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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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Amon Carter Lake Board to meet

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Members of the Amon Carter Lake Water Supply Corporation will meet at 6 p.m. on May 26 in the office at 607A Lindsey for a monthly meeting.
Items on the agenda include a consent agenda and minutes and financials. Possible discussion/action may be considered on the following topics: Treasurer’s report, review of finance and current loans; president’s report as to the written agreements with contractual employees; consider current water rates and a possible increase; and review of expenses and areas that need amendment.
An executive session may be entered to discuss personnel issues.

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Saint Jo City Council hires fire marshal

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The City of Saint Jo has a new fire marshal as the city council made the appointment during its May 13 meeting.
Gary Hines, a retired professional firefighter and certified fire investigator, will take the position. City Secretary Debbie Dennis said the post is required by ordinance but has not been filled for a long period.
The council set dates for a budget workshop for 2 p.m. on June 14 and 2 p.m. on June 28 for the ordinance workshop, as the council works to update its rules.

Aldermen gave their support to a proposition by Councilman Jack Dunn who is asking the Legislature to allow Texas’ smallest cities, those with 2,500 or few in population, to receive an additional share of sales and use tax. He would like to see the funds used in these communities to repair and replace aging infrastructure without new taxes or reliance on state grants.
In letter to State Rep. David Spiller, whom Dunn will meet with on June 1, the alderman explains much of the state’s 6.25% share generated locally flows into general funds and is spent on other priorities. He would like Spiller to author this legislation. Dunn gave the letter to the council along with a powerpoint on the plan.
“A single water treatment plant upgrade or sewer rehab carries massive, fixed costs that do not shrink with population size. These communities, often with only a few hundred or a couple thousands residents, simply cannot spread those costs across enough ratepayers or a broad tax based,” the letter states.
Dunn suggests a “graduated sales tax retention policy:” 1% additional share for cities with 2,500 or fewer residents; .75% for those 2,500 and 5,000; and .50% for cities between 5,001 and 10,000. It would be dedicated to infrastructure. Dunn says the overall statewide fiscal impact would be negligible, but could help sustain small, rural cities.

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City of Nocona buys water storage tank, review dam repair

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The Nocona City Council approved a bid for a new 203,000 gallon capacity tank for potable water at the water plant and learned a slide repair to the lake dam is going to be pretty costly.
At its May 12 session the council received three bids on the tank and went with one from Tank Depot of Cleburne for $193,923. It is for a a 217,600 gallon tank usable for 203,000 gallons. The price could change slightly since it was based on estimate freight costs.

Read the full story in the Thursday Bowie News.

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