Texas regulators still have a long way to go to protect Texans from the dangers of oil and gas development exacerbated by the dramatic rise of fracking. Earlier this week, ShaleTest, an independent environmental research agency, released a report that found unsafe levels of cancer-causing benzene, a common byproduct in oil and gas drilling operations, on playgrounds in the City of Denton, among other places. To read the full report and the release, click here. Meanwhile, the Railroad Commission has only begun to take limited action to address earthquakes caused by injecting waste from oil and gas operations into wells.
Officially, it’s a proposed amendment to §3.9 and §3.46 “relating to Disposal Wells, and Fluid Injection into Productive Reservoirs, to incorporate requirements related to seismic events for disposal wells.” As Cyrus Reed, Conservation Director of the Sierra Club Lone Star Chapter, noted when the Commission officially announced the proposed rule, the first step to fixing a problem is to recognize it exists.
Sierra Club’s position is that Texas can and should take action on the issue of induced seismicity. The Railroad Commission can handle the issue, but if they are unable or unwilling to do so, the Legislature needs to be ready to act. Reed submitted the Sierra Club’s official comments on the Rule this week. Below is a synopsis of his comments.
The positive developments so far
- The Legislature named a special committee to put a spotlight on the issue.
- The Railroad Commission hired a seismologist.
- The Railroad Commission issued proposed rules, which would require an upfront analysis from the U.S. Geological Survey on new wastewater injection well permits (which may result in more information required of the applicant), allow the Commission to mitigate, suspend, or terminate licenses.
Bonus: while it is not stated explicitly in the proposed rule, the fact that the Railroad Commission will now presumably include seismic issues in its permits, the public will have the right to raise seismic issues in public meetings and contested case hearings.
Much more needed in this rule
The need to regulate the disposal of oil and gas waste – which obviously includes underground injection – will continue for many years. However, the more research, efforts, and appropriate regulation to encourage operators to move away from underground injection, the better off Texans will be. When operators use of fresh water for injection wells, it is lost to the hydrological cycle. It is unavailable for other uses, such as for municipal use, agriculture, even other oil and gas production needs. Moreover, once fresh water is contaminated and injected underground in this practice, it cannot be allowed to mingle with other water resources.
Reed outlined several areas that should be addressed and added to the rule, including:
- A detailing of the types of information needed, such as Radioactive Tracer or spinner surveys, well logs specified, and geological investigations of fault potential
- A required seismic monitoring plan, such as a pre and post-monitoring of the region for earthquakes
- Required monitoring before injection and testing, as well as recording of the original bottomhole injection interval pressure
- Required installation of a shut-off device on the injection pressure so that the Commission and operators can assure safe disposal
Reed also suggested that the rule include a right of the Commission to implement a graduated maximum allowable injection pressure.
Of course, getting these areas added to the rule would significantly improve it. However, it would still be avoiding additional significant issues that were the subject of an earlier proposed rulemaking in 2012 and 2013. These issues included:
- Requirements for continuous monitoring of injection and annulus pressures (pressure between inner and outer casings/piping)
- Mechanical integrity requirements
- Casing and cementing requirements
- Notice and public hearing requirements
- Coordination of information sharing from groundwater conservation districts and a letter from relevant groundwater protection unit before drilling begins
The Sierra Club believes the Railroad Commission should address and incorporate these issues as well in its current rulemaking. Doing so would represent one more step toward modernizing the Commission’s rules.
That road is long. If these improvements are made, the Commission will still need to develop a plan to address seismic activity with its current permits that would not meet this proposed rule described above. All of these improvements would bring Texas closer to a better semblance of safety, but it would not be for free. The permit fee should be increased to accommodate the Commission’s additional work. It should be noted that while many programs have increased permit fees to more adequately fund the agency, this particular fee was not included in the Legislature’s decision to allow enhanced permit fees, Reed noted. This rulemaking should address that.