Railroad

The Texas Railroad Commission last week voted to approve toughpipeline safety proposals that include targeting one of the largestutilities in the state – TXU Energy. The TRC voted unanimously torequire TXU to have all segments of its polyethylene 1 pipe out ofthe ground by December.

The Texas Railroad Commission yesterday voted to approve toughpipeline safety proposals that include targeting one of the largestutilities in the state – TXU Energy. The TRC voted unanimously torequire TXU to have all segments of its polyethylene 1 pipe out ofthe ground by December.

Texas stands to play a larger role in meeting the nation’sdemand for natural gas, according to one member of the TexasRailroad Commission. After reviewing a report by the NationalPetroleum Council titled “Meeting the Challenges of the Nation’sGrowing Natural Gas Demand,” TRC Commissioner Tony Garza said hesaw opportunities for the state.

Michael L. Williams has been named chairman of the TexasRailroad Commission (TRC). He replaces previous chairman TonyGarza. Williams is leading an agency-industry review of thecommission’s regulatory framework. He said, “the world energyindustry is changing dramatically – government needs to change itsapproach as well. With that in mind, the commission can and shouldoperate to allow Texas producers to act faster, operate less costlyand with more flexibility.

The Texas Railroad Commission (TRC) issued 611 original drillingpermits last month, down sharply from 979 issued in March of 1998.The total number of drilling permits issued for the year to date isalso down sharply. The TRC has issued 1,728 permits so far thisyear, down more than 1,200 from the 2,946 permits issued over thesame period of 1998.

Seeking emergency relief for Texas oil and gas producerssuffering from low commodity prices, the three-member TexasRailroad Commission (TRC) last week voted to propose statelegislation to suspend severance tax payments when the price foroil and gas drops below $15/barrel of oil or $1.50/Mcf of naturalgas as determined by the Comptroller of Public Accounts

Mitchell Energy & Development Corp. received approval fromthe Texas Railroad Commission for field rule amendments that willenable the company to more aggressively develop its Barnett Shalegas reserves in North Texas. The new field rules permit Mitchell todrill wells in the Newark East (Barnett Shale) field on as littleas 40-acre spacing. As a result of increased well density, or”in-fill drilling,” the company expects as many as 100 wells withabout 80 Bcf of estimated net gas reserves will be added to theproved undeveloped category. The new locations bring totalundeveloped well locations to about 200 for the field. The companyalso has identified another 100 probable locations that may beadded in the future.

The Texas Railroad Commission (TRC) issued a complaint and offerof settlement to Mitchell Energy & Development alleging pasttechnical violations of drilling and completion rules. Thecomplaint involves 112 wells, all of which were drilled more than35 years ago. The TRC said the actual depth of the surface casingset in each well was shorter than the depth required by andreported to the commission. Mitchell said there is no evidence ofpollution from the wells.