Texas Alliance of Energy Producers

Railroad Commission Holds Hearing on Prorationing and Recommendations to Aid Industry

Polaris Sensor Technologies

Railroad Commission (RRC) Chairman Wayne Christian recently asked the Texas Alliance of Energy Producers to participate in a Blue Ribbon Task Force to provide industry recommendations on how to assist the ailing Texas oil and gas industry. On behalf of the Alliance, Executive Vice President Karr Ingham has been working with other industry organizations including TXOGA, TIPRO, PBPA, PPROA, Texas Royalty Council, Texas Pipeline Association, and South Texas Energy & Economic Roundtable.

The Task Force report sent to Chairman Christian on May 4 included comprehensive proposals intended to provide relief to operators in the Texas oilfields and to assist the oil and natural gas industry as they continue the battle to survive these catastrophic circumstances.

Click here to download the complete report,

Blue Ribbon Task Force on Oil Economic Recovery Small Producer Regulatory Relief.

At a Railroad Commission hearing on May 5, Chairman Christian and Commissioners Christi Craddick and Ryan Sitton reviewed the industry recommendations and reported that the Commission would take action on several items. To conclude the discussion of the Task Force, Chairman Christian stated that there is an ongoing problem of flaring in Texas and asked the Blue Ribbon Task Force to have ideas on how the RRC can better regulate flaring. He asked for recommendations from industry by June 16.

Regarding the issue of prorationing, Chairman Christian said that he would not support prorationing because he believed the RRC was showing that they were taking proactive steps to help the industry by adopting the motions they had for regulatory relief. Following discussion, the motion to dismiss the Pioneer Resources/Parsley Energy complaint passed 2-1.

Click here to view the RRC’s Notice to Operators regarding the Temporary Exceptions to Certain Administrative Rules.

For additional information, please contact Karr Ingham at karr@inghamecon.com. We welcome your suggestions and input on these very important issues. Your continued support is greatly appreciated.

Texas Alliance of Energy Producers, 705 8th Street, Suite 920, Wichita Falls, TX 76301

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