2018 Alliance Expo and Annual Meeting

April 24 - 25, 2018 Wichita Falls

RRC Discusses Updates to Statewide Rule 40

The RRC of Texas continues to adapt its regulations to accommodate new technology, industry innovation and unconventional drilling.  Brian Miller (Miller Consulting), Alliance RRC Chairman, and Caleb Troxclair, Alliance legal consultant, represented the Alliance at a meeting with members of the RRC staff, and industry representatives to discuss SWR 40 and the implications on designated depth interval leases.

The meeting was held on August 01, 2017 in Austin, Texas to discuss how Statewide Rule 40 can address the situation where there now exists three or more designated depth interval leases under the same surface acreage in the same Field.  This is now occurring in the Spraberry (Trend Area) Field area where the Commission has previously designated both the Spraberry (Trend Area) Field and the Spraberry (Trend Area) R 40 EXC Fields.  These two field designations currently provide placement of wells within two different designated depth intervals beneath the same surface acreage.  With a third or more lease depth intervals now being secured there currently is not a method for permitting these additional lease intervals when both the Spraberry (Trend Area) Field and Spraberry (Trend Area) R 40 EXC Fields are both being utilized.  Discussions are now being conducted to find a solution for this permitting issue.

 

If you have questions and/or input, please contact the Alliance through John Tintera at johnt@texasalliance.org or Brian Miller at brian@milconinc.com