ARTICLE
4 September 2014

Texas Railroad Commission Proposes New Regulations For High-Risk Seismic Areas

B
BakerHostetler

Contributor

BakerHostetler logo
Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
Amidst claims that hydraulic fracturing could be causing earthquakes, the Texas Railroad Commission proposed amendments to permitting regulations for injection wells.
United States Energy and Natural Resources

On Tuesday, amidst claims that hydraulic fracturing could be causing earthquakes in some parts of Texas, the Texas Railroad Commission proposed amendments to permitting regulations for injection wells. The proposed rules would require drillers to submit additional information as part of the permit application process for injection wells in areas designated as high-risk for seismic activity.

The proposed rules define an area as "high-risk" if it has characteristics that may increase the risk that hydraulic fracturing fluids won't be confined exclusively to the injection interval, including areas that exhibit complex geology or a history of seismic events. Permit applicants who want to operate an injection well in a high-risk area would be required to submit information from the United States Geological Survey related to seismic activity in the area of elevated pressure created by the injection of fluids into the subsurface, logs, geologic cross-sections and structure maps. The proposed rules would also allow the Commission to suspend or terminate a permit if seismic activity occurs near an injection well.

"Whether there is a definitive link or not between disposal wells and seismic activity in Texas has not been determined," Commission spokeswoman Ramona Nye said. "As our agency continues to work with the scientific community to coordinate an exchange of information ... we have seen a need for laying the groundwork for some basic industry best practices." The Commission estimates that the proposed regulations would add about $300 per injection well permit application. The public comment period for the regulations is open until noon on September 29, 2014.

Media Coverage Resources:

Proposed Amendment of 16 Tex. Admin. Code § 3.9, relating to Disposal Wells, and § 3.46, relating to Fluid Injection into Productive Reservoirs; Oil & Gas Docket No. 20-0290951.

Quake reaction: Railroad Commission looks at new rules for injection wells

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More