ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 3. Oil and Gas Division Conservation Rules and Regulations 16 TAC sec.3.14 The Railroad Commission of Texas adopts amendments to sec.3.14, concerning the plugging of wells with changes to the proposed text as published in the April 18, 1995, issue of the Texas Register (20 TexReg 2761). Adoption of the proposed amendments will reduce the regulatory burden on operators of wells more than 25 years old by eliminating the prior notice and approval requirement for annual fluid level tests. Approval is no longer necessary before conducting certain hydraulic pressure tests though prior notice is still required. Alternate methods of testing will still require prior notice and approval. The notice period for the tests requiring prior notice has been reduced from three days to two days. All test results are to be filed with the district except the fluid level tests which will now be filed in Austin. One comment suggests treating hydraulic pressure tests like fluid level tests for notification and filing purposes because pressure tests are routine and well documented by pressure charts. The commission disagrees. Though routine and well documented, pressure tests must be conducted properly to be effective tools for preventing pollution. The only way to assure that the well is properly tested is for the district to have the option of witnessing the test. If conducted in accordance with the specifications in the rule, a hydraulic pressure test requires prior notice but not prior approval. Two comments suggested that to minimize confusion, all filings should be made in either the Austin office or the district office instead of requiring the filing of fluid level tests in Austin and all other test results with the district office. The commission disagrees. Fluid level tests require a minimum of clerical effort to process but are filed in large quantities each year. Hydraulic pressure and other mechanical integrity tests are filed much less frequently but require specialized knowledge to process and interpret. Filing all test results with the district offices would place an unreasonable strain on the district office's limited resources. If all tests were filed in Austin, the district personnel who witnessed the tests and those with the specialized knowledge to interpret the tests would not be available to interpret and analyze the results. One comment suggests eliminating the notification requirement for all tests. The commission disagrees. Without notice and opportunity to witness the test, the commission loses the ability to assure that the test has been done properly and that the proper interval has been tested. One comment suggests that section (b)(2)(F), requiring MITs every five years, be eliminated. The commission agrees partly. The problem addressed in (b)(2)(F) could be more efficiently handled by evoking the commission's authority under (b)(2)(E) on a case by case basis but any well more than 25 years old that passes a hydraulic pressure test should be exempted from mechanical integrity testing for five years. One comment suggests amending (b)(2)(E) so that it applies only to those wells with "production casing" more than 25 years old and not to all wells more than 25 years old. This would allow an operator to reenter a well bore more than 25 years old and set new production casing without triggering the testing requirements of section (b)(2)(E). The commission disagrees. This problem can already be remedied administratively. One comment suggests adding the words, "fluid level" in the second sentence of (b)(2)(E). The commission agrees. Apparently those words were erroneously omitted when the proposed rule language was published. One comment suggests eliminating (b)(2)(E)(i)-(iv) because the time limits will have passed by the time this rule is amended. The commission agrees. The time limits have expired and there is no reason to impose new time limits. The Glasscock County Underground Water Conservation District, The Permian Basin Petroleum Association, The North Texas Oil & Gas Association, Phillips Petroleum Company, The Texas Mid-Continent Oil & Gas Association and The West Central Texas Oil & Gas Association generally support these amendments. There were no comments opposing the proposed amendments. The following sections of the Texas Natural Resources Code are affected by the adoption of the amendments: sec.sec.91.001, 91.012, and 91.101. The Railroad Commission adopts the amendments pursuant to the Texas Natural Resources Code, Title 3, Chapters 85, 89 and 91 that provide the commission with the authority to prevent pollution. sec.3.14. Plugging. (a) (No change.) (b) Plugging: commencement of operations, extensions, and responsibility. (1) (No change.) (2) Plugging operations on each dry or inactive well must be commenced within a period of one year after drilling or operations cease and shall proceed with due diligence until completed. For good cause, a reasonable extension of time in which to start the plugging operations may be granted pursuant to the following procedures. (A)-(D) (No change.) (E) All wells more than 25 years old that become inactive and subject to the provisions of this paragraph shall be plugged or tested annually to determine whether the well poses a potential threat of harm to natural resources, including surface and subsurface water, oil and gas. In general, a fluid level test is a sufficient test for purposes of this subparagraph. However, the commission or its delegate may require alternate methods of testing, and more frequent tests, if it is necessary to ensure the well does not pose a potential threat of harm to natural resources. Wells that are returned to continuous production, as evidenced by three consecutive months of production, within a year after the well becomes inactive need not be tested. Alternate methods of testing may be approved by the commission or its delegate by written application and upon a showing that such a test will provide information sufficient to determine that the well does not pose a threat to natural resources. No test other than a fluid level test shall be conducted without prior approval from the district office. However, a hydraulic pressure test may be conducted without prior approval from the district office, provided that the production casing is tested to a depth of at least 250 feet below the base of usable quality water, or 100 feet below the top of cement behind the production casing, whichever is deeper and provided that the minimum test pressure is greater than or equal to 250 psig for a period of at least 30 minutes. A hydraulic pressure test, so conducted, will exempt the well from further testing for five years from the date of the test unless the Commission or its delegate determines that more frequent testing is necessary to ensure that the well does not pose a potential threat of harm to natural resources. The district office shall be notified at least two days before any test other than a fluid level test is conducted. Mechanical integrity test results shall be filed with the district office and fluid level test results shall be filed with the commission in Austin. Test results shall be filed on a commission-approved form, within 30 days of the completion of the test. (3) (No change.) (c)-(j) (No change.) This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on August 22, 1995. TRD-9510943 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Effective date: September 20, 1995 Proposal publication date: April 18, 1995 For further information, please call: (512) 463-7008 TITLE 34. PUBLIC FINANCE Part IV. Employees Retirement System of Texas Chapter 87. Deferred Compensation 34 TAC sec.87.7, sec.87.21 The Employees Retirement System of Texas adopts amendments to sec.87.7 and sec.87.21, concerning vendor participation and remedies, without changes to the proposed text as published in the July 18, 1995, issue of the Texas Register (20 TexReg 5206). These amendments make changes in plan rules dealing with the collateralization requirements of banks and savings and loan associations necessitated by legislation enacted by the 74th Legislature. The amendments remove collateralization requirements previously imposed on banks and savings and loan associations, and will still allow collateralization requirements to be imposed on banks and savings and loan associations if deemed necessary by the plan administrator, such as when pass-through deposit insurance becomes unavailable. No comments were received regarding adoption of the amendments. The amendments are adopted under the Government Code, Title 6, Subtitle A, Chapter 609, sec.609.508, which provides authorization for the board to adopt rules, regulations, plans, and procedures to carry out the purposes of this Act. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on August 29, 1995. TRD-9510922 Charles D. Travis Executive Director Employees Retirement System of Texas Effective date: September 19, 1995 Proposal publication date: July 18, 1995 For further information, please call: (512) 867-3336 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part III. Texas Youth Commission Chapter 83. Contracted Youth Services 37 TAC sec.83.45 The Texas Youth Commission (TYC) adopts an amendment to sec.83.45, concerning incident reporting by contract programs, without changes to the proposed text as published in the July 28, 1995, issue of the Texas Register (20 TexReg 5606). The justification for amending the section is to provide more efficient incident reporting by residential contract staff. The amendment will clarify time frames for notification and reporting of serious incidents involving TYC youth. No comments were received regarding adoption of the amendment. The amendment is adopted under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission with the authority to make rules appropriate to the proper accomplishment of its functions. The proposed amendment implements the Human Resource Code, sec.61.034. This agency hereby certifies that the rule as adopted has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on August 28, 1995. TRD-9510871 Steve Robinson Executive Director Texas Youth Commission Effective date: September 18, 1995 Proposal publication date: July 28, 1995 For further information, please call: (512) 483-5244