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RRC plug more than 430 orphaned wells so far

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AUSTIN – The Railroad Commission of Texas highlighted the agency’s extensive work and expertise in plugging orphaned oil and gas wells during a visit from U.S. Secretary of the Interior Deb Haaland in Houston last week.

When a well ceases production, the majority of operators fulfill their obligations and responsibly plug their wells to prevent leaks and protect the environment. Last year 88% of wells plugged were plugged by operators. The RRC steps in to plug wells when an operator goes out of business and collects on the operator’s financial assurance and seeks reimbursement through legal proceedings.  

In October, Texas was the first state in the nation to begin plugging orphaned oil and gas wells using an initial grant from the federal Infrastructure Investment and Jobs Act. The RRC has plugged more than 430 wells so far with that federal grant.

Those well pluggings supplement RRC’s annual well pluggings in the State Managed Plugging Program (SMP). No taxpayer money is used at all for the SMP; all the funding is through oil and gas industry revenue including, but not limited to multiple fees, and bonds and financial security paid by oil and gas operators.

The next inflow of federal well plugging funds will be through formula grants. RRC submitted comments on draft formula grant guidance recently issued by the U.S. Department of the Interior.  The RRC is concerned the draft requirements place administrative burdens that go beyond the scope of the legislation that authorized the well plugging funds. There’s also concern about a proposed phased approach to releasing formula funds, versus releasing the total amount at once.   

“Among all oil and gas producing states, we’re a leader in addressing orphan wells, and the Legislature has passed several measures to create incentives to reduce orphan wells in Texas,” said Wei Wang, RRC Executive Director. “We’ve built great momentum using federal funds to plug wells, and we urged Secretary Haaland to help us keep the momentum. Less than two percent of oil and gas wells in the state are orphaned, and getting the formula funds quickly will help us proceed without unnecessary interruptions.”

Clay Woodul, RRC Assistant Director of the Oil and Gas Division for Field Operations, shows Secretary Deb Haaland and members of Congress an orphaned well scheduled to be plugged in Houston

Clay Woodul, RRC Assistant Director of the Oil and Gas Division for Field Operations, shows Secretary Deb Haaland and members of Congress an orphaned well scheduled to be plugged in Houston.

The RRC anticipates plugging about 800 wells this fiscal year using the initial federal grant, which would be in addition to at least 1,000 well pluggings through the SMP.

The agency’s comments on the draft formula grant guidance can be found on the RRC website at https://www.rrc.texas.gov/media/4ilhvfga/iija-draft-formual-grant_rrc-texas-comments_2_24.pdf


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Bowie City Council to meet April 22

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The Bowie City Council will meet at 6 p.m. on April 22 in the council chambers.
City Manager Bert Cunningham in his report will discuss the comprehensive planning grant and the substation transformer.
In old business there will be second readings for the water rate ordinance tabled from the last meeting, plus the new ordinances related to the operation of food trucks in the city.
In new business the council will discuss section 3 policy updates for the community development grant for Smythe Street sidewalks and hear a request from public works to use $9,763 out of the tap account to purchase 64 meters.

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City of Bowie receives strong audit during busy project year

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By BARBARA GREEN
editor@bowienewsonline.com
The City of Bowie received an unqualified audit for 2023-24 presented by its outside auditor during its April 8 meeting.
Valerie Halverson of the Mathis, West, Huffines Group, Wichita Falls, reviewed the extensive report on the city’s funds.
She noted it was a busy year dealing with several major capital projects along with tracking grant funds, but the city met all the general accounting standards.
Read the full story on the outside audit in the Thursday Bowie News.

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Lions host eye screening program

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(Top photo) Volunteers Janet Morgan, Pattye Graham, Jo Lee and Carolyn Cantwell were busy at the registration table during “Sight for All” event sponsored by Bowie and Graham Lions Clubs on April 5 at Bowie First Methodist Church. There were nine stations for screenings for eye diseases and about 50 people went through.

About 50 people attended the Bowie Lions and Graham Lions Club program for eye screening hosted in Bowie recently. There were nine stations through which people were screened or things like glaucoma and other eye diseases. If any concerns were raised information was available about referrals and related assistance. (Courtesy photos)

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