Texas Register, Volume 27, Number 4, Pages 529-656, January 25, 2002 Page: 548
529-656 p. ; 28 cm.View a full description of this periodical.
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and serve to minimize incomplete or erroneous filings. Addi-
tionally, the proposed amendments will promote administrative
efficiency by curtailing incomplete or erroneous filings and by
providing standards for administrative approval of applications
to subdivide or consolidate oil leases.
There will be no additional cost of compliance for individual oper-
ators or for small business or micro-business operators, because
the proposed amendments do not substantively change current
Commission requirements or procedures.
Comments on the proposed amendments may be submitted to
James M. Doherty, Hearings Examiner, Oil and Gas Section, Of-
fice of General Counsel, Railroad Commission of Texas, P.O. Box
12967, Austin, Texas 78711-2967 or via electronic mail to jim.do-
herty@rrc.state.tx.us. Comments will be accepted for 30 days
after publication in the Texas Register and should refer to the
docket number of this rulemaking proceeding: OG 20-0230301.
For further information, call Mr. Doherty at (512) 463- 7152.
The Commission proposes the amendments to 3.58 pursuant
to Texas Natural Resources Code, 81.051, 81.052, 85.042,
85.201, 85.202, 86.041, 86.042, 91.101, 141.011, and 141.012
which provide the Commission with jurisdiction over all persons
owning or engaged in drilling or operating oil, gas or geothermal
resource wells in Texas and the authority to adopt all necessary
rules for governing and regulating persons and their operations
under the jurisdiction of the Commission.
Texas Natural Resources Code 81.051, 81.052, 85.042,
85.059, 85.060, 85.161-85.163, 85.201, 85.202, 86.041,
86.042, 89.002, 89.011(b), 91.101, 141.011, and 141.012 are
affected by the proposed amendment.
Issued in Austin, Texas on January 8, 2002.
3.58. Oil, Gas, or Geothermal Resource Operator's Reports.
(a) Certificate of Compliance and [Produer's] transportation
authority [and certificate of compliance].
(1) Each operator who seeks to operate wells related to [i
a producer of] crude oil, natural gas, or geothermal resources shall file
with the commission's Austin office a commission form P-4 (certificate
of compliance and transportation authority) [producer's transportation
authority and certificate of compliance] for each property on which the
wells are located [of theoperator' sprodipropeties] certifying that
the operator has complied with the conservation laws and the oil, gas,
and geothermal resources conservation orders, rules, and regulations
of the commission in respect to the [each] property. The Commission
form P-4 establishes the operator of an oil lease, gas well, or other well;
certifies responsibility for regulatory compliance, including plugging
wells in accordance with 3.14 of this title (relating to plugging); and
identifies gatherers, purchasers, and purchasers' commission-assigned
system codes authorized for each well or lease. Operators shall file
form P-4 for new oil leases, gas wells, or other wells; recompletions;
reclassifications of wells from oil to gas or gas to oil; consolidation,
unitization or subdivision of oil leases; or change of gatherer, gas pur-
chaser, gas purchaser system code, operator, field name or lease name.
When an operator files a form P-4 [this report is filed], the oil and gas
division shall review the form [report] for completeness and accuracy.
A [When atppreved this report shall authorize a] transporter (whether
the operator or someone else) shall not [to] transport the oil, gas, or
geothermal resources from such property until the Commission has ap-
proved the certificate of compliance and transportation authority. No
certificate of compliance designating or changing the designation of an
operator will be approved that is signed, either as transferor or trans-
feree, by a non-employee agent of the organization unless the organiza-
tion has filed with the commission, on its organization report, the nameof the non-employee agent it has authorized to sign such certificates of
compliance on its behalf.
(2) An approved certificate of compliance and [The pro-
d ]ers] transportation authority [and certificate f empliane] shall
bind the operator until another operator files a subsequent certificate
and the Commission has approved the subsequent certificate and trans-
ferred the property [transferred] on commission records to the subse-
quent [another] operator.
(3) The appropriate district office or the Austin office may
grant temporary authority for an operator to use a transporter not au-
thorized for a particular property in order to take care of production
and prevent waste. The operator shall secure such temporary author-
ity in writing from the appropriate district office or the Austin office
before the oil or condensate is moved. In an emergency situation the
operator may secure such temporary authority verbally but shall notify
the district office in writing within 10 days after the oil or condensate
is moved. An emergency situation exists when oil or condensate must
be moved off a lease because it poses an imminent threat to the public
health and safety, or when the threat of waste is imminent. The opera-
tor shall also furnish copies of such authorization or notification to the
regular transporter and to the temporary transporter.
(4) If an applicant wishes to assume operator status for a
property, but is unable to obtain the signature of the previous operator
on the certificate of compliance and [producer's] transportation author-
ity [and certificate of compliance], the applicant shall [mast] file with
the oil and gas division in Austin a completed form P-4 signed by a
designated officer or agent of the applicant, along with an explanatory
letter and legal documentation of the applicant's right to operate the
property. Prior to approval of such an application, the office of the
general counsel will notify the last known operator of record, if such
operator's address is available, affording such operator an opportunity
to protest.
(b) Monthly producer's report (oil, natural gas and geothermal
resources). For each calendar month, each operator who is a producer
of crude oil, natural gas or geothermal resources shall file with the com-
mission a report [tim required form] for each of the operator's [his]
producing properties. Operators shall file such reports on commission
form P-1 (producer's monthly report of oil wells), commission form
P-2 (producer's monthly report of gas wells), or commission form GT-2
(producer's monthly report of geothermal wells). These commission
forms report monthly production and disposition of oil and casinghead
gas (form P- 1), gas well gas and condensate (form P-2) and geothermal
resources (form GT-2) [leases]. On or before the last day of the month
subsequent to the period [or] of the report, the [such] operator shall file
an original and one copy of each such form, the original to be filed in
the Austin office, and one copy with the transporter taking the oil, gas
or geothermal resources from the property [lease].
(c) Recovered load oil.
(1) The operator of each lease from which load oil is re-
covered shall [mast] file the original and one copy of commission form
P-3 (authority to transport recovered load or frac oil) [in duplicate the
formdeseribedas "reportof recoveredtoadoil"] with the district office,
and another [one] copy with the transporter prior to running the load
oil. Form P-3 requires a producer to report the quantity of recovered
load or frac oil to be transported from a particular lease and to identify
the transporter. The form P-3 (authority to transport recovered load or
frac oil) [Report of Recovered Lead Oi4] filed by the operator shall be
the authority for the transporter to run the quantity of recovered load or
frac oil stated in the form.
(2) The provisions of this subsection apply only to oil that
has been obtained from a source other than the lease on which it is used.27 TexReg 548 January 25, 2002
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Texas. Secretary of State. Texas Register, Volume 27, Number 4, Pages 529-656, January 25, 2002, periodical, January 25, 2002; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth113987/m1/19/: accessed April 23, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.