PART 5. BOARDS FOR LEASE OF STATE-OWNED LANDS
CHAPTER 201. OPERATIONS OF THE TEXAS PARKS AND WILDLIFE DEPARTMENT AND TEXAS DEPARTMENT OF CRIMINAL JUSTICE BOARD FOR LEASE
The Texas General Land Office (GLO), Texas Parks and Wildlife Department (TPWD), and Texas Department of Criminal Justice (TDCJ) Boards for Lease propose amendments to §201.6, relating to Lessee Responsibility. The amendment to §201.6(i) would clarify when GLO staff approval for surface commingling is required. The amendments to §201.6(m) would permit the use of full well stream meters in lieu of separators with the submittal of appropriate data and the approval of GLO staff.
FISCAL IMPACTS
Larry Laine, Chief Clerk/Deputy Land Commissioner has determined that for each year of the first five years the proposed amendments will be in effect, there will be no fiscal implications for state government as a result of enforcing or administering the amendments. Mr. Laine does not anticipate incurring any additional costs as a result of administering the proposed amendments. Mr. Laine has determined that there will be no fiscal implications for local governments.
PUBLIC BENEFIT/COST ANALYSIS
Mr. Laine has determined that for each year of the first five years the proposed amendments will be in effect, the public benefit will be improved operation of the GLO and better conservation of state resources.
SMALL BUSINESS ANALYSIS
Mr. Laine has determined that there may be some economic cost to small businesses, micro-businesses, and individuals based on the proposed amendments. The total costs for an individual, small business, or micro-business associated with compliance will vary depending on the different situations and choices made by each individual, small business, or micro-business. Further, the GLO does not have information on these businesses' gross receipts, sales revenues, or labor costs. Therefore, the GLO is not able to determine the exact cost of compliance.
EMPLOYMENT IMPACT
Mr. Laine does not anticipate any employment impact as a result of administering the proposed rule amendments.
REQUEST FOR COMMENTS
Comments on the proposed rulemaking may be submitted to Walter Talley, the GLO Texas Register Liaison, at Texas General Land Office, P.O. Box 12873, Austin, Texas 78711-2873, facsimile number (512) 463-6311, or e-mail to walter.talley@glo.state.tx.us.
The GLO will accept comments on the proposed amendments for 30 days after publication in the Texas Register. The GLO encourages all interested persons to submit comments no later than the deadline. The GLO cannot guarantee that comments submitted after the deadline will be considered. For further information contact Walter Talley at (512) 475-1859.
STATUTORY AUTHORITY
The amendments are proposed under Chapter 34 of the Texas Natural Resources Code, §34.065.
No other codes, articles, or statutes are affected by this proposal.
§201.6.Lessee Responsibility.
(a) - (h) (No change.)
(i) Commingling production. Lessee must obtain
written permission from GLO staff before surface commingling a state
lease tract or state pooled unit production with private lease production
or before surface commingling oil and/or gas from two separate state
leases and/or pooled state units. Send commingling requests to the
Texas General Land Office; Attention: Minerals Leasing; 1700 North
Congress; Austin, Texas 78701-1495. The requirement to obtain GLO
approval applies to all commingle exception request applications including
new permits and amendments to existing permits. [Requests
to commingle production from state leases should be sent with supporting
data to the following address: Commissioner of the General Land Office,
Attention: Mineral Leasing Division, Stephen F. Austin Building, 1700
North Congress Avenue, Austin, Texas 78701-1495.]
(j) - (l) (No change.)
(m) Separator required. All wells producing liquids
must be produced through oil and gas separators of ample capacity
and in good working order. All separators shall be of conventional
type (or other equipment at least as efficient) to provide for separation
and metering of all lease or pooled unit gas and liquid hydrocarbon
production before surface commingling with the production from any
other lease and/or pooled unit. However, upon review and approval
by GLO staff, a waiver granting exception to this requirement may
be provided so that full well stream gas production can be metered
(i.e. wet gas metering). The lessee must obtain written permission
from GLO staff before installation of full well stream/wet gas meters
in lieu of setting a separator. [All wells producing liquids
must be produced through an oil and gas separator of ample capacity
and in good working order.]
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on August 14, 2009.
TRD-200903604
Trace Finley
Deputy Commissioner, Policy and Governmental Affairs, General Land Office
Boards for Lease of State-Owned Lands
Earliest possible date of adoption: September 27, 2009
For further information, please call: (512) 475-1859