January 31, 2011
Railroad Commission of Texas Statewide Rule 15
Client Alert
As annual Organization Reports become due, oil and gas operators should be aware that the Railroad Commission of Texas (“RRC”) will not approve new annual reports unless operators comply with new requirements regarding inactive wells. In September 2010, the RRC amended statewide rules 1, 14, 21, and 78 and adopted a new statewide rule 15 to implement House Bill 2259. The new rules require operators to address their inactive wells by restoring the wells to active status, plugging the wells, or obtaining plugging extensions for wells that have future utility. Generally, the new rules can be categorized into surface equipment cleanup requirements and additional plugging extension requirements.