depth of 12,200 feet in the Cedar Springs field, 1.1 miles NW of New Mountain.
On 12-04-08, the RRC approved a permit to XTO Energy to drill a new gas well, the Linda O. Spruiell Gas Unit #2. It will be drilled to a depth of 13,500 feet in the Cherokee Trace field, 8.0 miles NE of Gilmer.
On 12-29-08, the RRC approved a permit to the Apache Corporation to drill a new gas well, the Wright Gas Unit #1. It will be drilled to a depth of 15,000 feet in the Cherokee Trace field, 7.0 miles NE of Gilmer.
Upshur County Well Completions and Potential Testing:
Maximus Operating completed drilling the Phillips-Wright #1 well on 09-04-2008. It was drilled to a total depth of 4100 feet in the Glenwood field, 4.7 miles NE of Gladewater. Maximus has declared this a dry hole.
New Lease Construction Completed In Upshur County:
Apache reported to the RRC on 12-30-08 that surface construction was complete at the WF Smith Gas Unit #4 well. The company also reported on 12-22-08 that surface construction was complete at the James Jackson Gas Unit #4 well.
Forest Oil Corporation reported to the RRC on 12-09-08 that surface construction was complete at the DJ White Gas Unit #2H well.
Maximus Operating reported to the Railroad Commission on 12-10-08 that surface construction was complete at the Malone Heirs #1 well.
Maximus also reported to the Railroad Commission on 12-05-08 that surface construction was complete at the Tanner #1 well.
Pipeline Permitting and Construction In Upshur County:
On 11-17-08, Maximus received permission from the RRC to operate an additional .67 miles of 6" Cedar Springs Gathering System. The new line is from the Malone Heirs #1 well, to tie into the existing line from McCaslin Hall #3, and ties into an Enbridge line.
Monthly Production Totals For Upshur County:
For the month of October, 2008, the RRC reports that combined production of Upshur oil and gas leases were 9,583 barrels of oil, 7,895 MCF of natural gas, and 42,935 barrels of condensate.
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