Railroad

Oil and natural gas operators in Texas may now obtain their drilling permits online, according to the Texas Railroad Commission (RRC). For the first time, third-party filers and consultants — which file nearly half of the drilling applications processed by the RRC — will be able to directly access and use the electronic application. Operators also may file expedited permits online and use a credit card to pay the drilling permit fee. The RRC will continue to accept mailed or drilling applications in person. The number of drilling permits required before an operator may drill a well varies with the price of oil and gas. An average of 1,360 drilling permits were filed in the first three months of this year. For more information about filing drilling permit applications online, visit the RRC website, contact the RRC’s Oil and Gas Division at (512) 463-6751 or send an email: drillingpermits-info@rrc.state.tx.us.

Texas Railroad Commission (TRC) Chairman Victor Carrillo has called on the state’s governor to help create a Texas Energy Plan, which he said will strengthen not only the economy but its energy industry.

Texas oil and gas well records, production reports, geologicaldata and research information is now available online at the TexasRailroad Commission’s web site (www.rrc.state.tx.us). The serviceswill allow users to browse the history of an estimated 132 millionpages of documents collected for more than one million wells in68,000 oil and gas fields in the state.

Exxon Mobil Corp. was the top Texas natural gas producer in2000, averaging 858,344 Mcf/d, or about 6.5% of the total stateproduction, according to the Railroad Commission of Texas. ConocoInc. was second, averaging 703,921 Mcf/d, or 5.4% of all gasproduced in Texas last year. Other companies rounding out the topten leader board were Coastal Oil & Gas Corp., 651,958 Mcf/d;RME Petroleum Co., 498,837 Mcf/d; EOG Resources Inc., 438,688Mcf/d; Mitchell Energy & Development Co. LP, 367,014 Mcf/d;Texaco E&P Inc., 335,770 Mcf/d; Chevron U.S.A. Inc., 327,941Mcf/d; Phillips Petroleum Co., 319,663 Mcf/d; and Shell WesternE&P Inc., 302,395 Mcf/d.

Acknowledging there was no way for the Texas Railroad Commissionto change high natural gas prices, the three-man board instead hasunanimously recommended that the Texas Legislature act to lessenthe impact of high prices by, among other things, offering industrytax breaks to encourage exploration and production. TRC alsorecommended it be given oversight over statewide customer servicestandards for public gas utility companies.

Texas Railroad Commissioner Charles Matthews yesterday proposedthat the commission look into “all possible solutions” regardingthe high cost of natural gas. Discussions with representatives fromthe exploration and production sector, gas utilities and customergroups had convinced him that the state has to consider long-termsolutions to ensure the gas supply is reliable and affordable.

Texas Railroad Commissioner Tony Garza warned the statelegislature and the Texas Congressional delegation last week of anexpected 55% increase in natural gas prices this winter for smallcustomers and the expected continuation of high prices for the nextyear to 18 months.

Texas Railroad Commissioner Tony Garza warned the statelegislature and governor yesterday of an expected 55% increase innatural gas prices this winter for small customers and the expectedcontinuation of high prices for the next year to 18 months.

The Texas Railroad Commission passed a sweeping measure lastweek that for the first time in the state’s history dramaticallyoverhauls how the state handles abandoned oil and gas wells. At thecore of the plan is a requirement that financial assurance, such asa bond or a letter of credit, be in place for a well entering itsthird year of inactivity.