TCEQ Adopts New Oil and Gas Permit By Rule and Standard Permit for Barnett Shale Facilities

On January 26, 2011, the Texas Commission on Environmental Quality (“TCEQ”) adopted new air permitting rules for oil and gas handling and production facilities in the Barnett Shale. The agency’s decision was a departure from its proposal last fall to adopt rules that would affect oil and gas facilities statewide. By its action, the TCEQ replaced the current Permit by Rule (“PBR”) for oil and gas production facilities with a new PBR for those facilities (30 Tex. Admin. Code § 106.352) and adopted a new Standard Permit for installation and/or modification of oil and gas facilities (30 Tex. Admin. Code § 116.620). These new rules will apply to oil and gas handling and production facilities in the 23 counties of the Barnett Shale region beginning April 1, 2011. TCEQ is expected to act later this year to extend applicability of the new PBR and Standard Permit to facilities in the rest of the state. If the rules are applied to other areas, January 5, 2012, is the projected effective date. Until that time, non-Barnett Shale facilities must comply with only their historical PBR or Standard Permit authorizations.

READ: TCEQ Adopts New Oil and Gas Permit By Rule and Standard Permit for Barnett Shale Facilities