Railroad Commission of Texas

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Railroad Commission of Texas Region 6 Response Team Presentation Peter Cleanup G. Pope, Rules P.G., Aimee Beveridge, P.G. Site Remediation Section Railroad Commission of Texas 1

Shale Play Map US *from EIA updated 9 May 2011 2

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Texas Pipelines June 2012 4

Texas field production of crude oil over time 2012 production = 734 Million Barrels Source: http://www.eia.gov/dnav/pet/hist/ 5

Eagle Ford Drilling Permits 6

Eagle Ford Shale Play 7

Permian Basin Drilling Permits issued 2012 9,630 Drilling Permits issued 2013 3,380* *as of 5/6/2013 8

Statewide Rule 8 Amended SWR 8(b): No pollution. No person conducting activities subject to regulation by the commission may cause or allow pollution of surface or subsurface water in the state. Amended April 2013 Encourage water conservation Authorizes non-commercial fluid recycling Streamlines permitting requirements Improve safety in waste hauling. 9

Rule 8: Waste Hauler vehicles must be appropriate for the waste type being transported. 10

RRC Upcoming Rule Making Activities Casing, Cementing and Completions 16 TAC 3.13 Update standards to ensure protection of underground sources of drinking water. Update requirements for fractured wells when formation top is less than 1,000 ft. Adopted May 24, 2013 Injection/Disposal Wells 16 TAC 3.9 and 3.46 Clarify existing requirements (notice, amendments) Require all wells in area of review to have cement across permitted interval No automatic transfers of commercial permits

Rule 36 Hydrogen sulfide Rule 36 is designed to protect the public from the hazards of hydrogen sulfide gas in oil and gas Operations. RRC Statistics on H 2 S as of Nov 2012 Number of Facilities with H2S Contingency Plans 3,224 Number of H2S Gas Wells 11,492 Number of H2S Oil Wells 191,238 Number of Sweetening Gas Plants 248 Number of H2S Gas Pipelines 310 http://www.rrc.state.tx.us/data/fielddata/h2s/swr36statistics.pdf 12

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RRC Statewide Rule 20 Release Notification Rule Operators shall give immediate notice of a fire, leak, spill, or break to the appropriate commission district office. Notice shall be followed by a letter with full description of the event, volume of crude oil, gas, geothermal resources, other well liquids, or associated products lost. 15

Shell 16 Pipeline Release to Vince Bayou, Pasadena, TX Volume Lost: approximately 1,000 barrels of crude oil 3/29/2013 Shell control center detected a drop in pipeline pressure. The pipeline was shutdown, valves closed and isolated. Pumped fresh water into isolated pipeline to find release. 3/30/2013 Ground and aerial surveys were conducted but no leak/spill located. 04/03/13 Shell discovered oil in Vince Bayou. Sheen was contained by a berms and hard booms to prevent the crude from flowing into Buffalo Bayou, which flows into the Houston Ship Channel. Cleanup in water overseen by GLO, on land by RRC. EPA and Coast Guard involved. 04/07/2013 Continue recovery of oil and remote air monitoring along pipeline ROW 4/15/2013 Excavation discovery of 5 inch break along a weld. Initiation of a slurry wall to contain the oil. Removal of impacted soil and placement of boom continues. Pipeline repairs compete, line hydrostatically tested, site is in remediation phase.

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Source: parting of pipe weld 18

Sunoco 8 Crude Oil Gathering Line Release to Otter Creek, Chester, Tyler County Volume: approximately 550 bbls of crude oil to Otter Creek and Russell Creek NRC Incident Report: 1039285 2/23/2013 Landowner finds oil in Otter Creek, spill reported to NRC by County Constable at 16:48 2/23/2013 EPA, RRC, TCEQ, TPWD onsite with Sunoco on the day of the release. 2/24/2013 Pipeline release is isolated, vacuum trucks in use. 2/25/2013 Leak repaired. Cleanup crew of 121 manually removing oil. Skimming of oil at the source. Activities included placement of soft boom, hard boom, flushing, and manual removal of impacted vegetation. Insitu burn not a viable option because of dry conditions. Source has been excavated. Assessment of surface water and sediment. 19

Release Point 20

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State Managed Well Plugging FY 2013 Completed Pluggings: Bay and Offshore 30 wells, $8.4 MM Statewide 548 wells, $16.6 MM As of May 20, 2013 23

State Managed Cleanup Program Site Remediation Biennium Contractual Budget, Goals, and Performance Measures Budget FY12: $5.3 MM FY 13 Projected: $4.3 MM Goals FY12: 253 cleanup activities FY 13 Projected: 243 cleanup activities 24

State Managed Cleanup Program FY 2013 Completed Cleanups: - 127 sites - $2.17 MM As of May 23, 2013 25

Active Operator Cleanups by District 39 134 20 24 16 52 56 125 591 Operator Cleanup Program Projects As of 25 Feb 2013 126 26

NEW Public GIS Map Viewer for Oil, Gas and Pipeline Data Map View of Operator Cleanup Program sites Select Identify Operator Cleanup Site under Map Tools Pop-up box with Site identification. http://www.rrc.state.tx.us/data/online/gis/index.php# 27

Public GIS Map Viewer OCP ID 1774 SITE NAME Chapman Ranch STATUS Active COUNTY Nueces DISTRICT 04 LATITUDE 27.6275 LONGITUDE -97.50194 28

RRC Brownfields Program U.S. Environmental Protection Agency State Brownfields Program Offer free Assessments and Cleanup to local governments, non-profits, schools, churches Brownfields Certificate of Completion Helping local communities!

Contact Peter G. Pope, Site Remediation Section, RRC 512-463-8202 Powered by Longhorns 30