Part 1.
RAILROAD COMMISSION OF TEXAS
Chapter 3.
OIL AND GAS DIVISION
16 TAC §3.14, §3.78
The Railroad Commission of Texas proposes amendments to §3.14,
relating to Plugging, and §3.78, relating to Fees, Performance Bonds
and Alternate Forms of Financial Security Required to be Filed.
The Commission proposes the amendments to §3.78(b)(5) under the provisions
of Section 3, Senate Bill 310, 77th Legislature (2001), which amends Texas
Natural Resources Code, §81.0521, to authorize the Commission to collect
a fee of $150 with each exception to any Commission rule. The amendments to §3.78(b)(5)
reflect the statutory authorization to collect the $150 fee.
The Commission also proposes the amendments to §3.78(b)(12) under
the provisions of Section 4, Senate Bill 310, 77th Legislature (2001), which
amends Texas Natural Resources Code, §81.0522, to authorize the Commission
to collect a fee of up to $150 with each application for a well category determination
under the Natural Gas Policy Act (15 U.S.C. §§3301-3432). The amendments
to §3.78(b)(12) reflect the statutory authorization to collect the $150
fee.
The Commission also proposes the amendments to §3.78(b)(1), (3), and
(6) under the provisions of Section 9, Senate Bill 310, 77th Legislature (2001),
which amends Texas Natural Resources Code, §85.2021, to authorize the
Commission to collect a fee with each application or materially amended application
for a permit to drill, deepen, plug back, or reenter a well of: (1) $200 if
the total depth of the well is 2,000 feet or less; (2) $225 if the total depth
of the well is greater than 2,000 feet but less than or equal to 4,000 feet;
(3) $250 if the total depth of the well is greater than 4,000 feet but less
than or equal to 9,000 feet; or (4) $300 if the total depth of the well is
greater than 9,000 feet. Additionally, amended Texas Natural Resources Code, §85.2021,
authorizes the Commission to collect a fee of $150 when an applicant requests
the Commission expedite an application for a permit to drill, deepen, plug
back, or reenter a well, and a fee of $300 for each application for an extension
of time to plug a well pursuant to Commission rules. The amendments to §3.78(b)(1),
(3), and (6) reflect the statutory authorization to collect the increased
fees.
The Commission also proposes the amendments to §3.78(b)(8) and (9)
under the provisions of Section 17, Senate Bill 310, 77th Legislature (2001),
which amends Texas Natural Resources Code, §91.1013, to authorize the
Commission to collect a fee of $200 with each application for a fluid injection
well permit and authorizes the Commission to collect a fee of $300 for each
application to discharge to surface water. The amendments to §3.78(b)(8)
and (9) reflect the statutory authorization to collect the increased fees.
The Commission also proposes the amendments to §3.78 under the provisions
of Section 19, Senate Bill 310, 77th Legislature (2001), which amends Texas
Natural Resources Code, §91.104, requiring operators to file financial
security or alternate forms of financial security. The amended provisions
of Texas Natural Resources Code, §91.104: (1) allow operators to submit
a cash deposit to the Commission in the same amount that would be required
for a bond or letter of credit; (2) add a new determination on the availability
of bonds at reasonable prices before an operator with an acceptable record
of compliance can choose to file a $1,000 annual fee in lieu of posting other
acceptable forms of financial security; (3) increase the annual fee for operators
with an acceptable record from $100 to $1,000; (4) eliminate the option of
an operator meeting its financial security requirement by providing the Commission
with a first lien on equipment; and (5) increase the nonrefundable cash alternative
fee from 3% of the amount that would be required for a bond or letter of credit
to 12.5%.
Commission records show that in the approximately six-month period between
January 18, 2001, and June 26, 2001, an additional 117 operators have filed
organizational bonds. This increase appears to be directly correlated to the
Commission's previous amendment of §§3.14 and 3.78 to adopt financial
security requirements for inactive wells effective November 1, 2000. The increase
in operators filing organizational bonds also reflects a general availability
of bonds for operators. Based on this increase in the number of operators
filing organizational bonds, the Commission has determined that bonds are
available at reasonable prices. This determination is included in proposed §3.78(f)(1)
to satisfy the statutory requirement that the Commission make such a determination.
The Commission further recognizes that while this determination is generally
applicable to operators throughout the state, that there may be specific operators
who are unable to obtain bonds at a reasonable price. Accordingly, the Commission
has included as proposed §3.78(f)(2) the opportunity for an operator
to request a hearing to determine that it cannot obtain a bond at a reasonable
price. Proposed §3.78(f)(2) also sets forth the minimum required evidentiary
burden of proof to be submitted by the operator to support a determination
that bonds are not obtainable at reasonable prices. The minimum evidentiary
showing includes: (1) evidence that no fewer than three companies which have
issued a bond filed with the Commission in the past 12 months will not issue
a bond to the requesting operator for an annual fee less than 12% of the face
amount of the bond; (2) evidence that the operator possesses adequate financial
assets or other resources necessary to plug any inactive wells as defined
under §3.14(b)(2); and (3) evidence that the operator is otherwise eligible
to file the $1,000 nonrefundable annual fee.
The proposed amendments to §3.78(l) also establish conditions for
cash deposits. The Commission will place any cash deposits in a special account
within the Oil Field Clean Up Fund Account. Any interest accruing on cash
deposits will be deposited into the Oil Field Clean Up Fund pursuant to Texas
Natural Resources Code, §91.111(c)(8). Cash deposits will not be refunded
until an operator ceases all Commission-regulated activity or another form
of financial security is accepted by the Commission.
The Commission also proposes the amendments to §3.14(b)(2) and (3)
and §3.78(n) under the provisions of Sections 25 and 27, Senate Bill
310, 77th Legislature (2001), which amends Texas Natural Resources Code, §91.107
which requires operators acquiring an active or inactive well to file either
an individual performance bond or a blanket performance bond with the Commission
before operatorship of the well is transferred. The statutory amendments require
changes to Commission rules which did not specify the type of financial security
required to transfer a well. Prior Commission rules did not require the operator
obtaining wells through a transfer to file a specific type of financial security.
The proposed amendments to §3.14(b)(2) and (3) and §3.78(n) simply
incorporate the statutory amendments.
The Commission also proposes the amendments to §3.78(c) under the
provisions of Section 33, Senate Bill 310, 77th Legislature (2001), which
amends Texas Natural Resources Code, §91.1041, to require operators filing
an organization report with the Commission to submit a fee not to exceed $1,000
to be calculated as follows: (1) for an operator of not more than 25 wells,
$300; (2) for an operator of more than 25 but not more than 100 wells, $500;
(3) for an operator of more than 100 wells, $1,000; (4) for an operator of
one or more natural gas pipelines, $100; (5) for an operator of one or more
service activities or facilities, including liquids pipelines, who does not
operate any wells, an amount to be determined by the Commission, but not less
than $300 or more than $500; (6) for an operator of one or more service activities
or facilities, including liquids pipelines, who also operates one or more
wells, an amount to be determined by the Commission, but not less than $300
or more than $1,000; and (7) for an entity not currently performing operations
under the jurisdiction of the Commission, $300. The amendments reflect the
statutory authorization to collect an annual organization report fee based
on the number of wells, service activities or facilities operated by the operator.
The required filing fee for operators who operate one or more service activities
but no wells was set at $300 for pollution cleanup contractors, directional
surveyors, approved cementers for plugging wells, and operators physically
moving or storing crude or condensate. All other operators of other service
activities or facilities, including liquids pipelines, are required to submit
a fee of $500. The required filing fee for operators who operate both wells
and one or more service activities or pipelines is based on the sum of any
fee associated with the number of wells operated plus the separate fee charged
for each category of service activity, facility or pipeline.
The Commission also proposes an amendment to §3.78(b)(15) requiring
operators who submit a check that is not honored on presentment to submit
any subsequent payments in the form of a credit card, cashier's check, or
cash for a period of 24 months. The proposed amendment will promote administrative
efficiency by reducing the number of dishonored checks submitted to the Commission.
The Commission also notes that under the provisions of Sections 21 and
23, Senate Bill 310, 77th Legislature (2001), which amend Texas Natural Resources
Code, §91.1041 and §91.1042, the Commission is required to adopt
rules setting a reasonable amount of financial security for each bay or offshore
well above the base amount of financial security required to be submitted
by each operator. The amount of financial security for each bay or offshore
well above the base amount will be the subject of a separate rulemaking. The
Commission has included in the proposed amendments to §3.78 definitions
of bay, offshore and land wells in anticipation of the future amendments.
The proposed amendments to §§3.14 and 3.78 implement statutory
changes made to financially strengthen and to better use the state's Oil Field
Clean Up Fund ("OFCUF"). The statutory changes were recommended during the
agency review process of the Commission by the Sunset Advisory Commission.
The financial strength of the OFCUF is increased by statutory changes and
corresponding rule amendments raising the required amount for filing fees
and by adding an annual organization report filing fee. Broadened financial
security requirements will ensure that sufficient financial security is in
place to adequately fund clean up and plugging operations. The expanded financial
security requirements will allow the Commission to more effectively use a
fiscally stronger OFCUF.
In addition to the substantive changes previously discussed, the Commission
proposes to reorganize and clarify §3.78. The new format groups together
in §3.78 both the existing and the amended provisions relating to fees
charged by the Commission. Additionally, the new format of §3.78 incorporates
the references in §3.14 to individual well bonds and letters of credit,
and groups these references with the existing and the amended provisions related
to financial security requirements in §3.78. Finally, proposed §3.78(p)
is clarified by noting that the requirements date from the original enactment
of the subsection.
The substantive changes in filing fees and financial security requirements
are made in §3.78. The amendments to §3.14(a)(1)(F) and (M) and §3.14(b)(2)
and (3) are proposed to conform with the substantive changes in §3.78.
Other changes in §3.14(a)(1) are made to conform the definitions in this
rule to
Texas Register
format requirements.
Leslie Savage, Planning and Administration, Oil and Gas Division, has determined
that for the first year the amendments will be in effect, there will be no
net fiscal implications for state government as a result of enforcing or administering
the amendments. Senate Bill 310 amended Texas Natural Resources Code, §81.0522,
which authorizes the Commission to collect a fee with each application for
a well category determination under the Natural Gas Policy Act, 15 U.S.C. §§3301-3432
("NGPA"), to allow the Commission to set the amount of the fee not to exceed
$150 to recoup the Commission's costs. The proposed amendments in §3.78(b)(12)
reflect the change in the statute by increasing the fee amount from $50 to
$150 to cover the costs. These fees will be deposited into General Revenue
and appropriated to the Commission to cover the cost of administering the
well category determination program. Revenue for fiscal year 2002 is estimated
to be $120,000. Expenses for fiscal year 2002 are estimated at $110,000 for
contract employees and approximately $10,000 in other expenses. For fiscal
year 2003, Ms. Savage estimates that the revenue will total approximately
$60,000, and expenses will be approximately $60,000 ($55,000 for contract
employees and $5,000 for other associated costs). The well category determination
program under the Natural Gas Policy Act is currently scheduled to end June
2003.
The remaining changes impact the Commission's Oil Field Cleanup Fund. Ms.
Savage estimates that the proposed amendments implementing the statutory changes
will increase the revenue to the Oil Field Cleanup Fund by approximately $4,471,000
in each of the fiscal years 2002 and 2003.
During the first year of implementation of the proposed amendments (fiscal
year 2002), the Commission will expend money from these revenues to make the
necessary changes described in subsequent paragraphs and to enforce the new
requirements. The total expenditure during the first year of implementation
(fiscal year 2002) is estimated to be approximately $225,578. This includes
$79,756 for staff involved with document revision, process analysis, and processing
of additional documents (letters of credit, cash deposits, and new P-5 organization
fee). Costs will also be incurred for computer programming: to implement the
changes to the fees; to implement new fees; to enable staff to determine the
status and financial security required for wells that are transferred from
one operator to another; to calculate fee and bonding/letter of credit or
cash deposit amounts; and to modify the P-5 financial security options fact
sheet. The technology costs are estimated to be a maximum of 1,000 hours at
$120 per hour for contract programming for a total of $120,000. However, the
Commission has not determined whether to use contract programmers and may
be able to complete this work at a smaller cost using internal resources,
if available. An estimated cost of approximately $145,822 will be incurred
as a result of the proposed amendments for field staff compliance inspections
and enforcement activity to respond to complaints resulting from an anticipated
initial increase in noncompliance.
The fiscal year 2003 and 2004 costs include $74,256 for staff processing
of additional documents (individual well bonds, letters of credit, and cash
deposits) and $94,822 for field staff compliance inspections and enforcement
activity to respond to complaints resulting from an anticipated initial increase
in noncompliance each year for a total of $169,078.
Additional statutory changes enacted under the provisions of Section 3,
Senate Bill 310, 77th Legislature (2001) establish financial security requirements
which will not become effective until September 1, 2004. Revenue estimates
will change as a result of these amendments and expenditures for activity
in the areas noted above will again increase during the first year of implementation
(fiscal year 2005). Staff will estimate the potential fiscal impacts at the
time the Commission proposes the rule amendments implementing these statutory
changes.
All of the new statutory fees (with the exception of the NGPA application
fee) will be deposited into the OFCUF. The increased activity and resulting
expenditures by the Commission for the first year of implementation of the
amendments resulting from the statutory changes will be funded through the
OFCUF. As this activity and the resulting incremental expenditures decrease
in subsequent years, these funds will be available for well plugging and cleanup
activity. Therefore, there is no net fiscal impact to state government.
There will be no effect on local government.
Ms. Savage has estimated that the cost of compliance with the proposed
amendments for the individual, small business, or micro- business producer
will be an increase in the fees for filing applications with the Commission
as provided for by the statutory changes. An additional cost of compliance
will result from the addition of the new organization report fee required
from all operators subject to the Commission's jurisdiction. Finally, for
those operators that have not previously opted to file an individual or blanket
performance bond with the Commission, those operators may incur an additional
business expense in the premium for the bond obtained. The Commission also
anticipates that the premium expense may be offset by savings for those operators
with inactive wells who had previously relied on alternative financial security
provisions, because any operator who now opts to file an individual or blanket
performance bond will no longer be required to file a separate fee to obtain
plugging extensions for each inactive well. Additionally, operators who request
a hearing to rebut the presumption that bonds are available at reasonable
prices may incur costs associated with preparing for and attending the hearing,
including but not limited to costs for hiring legal counsel and other experts,
preparing documents and other evidence, and traveling to Austin for the hearing.
Mark Helmueller, Hearings Examiner, Oil and Gas Section, Office of General
Counsel, has determined that for each year of the first five years that the
amended sections will be in effect, the primary public benefit will be the
implementation of the fee changes required by the Legislature, which should
allow the Commission to plug more wells and to accelerate clean up and plugging
operations in the areas of greatest need.
Mr. Helmueller has also determined that there is a public benefit in eliminating
any potential confusion by amending §3.14 and §3.78 to group similar
provisions. The new format will promote administrative efficiency and facilitate
implementation of the statutory changes by clarifying requirements under both §3.14
and §3.78.
Comments may be submitted to Mark Helmueller, Hearings Examiner, Oil and
Gas Section, Office of General Counsel, Railroad Commission of Texas, P. O.
Box 12967, Austin, Texas 78711-2967 or via electronic mail to mark.helmueller@rrc.state.tx.us.
Comments will be accepted for 30 days after publication in the
Texas Register
and should refer to the docket number of this rulemaking
proceeding: 20-0228899. For further information, call Mr. Helmueller at 512-
463-6802.
The Commission proposes the amendments to §§3.14 and
3.78 pursuant to subsection (b) of Texas Government Code, §2001.006
(
as added by Acts 1999, 76th leg., ch. 558, §1
), and pursuant to Texas Natural Resources Code, §§81.051
and 81.052, which provide the Commission with jurisdiction over all persons
owning or engaged in drilling or operating oil or gas wells in Texas and the
authority to adopt all necessary rules for governing and regulating persons
and their operations under the jurisdiction of the Commission, and under the
provisions of Senate Bill 310, 77th Legislature (2001).
The Texas Natural Resources Code, §§81.051, 81.052, 81.0521,
81.0522, 85.202, 85.2021, 88.011, 91.101, 91.1013, 91.103, 91.104, 91.1041,
91.1042, 91.105-91.108, 91.1091, 91.111- 91.113, 91.142, and the provisions
of Senate Bill 310, 77th Legislature (2001) are affected by the proposed amendments.
Issued in Austin, Texas on July 24, 2001.
§3.14.Plugging.
(a)
Definitions and application to plug.
(1)
The following words and terms, when used in this section,
shall have the following meanings, unless the context clearly indicates otherwise
[
(A)
Active operation--Regular
[
(B)
Bay well--Any
[
(i)
located in or on a lake, river, stream, canal, estuary,
bayou or other inland navigable waters of the state; or,
(ii)
located on state lands seaward of the mean high tide line
of the Gulf of Mexico in water of a depth at mean high tide of not more than
100 feet that is sheltered from the direct action of the open seas of the
Gulf of Mexico.
(C)
Delinquent inactive well--An
[
(D)
Funnel viscosity--Viscosity [
(E)
Good faith claim--A
[
(F)
Individual well bond--A bond or letter of credit issued:
(i)
on a Commission-approved form;
(ii)
by a third party surety, insurance company,
or financial institution approved by the Commission; and
(iii)
to secure the timely and proper plugging
of a specified well and remediation of the wellsite in accordance with Commission
rules.
[
(G)
Land well--Any
[
(H)
Offshore well--Any
[
(I)
Operator designation form--A
[
(J)
Productive horizon--Any
[
(K)
Reported production--Production
[
(L)
To serve surface notice--To
[
(M)
Unbonded operator--An
[
(N)
Usable quality water strata--All
[
(O)
Written notice--Notice
[
(2)
The operator shall give the
Commission
[
(3)
The operator shall cause the notice of its intention to
plug to be delivered to the district office at least five days prior to the
beginning of plugging operations. The notice shall set out the proposed plugging
procedure as well as the complete casing record. The operator shall not commence
the work of plugging the well or wells until the proposed procedure has been
approved by the district office. The operator shall not initiate approved
plugging operations before the date set out in the notification for the beginning
of plugging operations unless authorized by the district director. The operator
shall notify the district office at least four hours before commencing plugging
operations and proceed with the work as approved. The district director may
grant exceptions to the requirements of this paragraph concerning the timing
of notices when a workover or drilling rig is already at work on location,
ready to commence plugging operations. Operations shall not be suspended prior
to plugging the well unless the hole is cased and casing is cemented in place
in compliance with
Commission
[
(4)
The landowner and the operator may file an application
to condition an abandoned well located on the landowner's tract for usable
quality water production operations, provided the landowner assumes responsibility
for plugging the well and obligates himself, his heirs, successors, and assignees
as a condition to the
Commission's
[
(5)
The operator of a well shall serve surface notice on the
surface owner of the well site tract, or the resident if the owner is absent,
before the scheduled date for beginning the plugging operations. A representative
of the surface owner may be present to witness the plugging of the well. Plugging
shall not be delayed because of the lack of actual notice to the surface owner
or resident if the operator has served surface notice as required by this
paragraph. The district director may grant exceptions to the requirements
of this paragraph concerning the timing of notices when a workover or drilling
rig is already at work on location ready to commence plugging operations.
(b)
Commencement of plugging operations and extensions.
(1)
The operator shall complete and file in the district office
a duly verified plugging record, in duplicate, on the appropriate form within
30 days after plugging operations are completed. A cementing report made by
the party cementing the well shall be attached to, or made a part of, the
plugging report. If the well the operator is plugging is a dry hole, an electric
log status report shall be filed with the plugging record.
(2)
Plugging operations on each dry or inactive well shall
be commenced within a period of one year after drilling or operations cease
and shall proceed with due diligence until completed. Plugging operations
on delinquent inactive wells shall be commenced immediately unless the well
is restored to active operation. For good cause, a reasonable extension of
time in which to start the plugging operations may be granted pursuant to
the following procedures.
(A)
Wells that have been inactive for less than 36 months.
(i)
The
Commission
[
(I)
The well and associated facilities are in compliance with
all other laws and Commission rules;
(II)
The operator's organization report is current and active;
(III)
The operator has, and upon request provides evidence
of, a good faith claim to a continuing right to operate the well;
(IV)
The operator has paid the proper fee as provided in §3.78
of this title (relating to Fees, Performance Bonds, and Alternative Forms
of Financial Security Required To Be Filed) (Statewide Rule 78);
(V)
The operator has tested the well in accordance with the
provisions of subparagraph (E) of this section and files with its application
proof of either:
(-a-)
a fluid level test conducted within 90 days prior to
the application for a plugging extension demonstrating that any fluid in the
wellbore is at least 250 feet below the base of the deepest usable quality
water strata; or,
(-b-)
a hydraulic pressure test conducted during the period
the well has been inactive demonstrating the mechanical integrity of the well;
and,
(VI)
The requested plugging extension will not extend beyond
the thirty-sixth month of inactivity.
(ii)
A plugging extension granted under this subparagraph may
not extend the period of inactivity beyond 36 months.
(B)
Wells that have been inactive for 36 months or longer [
(i)
The Commission or its delegate may administratively grant
an extension of up to one year of the deadline for plugging a well [
(I)
The operator has tested the well in accordance with the
provisions of subparagraph (E) of this paragraph and files with its application
proof of either:
(-a-)
a fluid level test conducted within 90 days prior to
the application for a plugging extension demonstrating that any fluid in the
wellbore is at least 250 feet below the base of the deepest usable quality
water strata, or,
(-b-)
a hydraulic pressure test conducted during the period
the well has been inactive and not more than four years prior to the date
of application demonstrating the mechanical integrity of the well; and,
(II)
The operator files an individual well bond in the
amount provided for in §3.78(m) of this title (relating to Fees, Performance
Bonds, and Alternative Forms of Financial Security Required To Be Filed) (Statewide
Rule 78).
[
[(-a-)
for land wells, the product of the
total depth of the well multiplied by $3 per foot;]
[(-b-)
for bay wells, $60,000; and,]
[(-c-)
for offshore wells, $250,000.]
(ii)
An operator may rebut the presumed estimated
plugging costs for a specific well for which a plugging extension is sought
at hearing by clear and convincing evidence establishing a higher or lower
prospective plugging cost for the well. The operator, Commission staff, or
any owner of the surface or mineral estate on which the well is located may
initiate a hearing on the prospective plugging cost for a well for the purpose
of setting the amount of an individual well bond by filing a request for hearing.
[(ii)
The presumptive estimated plugging costs
for a specific well for which a plugging extension is sought may be rebutted
at hearing by clear and convincing evidence establishing a higher or lower
prospective plugging cost for the well. A hearing concerning the prospective
plugging cost for a well for purposes of setting the amount of an individual
well bond may be initiated by the operator, Commission staff, or any owner
of the surface or mineral estate on which the well is located.]
[(iii)
Once an individual well bond is required
for a well under the terms of this subparagraph, an individual well bond must
be continuously maintained for the well until it is plugged or returned to
active operation, unless the operator posts a valid, Commission-approved individual
performance bond, blanket performance bond, or letter of credit as provided
in §3.78 of this title (relating to Fees, Performance Bonds, and Alternate
Forms of Financial Security Required to be Filed) (Statewide Rule 78) as its
organizational financial assurance.]
(C)
Plugging of inactive wells operated by bonded operators.
An operator that maintains valid, Commission-approved [
(i)
The well and associated facilities are in compliance with
all laws and Commission rules; and,
(ii)
The operator has, and upon request provides evidence of,
a good faith claim to a continuing right to operate the well.
(D)
Revocation or denial of plugging extension.
(i)
The Commission or its delegate may revoke a plugging extension
if the operator of the well that is the subject of the extension fails to
maintain the well and all associated facilities in compliance with Commission
rules; fails to maintain a current and accurate organizational report on file
with the Commission; fails to provide the Commission, upon request, with evidence
of a continuing good faith claim to operate the well; or fails to obtain or
maintain a valid individual well bond or organizational bond or letter of
credit as required by this subsection.
(ii)
If the Commission or its delegate declines to grant or
continue a plugging extension or revokes a previously granted extension, the
operator shall either return the well to active operation or, within 30 days,
plug the well or request a hearing on the matter.
(E)
The operator of any well more than 25 years old that becomes
inactive and subject to the provisions of this paragraph and the operator
of any well for which a plugging extension is sought under the terms of subparagraph
(A) or (B) of this paragraph shall plug or test such well to determine whether
the well poses a potential threat of harm to natural resources, including
surface and subsurface water, oil and gas.
(i)
In general, a fluid level test is a sufficient test for
purposes of this subparagraph. The operator must give the district office
written notice specifying the date and approximate time it intends to conduct
the fluid level test at least 48 hours prior to conducting the test; however,
upon a showing of undue hardship, the district office may grant a written
waiver or reduction of the notice requirement for a specific well test. The
Commission
[
(ii)
No test other than a fluid level test shall be acceptable
without prior approval from the district office. The district office shall
be notified at least 48 hours 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
[
(iii)
Notwithstanding the provisions of clause (ii) of this
subparagraph, a hydraulic pressure test may be conducted without prior approval
from the district office, provided that the operator gives the district office
written notice specifying the date and approximate time for the test at least
48 hours prior to the time the test will be conducted, the production casing
is tested to a depth of at least 250 feet below the base of usable quality
water strata, or 100 feet below the top of cement behind the production casing,
whichever is deeper, and the minimum test pressure is greater than or equal
to 250 psig for a period of at least 30 minutes.
(iv)
If the operator performs a hydraulic pressure test in
accordance with the provisions of clause (iii) of this subparagraph, the well
shall be exempt from further testing for five years from the date of the test,
except to the extent compliance with paragraph (2) of subsection (b) of this
section requires more frequent testing. Further, the
Commission
[
(v)
Wells that are returned to continuous production, as evidenced
by three consecutive months of reported production of at least 10 barrels
of oil or 100 mcf of gas per month, need not be tested.
(3)
Transfer of operatorship
. A transfer of operatorship
submitted for any well or lease will not be approved unless the operator acquiring
the well or lease has on file with the Commission financial security as provided
in §3.78 of this title (relating to Fees, Performance Bonds, and Alternate
Forms of Financial Security Required to be Filed) (Statewide Rule 78)
.
[
(4)
The
Commission
[
(A)
After notice and hearing, if the well is causing or is
likely to cause the pollution of surface or subsurface water or if oil or
gas is leaking from the well, and:
(i)
Neither the operator nor any other entity responsible for
plugging the well can be found; or
(ii)
Neither the operator nor any other entity responsible
for plugging the well has assets with which to plug the well.
(B)
Without a hearing if the well is a delinquent inactive
well and:
(i)
the
Commission
[
(ii)
the operator did not request a hearing within the period
(not less than 10 days after receipt) specified in the notice.
(C)
Without notice or hearing, if:
(i)
The
Commission
[
(ii)
The well poses an immediate threat of pollution of surface
or subsurface waters or of injury to the public health and the operator has
failed to timely remediate the problem.
(5)
The
Commission
[
(c)
Designated operator responsible for proper plugging.
(1)
The entity designated as the operator of a well specifically
identified on the most recent
Commission-approved
[
(2)
As to any well for which the most recent
Commission-
approved
[
(d)
General plugging requirements.
(1)
Wells shall be plugged to insure that all formations bearing
usable quality water, oil, gas, or geothermal resources are protected. All
cementing operations during plugging shall be performed under the direct supervision
of the operator or his authorized representative, who shall not be an employee
of the service or cementing company hired to plug the well. Direct supervision
means supervision at the well site during the plugging operations. The operator
and the cementer are both responsible for complying with the general plugging
requirements of this subsection and for plugging the well in conformity with
the procedure set forth in the approved notice of intention to plug and abandon
for the well being plugged. The operator and cementer may each be assessed
administrative penalties for failure to comply with the general plugging requirements
of this subsection or for failure to plug the well in conformity with the
approved notice of intention to plug and abandon the well.
(2)
Cement plugs shall be set to isolate each productive horizon
and usable quality water strata.
(3)
Cement plugs shall be placed by the circulation or squeeze
method through tubing or drill pipe. Cement plugs shall be placed by other
methods only upon written request with the written approval of the district
director or the director's delegate.
(4)
All cement for plugging shall be an approved API oil well
cement without volume extenders and shall be mixed in accordance with API
standards. Slurry weights shall be reported on the cementing report. The district
director or the director's delegate may require that specific cement compositions
be used in special situations; for example, when high temperature, salt section,
or highly corrosive sections are present.
(5)
Operators shall use only cementers approved by the assistant
director of well plugging or the assistant director's delegate, except when
plugging is conducted in accordance with subparagraph (B)(ii) of this paragraph
or paragraph (6) of this subsection. Cementing companies, service companies,
or operators may apply for designation as approved cementers. Approval will
be granted on a showing by the applicant of the ability to mix and pump cement
in compliance with this rule. An approved cementer is authorized to conduct
plugging operations in accordance with
Commission
[
(A)
A cementing company, service company, or operator seeking
designation as an approved cementer shall file a request in writing with the
district director of the district in which it proposes to conduct its initial
plugging operations. The request shall contain the following information:
(i)
the name of the organization as shown on its most recent
approved organizational report;
(ii)
a list of qualifications including personnel who will
supervise mixing and pumping operations;
(iii)
length of time the organization has been in the business
of cementing oil and gas wells;
(iv)
an inventory of the type of equipment to be used to mix
and pump cement; and
(v)
a statement certifying that the organization will comply
with all
Commission
[
(B)
No request for designation as an approved cementer will
be approved until after the district director or the director's delegate has:
(i)
inspected all equipment to be used for mixing and pumping
cement; and
(ii)
witnessed at least one plugging operation to determine
if the cementing company, service company, or operator can properly mix and
pump cement to the specifications required by this rule.
(C)
The district director or the director's delegate shall
file a letter with the assistant director of well plugging recommending that
the application to be designated as an approved cementer be approved or denied.
If the district director or the director's delegate does not recommend approval,
or the assistant director of well plugging or the assistant director's delegate
denies the application, the applicant may request a hearing on its application.
(D)
Designation as an approved cementer may be suspended or
revoked for violations of
Commission
[
(i)
the cementer has been given written notice by personal
service or by registered or certified mail informing the cementer of the proposed
action, the facts or conduct alleged to warrant the proposed action, and of
its right to request a hearing within 10 days to demonstrate compliance with
Commission
[
(ii)
the cementer did not file a written request for a hearing
within 10 days of receipt of the notice.
(6)
An operator may request administrative authority to plug
its own wells without being an approved cementer. An operator seeking such
authority shall file a written request with the district director and demonstrate
its ability to mix and pump cement in compliance with this subsection. The
district director or the director's delegate will determine whether such a
request warrants approval. If the district director or the director's delegate
refuses to administratively approve this request, the operator may request
a hearing on its request.
(7)
The district director may require additional cement plugs
to cover and contain any productive horizon or to separate any water stratum
from any other water stratum if the water qualities or hydrostatic pressures
differ sufficiently to justify separation. The tagging and/or pressure testing
of any such plugs, or any other plugs, and respotting may be required if necessary
to insure that the well does not pose a potential threat of harm to natural
resources.
(8)
For onshore or inland wells, a 10-foot cement plug shall
be placed in the top of the well, and casing shall be cut off three feet below
the ground surface.
(9)
Mud-laden fluid of at least 9-1/2 pounds per gallon with
a minimum funnel viscosity of 40 seconds shall be placed in all portions of
the well not filled with cement. The hole shall be in static condition at
the time the cement plugs are placed. The district director may grant exceptions
to the requirements of this paragraph if a deviation from the prescribed minimums
for fluid weight or viscosity is necessary to insure that the well does not
pose a potential threat of harm to natural resources.
(10)
Non-drillable material that would hamper or prevent reentry
of a well shall not be placed in any wellbore during plugging operations,
except in the case of a well plugged and abandoned under the provisions of §3.35
or §3.94(e) of this title (relating to Procedures for Identification
and Control of Wellbores in Which Certain Logging Tools Have Been Abandoned
(Statewide Rule 35); and Disposal of Oil and Gas NORM Waste (Statewide Rule
94), respectively). Pipe and unretrievable junk shall not be cemented in the
hole during plugging operations without prior approval by the district director.
(11)
All cement plugs, except the top plug, shall have sufficient
slurry volume to fill 100 feet of hole, plus 10% for each 1,000 feet of depth
from the ground surface to the bottom of the plug.
(12)
The operator shall fill the rathole, mouse hole, and cellar,
and shall empty all tanks, vessels, related piping and flowlines that will
not be actively used in the continuing operation of the lease within 120 days
after plugging work is completed. Within the same 120 day period, the operator
shall remove all such tanks, vessels, related surface piping, and all subsurface
piping that is less than three feet beneath the ground surface, remove all
loose junk and trash from the location, and contour the location to discourage
pooling of surface water at or around the facility site. The operator shall
close all pits in accordance with the provisions of §3.8 of this title
(relating to Water Protection (Statewide Rule 8)). The district director may
grant a reasonable extension of time of not more than an additional 120 days
for the removal of tanks, vessels and related piping.
(e)
Plugging requirements for wells with surface casing.
(1)
When insufficient surface casing is set to protect all
usable quality water strata and such usable quality water strata are exposed
to the wellbore when production or intermediate casing is pulled from the
well or as a result of such casing not being run, a cement plug shall be placed
from 50 feet below the base of the deepest usable quality water stratum to
50 feet above the top of the statum. This plug shall be evidenced by tagging
with tubing or drill pipe. The plug must be respotted if it has not been properly
placed. In addition, a cement plug must be set across the shoe of the surface
casing. This plug must be a minimum of 100 feet in length and shall extend
at least 50 feet above and below the shoe.
(2)
When sufficient surface casing has been set to protect
all usable quality water strata, a cement plug shall be placed across the
shoe of the surface casing. This plug shall be a minimum of 100 feet in length
and shall extend at least 50 feet above the shoe and at least 50 feet below
the shoe.
(3)
If surface casing has been set deeper than 200 feet below
the base of the deepest usable quality water stratum, an additional cement
plug shall be placed inside the surface casing across the base of the deepest
usable quality water stratum. This plug shall be a minimum of 100 feet in
length and shall extend from 50 feet below the base of the deepest usable
quality water stratum to 50 feet above the top of the stratum.
(f)
Plugging requirements for wells with intermediate casing.
(1)
For wells in which the intermediate casing has been cemented
through all usable quality water strata and all productive horizons, a cement
plug meeting the requirements of subsection (d)(11) of this section shall
be placed inside the casing and centered opposite the base of the deepest
usable quality water stratum, but extend no less than 50 feet above and below
the stratum.
(2)
For wells in which intermediate casing is not cemented
through all usable quality water strata and all productive horizons, and if
the casing will not be pulled, the intermediate casing shall be perforated
at the required depths to place cement outside of the casing by squeeze cementing
through casing perforations.
(g)
Plugging requirements for wells with production casing.
(1)
For wells in which the production casing has been cemented
through all usable quality water strata and all productive horizons, a cement
plug meeting the requirements of subsection (d)(11) of this section shall
be placed inside the casing and centered opposite the base of the deepest
usable quality water stratum and across any multi-stage cementing tool.
(2)
For wells in which the production casing has not been cemented
through all usable quality water strata and all productive horizons and if
the casing will not be pulled, the production casing shall be perforated at
the required depths to place cement outside of the casing by squeeze cementing
through casing perforations.
(3)
The district director may approve a cast iron bridge plug
to be placed immediately above each perforated interval, provided at least
20 feet of cement is placed on top of each bridge plug. A bridge plug shall
not be set in any well at a depth where the pressure or temperature exceeds
the ratings recommended by the bridge plug manufacturer.
(h)
Plugging requirements for well with screen or liner.
(1)
If practical, the screen or liner shall be removed from
the well.
(2)
If the screen or liner is not removed, a cement plug in
accordance with subsection (d)(11) of this section shall be placed at the
top of the liner.
(i)
Plugging requirements for wells without production casing
and open-hole completions.
(1)
Any productive horizon or any formation in which a pressure
or formation water problem is known to exist shall be isolated by cement plugs
centered at the top and bottom of the formation. Each cement plug shall have
sufficient slurry volume to fill a calculated height as specified in subsection
(d)(11) of this section.
(2)
If the gross thickness of any such formation is less than
100 feet, the tubing or drill pipe shall be suspended 50 feet below the base
of the formation. Sufficient slurry volume shall be pumped to fill the calculated
height from the bottom of the tubing or drill pipe up to a point at least
50 feet above the top of the formation, plus 10% for each 1,000 feet of depth
from the ground surface to the bottom of the plug.
(j)
The district director shall review and approve the notification
of intention to plug in a manner so as to accomplish the purposes of this
section. The district director may approve, modify, or reject the operator's
notification of intention to plug. If the proposal is modified or rejected,
the operator may request a review by the director of field operations. If
the proposal is not administratively approved, the operator may request a
hearing on the matter. After hearing, the examiner shall recommend final action
by the
Commission
[
(k)
Plugging horizontal drainhole wells. All plugs in horizontal
drainhole wells shall be set in accordance with subsection (d)(11) of this
section. The productive horizon isolation plug shall be set from a depth 50
feet below the top of the productive horizon to a depth either 50 feet above
the top of the productive horizon, or 50 feet above the production casing
shoe if the production casing is set above the top of the productive horizon.
If the production casing shoe is set below the top of the productive horizon,
then the productive horizon isolation plug shall be set from a depth 50 feet
below the production casing shoe to a depth that is 50 feet above the top
of the productive horizon. In accordance with subsection (d)(7) of this section,
the
Commission
[
§3.78.Fees, Performance Bonds and Alternate Forms of Financial Security Required To Be Filed.
(a)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise:
(1)
Violation--Noncompliance with a
Commission
[
(2)
Outstanding violation--A violation for which:
(A)
either:
(i)
a
Commission
[
(ii)
an agreed order between the
Commission
[
(B)
one or more of the following conditions still exist:
(i)
the conditions that constituted the violation have not
been corrected;
(ii)
all administrative, civil, and criminal penalties, if
any, relating to the violation of such
Commission
[
(iii)
all reimbursements of any costs and expenses assessed
by the
Commission
[
(3)
An acceptable record of compliance--
(A)
A record of compliance showing:
(i)
No enforcement orders issued; and
(ii)
No outstanding violations; or
(B)
A record of compliance showing:
(i)
Only one enforcement order, provided the order specifies
that it shall not be considered to meet the elements of subparagraph (A) of
this definition and provided the requirements of the order are met;
(ii)
No enforcement orders issued other than those that are
resolved in the order referenced in clause (i) of this subparagraph;
(iii)
No outstanding violations other than those resolved in
the order referenced in clause (i) of this subparagraph.
(4)
Commercial facility--A facility whose owner or operator
receives compensation from others for the storage, reclamation, treatment,
or disposal of oil field fluids or oil and gas wastes that are wholly or partially
trucked or hauled to the facility and whose primary business purpose is to
provide these services for compensation if:
(A)
the facility is permitted under §3.8 of this title
(relating to Water Protection);
(B)
the facility is permitted under §3.57 of this title
(relating to Reclaiming Tank Bottoms, Other Hydrocarbon Wastes, and Other
Waste Materials);
(C)
the facility is permitted under §3.9 of this title
(relating to Disposal Wells) and a collecting pit permitted under §3.8
is located at the facility; or
(D)
the facility is permitted under §3.46 of this title
(relating to Fluid Injection into Productive Reservoirs) and a collecting
pit permitted under §3.8 is located at the facility.
(5)
Financial security--An individual performance
bond, blanket performance bond, letter of credit, or cash deposit filed with
the Commission.
(6)
Alternate form of financial security--Payment
of a nonrefundable annual fee to the Commission.
(7)
Individual well bond--A bond or letter
of credit issued:
(A)
on a Commission-approved form;
(B)
by a third party surety, insurance company, or financial
institution approved by the Commission; and
(C)
to secure the timely and proper plugging of a specified
well and remediation of the wellsite, in accordance with Commission rules.
(8)
Bay well--Any well under the jurisdiction
of the Commission for which the surface location is either:
(A)
located in or on a lake, river, stream, canal, estuary,
bayou, or other inland navigable waters of the state; or,
(B)
located on state lands seaward of the mean high tide line
of the Gulf of Mexico in water of a depth at mean high tide of not more than
100 feet that is sheltered from the direct action of the open seas of the
Gulf of Mexico.
(9)
Land well--Any well subject to Commission
jurisdiction for which the surface location is not in or on inland or coastal
waters.
(10)
Offshore well--Any well subject to Commission
jurisdiction for which the surface location is on state lands in or on the
Gulf of Mexico, that is not a bay well.
(b)
Filing fees. The following filing fees are required to
be paid to the Railroad Commission.
(1)
With each application or materially amended application
for a permit to drill, deepen, plug back, or reenter a well, the applicant
shall submit to the
Commission
[
(A)
$200
[
(B)
$225
[
(C)
$250
[
(D)
$300
[
(2)
An application for a permit to drill, deepen, plug back,
or reenter a well will be considered materially amended if the amendment is
made for a purpose other than:
(A)
to add omitted required information;
(B)
to correct typographical errors;
(C)
to correct clerical errors.
(3)
An applicant shall submit an additional nonrefundable fee
of
$150
[
(4)
With each individual application for an
exception to any rule in this chapter, the applicant shall submit to the Commission
a nonrefundable fee of $150.
[(4)
With each application for an extension
of time to plug a well pursuant to commission rules, an applicant shall submit
to the commission a nonrefundable fee of $100, unless the applicant has filed
a bond or letter of credit pursuant to subsection (c) of this section.]
(5)
If an applicant does not request an exception
to any rule in this chapter and a Commission review determines that an exception
to §3.37 of this title (relating to Statewide Spacing Rule) (Statewide
Rule 37) or §3.38 of this title (relating to Well Densities) (Statewide
Rule 38) is required, the applicant shall submit a nonrefundable fee of $200.
[(5)
With each application for an exception
to any commission statewide rule, the applicant shall submit to the commission
a nonrefundable fee of $50. If the permit application is for an exception
to §§3.37, 3.38, or 3.39 of this title (relating to Statewide Spacing
Rule; Well Densities; and Proration and Drilling Units: Contiguity of Acreage
and Exception Thereto) (Statewide Rule 37, 38, or 39), or for any combination
of exceptions to such rules, the applicant shall submit one nonrefundable
fee of $50.]
(6)
With each application for an extension
of time to plug a well pursuant to Commission rules, an applicant who has
filed an alternate form of financial security as provided for under this rule,
shall submit to the Commission a nonrefundable fee of $300.
(7)
[
(8)
[
(9)
[
(10)
[
(11)
[
(12)
[
(13)
Hazardous waste generation fee. A person
who generates hazardous oil and gas waste, as that term is defined in §3.98
of this title (relating to Standards for Management of Hazardous Oil and Gas
Waste), shall pay to the Commission the fees specified §3.98(z) of this
title.
(14)
[
(15)
If an operator submits a check that is
not honored on presentment, the operator shall, for a period of 24 months
after the check was presented, submit any payments in the form of a credit
card, cashier's check, or cash.
(c)
Organization Report Fee. An organization
report required by Texas Natural Resources Code, §91.142, shall be accompanied
by a fee as follows:
(1)
for an operator of:
(A)
not more than 25 wells, $300;
(B)
more than 25 but not more than 100 wells, $500; or
(C)
more than 100 wells, $1,000;
(2)
for an operator of one or more natural gas pipelines, $100;
(3)
for an operator of one or more of the following service
activities: pollution cleanup contractor; directional surveying; approved
cementer for plugging wells; or physically moving or storing crude or condensate,
$300;
(4)
for an operator of all other service activities or facilities,
including liquids pipelines, $500;
(5)
for an operator of wells who also operates one or more
service activities, facilities, or pipelines as classified by the Commission,
the sum of the fees that would be separately charged for each category of
service activity, facility, pipeline, or number or wells operated, provided
that such fee shall not exceed $1,000; or
(6)
for an entity not currently performing operations under
the jurisdiction of the Commission, $300.
(d)
[
(1)
an individual performance bond;
(2)
a blanket performance bond;
(3)
a nonrefundable annual fee of
$1,000, if:
[
(A)
the Commission determines that individual
and blanket performance bonds as specified by this section are not obtainable
at reasonable prices as provided for under subsection (f) of this section;
(B)
the person can demonstrate to the
Commission
[
(C)
if the person is a firm, partnership, joint
stock association, corporation, or other organization, its officers, directors,
general partners, or owners of more than 25% ownership interest or any trustee
must also not have any outstanding violations.
(4)
a nonrefundable annual fee equal to
12.5%
[
(5)
a letter of credit or cash deposit in the same amount
as required for an individual performance bond or blanket performance bond
[
[(d)
Letter of credit. A letter of credit
may be submitted in lieu of either an individual or blanket performance bond,
subject to the same requirements for bonds where applicable.]
(e)
Eligibility for nonrefundable $1,000 fee.
(1)
For the purposes of this subsection, "officers and owners"
include directors, general partners, owners of more than 25% ownership interest,
or any trustee of an organization.
(2)
A person filing an organization report for the first time
in order to perform any Commission-regulated operations is a new organization
and is not eligible to file the nonrefundable fee of $1,000.
(3)
A person who filed an initial organization report less
than 48 months prior to the current filing is not eligible to file the nonrefundable
fee of $1,000.
(4)
A change in name, without any other organizational change,
of a person registered with the Commission does not indicate a new organization.
If the Commission determines that only a name change has occurred, then a
person operating under a new name may file the nonrefundable fee of $1,000
if the person meets all other eligibility requirements.
(5)
An individual registered with the Commission as a sole
proprietor or who is a general partner of a partnership that is registered
with the Commission and who reorganizes his or her oil and gas operations
under a new legal entity or establishes a new and separate entity will be
considered to have satisfied the 48- month eligibility requirement for filing
the nonrefundable fee of $1,000.
(6)
A surviving or new corporation or other entity resulting
from a merger under the Texas Business Corporation Act, Part Five, may file
the nonrefundable fee of $1,000 if:
(A)
the existing record of compliance for each entity that
is a party to the merger qualifies;
(B)
the records of compliance for the officers and owners of
the surviving or new entities qualify; and
(C)
the number of surviving or new entities eligible does not
exceed the number of parties registered with the Commission at the time of
the merger.
(7)
In any Commission enforcement proceeding, if a person is
determined not to be the responsible party for a violation and is dismissed
from the proceeding for that reason, that violation shall not be considered
in determining whether that person has an acceptable record of compliance.
(f)
Availability of bonds.
(1)
In determining the applicability of the $1,000 nonrefundable
fee as provided for under this section, the Commission presumes that individual
and blanket performance bonds are obtainable at reasonable prices.
(2)
An operator may request a hearing to determine that individual
and blanket performance bonds are not obtainable at reasonable prices. In
order to support a determination that bonds are not obtainable at reasonable
prices, the operator must show:
(A)
that no fewer than three companies which have issued a
bond filed with the Commission in the past 12 months will not issue a bond
to the requesting operator for an annual fee less than 12% of the face amount
of the bond;
(B)
that the operator possesses adequate financial assets or
other resources necessary to plug any inactive wells as defined under §3.14(b)(2)
of this title (relating to Plugging); and
(C)
that the operator is otherwise eligible under this section
to file a $1,000 nonrefundable annual fee.
(g)
[
(h)
[
(i)
[
(j)
[
(1)
A person [
(2)
A person
operating wells
[
(A)
A base amount determined by the total number of wells
operated, as follows:
(i)
a person who operates 10 or fewer wells
or performs other operations shall have a base amount of $25,000;
(ii)
a person who operates more than 10 but
fewer than 100 wells shall have a base amount of $50,000; and
(iii)
a person who operates 100 or more wells
shall have a base amount of $250,000, plus;
[
(B)
an additional amount, to be determined by the Commission
in a subsequent rulemaking, for each bay well operated, plus
[
(C)
an additional amount, to be determined by the Commission
in a subsequent rulemaking, for each offshore well operated
[
(3)
A person operating wells and performing other operations,
who chooses to cover all operations by a blanket performance bond
, letter
of credit or cash deposit
shall file a bond
, letter of credit or
cash deposit
in an amount determined by the total number of wells, but
not less than $25,000. Only one blanket performance bond
, letter of credit
or cash deposit
is required for a person performing multiple operations
, unless the person is operating a commercial facility subject to the financial
security requirements of subsection (p) of this section
.
(4)
Financial security
[
[(i)
Expiration of bond obligations. Obligations
to pay part or all of a bond amount are deemed released after four years from
the expiration date of the bond if no noncompliant operations or activities
subject to a bond have been discovered by the commission within that four-year
period, and no enforcement action against any operations or activities subject
to a bond is pending. A person whose activities are covered by a bond, as
the principal, and the surety on a bond may also be relieved of their obligations
to pay part or all of a bond amount by written agreement between the Railroad
Commission of Texas, principal and surety.]
(k)
[
[(k)
Eligibility for nonrefundable $100 fee.]
[(1)
A person filing an organization report for the first time
in order to perform any commission-regulated operations is a new organization
and is not eligible to choose to file the nonrefundable fee of $100 under
subsection (c)(3) of this section.]
[
[(3)
A change in name, without any other organizational change,
of a person registered with the commission does not indicate a new organization.
If the commission or its representative determines that only a name change
has occurred, a person operating under a new name may choose to file under
subsection (c)(3) of this section, if otherwise qualified.]
[(4)
An individual, registered with the commission as a sole
proprietor or who is a general partner of a partnership that is registered
with the commission, and who reorganizes his or her oil and gas operations
under a new legal entity or establishes a new and separate entity, will be
considered eligible to choose to file under subsection (c)(3) of this section,
if otherwise qualified based on the individual's existing record of compliance
as well as the records of any other owners or officers of the new entity.]
[(5)
A surviving or new corporation or other entity resulting
from a merger under the Texas Business Corporation Act, Part Five, may choose
to file under subsection (c)(3) of this section, only if otherwise qualified
on the basis of the existing records of compliance, considered as a whole,
of all corporations and other entities that are parties to the merger as well
as the records of the officers and owners of the surviving or new entities.
The number of surviving or new corporations or other entities eligible under
this paragraph is limited to no more than the total number of parties to the
merger who were currently registered with the commission at the time of the
merger.]
[(6)
For the purposes of this subsection, "officers and owners"
include directors, general partners, owners of more than 25% ownership interest,
or any trustee of an organization.]
(l)
Conditions for cash deposits. Operators
shall tender cash deposits in United States currency or certified cashiers
check only. All cash deposits will be placed in a special account within the
Oil Field Clean Up Fund account. Any interest accruing on cash deposits will
be deposited into the Oil Clean Up Fund pursuant to Texas Natural Resources
Code, §91.111(c)(8). The Commission will not refund a cash deposit until
either financial security or an alternate form of financial security is accepted
by the Commission as provided for under this section or an operator ceases
all activity.
[(l)
Compliance certification. The commission
or a commission representative may require an applicant organization to file
a compliance certification in connection with filing the nonrefundable $100
fee under subsection (c)(3) of this section.]
[(1)
The certification shall include a statement that:]
[(A)
the applicant organization at the time of application
or during the 48 months prior to the application has no referrals to the commission's
legal enforcement section relating to a violation, or has no pending legal
enforcement action relating to a violation; and]
[(B)
the applicant organization or any officer, director, general
partner, or owner of more than 25% ownership interest, or trustee of the named
organization has no outstanding violations.]
[(2)
If the certification is signed by an agent of an applicant
organization, the certification is binding on the agent and the organization
as if signed by a person holding a position of ownership or control in the
organization.]
(m)
Individual well bonds.
(1)
An operator who has filed an alternate form of financial
security with the Commission and who applies for a plugging extension for
a well that has been inactive for more than 36 months is required under §3.14
of this title (relating to Plugging) to file an individual well bond or individual
well letter of credit in the face amount of the estimated plugging cost of
the well for which a plugging extension is requested. The Commission shall
presume that the estimated plugging cost for wells for which a plugging extension
is sought is as follows:
(A)
for land wells, the product of the total depth of the well
multiplied by $3 per foot;
(B)
for bay wells, $60,000; and,
(C)
for offshore wells, $250,000.
(2)
An operator may rebut the presumed estimated plugging costs
for a specific well for which a plugging extension is sought at hearing by
clear and convincing evidence establishing a higher or lower prospective plugging
cost for the well. The operator, Commission staff, or any owner of the surface
or mineral estate on which the well is located may initiate a hearing on the
prospective plugging cost for a well for the purpose of setting the amount
of an individual well bond by filing a request for hearing.
(3)
If an individual well bond is required, it shall be continuously
maintained until the well is plugged or returned to active operation, as defined
under §3.14 of this title, unless the operator files financial security
as provided by this section.
[(m)
Dismissed violations. In any legal enforcement
proceeding, if a person is determined not to be the responsible party for
a violation and is dismissed from the proceeding for that reason, that violation
shall not be considered in determining whether that person has an acceptable
record of compliance.]
(n)
Well or lease transfer.
(1)
The Commission shall not approve a transfer of operatorship
submitted for any well or lease unless the operator acquiring the well or
lease has on file with the Commission one of the following approved forms
of financial security in an amount sufficient to cover both its current operations
and the wells being transferred:
(A)
an individual performance bond, letter of credit or cash
deposit; or
(B)
a blanket performance bond, letter of credit or cash deposit.
(2)
Any existing financial security or individual well bond
covering the well or lease proposed for transfer shall remain in effect and
the prior operator of the well remains responsible for compliance with all
laws and Commission rules covering the transferred well until the Commission
approves the transfer.
(3)
A transfer of a well or lease from one entity to another
entity under common ownership is a transfer for the purposes of this section.
[(n)
Fee for inactive wells subject to §3.14
of this title (relating to Plugging) (Statewide Rule 14(b)(2)). A person
who chooses to file a form of financial security other than a bond or letter
of credit shall also submit, pursuant to subsection (b)(4) of this section,
a fee of $100 for each well for which an application to extend the time to
plug a well has been filed under §3.14(b)(2) (Statewide Rule 14).]
(o)
[
[(o)
Well transfer. A transfer of operatorship
of any well is not complete unless the operator acquiring the well has on
file with the commission an approved form of organizational financial security
covering its operations. In addition, if under the terms of §3.14 of
this title (relating to Plugging) (Statewide Rule 14), the well has been inactive
for 12 or more months, the well has not been returned to active operation
prior to the proposed transfer, and the proposed acquiring operator is an
unbonded operator, the transfer shall not be approved unless the acquiring
operator files an individual well bond, as defined in §3.14 of this title
(relating to Plugging) (Statewide Rule 14). All existing individual well bonds,
organizational individual bonds, organizational blanket bonds, and letters
of credit covering the well and lease proposed for transfer remain in effect
and the prior operator of the well remains responsible for compliance with
all laws and commission rules covering the transferred well until the commission
determines that the well is covered by proper financial security and approves
the transfer and the acquiring operator has assumed full responsibility for
the well in accordance with all applicable statutes and commission rules.]
[(q)
Hazardous waste generation fee. A person
who generates hazardous oil and gas waste, as that term is defined in §3.98
of this title (relating to Standards for Management of Hazardous Oil and gas
Waste), shall pay to the commission the fees specified in subsection (z) of §3.98.]
(p)
[
(1)
Application.
(A)
New permits. Any application for a new or amended commercial
facility permit filed after the
original
effective date of this
subsection shall include:
(i)
a written estimate of the maximum dollar amount necessary
to close the facility prepared in accordance with the provisions of paragraph
(4) of this subsection that shows all assumptions and calculations used to
develop the estimate;
(ii)
a copy of the form of the bond or letter of credit that
will be filed with the
Commission
[
(iii)
information concerning the issuer of the bond or letter
of credit as required under paragraph (5) of this subsection including the
issuer's name and address and evidence of authority to issue bonds or letters
of credit in Texas.
(B)
Existing permits. Within 180 days of the
original
effective date of this subsection, the holder of any commercial facility
permit issued on or before the
original
effective date of this
subsection shall file with the
Commission
[
(2)
Notice and hearing.
(A)
New permits. For commercial facility permits issued after
the
original
effective date of this subsection, the provisions
of §3.8 or §3.57 of this title (relating to Water Protection; and
Reclaiming Tank Bottoms, Other Hydrocarbon Wastes, and Other Waste Materials),
as applicable, regarding notice and opportunity for hearing, shall apply to
review and approval of financial security proposed to be filed to meet the
requirements of this subsection.
(B)
Existing permits. Notice of filing of information required
under paragraph (1)(B) of this subsection shall not be required. In the event
approval of the financial security proposed to be filed for a commercial facility
operating under a permit in effect as of the
original
effective
date of this subsection is denied administratively, the applicant shall have
the right to a hearing upon written request. After hearing, the examiner shall
recommend a final action by the
Commission
[
(3)
Filing of instrument.
(A)
New permits. A commercial facility permitted after the
original
effective date of this subsection may not receive oil field
fluids or oil and gas waste until a bond or letter of credit in an amount
approved by the
Commission
[
(B)
Existing permits. Except as otherwise provided in this
subsection, after one year from the
original
effective date of
this section, a commercial facility permitted on or before the
original
effective date of this subsection may not continue to receive oil field
fluids or oil and gas waste unless a bond or letter of credit in an amount
approved by the
Commission
[
(C)
Extensions for existing permits. On written request and
for good cause shown, the
Commission
[
(4)
Amount.
(A)
Except as provided in subparagraphs (B) or (C) of this
paragraph, the amount of financial security required to be filed under this
subsection shall be an amount based on a written estimate approved by the
Commission
[
(B)
The owner or operator of a commercial facility may reduce
the amount of financial security required under this subsection by $25,000
if the owner or operator holds only one commercial facility permit.
(C)
The owner or operator of more than one commercial facility
may reduce the amount of financial security required under this subsection
for one such facility by $25,000. The full amount of financial security required
under subparagraph (A) of this paragraph shall be required for the remaining
commercial facilities.
(D)
Except for the facilities specifically exempted under subparagraph
(E), a qualified professional engineer licensed by the State of Texas shall
prepare or supervise the preparation of a written estimate of the maximum
amount necessary to close the commercial facility as provided in subparagraph
(A) of this paragraph. The owner or operator of a commercial facility shall
submit the written estimate under seal of a qualified licensed professional
engineer to the
Commission
[
(E)
A facility permitted under §3.57 of this title (relating
to
Reclaiming Tank Bottoms, Other Hydrocarbon Wastes, and Other Waste
Materials
[
(F)
Notwithstanding the fact that the maximum amount necessary
to close the commercial facility as determined under this paragraph is exclusive
of plugging costs, the proceeds of financial security filed under this subsection
may be used by the
Commission
[
(5)
Issuer and form.
(A)
Bond. The issuer of any commercial facility bond filed
in satisfaction of the requirements of this subsection shall be a corporate
surety authorized to do business in Texas. The form of bond filed under this
subsection shall provide that the bond be renewed and continued in effect
until the conditions of the bond have been met or its release is authorized
by the
Commission
[
(B)
Letter of credit. Any letter of credit filed in satisfaction
of the requirements of this subsection shall be issued by and drawn on a bank
authorized under state or federal law to operate in Texas. The letter of credit
shall be an irrevocable, standby letter of credit subject to the requirements
of Texas Business and Commerce Code,
§§5.101-5.118
[
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 July 25, 2001.
TRD-200104285
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: September 9, 2001
For further information, please call: (512) 475-1295
Subchapter E. QUARRY AND PIT SAFETY
16 TAC §11.1004
The Railroad Commission of Texas proposes amendments to 16
TAC §11.1004, relating to Definitions. The Commission proposes the amendments
to maintain consistency with Attorney General Opinion No. JC-0164 dated December
30, 1999.
The Commission proposes to amend §11.1004(14) to add the clause "that
includes an industrial aggregate extraction plant" to the definition of "Inactive
quarry or pit." This amendment is proposed to parallel JC-0164 which concludes
that the Texas Aggregate Quarry and Pit Safety Act, Tex. Nat. Res. Code Ann. §§133.001,
The Commission proposes to amend 16 TAC §11.1004(30)(C) to remove
from the definition of "Unacceptable and unsafe location" the sentence, "Other
locations will be decided on a case by case basis." The Commission proposes
to remove this sentence to comport with JC-0164 which concludes that the provision
is invalid because it does not give adequate notice of proscribed conduct.
Melvin Hodgkiss, Director, Surface Mining and Reclamation Division, has
determined that, during each year of the first five years the proposed amendments
are in effect, there will likely be no fiscal impacts to state government
associated with the proposed amendments. The proposed amendments should have
the effect of reducing the Commission's case load of non-compliant inactive
quarries and pits, allowing the Commission more time to handle quarries and
pits which remain governed by the Act. Mr. Hodgkiss has also determined that
there will be no discernible fiscal impacts to local governments.
Mr. Hodgkiss has also determined that the public benefit from adoption
of the proposed amendments will be more effective enforcement of the quarry
and pit safety rules due to consistency with the Attorney General opinion
and compliance with administrative legal requirements.
Mr. Hodgkiss has determined that for each year of the first five years
the amendments are in effect there will be no increased costs of compliance
with the amended rule. These rule amendments actually reduce the number of
quarries and pits subject to Commission regulation and keeps the Quarry and
Pit program in compliance with what the Attorney General has determined to
be state legal requirements.
The Commission has not requested a local employment impact statement pursuant
to Texas Government Code, §2001.022(b).
Comments on these proposed amendments should be submitted to Melvin Hodgkiss,
Director, Surface Mining and Reclamation Division, Railroad Commission of
Texas, P.O. Box 12967, Austin, Texas 78711-2967 or via electronic mail at
melvin.hodgkiss@rrc.state.tx.us. Comments will be accepted until 5:00 p.m.
on the 30th day after publication in the
Texas Register
. For further information, please call Mr. Hodgkiss at (512) 463-6901.
The Commission proposes the amendments under Texas Natural Resources
Code §134.011, which provides the Commission the authority to promulgate
rules pertaining to quarry safety.
Texas Natural Resources Code, §133.003, is affected by the proposed
amendments.
Issued in Austin, Texas, on July 24, 2001.
§11.1004.Definitions.
The following words and terms, when used in this subchapter, shall
have the following meanings, unless the context clearly indicates otherwise.
(1) - (13)
(No change).
(14)
Inactive quarry or pit--A site
that includes an industrial
aggregate extraction plant
or any portion of a site
that includes
an industrial aggregate extraction plant,
that although previously in
aggregate production
,
is not currently being quarried by any ownership,
lease, joint venturer, or some other legal arrangement.
(15) - (29)
(No change).
(30)
Unacceptable unsafe location--A condition where the edge
of a pit is located within 200 feet of a public roadway intersection in a
manner which, in the judgment of the Commission:
(A)
presents a significant risk of harm to public motorists
by reason of the proximity of the pit to the roadway intersection; and
(B)
has no naturally occurring or artificially constructed
barrier or berm between the road and pit that would likely prevent a motor
vehicle from accidentally entering the pit as the result of a motor vehicle
collision at or near the intersection; or which,
(C)
in the opinion of the Commission, is also at any other
location constituting a substantial dangerous risk to the driving public,
which condition can be rectified by the placement of berms, barriers, guardrails,
or other devices as prescribed by these regulations. It is the Commission's
opinion that any abandoned pit which has an edge within 200 feet of a roadway
edge of a public road constitutes a substantial dangerous risk to the driving
public. [
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 July 27, 2001.
TRD-200104368
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: September 9, 2001
For further information, please call: (512) 475-1295
Subchapter F. METHODS OF MAKING PAYMENTS TO THE COMMISSION
16 TAC §20.501
The Railroad Commission of Texas (Commission) proposes new §20.501,
relating to payment of convenience fees. The new rule will be in new subchapter
F to be titled "Methods of Making Payments to the Commission." The proposed
new rule will apply to all entities making payments to the Commission using
a method that requires electronic payment processing and that results in the
Commission incurring transaction costs. The new rule will allow the Commission
to implement additional payment methods over the Internet at no additional
cost to the state.
Hope Morgan, Director, ITS Division, has determined that for each year
of the first five years the new section is in effect there will be fiscal
implications to state government as a result of the new section with regard
to the payment of merchant fees; however, the net effect will be zero. No
additional programming is required to implement the ability to make electronic
payments. With the adoption of this proposed rule, the transaction fee charged
to the Commission for electronic payment services will be passed on to the
payer and collected from the payer at the time of payment. Convenience fees
are set contractually with authorized financial institutions or authorized
third parties, as in the case of the Texas Online Authority.
There will be no fiscal implications to local government.
Ms. Morgan also has determined that the public benefit anticipated as a
result of the new section will be the ease of making secure payments to the
Commission using non-cash payment methods, including the services provided
over the Internet through Texas Online. There will be additional convenience
fees charged to persons making payments to the Commission using non-cash payment
methods. Since the use of non-cash payment processes is not mandatory, not
every person making payments to the Commission would be required to pay convenience
fees.
There is no anticipated economic cost for small businesses, micro-businesses,
or individuals unless these entities choose to participate in non-cash transactions
with the Commission.
Comments may be submitted to Mary Ross McDonald, Deputy General Counsel,
Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711, or via
electronic mail to polly.mcdonald@rrc.state.tx.us. Comments will be accepted
for 30 days following publication in the
Texas Register
. For more information, call Ms. Morgan at (512) 463-7249.
The Commission proposes the new section pursuant to Subsection
(b) of Texas Government Code, §2001.006 (
as
added by Acts 1999, 76th Leg., ch. 558, §1
), and under the provisions
of Section 2, Senate Bill 310, 77th Legislature (2001), which enacted new
Texas Civil Statutes, Article 6447n, authorizing the Commission to accept
electronic payments and to impose a service charge in an amount reasonable
and necessary to reimburse the Commission for the costs involved in processing
the payment.
Texas Civil Statutes, Article 6447n, as enacted by Senate Bill 310, is
affected by the proposed new section.
Issued in Austin, Texas on July 24, 2001.
§20.501.Payment of Convenience Fees.
(a)
Authority. As permitted by Texas Civil Statutes, Article
6447n, the Commission authorizes payment of regulatory fees, fines, penalties,
and charges for goods and services by means of an electronic payment method
or a credit card issued by a financial institution chartered by a state or
the United States or issued by a nationally recognized credit organization
approved by the Commission. Payment by an authorized method may be made in
person, by telephone, or through the Internet. A person who makes a payment
to the Commission by means of an electronic payment method or credit card
shall pay a convenience fee in an amount reasonable and necessary to reimburse
the Commission for the costs involved in processing the payment.
(b)
Definitions. The following words and terms, when used in
this subchapter, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Commission--The Railroad Commission of Texas.
(2)
Convenience fees--An additional charge by the Commission
collected from the payer to cover the cost of credit card merchant fees, Internet
transactions, and/or other charges associated with non-cash payments.
(3)
Electronic payment--Non-cash payment made to the Commission
over the Internet or otherwise.
(4)
Electronic processing--The required use of an electronic
processing system owned by financial institution chartered by a state or the
United States or issued by a nationally recognized credit organization approved
by the Commission to make a payment to the Commission.
(5)
Merchant fees--Charges by a third party to the Commission
for the electronic processing of non-cash payments, which can include both
flat fees and charges based on a percentage of the total payment amount.
(6)
Non-cash payments--The use of credit cards, debit cards,
charge cards, or other payment methods offered by a financial institution
chartered by a state or the United States or issued by a nationally recognized
credit organization approved by the Commission.
(7)
Payments--Regulatory fees, fines, penalties, and charges
for goods and services paid to the Commission.
(8)
Payer--Any entity making a payment to the Commission.
(9)
Refunds--Payments returned by the Commission to the payer.
(10)
Transaction fees--Charges incurred by the Commission to
cover the cost of processing debit card, credit card, Internet, and other
non-cash transactions. These include the charges incurred by the Commission
for Texas Online Internet payment processing services.
(c)
Explanation of how the Commission charges convenience fees.
(1)
General. The Commission will assess convenience fees on
a per-transaction basis in an amount that will cover the cost of the transaction
fee paid by the Commission for electronic payment processing services, including
but not limited to the transaction cost incurred by the Commission through
the use of Texas Online Internet payment services. Payers shall pay convenience
fees when they make payment to the Commission using any payment method that
requires electronic processing. The Commission will refund convenience fees
using the same electronic processing system used to make the payment.
(2)
Examples. The fact situations in subparagraphs (A) through
(C) of this paragraph illustrate the Commission's interpretation and application
of Texas Civil Statutes, Article 6447n, and demonstrate how the Commission
will calculate the amount of any convenience fee that may be due. The fact
situations in subparagraphs (A) through (C) of this paragraph are illustrative
only.
(A)
Customer #1 pays for a drilling permit application over
the Internet using a credit card or a debit card through the Texas Online
payment portal services. Customer #1 also pays a convenience fee that includes
merchant fees and a $2.00 per transaction charge for using Texas Online Internet
processing services.
(B)
Customer #2 pays for a drilling permit application in person
using a credit card or a debit card. Customer #2 also pays a convenience fee
that includes merchant fees only.
(C)
Customer #3 pays for a drilling permit application by writing
a check. Customer # 3 pays no convenience fees.
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 July 24, 2001.
TRD-200104269
Mary Ross McDonald
Deputy General Counsel, Office of General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: September 9, 2001
For further information, please call: (512) 475-1295
Chapter 76.
WATER WELL DRILLERS AND WATER WELL PUMP INSTALLERS
The Texas Department of Licensing and Regulation proposes the repeal
of 16 Texas Administrative Code §§76.10, 76.200 - 76.206, 76.220,
76.300, 76.600 - 76.602, 76.700 - 76.707, 76.900, 76.910, and 76.1000 - 76.1009
and new §§76.10, 76.200 - 76.206, 76.220, 76.300, 76.600 - 76.602,
76.700 - 76.708, 76.900, 76.910, and 76.1000 - 76.1010 concerning water well
drillers and water well pump installers. The new rules rearrange, consolidate,
and revise existing language for clarification.
The proposed rules add the definitions of continuing education, continuing
education programs, and test wells. Also added were the definitions of "Commissioner"
and "Executive Director". The definitions of Commissioner and Executive Director
are necessary to implement statutory changes that affect the Texas Water Code,
Chapters 32 and 33. The statutory changes were enacted by Acts of the 77th
Legislature; House Bill 1214 (HB 1214). The proposed definitions related to
HB 1214 define "Commissioner" as being the Executive Director of the Texas
Department of Licensing and Regulation and define the "Executive Director"
as being the Commissioner of the Texas Department of Licensing and Regulation.
The proposed rules establish the following: the requirement that a driller
needs experience in water well drilling; a renewal for apprentice and a waiver
for continued education requirements for licensees; criteria for continued
education providers; procedures for reporting the drilled wells and plugged
wells electronically; procedures for reporting undesirable water or constituents
reports electronically; the requirement of capping unattended wells; criteria
for licensees to adhere to manufacturer's recommended well construction materials
and equipment; a time frame for plugging test wells; a new procedure for sealing
a water well that encounters undesirable water or constituents; and a new
procedure for plugging large-diameter and bored wells.
Jimmy Martin, Director of the Enforcement Division, has determined that
for the first five-year period these sections are in effect, there will be
no fiscal implications until fee rules proposed on June 29, 2001 are adopted
by the Department. The Department anticipates adopting the fee rules in the
very near future.
Mr. Martin also has determined that for each year of the first five years
the sections are in effect, the public benefit as a result of enforcing the
sections will be improvements in water well drilling and pump installation
techniques, education of water well and pump installation professionals, and
communication of important water well and pump installation information to
the Department.
The Department does not anticipate an economic effect on small businesses
and persons who are required to comply with the sections as proposed until
it adopts fee rules. The Department anticipates adopting fee rules in the
very near future.
Comments on the proposal may be submitted to Steve Wiley, Program Manager,
Water Well Drillers Section, Texas Department of Licensing and Regulation,
P.O. Box 12157, Austin, Texas 78711, facsimile (512) 463-8616, or by e-mail:
steve.wiley@license.state.tx.us. The deadline for comments is 30 days after
publication in the
Texas Register
.
16 TAC §§76.10, 76.200 - 76.206, 76.220, 76.300, 76.600 - 76.602, 76.700 - 76.707, 76.900, 76.910, 76.1000 - 76.1009
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas Department of Licensing and Regulation or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The repeal is proposed under Texas Occupations Code,
Chapter 51, §51.203, Texas Water Code, Chapters 32 and 33, §32.009
and §33.007, and Acts of the 77th Legislature, HB 1214, §41(b).
The Department interprets §51.203 as authorizing the Executive Director
to adopt rules as necessary to implement this chapter and any other law establishing
a program regulated by the Department. The Department interprets §32.009
and §33.007 of the Texas Water Code, and §41(b) of HB 1214, as authorizing
the Executive Director of the Texas Department of Licensing and Regulation
to promulgate and enforce a code of rules and take all action necessary to
assure compliance with the intent and purpose of the Texas Water Code, Chapters
32 and 33.
The statutory provisions affected by the repeal are Texas Water Code, Chapters
32 and 33 and Texas Occupations Code, Chapter 51. No other statutes, articles,
or codes are affected by the repeal.
§76.10.Definitions.
§76.200.Licensing Requirements-General.
§76.201.Requirements for Issuance of a License.
§76.202.Applications for Licenses and Renewals.
§76.203.Examinations.
§76.204.License Renewal.
§76.205.Registration for Driller or Pump Installer Apprenticeship.
§76.206.Responsibilities of the Apprentice.
§76.220.Continuing Education.
§76.300.Exemptions.
§76.600.Responsibilities of the Department-Certification by the Executive Director.
§76.601.Responsibilities of the Department-General.
§76.602.Responsibilities of the Department - Undesirable Water.
§76.700.Responsibilities of the Licensee-State Well Reports.
§76.701.Responsibilities of the Licensee-Reporting Undesirable Water or Constituents.
§76.702.Responsibilities of the Licensee and Landowner-Well Drilling, Completion, Capping and Plugging.
§76.703.Responsibilities of the Licensee-Standards of Completion for Public Water.
§76.704.Responsibilities of the Licensee-Marking Vehicles and Equipment.
§76.705.Responsibilities of the Licensee-Representations.
§76.706.Responsibilities of the Licensee-Unauthorized Practice.
§76.707.Responsibilities of the Licensee--Adherence to Statutes and Codes.
§76.900.Disciplinary Actions.
§76.910.Disciplinary Actions - Disposition of Application.
§76.1000.Technical Requirements-Locations and Standards of Completion for Wells.
§76.1001.Technical Requirements - Standards of Completion for Water Wells.
§76.1002.Technical Requirements-Standards for Wells Producing Undesirable Water or Constituents.
§76.1003.Technical Requirements - Re-completions.
§76.1004.Technical Requirements-Standards for Capping and Plugging of Wells and Plugging Wells that Penetrate Undesirable Water or Constituent Zones.
§76.1005.Technical Requirements-Standards for Water Wells (drilled before June 1, 1983).
§76.1006.Technical Requirements - Water Distribution and Delivery Systems.
§76.1007.Technical Requirements - Chemical Injection, Chemigation, and Foreign Substance Systems.
§76.1008.Technical Requirements-Pump Installation.
§76.1009.Technical Requirements-Alternative Standards.
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 July 24, 2001.
TRD-200104278
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 9, 2001
For further information, please call: (512) 463-7348
16 TAC §§76.10, 76.200 - 76.206, 76.220, 76.300, 76.600 - 76.602, 76.700 - 76.708, 76.900, 76.910, 76.1000 - 76.1010
The new rules are proposed under Texas Occupations Code, Chapter
51, §51.203, Texas Water Code, Chapters 32 and 33, §32.009 and §33.007,
and Acts of the 77th Legislature, HB 1214, §41(b). The Department interprets §51.203
as authorizing the Executive Director to adopt rules as necessary to implement
this chapter and any other law establishing a program regulated by the Department.
The Department interprets §32.009 and §33.007 of the Texas Water
Code, and §41(b) of HB 1214, as authorizing the Executive Director of
the Texas Department of Licensing and Regulation to promulgate and enforce
a code of rules and take all action necessary to assure compliance with the
intent and purpose of the Texas Water Code, Chapters 32 and 33.
The statutory provisions affected by the proposed new rules are Texas Water
Code, Chapters 32 and 33 and Texas Occupations Code, Chapter 51. No other
statutes, articles, or codes are affected by these proposed new rules.
§76.10.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise:
(1)
Abandoned well--A well that has not been used for six consecutive
months. A well is considered to be in use in the following cases:
(A)
a non-deteriorated well which contains the casing, pump,
and pump column in good condition; or
(B)
a non-deteriorated well which has been capped.
(2)
Annular space--The space between the casing and borehole
wall.
(3)
Atmospheric barrier--A section of cement placed from two
feet below land surface to the land surface when using granular sodium bentonite
as a casing sealant or plugging sealant in lieu of cement.
(4)
Bentonite--A sodium hydrous aluminum silicate clay mineral
(montmorillonite) commercially available in powdered, granular, or pellet
form which is mixed with potable water and used for a variety of purposes
including the stabilization of borehole walls during drilling, the control
of potential or existing high fluid pressures encountered during drilling
below a water table, and to provide a seal in the annular space between the
well casing and borehole wall.
(5)
Bentonite grout--A fluid mixture of sodium bentonite and
potable water mixed at manufacturers' specifications to a slurry consistency
that can be pumped through a pipe directly into the annular space between
the casing and the borehole wall. Its primary function is to seal the borehole
in order to prevent the subsurface migration or communication of fluids.
(6)
Capped well--A well that is closed or capped with a covering
capable of preventing surface pollutants from entering the well and sustaining
weight of at least 400 pounds and constructed in such a way that the covering
cannot be easily removed by hand.
(7)
Casing--A watertight pipe which is installed in an excavated
or drilled hole, temporarily or permanently, to maintain the hole sidewalls
against caving, advance the borehole, and in conjunction with cementing and/or
bentonite grouting, to confine the ground waters to their respective zones
of origin, and to prevent surface contaminant infiltration.
(A)
Plastic casing--National Sanitation Foundation (NSF-WC)
or American Society of Testing Material (ASTM) F-480 minimum SDR 26 approved
water well casing.
(B)
Steel Casing--New ASTM A-53 Grade B or better and have
a minimum weight and thickness of American National Standards Institute (ANSI)
schedule 10.
(C)
Monitoring wells may use other materials, such as fluoropolymer
(Teflon), glass-fiber-reinforced epoxy, or various stainless steel alloys.
(8)
Cement--A neat portland or construction cement mixture
of not more than seven gallons of water per 94-pound sack of dry cement, or
a cement slurry which contains cement along with bentonite, gypsum or other
additives.
(9)
Chemigation--A process whereby pesticides, fertilizers
or other chemicals, or effluents from animal wastes is added to irrigation
water applied to land or crop, or both, through an irrigation distribution
system.
(10)
Commission--The Texas Commission of Licensing and Regulation.
(11)
Commissioner--as used in Texas Water Code, Chapters 32
and 33 and in these rules, has the same meaning as Executive Director.
(12)
Complainant--A person who has filed a complaint with the
Texas Department of Licensing and Regulation (Department) against any party
subject to the jurisdiction of the Department. The Department may be the complainant.
(13)
Completed monitoring well--A monitoring well which allows
water from a single water-producing zone to enter the well bore, but isolates
the single water-producing zone from the surface and from all other water-bearing
zones by proper casing and/or cementing procedures. The single water-producing
zone shall not include more than one continuous water-producing unit unless
a qualified geologist or a groundwater hydrologist has determined that all
the units screened or sampled by the well are interconnected naturally.
(14)
Completed to produce undesirable water--A completed well
which is designed to extract water from a zone which contains undesirable
water.
(15)
Completed water well--A water well, which has sealed off
access of undesirable water to the well bore by proper casing and/or cementing
procedures.
(16)
Constituents--Elements, ions, compounds, or substances
which may cause the degradation of the soil or ground water.
(17)
Continuing Education--Four hours of education in a one-year
period required as a condition of licensure or certification under the Code.
(18)
Continuing Education Program--A formal offering of instruction
or information to licensees or certificate holders for the purpose of maintaining
skills necessary for the protection of groundwater and the health and general
welfare of the citizens and the competent practice of the construction of
water wells, the installation of pumps or pumping equipment or water well
monitoring. A school, clinic, forum, lecture, course of study, educational
seminar, workshop, conference, convention, or short course approved by the
Department, may offer such programs.
(19)
Dry litter poultry facility--Fully enclosed poultry operation
where wood shavings or similar material is used as litter.
(20)
Easy access--Access is not obstructed by other equipment
and the fitting can be removed and replaced with a minimum of tools without
risk of breakage of the attachment parts.
(21)
Edwards aquifer--That portion of an arcuate belt of porous,
water bearing, predominantly carbonate rocks known as the Edwards and Associated
Limestones in the Balcones Fault Zone trending from west to east to northeast
in Kinney, Uvalde, Medina, Bexar, Hays, Travis, and Williamson Counties; and
composed of the Salmon Peak Limestone, McKnight Formation, West Nueces Formation,
Devil's River Limestone, Person Formation, Kainer Formation, Edwards Formation
and Georgetown Formation. The permeable aquifer units generally overlie the
less-permeable Glen Rose Formation to the south, overlie the less-permeable
Comanche Peak and Walnut formations north of the Colorado River, and underlie
the less-permeable Del Rio Clay regionally.
(22)
Environmental soil boring--An artificial excavation constructed
to measure or monitor the quality and quantity or movement of substances,
elements, chemicals, or fluids beneath the surface of the ground. The term
shall not include any well that is used in conjunction with the production
of oil, gas, or any other minerals.
(23)
Executive Director--As used in Texas Water Code, Chapter
32 and 33 and in these rules, has the same meaning as Commissioner.
(24)
Flapper--The clapper, closing, or checking device within
the body of the check valve.
(25)
Foreign substance--Constituents that includes recirculated
tailwater and open-ditch water when a pump discharge pipe is submerged in
the ditch.
(26)
Freshwater--Water whose bacteriological, physical, and
chemical properties are such that it is suitable and feasible for beneficial
use.
(27)
Granular sodium bentonite--Sized, coarse ground, untreated,
sodium based bentonite (montmorillonite) which has the specific characteristic
of swelling in freshwater.
(28)
Groundwater conservation district--Any district or authority
created under Article III, Section 52, or Article XVI, Section 59 of the Texas
Constitution or under the provisions of Chapters 35 and 36 of the Texas Water
Code that has the authority to regulate the spacing or production of water
wells.
(29)
Irrigation distribution system--A device or combination
of devices having a hose, pipe, or other conduit which connects directly to
any water well or reservoir connected to the well, through which water or
a mixture of water and chemicals is drawn and applied to land. The term does
not include any hand held hose sprayer or other similar device, which is constructed
so that an interruption in water flow automatically prevents any backflow
to the water source.
(30)
Monitoring well--An artificial excavation constructed
to measure or monitor the quality and/or quantity or movement of substances,
elements, chemicals, or fluids beneath the surface of the ground. Included
within this definition are environmental soil borings, piezometer wells, observation
wells, and recovery wells. The term shall not include any well that is used
in conjunction with the production of oil, gas, coal, lignite, or other minerals.
(31)
Mud for drilling--A relatively homogenous, viscous fluid
produced by the suspension of clay-size particles in water or the additives
of bentonite or polymers.
(32)
Piezometer--A device so constructed and sealed as to measure
hydraulic head at a point in the subsurface.
(33)
Piezometer well--A well of a temporary nature constructed
to monitor well standards for the purpose of measuring water levels or used
for the installation of piezometer resulting in the determination of locations
and depths of permanent monitor wells.
(34)
Plugging--An absolute sealing of the well bore.
(35)
Pollution--The alteration of the physical, thermal, chemical,
or biological quality of, or the contamination of, any water that renders
the water harmful, detrimental, or injurious to humans, animals, vegetation,
or property, or to public health, safety, or welfare, or impairs the usefulness
or the public enjoyment of the water for any or reasonable purpose.
(36)
Public water system--A system supplying water to a number
of connections or individuals, as defined by current rules and regulations
of the Texas Natural Resource Conservation Commission, 30 TAC Chapter 290.
(37)
Recharge zone--Generally, that area where the stratigraphic
units constituting the Edward Aquifer crop out, including the outcrops of
other geologic formations in proximity to the Edwards Aquifer, where caves,
sinkholes, faults, fractures, or other permeable features would create a potential
for recharge of surface waters into the Edwards Aquifer. The recharge zone
is identified as that area designated as such in official maps in the appropriate
regional office of the Texas Natural Resource Conservation Commission.
(38)
Recovery well--A well constructed for the purpose of recovering
undesirable groundwater for treatment or removal of contamination.
(39)
Sanitary well seal--A watertight device to maintain a
junction between the casing and the pump column.
(40)
Test well--A well drilled to explore for groundwater.
(41)
Undesirable water--Water that is injurious to human health
and the environment or water that can cause pollution to land or other waters.
(42)
Water or waters in the state--Groundwater, percolating
or otherwise, lakes, bays, ponds, impounding reservoirs, springs, rivers,
streams, creeks, estuaries, marshes, inlets, canals, the Gulf of Mexico inside
the territorial limits of the state, and all other bodies of surface water,
natural or artificial, inland or coastal, fresh or salt, navigable or nonnavigable,
and including the beds and banks of all watercourses and bodies of surface
water, that are wholly or partially inside or bordering the state or inside
the jurisdiction of the state.
(43)
Well--A water well, test well, injection well, dewatering
well, monitoring well, piezometer well, observation well, or recovery well.
(44)
State well report (Well Log)--A log recorded on forms
prescribed by the Department, at the time of drilling showing the depth, thickness,
character of the different strata penetrated, location of water-bearing strata,
depth, size, and character of casing installed, together with any other data
or information required by the Executive Director.
§76.200.Licensing Requirements-General.
It shall be unlawful for any person to act as, or to offer to perform
services as a driller or pump installer without first obtaining a license
pursuant to the Texas Water Code, Chapters 32 and 33 and this chapter.
§76.201.Requirements for Issuance of a License.
(a)
An application, accompanied by the required examination
fee, must be submitted by each person desiring to obtain a well driller's
or pump installer's license.
(b)
Within 90 days after approval, each applicant must pass
an examination.
(c)
Upon passing the examination, an applicant must submit
the required license fee to the Department.
(d)
A licensee, not licensed to perform all types of well drilling
and pump installation, may apply for designation for additional types of well
drilling or pump installation. Applications for additional designations shall
be accompanied by the appropriate application fee, and shall contain all information
required by these rules for an initial license. Upon examination of the applicant's
qualifications, the Executive Director, with advice of the Water Well Driller
Advisory Council, shall deny or grant additional grades of licensure.
(1)
An applicant who has demonstrated competency in well drilling
shall be deemed qualified for licensing for Dewatering, Injection, and Monitoring
drilling which are regulated under these rules.
(2)
An applicant who has demonstrated competency in all types
of pump installation shall be deemed qualified for a master pump installer's
license.
§76.202.Applications for Licenses and Renewals.
(a)
Application shall be made on forms provided by the Department.
(b)
Application shall include:
(1)
a letter of reference from a licensed well driller or pump
installer with the same type of designation, as applicable, who has at least
two years licensed experience in well drilling/pump installing;
(2)
letters of reference from two well drilling or pump installer
customers, as applicable, who are not related within the second degree of
consanguinity to the applicant (i.e., may not be the applicant's spouse, or
related to the applicant or applicant's spouse, as a child, grandchild, parent,
sister, brother, or grandparent);
(3)
the applicant's statement that he has drilled wells or
installed pumps under the supervision of a driller or pump installer licensed
under the Texas Water Code, Chapters 32 and 33 for two years or that he has
other well drilling or pump installing experience as defined by this chapter
; and
(4)
the applicant's sworn statement that he has read and will
adhere to the requirements of the Texas Water Code, Chapters 32 and 33 and
this chapter.
(c)
The application must be received by the Department at least
45 days before a Council meeting in order to be scheduled for consideration
at the next meeting.
(1)
The Department will send written notice to the applicant
informing the applicant that the application is administratively complete
and accepted for filing, or that the application is deficient in specific
areas and the applicant has 30 days to submit additional information to correct
the deficiency or deficiencies.
(2)
If the required information is not forthcoming from the
applicant within 30 days of the date of mailing of the deficiency notice,
the applicant will not be considered at the next Council meeting.
(3)
If the applicant disagrees that the application is deficient,
the applicant may file a motion for reconsideration of the Department's action.
(d)
A license issued by the Department will expire annually
from the date of issuance.
(e)
Intentionally misstating or misrepresenting a fact on an
application, renewal application, state well report, plugging report, or with
any other information or evidence furnished to the Department in connection
with official Departmental matters shall be grounds for assessing penalties
and/or sanctions.
§76.203.Examinations.
(a)
Examinations shall be designed to determine if the applicant
possesses the requisite knowledge of pump installation techniques, well drilling,
completion, and plugging methods and techniques, and of groundwater formations
to ensure that the licensee will not present a serious risk of pollution of
a groundwater source.
(b)
Examinations shall be offered on a regular basis at a time
and place designated by the Executive Director.
(c)
Additional examinations shall be offered if more than ten
(10) applicants petition the Executive Director in writing.
(d)
An applicant may only take the examination twice within
any 12-month period.
(e)
Each time an applicant applies to retake the Department's
examination an applicant must submit the re-examination fee.
§76.204.License and Apprentice Registration Renewal.
(a)
On or before the expiration date of the license or registration,
the licensee or registrant shall pay an annual renewal fee to the Department
and submit an application for renewal.
(b)
To renew a license, the licensee is required to show proof
of four hours of continuing education with one-hour dedicated to the Water
Well Driller/Pump Installer Rules and Regulation.
(c)
If a person's license or registration is expired 90 days
or less, the person may renew the license or registration by paying the Department
the required renewal fee and a late fee equal to one-half the license or registration
fee.
(d)
If a person's license or registration is expired for more
than 90 days but less than two years, the person may be eligible for a license
or registration reissuance by paying all renewal fees and a late fee that
is equal to the license or registration fee.
(e)
If a person's license or registration has been expired
for two years or more, the person may not renew the license or registration,
but may apply for a new license or registration.
(f)
A person's registration will not be renewed unless their
supervisor's well driller or pump installer license is current.
(g)
Requests to waive the Continuing Education requirements
because the license holder does not supervise, contract with the public, or
has retired from the drilling or pump service industry shall:
(1)
be submitted in writing to the Department;
(2)
contain a detailed explanation of the conditions under
which the waiver is requested; and
(3)
must be accompanied by the renewal fee.
(h)
To re-instate a driller license to supervise and/or contract
with the public, the driller must submit four hours of continuing education.
§76.205.Registration for Driller or Pump Installer Apprenticeship.
(a)
A person who wishes to undertake a Department approved
apprentice program under the supervision of a licensed well driller or a licensed
pump installer who has been licensed for a minimum of two years, must submit
a registration form to the Department and provide proof that the licensed
well driller or pump installer has agreed to accept the responsibility of
supervising the training. A driller or pump installer may not supervise more
than three apprentices at any one time. Person's with both a well driller
and a pump installer license may register a maximum of six apprentices (three
of each type) at any one time.
(b)
A registered pump installer apprentice shall represent
his supervising pump installer during operations at the well site.
(c)
The Department, with advice of the Council, may review
driller and pump installer apprentice registration forms.
(d)
A registered pump installer apprentice may not perform,
or offer to perform, any services associated with procedures employed in the
placement and preparation for operation of equipment and material used to
obtain water from a water well. A pump installer apprentice's registration
may be revoked for engaging in prohibited activities.
(e)
Registration forms shall include:
(1)
the name, business address, and permanent mailing address
of the apprentice in training;
(2)
the name, business address, and license number of the licensed
driller or pump installer who will supervise the training;
(3)
a brief description of the training program;
(4)
the effective commencement and termination date of the
training program;
(5)
a statement by the licensed driller or pump installer accepting
financial responsibility for the activities of the apprentice associated with
the training program or undertaken on behalf of the licensed driller or pump
installer; and
(6)
the signatures of the apprentice and the licensed driller
or pump installer and the sworn statement of both that the information provided
is true and correct.
(f)
If the application conforms to the rules and the apprentice
program meets Department requirements, the Department will notify the apprentice
and the supervising driller or pump installer that the apprentice has been
accepted as a registered driller or pump installer apprentice and that the
registration form shall remain in the Department's files for the stated duration
of the apprentice period.
(g)
If the application and apprentice program do not conform
to the rules or is not approved, the Department shall notify the apprentice
and the apprentice's supervising driller/pump installer of the disapproval.
§76.206.Responsibilities of the Apprentice.
(a)
A registered driller/pump installer apprentice shall:
(1)
represent his supervising driller/pump installer during
operations at the well site;
(2)
driller apprentice shall co-sign state well reports with
the supervising driller; and
(3)
perform services associated with drilling, deepening, or
altering a well under the direct supervision of the supervising driller.
(b)
A registered driller/pump installer apprentice may not
perform, or offer to perform, any services associated with drilling, deepening,
installing a pump or altering a well except under the direct supervision of
a licensed driller/pump installer and/or according to the supervising driller's
express directions. A driller/pump installer apprentice's registration may
be revoked for engaging in prohibited activities.
(c)
Upon completion of a training program of at least one year,
an apprentice may apply to obtain a well driller's or pump installer's license
or renew the status as an apprentice. The supervising driller, pump installer,
or apprentice may terminate the training program by written notice to the
Department. A reason for termination is not required. Upon receipt of the
notice, the Department shall terminate the apprentice's status as a registered
apprentice.
(d)
The licensed driller or licensed pump installer shall be
present at the well site at all times during all operations or may be represented
by a registered apprentice capable of immediate communication with the licensed
driller or licensed pump installer at all times, provided that the licensed
driller and licensed pump installer is less than one hour travel time from
the well site. The licensed driller shall visit the well site at least once
each day of operation to direct the manner in which the operations are conducted.
(e)
The supervising licensed driller or licensed pump installer
is responsible for compliance with the Texas Water Code, Chapters 32 and 33
of this title (relating to Water Well Drillers and Water Well Pump Installers)
and Department rules.
(f)
If the supervising driller or pump installer is unavailable,
he may be represented by any other licensed driller or licensed pump installer
employed by the same company.
§76.220.Continuing Education.
(a)
A licensed driller or pump installer is required to show
proof of four (4) hours of continuing education every year with one-hour dedicated
to rules and regulations related to the Well Driller/Pump Installer industry.
Only courses approved by the Department can be used to satisfy this requirement.
(b)
Competence in the performance of services requires that
the licensee's knowledge and skills encompass current knowledge of the rules
and regulations, drilling and completion, pump installation, plugging techniques,
areas of health and safety, and of the occurrence and availability of groundwater
to the extent that the performance of services by the driller or pump installer
does not create a risk of water pollution. Therefore, licensees must maintain
proficiency in the field of well drilling and pump installation.
(c)
Each licensee must submit with the renewal request a copy
of the certificates of completion as proof of meeting the continuing education
requirements.
(d)
Only courses or programs designated or approved by the
Department shall be acceptable for license renewal.
(e)
General requirements for approval of continuing education
programs. The Department shall approve applications from providers for continuing
education programs. Approval will be granted for a specific number of hours.
To be approved, all continuing education programs must meet the following
general requirements.
(1)
Course content must relate directly to the Department regulated
well industry and shall include (but not limited to) well and water well pump
standards, geologic characteristics of the state, state groundwater laws and
related regulations, well construction and pump installation practices and
techniques, areas of health and safety, environmental protection, technological
advances, and business management.
(2)
Approval of courses or programs shall be issued by the
Department before the course or program is offered. A written request by the
provider's entity shall provide a detailed narrative describing the courses
or programs offered and the qualification of the instructors.
(3)
Program presenters must be a graduate from an accredited
four-year college or university with a degree in the field they are teaching
or related experience may be substituted on a year for year basis.
(4)
The program provider will give each attendee a certificate
of completion and submit a complete attendance roster to the Department no
later than thirty (30) days after the occurrence of each program and shall
include the following information:
(A)
name and address of individuals attending,
(B)
program title,
(C)
date(s) attended, and
(D)
number of hours credited to attendees.
(5)
Each program, course offering, or seminar shall be individually
reviewed and approved.
(6)
Courses or programs conducted by manufacturers specifically
to promote their products will not be considered for continuing education.
(7)
A provider may not train his or her own employees.
(f)
To obtain approval of a continuing education program, a
provider shall submit an application that includes the following information:
(1)
business name, address and telephone number,
(2)
business representative's name,
(3)
name, location and date(s) of the program,
(4)
number of continuing education hours credited, and
(5)
description of the instructors' qualifications.
(g)
The course application shall be accompanied by the following.
(1)
A sample of the Certificate of Completion. The Certificate
of Completion must include:
(A)
name and brief description of course,
(B)
name of provider,
(C)
name and signature of the provider representative,
(D)
course completion date,
(E)
name of the person who attended,
(F)
number of continuing education hours credited, and
(G)
the Department's course number.
(2)
A copy of the course outline. This outline should include
a description of each segment of course and the time allotted. All segments
must directly relate to the training course.
(3)
Copies of videos, tapes, handouts, study materials and
any additional documentation. These course materials will become property
of the Department and will not be returned.
(4)
A resume of qualifications for each instructor who will
teach. Providers must explain an instructor's qualifications to teach the
course including educational and well drilling or pump installer experience.
(Note: An updated instructor's resume must be submitted when instructors are
added or removed from the staff).
(5)
Any other information or data that is necessary to adequately
describe or explain the course.
(h)
Responsibilities of the Recognized Private Provider.
(1)
After the Department has approved an application, the provider
is entitled to state upon its publication: "This course has been approved
by the Texas Department of Licensing and Regulation for continuing education
credit under the Well Drilling and Pump Installation Regulation."
(2)
Providers shall retain student attendance records for a
period of two years, make copies available to former students, and provide
copies to the Department upon request.
(3)
A participant roster shall be provided to the Department
and shall include actual hours attended.
(4)
Providers or instructors shall fully assist any employee
of the Department in the performance of an audit or investigation of a complaint,
and shall provide requested information within the time frame set by the Department.
(5)
Providers shall notify the Department of the intent to
provide an approved course at least 30 days before the date of the course.
(i)
The approval of a program may be withdrawn or suspended
by the Department if it is determined that:
(1)
the program teaching method or program content has been
changed without notice to the Department,
(2)
a certificate of completion has been issued to an individual
who did not attend or complete the approved program,
(3)
certificates of completion are not given to all individuals
who have satisfactorily completed the approved activity,
(4)
fraud or misrepresentation occurred in the application
process for program approval, maintenance or records, teaching method program
content, or issuance of certificates for a particular course or program, or
(5)
failure to notify the Department of the intent to provide
a course at least 30 days prior to the course.
§76.300.Exemptions.
The following are not required to obtain a license under Chapters 32
and 33 of the Texas Water Code, however, must comply with standards set forth
in §§76.701, 76.702, 76.1000, 76.1001, 76.1003 and 76.1004 of this
chapter:
(1)
any person who drills, bores, cores, or constructs a water
well on his property for his own use.
(2)
any person who assists in the construction of a water well
under the direct supervision of a licensed water well driller and is not primarily
responsible for the drilling operation;
(3)
any person who, pursuant to 30 TAC, Chapter 334, Subchapter
I: Underground Storage Tank Contractor Registration and Installer Licensing,
possesses a Class A or Class B Underground Storage Tank (UST) Installers'
license who drills observation wells within the backfill of the original excavation
for UST's, including associated piping and pipe trenches (tank plumbing and
piping), to a depth of no more than two feet below the tank bottom. However,
if the total depth exceeds 20 feet below ground surface, a licensed driller
is required to drill the well;
(4)
any person who drills environmental hand auger soil borings
no more than 10 feet in depth;
(5)
any person who installs or repairs water well pumps and
equipment on his own property, or on property that he has leased or rented,
for his own use;
(6)
any person who assists in the procedure of pump installation
under the direct supervision of a licensed installer and who is not primarily
responsible for the installation;
(7)
any person who is a ranch or farm employee whose general
duties include installing or repairing a water well pump or equipment on his
employer's property for his employer's use, but who is not employed or in
the business of installation or repair of water pumps or equipment; or,
(8)
any registered well driller apprentice or pump installer
apprentice.
(9)
pump manufacturers and sellers of new and used pumps and/or
pump equipment including pump distributors and pump dealers who do not install
pumps and/or pump equipment.
§76.600.Responsibilities of the Department--Certification by the Executive Director.
(a)
The Department, with advice of the Council, shall review
and pass upon each applicant's qualifications.
(b)
In assessing an applicant's qualifications, the Department
and the Council shall examine the letters of reference submitted, the applicant's
experience and competence in well drilling or pump installing, and any other
relevant information which may be presented including, but not limited to,
compliance history.
(c)
An applicant, at the discretion of the Department, may
not be certified for up to one-year following the revocation of the applicant's
license or a finding that the applicant operated without a license.
(d)
After assessing the qualifications of an applicant, the
Department, with advice of the Council, shall determine the type(s) of well
drilling or pump installation, the applicant is competent to perform. Types
of drilling include water well, monitoring well, injection well, and dewatering
well. Types of pump installation include: windmills, hand pumps, and pump
jacks; fractional to five horsepower; submersible five horsepower and over;
and line-shaft turbine pumps.
(e)
The Executive Director may waive any applicant requirements
stated herein.
§76.601.Responsibilities of the Department--General.
The Department may initiate field inspections and investigations of
well drilling, pump installation, capping, plugging, or completion operations.
§76.602.Responsibilities of the Department--Undesirable Water.
(a)
The Department shall determine whether undesirable water
or constituents have been encountered. If undesirable water or constituents
are encountered, the Department shall determine whether the person having
the well drilled, deepened, or altered intends to have the well plugged or
completed within 30 days;
(b)
Where a person having a well drilled, deepened, or altered
does not intend to have the well plugged or completed as required by this
chapter, or where he or she does not have the well plugged or completed within
the prescribed time period, the Department shall direct that the person having
the well drilled, deepened, or altered appear at a hearing and show cause
why the well should not be plugged or completed.
§76.700.Responsibilities of the Licensee--State Well Reports.
Every well driller who drills, deepens, or alters a well, within this
state shall record and maintain a legible and accurate State Well Report on
forms prescribed by the Department. Each copy of a State Well Report, other
than a Department copy, shall include the name, mailing address, and telephone
number of the Department.
(1)
Every well driller shall transmit electronically through
the Texas Well Report Submission and Retrieval System or deliver or send by
certified mail, the original of the State Well Report to the Department. Every
well driller shall deliver or send by first-class mail a photocopy to the
local groundwater conservation district, if applicable, and a copy to the
owner or person for whom the well was drilled, within 60 days from the completion
or cessation of drilling, deepening, or otherwise altering a well.
(2)
The person that plugs a well described in §76.702(a),
(b), and (d) of this title (relating to Responsibilities of the Licensee and
Landowner--Well Drilling, Completion, Capping and Plugging) shall, within
30 days after plugging is complete, transmit electronically through the Texas
Well Report Submission and Retrieval System or deliver or send by certified
mail, the original of the State Texas Plugging Report to the Department. The
person that plugs the well shall deliver or send by first-class mail a copy
to the local groundwater district and the owner or person for whom the well
was plugged.
§76.701.Responsibilities of the Licensee--Reporting Undesirable Water or Constituents.
Each well driller shall inform, within 24 hours, the landowner or person
having a well drilled, deepened, or otherwise altered or their agent when
undesirable water or constituents have been knowingly encountered. The well
driller shall submit, within 30 days of encountering undesirable water or
constituents transmit electronically through the Texas Well Report Submission
and Retrieval System or deliver or send by certified mail, the original of
the Undesirable Water or Constituents Report. The well driller shall deliver
or send by first-class mail a copy of the Undesirable Water or Constituents
Report to the local groundwater conservation district if applicable and the
landowner or personal having the well drilled, deepened, or altered.
§76.702.Responsibilities of the Licensee and Landowner--Well Drilling, Completion, Capping and Plugging.
(a)
All well drillers and persons having a well drilled, deepened,
or altered shall adhere to the provisions of this chapter prescribing the
location of wells and proper drilling, completion, capping, and plugging.
(1)
Where a landowner, or person having the well drilled, deepened,
or altered, denies a licensed well driller access to the well to complete
the well to established standards and thereby precludes the driller from performing
his or her duties under the Texas Water Code, Chapters 32 and 33 and this
title, the well driller shall file with the Department a statement to that
effect within five days of the denial. The landowner or person authorizing
the well work must complete the well to established standards within ten days
of notification by the Department.
(2)
It is the responsibility of the landowner or person having
the well drilled, deepened, or otherwise altered, to cap or have capped, under
standards set forth in §76.1004 of this title (relating to Technical
Requirements--Standards for Capping and Plugging of Wells and Plugging Wells
that Penetrate Undesirable Water or Constituent Zones), any well which is
open at the surface.
(3)
It is the responsibility of the landowner or person having
the well drilled, deepened, or otherwise altered to plug or have plugged a
well which is abandoned under standards set forth in §76.1004 of this
title.
(b)
It shall be the responsibility of each licensed well driller
to inform a landowner or person having a well drilled, deepened, or altered
that the well must be plugged by the landowner, a licensed driller, or a licensed
pump installer if it is abandoned.
(c)
It is the responsibility of the licensed well driller or
landowner to see that when undesirable water or constituents is knowingly
encountered, the well is plugged or is converted into a monitoring well under
the standards set forth in §76.1004 of this title. For class V injection
wells, which encounter undesirable water or constituents, the driller must
comply with applicable requirements of the Texas Natural Resource Conservation
Commission rules under 30 TAC, Chapter 331.
(d)
It shall be the responsibility of the driller of a newly
drilled well to place a cover or cap over the boring or casing, that is not
easily removable, if the well is to be left unattended without a pump installed.
It shall be the responsibility of the pump installer to place a cap over the
casing that is not easily removable if the well is to be left unattended with
the pump removed.
(e)
A licensed well driller is responsible for assuring that
when undesirable water or constituents is knowingly encountered, the well
is plugged or completed forthwith pursuant to the following:
(1)
Where a person or landowner having the well drilled, deepened,
or altered denies a licensed driller access to a well which requires plugging
or completion or otherwise precludes the driller from plugging or completing
a well which has encountered undesirable water or constituents, the driller
shall, within 48 hours, file a signed statement to that effect with the Department
and provide a copy of the statement to the local groundwater conservation
district. The statement shall indicate that:
(A)
The driller, or person under his or her supervision, encountered
undesirable water or constituents while drilling the well;
(B)
The driller has informed the person having the well drilled,
deepened, or otherwise altered that undesirable water or constituents were
encountered and that the well must be plugged or completed pursuant to the
Texas Water Code §32.017, relating to Plugging of Water Wells;
(C)
The person or landowner having the well drilled, deepened,
or altered has denied the driller access to the well;
(D)
The reason, if known, for which access has been denied
and,
(E)
if known, whether the person having the well drilled, deepened,
or otherwise altered intends to have the well plugged or completed.
(2)
For class V wells, which encounter undesirable water or
constituents, the driller must comply with applicable requirements of the
Texas Natural Resource Conservation Commission rules under 30 TAC, Chapter
331.
(f)
Each licensed well driller shall ensure that all wells
are plugged, repaired, or properly completed pursuant to this Chapter and
Texas Water Code §32.017, relating to Plugging of Water Wells. Each pump
installer shall install or repair pumps pursuant to this title and Texas Water
Code §33.014, relating to Completion, Repair, and Plugging of Water Wells.
(g)
A licensed driller or licensed pump installer shall notify
the Department, the local groundwater conservation district if required by
the local authority, and the landowner or person having a well drilled or
pump installed when he encounters water injurious to vegetation, land, or
other water, and inform the landowner that the well must be plugged, repaired,
or properly completed in order to avoid injury or pollution.
(h)
A licensed driller or licensed pump installer who knows
of an abandoned or deteriorated well, as defined by Texas Water Code §32.017
and §33.014, and §76.1005(a) of this tile (relating to Technical
Requirements- Standards for Water Wells drilled before June 1, 1983), shall
notify the landowner or person possessing the well that the well must be plugged
or capped in order to avoid injury or pollution.
§76.703.Responsibilities of the Licensee--Standards of Completion for Public Water System Wells.
A licensed well driller shall complete a well supplying a public water
system in accordance with plans approved by the Texas Natural Resource Conservation
Commission under 30 TAC, Chapter 290 of this title (relating to Water Hygiene).
(1)
The licensed well driller shall, to the best of his or
her abilities, ascertain whether a well which is to be drilled, deepened,
or altered is intended for use as part of a public water system and shall
comply with all applicable rules and regulations of the Texas National Resource
Conservation Commission under 30 TAC, Chapter 290 and any other local or regional
regulations.
(2)
The licensed well driller shall inform the Department of
the well's intended use, by submitting a State Well Report.
(3)
The person or landowner having the well drilled, deepened,
or altered is responsible for ensuring that a well intended for use as a part
of a public water system meets the current rules and regulations of the Texas
National Resource Conservation Commission under 30 TAC, Chapter 290 and any
other local or regional regulations.
§76.704.Responsibilities of the Licensee--Marking Vehicles and Equipment.
Licensee's shall mark their well rigs and pump installer vehicles used
by them or their employees in the well drilling or pump installer business
with legible and plainly visible identification numbers.
(1)
The identification number to be used on rigs and vehicles
shall be the licensee's license number.
(2)
License numbers shall be printed, upon each side of every
well rig or pump installer vehicle, not less than two inches high and in a
color sufficiently different from the color of the vehicle or equipment so
that the license number shall be plainly visual.
(3)
A licensee shall have 30 days from the date a license is
issued to see that all well rigs or pump installer vehicles used by him or
his employees are marked as provided in paragraphs (1) and (2) of this section.
§76.705.Responsibilities of the Licensee--Representations.
(a)
No licensee shall offer to perform services unless such
services can be competently performed.
(b)
A licensee shall accurately and truthfully represent to
a prospective client his qualifications and the capabilities of his equipment
to perform the services to be rendered.
(c)
A licensee shall neither perform nor offer to perform services
for which he is not qualified by experience or knowledge in any of the technical
fields involved.
(d)
A licensee shall not enter into a partnership or any agreement
with a person, not legally qualified to perform the services to be rendered,
and who has control over the licensee's equipment and/or independent judgment
as related to construction, alteration, or plugging of a well or installation
of pumps or equipment in a well.
(e)
A licensee shall not make false, misleading, or deceptive
representations.
(f)
A licensee shall make known to prospective clients, all
adverse, or suspicions of adverse conditions concerning the quantity or quality
of groundwater in the area. If there is any uncertainty regarding the quality
of water in any well, the licensee shall recommend that the client have the
suspected water analyzed.
§76.706.Responsibilities of the Licensee--Unauthorized Practice.
(a)
A licensee shall inform the Department of any unauthorized
well drilling or pump installation practice of which the licensee has knowledge.
(b)
A licensee shall not aid or abet an unlicensed person to
unlawfully drill or offer to drill wells or install pump equipment.
(c)
A licensee shall, upon request of the Department, furnish
any information the licensee possesses concerning any alleged violation of
the Texas Water Code, Chapters 32 and 33 of this title (relating to Water
Well Drillers or Water Well Pump Installers) or this chapter.
(d)
A licensee shall have the following information on all
proposals and invoices given to consumers: Regulated by The Texas Department
of Licensing and Regulation, P.O. Box 12157, Austin Texas 78711, 1-800-803-9202,
512-463-7880.
§76.707.Responsibilities of the Licensee--Adherence to Statutes and Codes.
A licensee shall comply with Texas Occupations Code, Chapter 51, 16
TAC, Chapter 60, the Texas Water Code, Chapters 32 and 33, and this chapter
in connection with all well drilling or pump installation services rendered.
§76.708.Responsibilities of the Licensee--Adherence to Manufacturers' Recommended Well Construction Materials and Equipment.
(a)
It shall be the responsibility of the licensee to select
the correct slot size for manufacturer well screen in a domestic (household
use) water well to prevent sand/sediments from entering the well unless waived
by the landowner or person having the well drilled in writing.
(b)
It shall be the responsibility of the licensee to adhere
to manufacturers' recommended pump sizing and wiring specifications.
(c)
It shall be the responsibility of the licensee to select
the proper hydraulic collapse pressure for casing to be installed.
§76.900.Disciplinary Actions.
(a)
The Executive Director may assess an administrative penalty,
reprimand a licensee, suspend or revoke a license, and the Texas Commission
of Licensing and Regulation may assess administrative penalties or take any
appropriate action described in Chapter 60 of this title (relating to the
Texas Commission of Licensing and Regulation), Texas Occupations Code, Chapter
51, or the Texas Water Code, Chapters 32 and 33 for violations of the statutes
or Department rules.
(b)
If a person violates the Texas Water Code, Chapters 32
and 33, or a rule or order, of the Executive Director or Commission relating
to the Code, proceedings may be instituted to impose administrative sanctions
and/or recommend administrative penalties in accordance with the Code or Texas
Occupations Code, Chapter 51, and Chapter 60 of this title.
§76.910.Disciplinary Actions--Disposition of Application.
The Department shall mail a notice to each applicant as to the disposition
of their application within ten (10) days of the final decision. An applicant
who disagrees with the Department's final decision may request a hearing.
§76.1000.Technical Requirements--Locations and Standards of Completion for Wells.
(a)
Wells shall be completed in accordance with the following
specifications and in compliance with the local groundwater conservation district
rules or incorporated city ordinances:
(1)
The annular space to a minimum of ten (10) feet shall be
three (3) inches larger in diameter than the casing and filled from ground
level to a depth of not less than ten (10) feet below the land surface or
well head with cement slurry, bentonite grout, or eight (8) feet solid column
of granular sodium bentonite topped with a two (2) foot cement atmospheric
barrier, except in the case of monitoring, dewatering, piezometer, and recovery
wells when the water to be monitored, recovered, or dewatered is located at
a more shallow depth. In that situation, the cement slurry or bentonite column
shall only extend down to the level immediately above the monitoring, recovery,
or dewatering level. Unless the well is drilled within the Edwards Aquifer,
the distances given for separation of wells from sources of potential contamination
in subsection (b)(2) of this section may be decreased to a minimum of fifty
(50) feet provided the well is cemented with positive displacement technique
to a minimum of one hundred (100) feet to surface or the well is tremie pressured
filled to the depth of one hundred (100) feet to the surface provided the
annular space is three inches larger than the casing. For wells less than
one hundred (100) feet deep, the cement slurry, bentonite grout, or bentonite
column shall be placed to the top of the producing layer. In areas of shallow,
unconfined groundwater aquifers, the cement slurry, bentonite grout, or bentonite
column need not be placed below the static water level. In areas of shallow,
confined groundwater aquifers having artesian head, the cement slurry, bentonite
grout, or bentonite column need not be placed below the top of the water-bearing
strata. Wells that are subject to completion standards of the Texas Natural
Resource Conservation Commission under 30 TAC, Chapter 331 for class V injection
wells, are exempt from this section.
(2)
A well is cemented with positive displacement technique
to a minimum of one hundred (100) feet to surface or the well is tremie pressured
filled to the depth of one hundred (100) feet to the surface provided the
annular space is three inches larger than the casing may encroach up to five
feet of the property line. For wells less than one hundred (100) feet deep,
the cement slurry, bentonite grout, or bentonite column shall be placed to
the top of the producing layer. In areas of shallow, unconfined groundwater
aquifers, the cement slurry, bentonite grout, or bentonite column need not
be placed below the static water level. In areas of shallow, confined groundwater
aquifers having artesian head, the cement slurry, bentonite grout, or bentonite
column need not be placed below the top of the water-bearing strata.
(3)
A well shall be located a minimum horizontal distance of
fifty (50) feet from any water-tight sewage and liquid-waste collection facility,
except in the case of monitoring, dewatering, piezometer, and recovery wells
which may be located where necessity dictates.
(4)
Except as noted in paragraph (1) and (2) of this subsection,
a well shall be located a minimum horizontal distance of one hundred fifty
(150) feet from any concentrated sources of potential contamination such as,
but not limited to, existing or proposed livestock or poultry yards, cemeteries,
pesticide mixing/loading facilities, and privies, except in the case of monitoring,
dewatering, piezometer, and recovery wells which may be located where necessity
dictates. A well shall be located a minimum horizontal distance of one hundred
(100) feet from an existing or proposed septic system absorption field, septic
systems spray area, a dry litter poultry facility and fifty (50) feet from
any property line provided the well is located at the minimum horizontal distance
from the sources of potential contamination.
(5)
A well shall be located at a site not generally subject
to flooding; provided, however, that if a well must be placed in a flood prone
area, it shall be completed with a watertight sanitary well seal, so as to
maintain a junction between the casing and pump column, and a steel sleeve
extending a minimum of thirty six (36) inches above ground level and twenty
four (24) inches below the ground surface.
(6)
The following are exceptions to the property line distance
requirement where:
(A)
groundwater conservation district rules are in place regulating
the spacing of wells;
(B)
platted or deed restriction subdivision spacing of wells
and on-site sewage systems are part of planning; or
(C)
public wastewater treatment is provided and utilized by
the landowner.
(b)
In all wells where plastic casing is used, except when
a steel or polyvinyl chloride (PVC) sleeve or pitless adapter, as described
in paragraph (3) of this subsection, is used, a concrete slab or sealing block
shall be placed above the cement slurry around the well at the ground surface.
(1)
The slab or block shall extend laterally at least two (2)
feet from the well in all directions and have a minimum thickness of four
(4) inches and should be separated from the well casing by a plastic or mastic
coating or sleeve to prevent bonding of the slab to the casing.
(2)
The surface of the slab shall be sloped to drain away from
the well.
(3)
The top of the casing shall extend a minimum of twelve
(12) inches above the land surface except in the case of monitoring wells
when it is impractical or unreasonable to extend the casing above the ground.
Monitoring wells shall be placed in a waterproof vault the rim of which extends
two (2) inches above the ground surface and a sloping cement slurry shall
be placed a minimum twelve (12) inches from the edge of the vault and two
(2) feet below the base of the vault between the casing and the wall of the
borehole so as to prevent surface pollutants from entering the monitoring
well. The well casing shall have a locking cap that will prevent pollutants
from entering the well. The annular space of the monitoring well shall be
sealed with an impervious bentonite or similar material from the top of the
interval to be tested to the cement slurry below the vault of the monitoring
well.
(4)
The well casing of a temporary monitoring well shall have
a locking cap and the annular space shall be sealed from zero (0) to one (1)
foot below ground level with an impervious bentonite or similar material;
after 48 hours, the well must be completed or plugged in accordance with this
section and §76.1004 of this title (relating to Technical Requirements--Standards
for Capping and Plugging of Wells and Plugging Wells that Penetrate Undesirable
Water or Constituent Zones).
(5)
The annular space of a closed loop injection well used
to circulate water or other fluids shall be backfilled to the total depth
with impervious bentonite or similar material, closed loop injection well
where there is no water or only one zone of water is encountered you may use
sand, gravel or drill cuttings to back fill up to thirty (30) feet from the
surface. The top thirty (30) feet shall be filled with impervious bentonite
or similar materials and meets the standards pursuant to Texas Natural Resource
Conservation Commission 30 TAC, Chapter 331.
(c)
In wells where a steel or PVC sleeve is used:
(1)
The steel sleeve shall be a minimum of 3/16 inches in thickness
and/or the plastic sleeve shall be a minimum of Schedule 80 sun resistant
and twenty four (24) inches in length, and shall extend twelve (12) inches
into the cement, except when steel casing or a pitless adapter as described
in paragraph (2) of this subsection is used. The casing shall extend a minimum
of twelve (12) inches above the land surface, and the steel/plastic sleeve
shall be two inches larger in diameter than the plastic casing being used
and filled with cement; or
(2)
A slab or block as described in paragraph (1) and (2) of
this subsection is required above the cement slurry except when a pitless
adapter is used. Pitless adapters may be used in such wells provided that:
(A)
the adapter is welded to the casing or fitted with another
suitably effective seal;
(B)
the annular space between the borehole and the casing is
filled with cement to a depth not less than twenty (20) feet below the adapter
connection; and
(C)
in lieu of cement, the annular space may be filled with
a solid column of granular sodium bentonite to a depth of not less than twenty
(20) feet below the adapter connection.
(d)
All wells, especially those that are gravel packed, shall
be completed so that aquifers or zones containing waters that differ in chemical
quality are not allowed to commingle through the borehole-casing annulus or
the gravel pack and cause quality degradation of any aquifer or zone.
(e)
The well casing shall be capped or completed in a manner
that will prevent pollutants from entering the well.
(f)
Each licensed well driller drilling, deepening, or altering
a well shall keep any drilling fluids, tailings, cuttings, or spoils contained
in such a manner so as to prevent spillage onto adjacent property not under
the jurisdiction or control of the well owner without the adjacent property
owners' written consent.
(g)
Each licensed well driller drilling, deepening, or altering
a well shall prevent the spillage of any drilling fluids, tailings, cuttings,
or spoils into any body of surface water.
(h)
Unless waived by written request from the landowner, a
new, repaired, or reconditioned well or pump installation or repair on a well
used to supply water for human consumption shall be properly disinfected.
The well shall be properly disinfected with chlorine or other appropriate
disinfecting agent under the circumstances. A disinfecting solution with a
minimum concentration of fifty (50) milligrams per liter (mg/l) (same as parts
per million), shall be placed in the well as required by the American Water
Works Association (AWWA), pursuant to ANST/AWWA C654-87 and the United States
Environmental Protection Agency (EPA).
(i)
Unless waived in writing by the landowner, after performing
an installation or repair, the licensed installer shall disinfect the well
by:
(1)
treating the water in the well casing to provide an average
disinfectant residual to the entire volume of water in the well casing of
fifty (50) mg/l. This may be accomplished by the addition of calcium hypochlorite
tablets or sodium hypochlorite solution in the prescribed amounts;
(2)
circulating, to the extent possible, the disinfected water
in the well casing and pump column; and
(3)
pumping the well to remove disinfected water for a minimum
of fifteen (15) minutes.
(4)
If calcium hypochlorite (granules or tablets) is used,
it is suggested that the installer dribble the tablets of approximately five-gram
(g) size down the casing vent and wait at least thirty (30) minutes for the
tablets to fall through the water and dissolve. If sodium hypochlorite (liquid
solution) is used, care should be taken that the solution reaches all parts
of the well. It is suggested that a tube be used to pipe the solution through
the well-casing vent so that it reaches the bottom of the well. The tube may
then be withdrawn as the sodium hypochlorite solution is pumped through the
tube. After the disinfectant has been applied, the installer should surge
the well at least three times to improve the mixing and to induce contact
of disinfected water with the adjacent aquifer. The installer should then
allow the disinfected water to rest in the casing for at least twelve hours,
but for not more than twenty-four hours. Where possible, the installer should
pump the well for a minimum of fifteen (15) minutes after completing the disinfection
procedures set forth above until a zero disinfectant residual is obtained.
In wells where bacteriological contamination is suspected, the installer shall
inform the well or property owner that bacteriological testing may be necessary
or desirable.
(j)
A test well that is drilled for exploring for groundwater
must be completed or plugged within six (6) months unless such site is located
within a groundwater conservation district where district rules shall prevail
if applicable.
(k)
Water wells located within public water supply system sanitary
easements must be constructed to public well standards pursuant to 30 TAC,
Chapter 290.
§76.1001.Technical Requirements--Standards of Completion for Water Wells Encountering Undesirable Water or Constituents.
If a well driller knowingly encounters undesirable water or constituents
and the well is not plugged or made into a completed monitoring well, the
licensed well driller shall see that the well drilled, deepened, or altered
is forthwith completed in accordance with the following:
(1)
When undesirable water or constituents are encountered
in a water well, the undesirable water or constituents shall be sealed off
and confined to the zone(s) of origin.
(2)
When undesirable water or constituents are encountered
in a zone overlying fresh water, the driller shall case the water well from
an adequate depth below the undesirable water or constituent zone to the land
surface to ensure the protection of water quality.
(3)
The annular space between the casing and the wall of the
borehole shall be pressure grouted with positive displacement technique or
the well is tremie pressured filled provided the annular space is three inches
larger than the casing with cement or bentonite grout from an adequate depth
below the undesirable water or constituent zone to the land surface to ensure
the protection of groundwater. Bentonite grout may not be used if a water
zone contains chlorides above one thousand five hundred (1,500) parts per
million (milligrams per liter) or if hydrocarbons are present.
(4)
When undesirable water or constituents are encountered
in a zone underlying a fresh water zone, the part of the wellbore opposite
the undesirable water or constituent zone shall be filled with pressured cement
or bentonite grout to a height that will prevent the entrance of the undesirable
water or constituents into the water well. Bentonite grout may not be used
if a water zone contains chlorides above one thousand five hundred (1,500)
parts per million (milligrams per liter) or if hydrocarbons are present.
(5)
For class V injection wells, which encounter undesirable
water or constituents, the driller must comply with applicable requirements
of the Texas Natural Resource Conservation Commission under 30 TAC, Chapter
331.
§76.1002.Technical Requirements--Standards for Wells Producing Undesirable Water or Constituents.
(a)
Wells completed to produce undesirable water or constituents
shall be cased to prevent the mixing of water or constituent zones.
(b)
The annular space between the casing and the wall of the
borehole shall be pressured grouted with cement or bentonite grout to the
land surface. Bentonite grout may not be used if a water zone contains chloride
water above one thousand five hundred (1,500) parts per million (milligrams
per liter) or if hydrocarbons are present.
(c)
Wells producing undesirable water or constituents shall
be completed in such a manner that will not allow undesirable fluids to flow
onto the land surface except when the Department's authorization is obtained
by the landowner or the person(s) having the well drilled.
§76.1003.Technical Requirements--Re-completions.
The landowner shall have the continuing responsibility of ensuring
that a well does not allow the commingling of undesirable water or constituents
with fresh water through the wellbore to other porous strata.
(1)
If a well is allowing the commingling of undesirable water
or constituents and fresh water or the unwanted loss of water, and the casing
in the well cannot be removed and the well re-completed in accordance with
the applicable rules, the casing in the well shall be perforated and squeeze
cemented in a manner that will prevent the commingling or loss of water. If
such a well has no casing then the well shall be cased and cemented, or plugged
in a manner that will prevent such commingling or loss of water.
(2)
The Executive Director may direct the landowner to take
proper steps to prevent the commingling of undesirable water or constituents
with fresh water, or the unwanted loss of water.
§76.1004.Technical Requirements--Standards for Capping and Plugging of Wells and Plugging Wells that Penetrate Undesirable Water or Constituent Zones.
(a)
If a well is abandoned or deteriorating, all removable
casing shall be removed from the well and the entire well pressure filled
via a tremie pipe with cement from bottom up to the land surface.
(b)
In lieu of the procedure in subsection (a) of this section,
the well shall be pressure filled via a tremie tube with clean bentonite grout
of a minimum 9.1 pounds per gallon weight followed by a cement plug extending
from land surface to a depth of not less than two (2) feet, or if the well
to be plugged has one hundred 100 feet or less of standing water the entire
well may be filled with a solid column of 3/8 inch or larger granular sodium
bentonite hydrated at frequent intervals while strictly adhering to the manufacturers'
recommended rate and method of application. If a bentonite grout is used,
the entire well from not less than two (2) feet below land surface may be
filled with the bentonite grout. The top two (2) feet above any bentonite
grout or granular sodium bentonite shall be filled with cement as an atmospheric
barrier.
(c)
Undesirable water or constituents, or the fresh water zone(s)
shall be isolated with cement plugs and the remainder of the wellbore filled
with clean bentonite grout of a minimum 9.1 weight followed by a cement plug
extending from land surface to a depth of not less than two (2) feet.
(d)
Large diameter hand dug and bored wells to one hundred
(100) feet in depth may be plugged by back filling with compacted clay or
caliche to surface. Leave mounded to compensate for settling.
(e)
Drillers may petition the Department, in writing, for a
variance from the methods stated in subsection (a) of this section. The variance
should state in detail, an alternative method proposed and all conditions
applicable to the well that would make the alternative method preferable to
those methods stated in subsections (a) and (b) of this section.
(f)
A non-deteriorated well which contains casing in good condition
and is beneficial to the landowner can be capped with a covering capable of
preventing surface pollutants from entering the well and sustaining weight
of at least four hundred (400) pounds and constructed in such a way that the
covering cannot be easily removed by hand.
§76.1005.Technical Requirements--Standards for Water Wells Drilled before June 1, 1983.
(a)
Wells drilled prior to June 1, 1983, unless abandoned,
shall be grandfathered from this chapter without further modification unless
the well is found to be a threat to public health and safety or to water quality.
The following will be considered a threat to public health and safety or to
groundwater quality:
(1)
annular space around the well casing is open at or near
the land surface;
(2)
an unprotected opening into the well casing that is above
ground level;
(3)
top of well casing below known flood level and not appropriately
sealed;
(4)
deteriorated well casing allowing commingling of aquifers
or zones of water of different quality; and
(5)
water wells with the well head below ground level unless
the Department grants a variance.
(b)
If the annular space around the well casing is not adequately
sealed as set forth in this section, it shall be the responsibility of each
licensed driller or licensed pump installer to inform the landowner that the
well is considered to be a deteriorated well and must be recompleted when
repairs are made to the pump or well in accordance with this chapter, and
the following specifications.
(1)
The well casing shall be excavated to a minimum depth of
four (4) feet and the annular space shall be filled from ground level to a
depth of not less than four (4) feet below the land surface with cement. In
areas of shallow, unconfined groundwater aquifers, the cement need not be
placed below the static water level. In areas of shallow, confined groundwater
aquifers having artesian head, the cement need not be placed below the top
of the water bearing strata.
(2)
A cement slab or sealing block shall be placed above the
cement around the well at the ground surface except when a pitless adapter
as described in §76.1000(d)(2) of this title (relating to Technical Requirements--Locations
and Standards of Completion for Wells) or a steel or plastic sleeve as described
in §76.1000(d)(1) of this title is used.
(A)
The slab or block shall extend laterally at least two (2)
feet from the well in all directions and have a minimum thickness of four
inches.
(B)
The surface of the slab shall be sloped to drain away from
the well.
(C)
The top of the casing shall extend a minimum of twelve
12 inches above ground level or thirty six 36 inches above known flood prone
areas and unprotected openings into the well casing that is above ground shall
be sealed water tight.
(3)
If deteriorated well casing is allowing commingling of
aquifers or zones of water of different quality and causing degradation of
any water including groundwater, the well shall be plugged according to §76.1004
of this title (relating to Technical Requirements--Standards for Capping and
Plugging of Wells and Plugging Wells that Penetrate Undesirable Water or Constituent
Zones) or repaired. Procedures for repairs shall be submitted to the Department
for approval prior to implementation.
(c)
If a licensed well driller or pump installer finds any
of the procedures described by this section to be inapplicable, unworkable,
or inadequate, alternative procedures may be employed provided that the proposed
alternative procedures will prevent injury and pollution and that the procedures
shall be submitted to the Department for approval prior to their implementation,
except for class V injection wells pursuant to 30 TAC, Chapter 331.
(d)
Well covers shall be capable of supporting a minimum of
four hundred 400 pounds and constructed in such a way that they cannot be
easily removed by hand.
(e)
This section shall not apply to a public water supply system
well.
§76.1006.Technical Requirements--Water Distribution and Delivery Systems.
(a)
The licensee shall inform the landowner and well owner
that the landowner and well owner are responsible for complying with the rules
and regulations under the standards set forth in this chapter.
(b)
A buried discharge line between the pump discharge and
the pressure tank or pressure system in any installation, including a deep
well turbine or a submersible pump, shall not be under negative pressure at
any time. With the exception of jet pumps, a check valve or an air gap shall
be installed in a water line between the well casing and the pressure tank.
Either a check valve or an air gap, as applicable, shall be required on all
irrigation well pumps whenever a pump is installed or repaired. All wells
shall have either a check valve, or an air gap as applicable.
(c)
Wells shall be vented with watertight joints except as
provided by subsection (b) of this section.
(1)
Watertight joints, where applicable pursuant to the provisions
of this rule, shall terminate at least two (2) feet above the regional flood
level or one (1) foot above the established ground surface or the floor of
a pump room or well room, whichever is higher.
(2)
The casing vent shall be screened and point downward.
(3)
Vents may be offset provided they meet the provisions of
this rule.
(4)
Toxic or flammable gases, if present, shall be vented from
the well. The vent shall extend to the outside atmosphere above the roof level
at a point where the gases will not produce a hazard.
§76.1007.Technical Requirements--Chemical Injection, Chemigation, and Foreign Substance Systems.
(a)
All irrigation distribution systems or water distribution
systems into which any type of chemical (except disinfecting agents) or other
foreign substances will be injected into the water pumped from water wells
shall be equipped with an in-line, automatic quick-closing check valve capable
of preventing pollution of the ground water. The required equipment shall
be installed on all systems whenever a pump is installed or repaired or at
the time of a chemical injection, Chemigation or foreign substance unit is
added to a water delivery system or not later than January 1, 2000, if the
well has a chemical injection, Chemigation, or foreign substance unit in the
delivery system. The type of check valve installed shall meet the following
specifications:
(b)
The body of the check valve shall be constructed of cast
iron, stainless steel, cast aluminum, cast steel, or of a material and design
that provides a sturdy integrity to the unit and is resistant to the foreign
substance being injected. All materials shall be corrosion resistant or coated
to prevent corrosion. The valve working pressure rating shall exceed the highest
pressure to which the valve will be subjected.
(c)
The check valve shall contain a suitable automatic, quick-closing
and tight-sealing mechanism designed to close at the moment water ceases to
flow in the downstream or output direction. The device shall, by a mechanical
force greater than the weight of the closing device, provide drip-tight closure
against reverse flow. Hydraulic backpressure from the system does not satisfy
this requirement.
(d)
The check valve construction should allow for easy access
for internal and external inspection and maintenance. All internal parts shall
be corrosion resistant. All moving parts shall be designed to operate without
binding, distortion, or misalignment.
(e)
The check valve shall be installed in accordance with the
manufacturer's specifications and maintained in a working condition during
all times in which any fertilizer, pesticide, chemical, animal waste, or other
foreign substance is injected into the water system. The check valve shall
be installed between the pump discharge and the point of chemical injection
or foreign substance injection.
(f)
A vacuum-relief device shall be installed between the pump
discharge and the check valve in such a position and in such a manner that
insects, animals, floodwater, or other pollutants cannot enter the well through
the vacuum-relief device. The vacuum-relief device may be mounted on the inspection
port as long as it does not interfere with the inspection of other anti-pollution
devices.
(g)
An automatic low pressure drain shall also be installed
between the pump discharge and the check valve in such a position and in such
a manner that any fluid which may seep toward the well around the flapper
will automatically flow out of the pump discharge pipe. The drain must discharge
away from rather than flow into the water supply. The drain must not collect
on the ground surface or seep into the soil around the well casing.
(1)
The drain shall be at least three-quarter (3/4) inch in
diameter and shall be located on the bottom of the horizontal pipe between
the pump discharge and the check valve.
(2)
The drain must be flush with the inside surface of the
bottom of the pipe unless special provisions, such as a dam made downstream
of the drain, forces seepage to flow into the drain.
(3)
The outside opening of the drain shall be at least two
(2) inches above the grade.
(h)
An easily accessible inspection port shall be located between
the pump discharge and the check valve, and situated so the automatic low-pressure
drain can be observed through the port and the flapper can be physically manipulated.
(1)
The port shall allow for visual inspection to determine
if leakage occurs past the flapper, seal, seat, and/or any other components
of the checking device.
(2)
The port shall have a minimum four (4) inch diameter orifice
or viewing area. For irrigation distribution systems with pipe lines too small
to install a four-inch diameter inspection port, the check valve and other
anti-pollution devices shall be mounted with quick disconnects, flange fittings,
dresser couplings, or other fittings that allow for easy removal of these
devices.
(i)
Any check valve not fully meeting the specifications set
forth in this section may on request to the Executive Director be considered
for a variance.
§76.1008.Technical Requirements--Pump Installation.
(a)
During any repair or installation of a water well pump,
the licensed installer shall make a reasonable effort to maintain the integrity
of ground water and to prevent contamination by elevating the pump column
and fittings, or by other means suitable under the circumstances.
(b)
This section shall include every type of connection device,
including but not limited to, flange connections, hose-clamp connections,
and other flexible couplings. Except as provided by this chapter, a pump shall
be constructed so that no unprotected openings into the interior of the pump
or well casing exist.
(1)
A hand pump, hand pump head, stand, or similar device shall
have a spout, directed downward.
(2)
A power driven pump shall be attached to the casing or
approved suction or discharge line by a closed connection. For the purposes
of this section a closed connection is defined to be a sealed connection.
(c)
The provisions of this section relating to the requirement
of closed connections shall not apply to the following types of pumps and
pumping equipment:
(1)
sucker rod pumps and windmills; and
(2)
hand pumps.
(d)
A new, repaired, or reconditioned well, or pump installation
or repair on a well used to supply water for human consumption shall be properly
disinfected. The landowner may waive the disinfection process by submitting
a written request to the driller or pump installer.
§76.1009.Technical Requirements--Variances--Alternative Procedures.
(a)
If the party having the well drilled, deepened or altered,
the licensed well driller, or the party, landowner or person drilling or plugging
the well, finds any of the procedures prescribed by §76.1000 of this
title (relating to Technical Requirements--Locations and Standards of Completion
for Wells), §76.1001 of this title (relating to Technical Requirements--Standards
of Completion for Water Wells Encountering Undesirable Water or Constituents), §76.1002
of this title (relating to Technical Requirements--Standards for Wells Producing
Undesirable Water or Constituents), §76.1003 of this title (relating
to Technical Requirements--Re-completions), §76.1004 of this title (relating
to Technical Requirements--Standards for Capping and Plugging of Wells and
Plugging Wells that Penetrate Undesirable Water or Constituent Zones) and §76.1005
of this title (relating to Technical Requirements--Standards for Water Wells
drilled before June 1, 1983) inapplicable, unworkable, or inadequate, combinations
of the prescribed procedures or alternative procedures may be employed, provided
that the proposed alternative procedures will prevent injury and pollution.
(b)
Proposals to use combinations of prescribed procedures
or alternative procedures shall be considered application for a variance and
must be submitted to the Department and provide a copy of the variance to
the local groundwater conservation district for approval prior to their implementation.
(c)
If a variance is not submitted prior to construction and
the licensee or landowner or the designated agent believes a request is justified,
such request shall be submitted to the Department and a copy of the variance
provided to the local groundwater conservation district as soon as possible
following completion of the well.
(d)
This section shall not apply to a public water system well.
§76.1010.Appeals--Variances.
(a)
Appeal of staff decision disapproving a variance or waiver
application shall be submitted to the Executive Director and a copy of the
appeal provided to the local groundwater conservation district within 14 days
of notification of staff decision.
(b)
The Executive Director shall determine whether or not to
uphold the disapproval of the variance.
(c)
The party making the appeal shall be advised in writing
of the Executive Director's determination.
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 July 24, 2001.
TRD-200104279
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: September 9, 2001
For further information, please call: (512) 463-7348
Chapter 401.
ADMINISTRATION OF STATE LOTTERY ACT
Subchapter D. LOTTERY GAME RULES
As used in this section
]:
"Active operation"
means regular
] and continuing activities related to the production of
oil and gas for which the operator has all necessary permits. In the case
of a well that has been inactive for 12 consecutive months or longer and that
is not permitted as a disposal or injection well, the well remains inactive
for purposes of this section, regardless of any minimal activity, until the
well has reported production of at least 10 barrels of oil for oil wells or
100 mcf of gas for gas wells each month for at least three consecutive months.
"Bay well" means any
]
well under the jurisdiction of the
Commission
[
commission
] for which the surface location is either:
"Delinquent
inactive well" means an
] unplugged well that has had no reported production,
disposal, injection, or other permitted activity for a period of greater than
12 months and for which, after notice and opportunity for hearing, the
Commission
[
commission
] has not extended the plugging deadline.
"Funnel viscosity" means
viscosity
] as measured by the Marsh funnel, based on the number of seconds
required for 1,000 cubic centimeters of fluid to flow through the funnel.
"Good faith claim"
means a
] factually supported claim based on a recognized legal theory
to a continuing possessory right in a mineral estate, such as evidence of
a currently valid oil and gas lease or a recorded deed conveying a fee interest
in the mineral estate.
"Individual well bond" means a bond or letter of credit
issued on a commission-approved form, with a third party surety, insurance
company or financial institution as principal, that has been approved by the
Commission and is conditioned on the timely and proper plugging of a specified
well or wells and remediation of the well (sites), in accordance with Commission
rules.
]
"Land well" means any
]
well subject to Commission jurisdiction for which the surface location is
not in or on inland or coastal waters.
"Offshore well" means
any
] well subject to Commission jurisdiction for which the surface location
is on state lands in or on the Gulf of Mexico, that is not a bay well.
"Operator
designation form" means a
] certificate of transportation authority and
compliance or an application to drill, deepen, recomplete, plug back, or reenter
which has been completed, signed and filed with the
Commission
[
commission
].
"Productive horizon"
means any
] stratum known to contain oil, gas, or geothermal resources
in producible quantities in the vicinity of an unplugged well.
"Reported
production" means production
] of oil or gas, excluding production attributable
to well tests, accurately reported to the
Commission
[
commission
] on a monthly producer's report.
To "serve
surface notice" means to
] hand deliver a written notice identifying
the well to be plugged and the projected date the well will be plugged to
the intended recipient at least three days prior to the day of plugging or
to mail the notice by first class mail, postage pre-paid, to the last known
address of the intended recipient at least seven days prior to the day of
plugging.
"Unbonded operator"
means an
] operator that has a current and active organization report
on file with the Commission but that does not have a current individual performance
bond, blanket performance bond, [
or
] letter of credit
, or
cash deposit
as its [
organizational
] financial security under §3.78
of this title (relating to Fees, Performance Bonds, and Alternate Forms of
Financial Security Required to be
Filed
[
filed
]) (Statewide
Rule 78).
"Usable
quality water strata" means all
] strata determined by the Texas Natural
Resource Conservation Commission to contain usable quality water.
"Written notice"
means notice
] actually received by the intended recipient in tangible
or retrievable form, including notice set out on paper and hand- delivered,
facsimile transmissions, and electronic mail transmissions.
commission
] notice of its intention to plug any well or wells drilled
for oil, gas, or geothermal resources or for any other purpose over which
the
Commission
[
commission
] has jurisdiction, except
those specifically addressed in §3.100(f)(1) of this title (relating
to Seismic Holes and Core Holes) (Statewide Rule 100), prior to plugging.
The operator shall deliver or transmit the written notice to the district
office on the appropriate form.
commission
] rules.
commission's
] approval
of such application to complete the plugging operations. The application shall
be made on the form prescribed by the
Commission
[
commission
]. In all cases, the operator responsible for plugging the well shall
place all cement plugs required by this rule up to the base of the usable
quality water strata.
commission
] or its
delegate may administratively grant an extension of up to one year of the
deadline for plugging a well that is operated by an unbonded operator and
has been inactive, without a return to active operation, for a period of less
than 36 months if the following criteria are met:
and transfer wells
].
that is being transferred to an unbonded operator or
] that is operated
by an unbonded operator and has been inactive, without a return to active
operation, for a period of 36 months or longer if the criteria set out in
subclauses (I)-(IV) of subsection (b)(2)(A)(i) of this section are met, and,
in addition:
face amount of the estimated plugging cost of the well
for which a plugging extension is requested. The estimated plugging cost for
wells for which a plugging extension is sought will be presumed to be as follows:
]
organizational
] financial
security
[
assurance
] in the form of
an individual performance bond, blanket performance bond
,
[
or
] letter of credit
, or cash deposit
as provided in §3.78
of this title (relating to Fees, Performance Bonds, and Alternate Forms of
Financial Security Required to be Filed) (Statewide Rule 78) will be granted
a one-year plugging extension for each well it operates that has been inactive
for 12 months or more at the time its annual organizational report is approved
by the Commission if the following criteria are met:
commission
] or its delegate may require alternate
methods of testing if the
Commission
[
commission
] deems
it necessary to ensure the well does not pose a potential threat of harm to
natural resources. Alternate methods of testing may be approved by the
Commission
[
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.
commission
] in Austin. Test results shall be filed on a
Commission-approved
[
commission-approved
] form, within 30
days of the completion of the test. Upon request, the operator shall file
the actual test data for any mechanical integrity or fluid level test that
it has conducted.
commission
] or its delegate may require the operator to perform
testing more frequently to ensure that the well does not pose a threat of
harm to natural resources. The
Commission
[
commission
]
or its delegate may approve less frequent well tests under this subparagraph
upon written request and for good cause shown provided that less frequent
testing will not increase the threat of harm to natural resources.
of inactive wells. An unbonded operator seeking to assume operatorship
of a well that has been inactive for 12 months or longer and has not been
returned to active operation must obtain a plugging extension under the terms
of §3.14(b)(2)(B) before the transfer of operatorship can be approved.
]
commission
] may plug
or replug any dry or inactive well as follows:
commission
] has sent
notice of its intention to plug the well as required by §89.043(c) of
the Texas Natural Resources Code; and
commission
] has issued
a final order requiring that the operator plug the well and the order has
not been complied with; or
commission
] may seek
reimbursement from the operator and any other entity responsible for plugging
the well for state funds expended pursuant to paragraph (4) of this subsection.
commission-approved
] operator designation form filed on or after September 1, 1997, is
responsible for properly plugging the well in accordance with this section
and all other applicable
Commission
[
commission
] rules
and regulations concerning plugging of wells.
commission-approved
] operator designation form
was filed prior to September 1, 1997, the entity designated as operator on
that form is presumed to be the entity responsible for the physical operation
and control of the well and to be the entity responsible for properly plugging
the well in accordance with this section and all other applicable
Commission
[
commission
] rules and regulations concerning plugging of
wells. The presumption of responsibility may [
only
] be rebutted
only
at a hearing called for the purpose of determining plugging responsibility.
commission
] rules in each
Commission
[
commission
] district.
commission
] rules.
commission
] rules.
The designation may be revoked or suspended administratively by the assistant
director of well plugging for violations of
Commission
[
commission
] rules if:
commission
] rules and all requirements for retention
of designation as an approved cementer; and
commission
].
commission
] or its delegate may require
additional plugs.
commission
] rule, order, license, permit, or certificate relating to
safety or the prevention or control of pollution.
commission
] order finding
a violation has been entered and all appeals have been exhausted; or
commission
] and the organization relating to a violation has been entered;
and
commission
] rules, orders, licenses, permits, or certificates have not been paid;
or
commission
] relating to the violation
of such
Commission
[
commission
] rules, orders, licenses,
permits, or certificates have not been paid.
commission
] a nonrefundable
fee of:
$100
] if the proposed total
depth of the well is 2,000 feet or less;
$125
] if the proposed total
depth of the well is greater than 2,000 feet but less than or equal to 4,000
feet;
$150
] if the proposed total
depth of the well is greater than 4,000 feet but less than or equal to 9,000
feet; or
$200
] if the proposed total
depth of the well is greater than 9,000 feet.
$50
] when requesting that the
Commission
[
commission
] expedite the application for a permit to drill,
deepen, plug back, or reenter a well.
(6)
] With each application for
an oil and gas waste disposal well permit, the applicant shall submit to the
Commission
[
commission
] a nonrefundable fee of $100 per well.
(7)
] With each application for
a fluid injection well permit, the applicant shall submit to the
Commission
[
commission
] a nonrefundable fee of
$200
[
$100
] per well. Fluid injection well means any well used to inject fluid
or gas into the ground in connection with the exploration or production of
oil or gas other than an oil and gas waste disposal well.
(8)
] With each application for
a permit to discharge to surface water other than a permit for a discharge
that meets national pollutant discharge elimination system (NPDES) requirements
for agricultural or wildlife use, the applicant shall submit to the
Commission
[
commission
] a nonrefundable fee of
$300
[
$200
].
(9)
] If a certificate of compliance
has been canceled, the operator shall submit to the
Commission
[
commission
] a nonrefundable fee of $100 before the
Commission
[
commission
] may reissue the certificate pursuant to §3.58
of this title (relating to Oil, Gas, or Geothermal Resource Producer's Reports)
(Statewide Rule 58).
(10)
] With each application for
issuance, renewal, or material amendment of an oil and gas waste hauler's
permit, the applicant shall submit to the
Commission
[
commission
] a nonrefundable fee of $100.
(11)
] With each Natural Gas Policy
Act (15 United States Code §§3301-3432) application, the applicant
shall submit to the
Commission
[
commission
] a nonrefundable
fee of
$150
[
$50
].
(12)
] A check or money order for
any of the aforementioned fees shall be made payable to the
Railroad
Commission
[
state treasurer
] of Texas. If the check accompanying
an application is not honored upon presentment, the permit issued on the basis
of that application, the allowable assigned, the exception to a statewide
rule granted on the basis of the application, the extension of time to plug
a well, or the Natural Gas Policy Act category determination made on the basis
of the application may be suspended or revoked.
(c)
] Financial security
and
alternate forms of financial security
. Any person, including any firm,
partnership, joint stock association, corporation, or other organization,
required by Texas Natural Resources Code, §91.142, to file an organization
report with the
Commission
[
commission
] must also file
[
a performance bond or alternate form of
] financial security
in one of the following forms
[
. A person may choose to file
]:
$100, if
]
commission
] an acceptable record of compliance with all
Commission
[
commission
] rules, orders, licenses, permits,
or certificates that relate to safety or the prevention or control of pollution
for the previous 48 months and the person has no outstanding violations;
and
[
additionally,
]
3.0%
] of the
face amount of the performance
bond that otherwise
would be required; or
a first lien on tangible personal property associated with oil
and gas production whose salvage value equals the value of the bond that otherwise
would be required
].
(e)
] Forms for financial security.
Operators shall submit
[
Performance
] bonds [
, liens,
] and letters of credit [
shall be submitted
] on forms prescribed
by the
Commission
[
commission
].
(f)
] Filing deadlines for financial
security.
Operators shall submit required
[
Performance bonds
or an alternate form of
] financial security [
shall be filed
]
at the time of filing an initial organization report or upon yearly renewal
, or as required under subsection (m) of this section
.
(g)
] New [
well
] operators.
A person filing an organization report for the first time [
in order to
operate wells
] is a new organization and is not eligible to file an
individual
performance
bond for the first year of operation.
(h)
]
Amount of bond, letter
of credit, or cash deposit
[
Bond amount
].
required to file a bond
] who operates
one or more wells may file an individual
performance
bond
, letter of credit or cash deposit
in an amount equal to $2.00 for each
foot of
total
well depth for each well
, plus an additional
amount to be determined by the Commission in a subsequent rulemaking for each
bay and offshore well operated
.
required to file
a bond
] may file a blanket bond
, letter of credit or cash deposit
to cover all wells [
and other commission-regulated operations
] for which a bond
, letter of credit or cash deposit
is required
in an amount equal to the sum of
[
as follows
]:
a person who operates
10 or fewer wells or performs other operations shall file a $25,000 blanket
bond;
]
a person who operates more than 10 but fewer than 100 wells shall file a $50,000
blanket bond; and
]
a
person who operates 100 or more wells shall file a $250,000 blanket bond
].
Bond
] amounts
are the minimum amounts required by this section to be filed. A person may
file [
a bond in
] a greater amount if desired.
(j)
] Bond Conditions.
Any
financial security
[
Each performance bond
] required under
this section is subject to the conditions that the
operator
[
principal
] will plug and abandon all wells and control, abate, and clean
up pollution associated with the oil and gas operations and activities covered
under the
required financial security
[
bond
] in accordance
with applicable state law and permits, rules, and orders of the
Commission
[
commission
].
(2)
A person that filed an initial organization
report less than 48 months prior to the current filing is not eligible to
choose to file the nonrefundable fee of $100 under subsection (c)(3) of this
section.]
(p)
] Reimbursement liability. Filing
any
[
a bond or alternate
] form of financial security does
not extinguish a person's liability for reimbursement for the expenditure
of state oilfield clean-up funds pursuant to the Texas Natural Resources Code, §89.083
and §91.113.
(r)
] Financial security for commercial
facilities. The provisions of this subsection shall apply to the holder of
any permit for a commercial facility.
commission
]; and
commission
]
the information specified in subparagraph (A)(i)-(iii) of this paragraph.
commission
].
commission
] or its delegate
under this subsection and meeting the requirements of this subsection as to
form and issuer has been filed with the
Commission
[
commission
].
commission
] or its delegate
under this subsection and meeting the requirements of this subsection as to
form and issuer has been filed with and approved by the
Commission
[
commission
] or its delegate.
commission
] or
its delegate may authorize a commercial facility permitted before the
original
effective date of this subsection to continue to receive oil
field fluids or oil and gas waste after one year after the
original
effective date of this section even though financial security required under
this subsection has not been filed. In the event the
Commission
[
commission
] or its delegate has not taken final action to approve
or disapprove the amount of financial security proposed to be filed by the
owner or operator under this subsection one year after the
original
effective date of the section, the period for filing financial security under
this subsection is automatically extended to a date 45 days after such final
Commission
[
commission
] action.
commission
] or its delegate as being equal to
or greater than the maximum amount necessary to close the commercial facility,
exclusive of plugging costs for any well or wells at the facility, at any
time during the permit term in accordance with all applicable state laws,
Commission
[
commission
] rules and orders, and the permit,
but shall in no event be less than $10,000.
commission
] as required
under paragraph (1) of this subsection.
reclaiming tank bottoms, other hydrocarbon wastes, and
other waste materials
]) that does not utilize on-site waste storage
or disposal that requires a permit under §3.8 of this title (relating
to
Water Protection
[
water protection
]) is exempt from
subparagraph (D) of this paragraph.
commission
] to pay the
costs of plugging any well or wells at the facility if the financial security
for plugging costs filed with the
Commission
[
commission under
subsection (c) of this section
] is insufficient to pay for the plugging
of such well or wells.
commission
] or its delegate.
§§5.101-5.117
]. The letter of credit shall provide that it
will be renewed and continued in effect until the conditions of the letter
of credit have been met or its release is authorized by the
Commission
[
commission
] or its delegate.
Chapter 11.
SURFACE MINING AND RECLAMATION DIVISION
Other locations will be decided on a case by case basis.
]
Chapter 20.
ADMINISTRATION
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION
Part 9.
TEXAS LOTTERY COMMISSION