RRC Holiday Office Closure

The Railroad Commission of Texas will be closed Wednesday, November 27 and remain closed on Thursday, November 28 and Friday, November 29 in observance of the Thanksgiving Holiday. The agency will reopen for regular business at 8 a.m. on Monday, December 2.

News

Wayne Christian's Press Room

News Items - 2020

  • Christian: Congress Should Stop Playing Politics with Covid-19 Relief

     December 22, 2020

    AUSTIN – Commissioner Wayne Christian issued the statement below in response to Congress tying much needed COVID-19 relief to the end-of-the year omnibus spending bill:

    It is unconscionable for Nancy Pelosi and leaders in Congress to hold COVID -19 relief hostage in order to fund their pet projects and give special interests everything on their wish list for Christmas.

    Because of COVID-19 and government-mandated closures, millions of Americans are suffering this holiday season. Instead of doing the right thing and working together in a bipartisan manner to pass a clean relief package, Congress tied pandemic relief to a wasteful spending bill that funds the pet projects of every special interest group in Washington, D.C.

    Representatives and senators (and their staff) were given six hours to read the 5,600 page legislation before they were expected to vote. They were never expected to read it. No, they were simply expected to step in line to avoid being shamed for voting against relief for their constituents.

    All of the money in this bill could have been used to support small businesses and get Americans back on their feet. Instead, we are sending $700 million to Sudan and instructing the Smithsonian to build two new museums.

    The legislation also includes what climate alarmists are calling a “down payment on climate change action” by spending $35 billion on additional energy subsidies for already heavily subsidized forms of energy like wind and solar. How heavily subsidized? When looking at federal taxpayer subsidies per unit of electricity generated between 2010 and 2019, oil and natural gas received 39 cents for every $82.46 that solar received, and every $18.86 that wind received.

    Whether you support these subsidies or not, now is not the time to increase them. It is estimated that almost 22 million Americans are unemployed; we could have helped them instead of propping up inefficient forms of energy. For context, $35 billion is enough money to provide 58.3 million Americans with an additional $600 stimulus check.

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June 2019, Christian was elected by his fellow commissioners to lead the agency as Chairman, a position he held until September 2020. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren.

  • RRC Commissioner Wayne Christian Selected as Vice Chairman of Interstate Oil and Gas Compact Commission

     November 16, 2020

    AUSTIN – Over the last couple weeks, Railroad Commissioner Wayne Christian participated in the Interstate Oil and Gas Compact Commission (IOGCC) virtual annual meeting. At the meeting, Christian was selected to be Vice Chairman of the Commission, serving under Oklahoma Governor Kevin Stitt.

    “I am honored to enter this new leadership role for our nation’s oldest and most respected energy compact commission,” said Christian. “I look forward to using my role to advocate on behalf of consumers and oil and gas industry that face unprecedented challenges due to COVID-19 and unjustified political attacks.”

    “We have the reserves. We have the technology. We have the long-term demand,” continued Christian. “From the so-called Green New Deal to the Environmental, Social and Governance investment movement, the oil and gas industry’s primary issues are almost entirely political.”

    Christian wasn’t the only person from the Railroad Commission of Texas (RRC) with a leadership role in IOGCC’s annual convention. Christian’s Chief of Staff, Travis McCormick, hosted guest speaker Alex Epstein (New York Times bestselling author of the Moral Case for Fossil Fuels) as Chairman of the Public Outreach Committee. RRC Chief Geologist, Leslie Savage, hosted guest speaker Ivan Wong (Senior Principal Seismologist, Lettis Consultants International) as Chairman of the Environment and Safety Committee.

    At the meeting, Nancy Johnson with the Department of Energy (DOE) announced the release of a new report titled, “U.S. Oil and Natural Gas: Providing Energy Security and Supporting Our Quality of Life.” Johnson credited Commissioner Christian as one of the impetuses behind the decision to draft the report. The DOE report can be found here.

    The report’s key takeaways include that the increased production of domestic oil and gas:

    • Creates a significant savings to consumers
    • Increased revenue for state and local governments
    • More well-paying American jobs
    • Revitalization of U.S. chemical manufacturing
    • The creation of a world-class domestic LNG and crude export industry
    • Reduced environmental footprint from increased production of natural gas with lower impact extraction technologies
    • Enhanced national security

    In April 2017, Governor Greg Abbott appointed Christian the official representative of Texas to IOGCC. The IOGCC is one of the oldest and largest interstate compacts in the nation, formed more than 80 years ago when several states joined together to resolve common issues in the industry without federal intervention. Membership currently consists of 31 oil producing states.

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June 2019, Christian was elected by his fellow commissioners to lead the agency as Chairman, a position he held until September 2020. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren.

  • RRC’s Commissioners Take Action to Reduce Flaring by Oil and Gas Industry

     November 09, 2020

    AUSTIN – Commissioners for the Railroad Commission of Texas took a critical step on Wednesday, Nov. 4 toward further reducing flaring from oil and gas sites in the state.

    The agency’s commissioners approved a revamped Form R-32, Application for Exception to Statewide Rule 32, which had previously been titled Statewide Rule 32 Exception Data Sheet and will be used by oil and gas operators to apply for an exception to flare gas during oil and gas operations. The form provides specific guidance on when an exception to flare would be permissible, under which circumstances, and for how long.

    The commissioners’ action made changes to the application for flaring exceptions, not to the state’s flaring rule (Statewide Rule 32). On Aug. 4, commissioners voted to publish a proposed version of the application for public comment. RRC staff received and considered 26 sets of comments from individuals, operating companies, industry associations, trade groups, and nongovernmental organizations.

    Based on the public comments received,  changes were made to how information was organized on the proposed form and improved instructions, while maintaining key data that the Railroad Commission will receive from oil and gas operators as proposed in August. Form R-32 will:

    • In many cases, reduce the period of time an operator may obtain an administrative exception to flare gas. For certain exceptions, the duration may be reduced by 50% to 80%.
    • Provide incentives for operators to use technologies to reduce the amount of gas flared.
    • Require operators to submit more specific information to justify the need to flare or vent gas in accordance with Commission rules.
    • Provide additional key datapoints to facilitate compliance audits with reported production.

    “Wednesday’s approval of the newly revised Form R-32 is a great step forward for the energy industry in Texas,” said RRC Chairman Christi Craddick. “I am thankful for Commissioner Christian’s leadership on this effort and for the hardworking staff that made this successful.”

    “Texans demand transparency and innovation from all levels of government,” said Commissioner Ryan Sitton, “and this form will help collect more accurate data as we assess the role of flaring and look for ways to reduce it going forward.”

    “Texas has done a tremendous job reducing flaring this year, flaring less than a half a percent of gas produced in May 2020,” Commissioner Wayne Christian said. “This form change is a big and important step towards minimizing routine flaring in Texas, allowing our agency to collect the information it needs to better determine who is following the rules when it comes to flaring and who is not.”

    Form R-32 will be part of the Commission’s development of a Rule 32 computer program, which will facilitate the online submission of flaring requests and provide the agency with a better mechanism for compliance audits and data analytics.

    Until the Rule 32 program is online, which is targeted for the spring, operators will be able to use either the current application for exceptions to flaring or the new Form R-32.

  • Christian: Texas Taxpayers Not on the Hook to Pay for Old Oil and Gas Wells

    Claims about plugging of wells off base, inaccurate     October 16, 2020

    Imagine if your line of work was only talked about in a negative way. Accountants are all money launderers, teachers are all lazy, and bankers are all greedy. This is how the oil and gas industry is often written about. It seems that every week there is yet another “study” by some unknown nonprofit group or “think” tank that presents sensationalized information with the intent of painting an inaccurate and unflattering image of the oil and gas industry for the public.

    On Oct. 1, a report by Carbon Tracker claimed that Texas taxpayers could be on the hook to pay $117 billion to fix old oil and gas wells. What an incredible number! This reminds me when environmentalists famously predicted millions would die from starvation in the 1980s or entire nations could be “wiped out” by 2000 because of global warming. Let us get to the truth.

    When a well no longer produces oil or gas, the operator of that well is required by law to plug it with concrete to prevent the well from polluting land or groundwater. Most oil and gas wells are plugged by their operators in accordance with the law. For example, in Fiscal Year 2020 (from Sept. 1, 2019 to Aug. 31, 2020), the oil and gas industry plugged 7,375 wells without the use of any state funds.

    However, some operators do not follow the law. When this happens, the well becomes orphaned. An orphaned well is eventually plugged by the Railroad Commission of Texas (RRC), but this does not mean that taxpayers pay for that well to be plugged. When an operator applies for a drilling permit from the RRC, they must provide financial security – a bond or letter of credit – that the RRC will use to plug wells that an operator abandons. The oil and gas industry also pays millions of dollars in fees to the RRC every year, some of which are used to plug orphaned wells.

    The Commission takes our responsibility to protect public safety and the environment very seriously, including our job to plug orphaned wells. The RRC’s State Managed Plugging Program plugged 1,477 in FY 2020. For the last four years, the program has exceeded targets set by the Texas Legislature.

    Also, let’s not pretend that the oil and gas industry is the only source of energy with clean-up costs. An oil or gas well produces for around 50 years and costs between $15,000 to $20,000 to plug. It costs around $200,000 to decommission a wind turbine that could operate for as little as 20 years. That is ten times the cost for 30 years less production! In fact, it could cost $2.3 billion to decommission the 12,000 wind turbines in Texas. And taxpayers could be on the hook for that cost because wind power companies aren’t required to provide financial assurance to cover cleanup costs.

    Like any industry, the oil and gas industry has some bad apples, but the truth is most operators are responsible and fulfill their legal obligations and plug their wells. If that does not occur, the RRC plugs the wells using operator funds. And that’s the truth.

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June 2019, Christian was elected by his fellow commissioners to lead the agency as Chairman, a position he held until September 2020. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren. 

  • RRC Commissioners Assess More Than $400,000 in Penalties

     September 03, 2020

    AUSTIN – The Railroad Commission of Texas assessed $401,391 in fines involving 152 enforcement dockets against operators and businesses at the Commissioners’ Conference on September 1. The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

    Operators were ordered to come into compliance with Commission rules and assessed $40,441 for oil and gas, LP-Gas or pipeline safety rule violations. Pipeline operators and excavators were assessed $360,950 for violations of the Commission’s Pipeline Damage Prevention rules. 
    Details on all these Master Agreed Orders can be found on the RRC website here.

    In the absence of timely motions for rehearing, decisions are final as stated in these final orders.

  • RRC Commissioners Take Major Step to Help Address Oil and Gas Flaring

     August 04, 2020

    AUSTIN– Railroad Commission of Texas commissioners today voted to approve draft changes to the Application for Exception to Statewide Rule 32. The changes play a large role in ongoing efforts at the Commission to reduce the amount of flaring in the oil and gas industry in the state.

    At today’s Conference, Railroad Commission staff also discussed a recent positive trend that has been occurring with the rate of flaring. While the amount of gas produced in Texas declined by 13 percent from June 2019 to May 2020, the portion of produced gas that was flared dropped even more sharply by 79% during that same time period. Staff will continue analyzing flaring trends in the coming months.

    There are several proposed modifications to the Statewide Rule 32 application, which include, but are not limited to the following:

    • The period of time for which an operator may obtain an administrative exception to flare gas will be reduced in many cases. For certain exceptions, the duration may be reduced by 50% to 80%.
    • Provide incentives for operators to use technologies to reduce the amount of gas flared.
    • Operators must provide more specific information to justify the need to flare or vent gas in accordance with Commission rules.
    • Flares would be related to specific production properties to facilitate compliance with reported production.

    Tracking the new information and data points will be valuable in any future efforts to tailor policy that addresses flaring.

    “Today, we took an important first step in ensuring we have the data necessary to get an accurate view of the scope of flaring in Texas,” said Chairman Wayne Christian.

    “Since the downturn, the rate of flaring has gone down with more than 99.5 percent of the gas produced in the month of May sold and beneficially used to generate electricity, cook dinner, or make hundreds of consumer products. Now is the opportune time to implement meaningful recommendations to reduce flaring before oil and gas production climbs back to previous highs.” said Chairman Wayne Christian.

    “I sincerely appreciate the hard work that has gone into making these significant changes and look forward to receiving feedback during the public comment period,” said Commissioner Christi Craddick.

    “I am pleased with the progress we are making toward significant flaring reductions in Texas. The comprehensive IT upgrade will continue to be a priority of the Commission to ensure the availability of reliable and transparent data.” said Commissioner Christi Craddick.

    “Flaring is a byproduct of production, but that doesn’t mean it’s not an issue that’s worth examining more closely,” said Commissioner Ryan Sitton.

    “That’s why I undertook the first systematic study of flaring in Texas and how our volumes compare with other major energy producers. I’m glad the Railroad Commission of Texas is stepping up and continuing to lead.” said Commissioner Ryan Sitton.

    The proposed changes include RRC staff’s analysis of a Blue Ribbon Task Force report on best practices to reduce flaring.

    The draft changes are open for a 30-day comment period and can be found on the RRC website. Commissioners will need to approve a final version of the form at a future meeting before it goes into effect.

    More actions are in the works to aid RRC’s work on flaring. The agency is working to improve reporting to get a better picture of how much gas is flared or vented and the specific reasons for doing so.

    The agency is also developing an integrated online system that will allow flaring information from different types of users, such as inspectors in the field or technical specialists in Austin, to be accessible in one place.

    Oil and gas production is a critical industry that fuels our lives and provides us with many everyday products that we depend upon, and has helped recent energy independence for the United States.

    Methane emissions related to the extraction of crude oil and natural gas have gone down by 23 percent since 1990, according to the EPA’s 2020 Inventory of U.S. Greenhouse Gas Emissions and Sinks.

    And, despite considerable growth in the Texas oil and gas industry between 2003-2018, the EPA’s 2018 Toxics Release Inventory, published in 2020, shows a 42 percent drop in the release of toxic air chemicals over the same period in the state.

     

  • Christian Passes National Resolution Condemning Oil Dumping

     July 21, 2020

    AUSTIN — The Interstate Oil and Gas Compact Commission (IOGCC) this week passed Railroad Commission Chairman Wayne Christian’s (R – Texas) resolution urging the federal government to investigate excessive dumping of crude oil by Saudi Arabia and Russia and take appropriate action.

    You can read the Chairman’s resolution here.

    “For much of 2019 and early 2020, Saudi Arabia shipped relatively little crude to America, with average arrivals running at about 475,000 barrels a day,” said Christian. “After the COVID-19 pandemic crippled the U.S. oil and gas industry, Saudi Arabia shipped 1.3 million barrels a day to our nation, roughly four times February’s daily volume and the highest figure since 2014.”

    “Flooding the market during ongoing negotiations with President Trump and the international community is disingenuous,” continued Christian. “More than 100,000 oil and natural gas jobs in the United States have been lost according to Rystad Energy Group. Our federal government must push back against international efforts that harm American energy dominance.”

    While discussing the resolution, Christian emphasized that the United States produced a record 12.4 million barrels in August 2019, making our nation the top producer in the world and leading to economic growth, new jobs, energy sovereignty, and greater national security.

    The IOGCC is a multi-state government agency that works to ensure our nation's oil and natural gas resources are conserved and maximized while protecting public health, safety and the environment. IOGCC was created more than 80 years ago when six states joined together to resolve common issues and share best practices for industry regulation to minimize federal intervention. Christian was appointed by Gov. Greg Abbott as Texas’ official representative to IOGCC in April 2017 and currently serves on several committees, including as Chairman of the Nominating Committee.

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren.

  • Blue Ribbon Taskforce Unveils Plan to Curtail Flaring

     June 16, 2020

    AUSTIN – Today, the Railroad Commission of Texas heard from the state’s oil and gas trade associations, environmental advocacy groups, and several oil and gas producers about the issue of flaring and how Texas can implement meaningful reforms to reduce flaring before oil and gas activity returns to previous highs.

    “I am very concerned by the rate of flaring in Texas,” said Chairman Christian. “We cannot continue to waste this much natural gas and allow the practice of flaring to tarnish the reputation of our state’s thriving energy sector to the general public and investors on Wall Street.”

    Commissioners heard testimony from Trammell Crow (EarthX), Cyrus Reed (Sierra Club), Colin Leyden (Environmental Defense Fund), Kirk Edwards (Latigo Petroleum), Stephanie Reed (Parsley Energy), Mike Starrett (Occidental Petroleum), Ben Sheppard (Permian Basin Petroleum Association), Jason Modglin (Texas Alliance of Energy Producers), Ed Longanecker (Texas Independent Producers and Royalty Owners Assoc.), and Todd Staples (Texas Oil and Gas Assoc.). You can view today’s testimony here (Timecode: 1:05:40).

    During the meeting, trade associations involved in the Blue Ribbon Taskforce for Oil Economic Recovery unveiled their report titled ‘Flaring Recommendations & Best Practices’. You can read the full report here. Recommendations include reducing the time an administrative approval can be provided for flaring by 50% and providing much greater clarity on data submissions to improve the information we have on flaring in the state.

    After hearing the invited testimony, Chairman Christian instructed commission staff to consider the information provided by all parties to come up with a plan of action for addressing flaring this fall.

    “The Texas oil and gas industry is resilient and has led our nation to American energy dominance,” said Christian. “I have faith we can meet this challenge and ensure the lone star state sets an example for the rest of the world.”

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren. You can learn more about Commissioner Christian here:/about-us/commissioners/christian/.

  • RRC Commissioners Assess $800,000 in Penalties

     May 07, 2020

    AUSTIN – The Railroad Commission of Texas assessed $801,781 in fines involving 146 enforcement dockets against operators and businesses at the Commissioners’ Conference on May 5. The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

    Twenty-one dockets involved$386,847 in penalties after operators failed to appear at Commission enforcement proceedings.  Details on these Master Default Orders can be found on the RRC website here.

    Operators were ordered to come into compliance with Commission rules and assessed $137,934 for oil and gas, LP-Gas or pipeline safety rule violations. Pipeline operators and excavators were assessed $277,000 for violations of the Commission’s Pipeline Damage Prevention rules. Details on all these Master Agreed Orders can be found on the RRC website here.

    In the absence of timely motions for rehearing, decisions are final as stated in these final orders.

  • Christian Votes No on Proration

    Provides Regulatory Relief to Industry     May 05, 2020

    AUSTIN – Today, the Railroad Commission of Texas (RRC) hosted a virtual open meeting where the commissioners discussed common carrier pipeline and refinery storage capacity, the report produced by the Blue Ribbon Task Force for Oil Economic Recovery, and proration.

    In response to Chairman Christian’s request at the April 21st Open Meeting, the RRC received reports from 19 refineries and 70 common carrier pipelines regarding their unfilled storage capacity figures. The refineries reported having 18,414,733 barrels capacity remaining and the pipelines reported having 52,770,925 barrels of capacity remaining.

    Next, the Blue Ribbon Task Force for Oil Economic Recovery presented their report outlining steps the Railroad Commission of Texas and other government entities could take to provide industry relief during the current oil and gas downturn. The Task Force focused on operations, permitting, timelines, tax policy and deadlines, storage capacity, and pipeline capacity, among other issues, and assembled the attached recommendations for the Commission’s consideration.

    You can read the report here.

    “I want to thank the task force for their long hours identifying solutions in such a short period of time,” said Christian. “This is what makes me proud of Texas: The business community working together to solve problems by developing solutions.”

    In response to the report and staff recommendations, Chairman Christian offered and passed two orders suspending certain fees and creating an exception to Rule 95 to allow underground oil storage in alternative formations. You can read the orders here.

    Prior to the meeting, Christian sent letters to the various agencies and legislative bodies mentioned in the report, encouraging them to review it and determine whether or not they can implement any of the relief outlined.

    In an editorial in the Houston Chronicle last week (read that here), Chairman Christian announced he would not vote in favor of government mandated cuts to oil production. During the meeting, he presented a motion to dismiss Pioneer and Parsley Energy’s verified complaint to determine reasonable market demand for oil in the State of Texas. The motion passed 2-1.

    “Over the past few weeks it has become increasingly obvious to me that we need to restore regulatory certainty to the oil and gas industry and move past the discussion on proration,” said Christian. “This motion ensures Texas companies, rather than the government, can decide for themselves what level of production cuts make sense for them to make while they weather the storm of market instability.”

  • ICYMI - Chairman Christian Announces His Position On Proration In Houston Chronicle Op-Ed

     April 29, 2020

    AUSTIN – Today, Chairman Wayne Christian published an op-ed in the Houston Chronicle detailing his thoughts on whether or not the Railroad Commission should “prorate” or limit the production of crude oil in Texas.

    You can read Chairman Christian’s op-ed here.

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren.

  • Christian Joins CNBC’s The Exchange:

    “Texas will rise to the occasion”     April 22, 2020

    AUSTIN – Today Railroad Commission Chairman Wayne Christian joined Kelly Evans on CNBC’s The Exchange to discuss the continued conversation on proration and his call for the industry to establish a Blue Ribbon Task Force for oil economic recovery. You can view the interview here or below.

    image of Christian speaking on CNBC

    Christian and Evans began by discussing Commissioner Ryan Sitton’s potential motion to put in place proration contingent on a number of factors, including the actions of other states.

    “We are working to find a solution as fast as possible because we don’t need the markets to continue to have uncertainty about what is going on with the regulation of oil and gas,” said Chairman Christian. “Texas will rise to the occasion — a hundred percent of the time we have faced hardship, America comes back stronger and so does Texas.”

    Christian emphasized the importance of ensuring solutions come from listening to producers and business owners, rather than simply relying on government mandated cuts. It is with this in mind that he announced the formation of the Blue Ribbon Task Force for oil economic recovery. 

    “Our task force brings industry together, large and small, from across various sectors to tell our agency how we can best assist the free market industry — rather than the government, big brother, telling them what to do,” continued Christian. “America has built the most successful energy sector in the history of the world, why should we doubt those who made this possible during a time of crisis?”

    Before closing out the interview, Evans mentioned the Saudi flotilla making its way to America. The Wall Street Journal recently reported that, "A fleet of tankers full of Saudi oil is slowly making its way to the U.S. Gulf Coast, threatening to worsen an already historic oversupply of crude. The 20 tankers holding a combined 40 million barrels of crude are still headed to ports in Louisiana and Texas, according to shipping sources and market intelligence firms Vortexa Ltd. and Kpler Inc. They are due to arrive in Texas and Louisiana through late May.” (1)

    “I have visited with Senator Ted Cruz and will visit with Senator John Cornyn tomorrow about my concerns with this flotilla that is against the intent of the OPEC agreement to cut production,” said Christian.

    (1) https://www.wsj.com/articles/flood-of-saudi-oil-looms-as-u-s-drillers-face-supply-glut-11587119400

  • Wayne Christian Discusses Proration

    And Establishment of Task Force     April 21, 2020

    AUSTIN – Today, the Railroad Commission of Texas (RRC) continued discussion on the issue of proration, ongoing relief initiatives of the agency, and the formation of a Blue Ribbon Task Force for oil economic recovery.

    Chairman Christian kicked off the discussion by inviting RRC Executive Director Wei Wang to discuss the various relief and flexibility initiatives that the agency has provided to our state's oil and gas operators, including deadline extensions for certain requirements/filings, online processing and electronic submissions, and enforcement discretions and waiver considerations. You can view the discussion here (34:30-40:03). A full list of our notice to operators can be found here.

    Next Chairman Christian announced the formation of the Blue Ribbon Task Force for Oil Economic Recovery. This task force is being led by the leadership of our state's major trade associations including the Texas Oil and Gas Association, The Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners Association, The Permian Basin Petroleum Association, The Panhandle Producers and Royalty Owners Association, and the Texas Pipeline Association. If you would like to join and offer your input, please reach out to: [email protected].

    “I want to challenge the task force to look at every aspect on what can be done at the state level to assist operators and save jobs as we endure these historic circumstances — operations, permitting, timelines, tax policy and deadlines, storage capacity expansion, pipeline capacity, market access barriers, and anything else the task force can think of that will aid the industry in managing through difficulty,” said Chairman Christian. “The goal is to save as many jobs, enable operators to survive and return to a robust level as quickly as possible.”

    Before closing out the open meeting, the commissioners revisited the issue of proration. Commissioner Sitton discussed a potential motion to put in place proration contingent on a number of factors, including the actions of other states.

    “I agree with Commissioner Sitton that if we are going to take action, time is of the essence,” said Chairman Christian. “But I also agree with Commissioner Craddick that if we are going to go down this road, it is imperative that our motion be done in a way that is lawful and does not open us up to months of litigation. Neither of these positions are mutually exclusive.”

    “As I stated in WorldOil, I have reservations that must be answered before I would consider voting to take Texas down this road," continued Christian. "With Commissioner Sitton's goal of a June 1st implementation, I think waiting to vote on the matter until May 5th gives the Commissioners two weeks to get the answers we need, see how other states act, and continue to work on other options in earnest with the federal government."

    Through his role as the Texas Representative to the Interstate Oil and Gas Compact Commission, Chairman Christian has been working closely with other states to get a feel for where they are headed on the issue of proration. Prior to the meeting this morning, he spoke with The North Dakota Director of the Department of Mineral Resources, Lynn Helms about the direction their state was going. In the last week, he has also spoken with members of the Texas Congressional delegation and representatives from the Department of Energy and the State Department.

  • Christian Joins CNBC’s The Exchange to Discuss Proration & Crude Oil Market Stability

     April 16, 2020

    AUSTIN –Yesterday, Railroad Commission Chairman Wayne Christian joined Kelly Evans on CNBC’s The Exchange to discuss the agency’s virtual meeting on proration and his thoughts on various efforts to stabilize the worldwide market for crude oil. You can view the interview here or below.

      Chairman Christian speaks on The Exchange


    “Yesterday we heard from a desperate industry. About 30,000 people in 86 countries and 49 states tuned in  to our 10 hour meeting, where we heard from over 50 witnesses on the pros and cons of prorating crude oil,” said Chairman Wayne Christian.

    “Whether or not proration is the answer, it is imperative we stabilize the international crude market to protect hundreds of thousands of Texas jobs and preserve the national security that comes with American Energy Dominance.”

    “The Railroad Commission will reconvene next Tuesday for our monthly open meeting, where we will once again discuss this issue and our various options,” continued Christian. “I will continue to visit with our officials in the Trump Administration and my fellow regulators on the Interstate Oil and Gas Compact Commission about what can be done."

  • RRC Increases Transparency in Hearings Process:

    New Online Portal Will Benefit the Public and Energy Industry     April 02, 2020

    AUSTIN – Today the Railroad Commission of Texas launched the Case Administration Service Electronic System (RRC CASES) public portal, reaching another milestone in increasing transparency of the agency’s functions. 

    For the first time, operators can file hearing cases online and the public can go online and access documents in the RRC’s hearings process. Users can search hearings dockets using a variety of criteria including case number, operator name, or RRC district.

    The Hearings Division conducts hearings and prepares recommendations on issues that need resolution in oil and gas, pipeline safety, alternative fuels safety, gas utilities, and surface mining matters within the Commission’s jurisdiction.

    RRC CASES also will be beneficial for parties involved in hearings. Parties to a docket can request to become an authenticated user. Authenticated users can upload documents for filing in a docket, which will then be reviewed for acceptance by the Hearings Division’s Docket Services.

    When Docket Services approves a document for filing, it shows up in real time on the public portal for anyone to view.

    “RRC CASES continues our efforts to make the agency more efficient and transparent,” said Railroad Commission Chairman Wayne Christian. “I am thankful for all of the hard work our staff put in to finish this project.”

    “We continue to make progress to modernize this agency saving time and money for our regulated community while increasing online access to information for the broader public,” said Railroad Commissioner Christi Craddick.

    “Texans expect our government to be responsive and transparent, and the new RRC CASES system delivers,” said Railroad Commissioner Ryan Sitton. “Texans can look up documents related to Commission hearings anytime they want, from anywhere they want, making our state government more like the private sector and fulfilling a promise I made to increase transparency at the Railroad Commission.”

    Parties or their representatives will be able to file documents and download a file-stamped copy from their offices without having to use regular mail or make a trip to the RRC. The process should be more convenient and efficient for those appearing before the Hearings Division.

    Another benefit the public portal provides is to improve the agency’s efficiency. For example, people requesting documents through the open records process can now save time and see the information on RRC CASES.

    More than 900 dockets for 2019 and 2020 are currently available on the online portal. As new dockets are created, they will be added to RRC CASES. Currently a portion of the oil and gas docket types are available in RRC CASES. By September 1, all newly requested hearings for all docket types should be created in RRC CASES. Orders for dockets not created in RRC CASES will remain available on the Hearings Division web page.

    Visit the RRC CASES public portal at https://rrctx.force.com/s/.

    To upload a case file, visit RRC CASES authenticated user login page.

    Authenticated user request forms, a user guide and video tutorial are available on the RRC website at Hearings - RRC Cases.

  • Chairman Christian Applauds President Trump on Energy Negotiations

     April 02, 2020

    AUSTIN – Today, Texas Railroad Commission Chairman Wayne Christian (R) applauded President Donald Trump on his international negotiations to stabilize crude oil prices.

    Crude oil futures improved after the President tweeted "Just spoke to my friend MBS (Crown Prince) of Saudi Arabia, who spoke with President Putin of Russia, & I expect & hope that they will be cutting back approximately 10 Million Barrels, and maybe substantially more which, if it happens, will be GREAT for the oil & gas industry!" Trump later went on to clarify that the cuts could be as large as 15 million barrels.

    "President Trump understands that American Energy Dominance has given us far more than economic growth and jobs," said Christian. "It has given us unprecedented national security."

    "The double punch of demand drops associated with COVID-19 and an international price war has been devastating to Texas producers and the hundreds of thousands of Texans they employ," continued Christian. "It is essential for us to stabilize the market quickly to ensure the future survival of the industry."

    Over the last few weeks, Christian has been in regular contact with both state and federal elected officials, the Department of Energy, and industry."

    Today, the Railroad Commission of Texas announced an open meeting on Tuesday, April 14th to discuss the issue of proration. You can view the posting on the Secretary of State website at https://texreg.sos.state.tx.us/public/pubomquery$omquery.QueryViewByKey?P_OM_ID=224582&Z_CHK=32312. If you would like to submit comments with your thoughts on the issue please follow the instructions in the posting and submit by Wednesday, April 8th. The comments will be reviewed, and some commenters will be asked to testify live during the meeting.

    Chairman Christian recently discussed his views on the issue of proration in an editorial in WorldOil Magazine. You can read the op-ed at this link https://www.worldoil.com/news/2020/3/25/texas-rrc-chairman-wayne-christian-we-must-stabilize-worldwide-oil-markets.

  • RRC Chairman Wayne Christian Comments on Oil Markets, Proration, and Filling SPR

     March 20, 2020

    AUSTIN – As Saudi Arabia and Russia flood the international energy market with a glut of crude oil, prices have dropped to unsustainable levels that threaten the future of the Texas oil and gas industry, its associated benefits to the state economy, and American energy dominance.

    The United States recently became the largest producer of oil and natural gas in the world, producing a record 12.4 million barrels in August 2019. Texas is responsible for about 40% of this production. The industry directly employs more than 361,271 Texans and exceeded $116 billion in taxes and royalty payments over the last decade, including a record $16.3 billion in 2019. 

    None of this is temporary, as the U.S. Geologic Survey assessed a recent oil discovery in the West Texas to be 46 billion barrels of oil. RS Energy Group estimates this find could actually be as large as 230 billion barrels. This is the largest oil find in the history of the world. To put this in perspective, proven reserves in the U.S. from Alaska to Brownsville were estimated to be 36.4 billion barrels in 2014.

    In order to stabilize markets, a few oil and gas producers have suggested that the Railroad Commission of Texas resume prorating the production of oil.

    "I am very concerned about the impact the international oil market instability has on the Texas economy, state budget, and the hundreds of thousands of Texans who rely on the oil and gas industry for a paycheck," said RRC Chairman Wayne Christian. "A couple of operators have suggested pro-rationing oil as a solution. While I am open to any and all ideas to protect the Texas Miracle, as a free-market conservative I have a number of reservations about this approach." 

    "First, Texas does not operate in a vacuum. If we prorate our oil, there is no guarantee other nations, or even states will follow suit," continued Christian. "From a practical standpoint, the Railroad Commission has not prorated oil in over forty years; we do not have staff at the agency with experience in this process and our IT capabilities to handle this process are limited at best.“

    Earlier this morning, Chairman Christian had a conference call with the Department of Energy (DOE) to discuss what the United States can do to stabilize the oil market. On the call, the DOE asked Christian to notify Texas operators that they have initiated an initial solicitation for 30 million barrels to begin filling the Strategic Petroleum Reserve (SPR). 

    Christian instructed staff to put out a notice to operators to ensure the Texas industry is aware of this opportunity. You can read the notice to operators here on the RRC website.

    ###


    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren

  • Railroad Commissioners Act to Help Boost Energy Production in Texas

     February 14, 2020

    AUSTIN – Texas Railroad Commissioners this week adopted a key rule amendment to adapt oil and gas regulations to an evolving energy exploration landscape in the state. 

    Commissioners unanimously voted to amend RRC Rule 3.40 Assignment of Acreage to Pooled Development and Proration Units.

    The rule restricted exploration in unconventional fracture treated (UFT) fields when oil and gas mineral ownership is divided at different depths below the surface. A UFT field is a field in which horizontal drilling and hydraulic fracturing must be used to recover oil and gas.

    To take advantage of technological advances that can tap into once inaccessible hydrocarbon resources in UFT fields, Commissioners voted to allow assignment of acreage to multiple wells in these fields. This rule revision will further protect mineral owner interest and allow access to additional resources.

    “This rule change is a win-win for industry and regulators, saving both agency staff and energy producers time and resources,” said Chairman Wayne Christian. “I am thankful for the hard work that went into modernizing these rules.”

    “I appreciate the tremendous effort that Commission staff put into revising this rule,” said Commissioner Christi Craddick. “Working together with industry and stakeholders, these changes help to streamline our processes and increase production.”

    “Our job as Commissioners is to ensure that the state’s rules keep up with advancing technology,” said Commissioner Ryan Sitton. “Amending Rule 40 will enable energy producers to responsibly extract more energy resources by recognizing that the way energy is produced has evolved over time. All Texans win in the form of lower energy prices with this change.”

    The rule amendments adopted by Commissioners go into effect March 3, 2020.

     

  • Railroad Commission Chairman Christian Discusses Flaring In Texas

     February 10, 2020

    AUSTIN – Flaring is a process used primarily in the production of crude oil in which excess natural gas produced with the oil is burned off at the well head. An operator who wants to flare gas must receive authorization from the Railroad Commission of Texas. 

    "There are many misconceptions about what flaring is and how much we are flaring in Texas," said Chairman Wayne Christian. "This uncertainty has led to confusion and concern among the general public and on Wall Street, limiting the funding opportunities for independent energy producers across the state." 

    To learn more about the process of flaring and how it is regulated, click here. 

    "As I previously stated in an opinion piece for USA Today (read here), flaring is an important part of America’s rise to global energy dominance and is a safer alternative to venting," continued Christian. "However, I am very concerned about the rate of flaring in Texas and have expressed this as the first commissioner in recent memory to vote against a flaring permit."

    Last fall, Chairman Christian instructed staff to analyze flaring in Texas. Their analysis shows that the average monthly statewide flaring rate since January 2014 has been about 1.24 percent, fluctuating between 0.8 percent to 2.2 percent. The data is taken from flaring amounts and gas production reported on operators’ monthly production reports to the Commission. 

    Operators receiving permits to flare are required to report to the Commission gas volumes flared on their monthly Production Report form (Form PR). On the forms, operators must include actual, metered volumes at the RRC lease level. 

    RRC’s flaring rule allows an operator to flare gas while drilling a well and for up to 10 days after a well’s completion to conduct well potential testing. Flaring from wells for extended periods may be necessary if a well is drilled in areas new to exploration where pipelines have not been constructed. Other reasons for flaring include: gas plant shutdowns; repairing a compressor or gas line or well; or other maintenance. In existing production areas, flaring also may be necessary because operating pipelines may have reached capacity. 

    “I truly believe much of our state’s flaring will be eliminated as we expand our pipeline capacity and export infrastructure for LNG,” continued Christian. “But in the meantime, I would love to hear suggestions from industry and the public on creative ways we can curb this practice and encourage using this gas for its intended purpose, powering Texas.” 


    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren. 

  • Christian Gives Keynote Address at World Oil Forecast Breakfast

     January 31, 2020

    AUSTIN – Today, Railroad Commission Chairman Wayne Christian gave the keynote address at the 94th Annual World Oil Forecast Breakfast.

    “The United States is the top producer of oil and gas in the world, and Texas is the top producer and exporter in the nation,” said Christian. “While short-term we have seen a slight decline in growth, the industry still managed to produce a record 1.8 billion barrels of oil and 10.1 trillion cubic feet of natural gas in 2019.”

    This growth is not temporary, as Texas is blessed with tremendous reserves, including the largest find in the history of the world. The United States Geologic Survey assessed a recent discovery in the Permian Basin to be 46 billion barrels of oil and according to RS Energy Group, it could be as large as 230 billion barrels. To put this in perspective, proven oil reserves in the U.S. from Alaska to Brownsville were estimated to be 36.4 billion barrels in 2014.

    “The growth of the oil and gas industry in Texas over the last decade has grown our state’s economy, provided energy sovereignty, and most importantly improved our national security,” continued Christian. “Meanwhile, environmentally since 1970, the six major pollutants regulated by the Environmental Protection Agency (EPA) under the Clean Air Act (CAA) have fallen by 73 percent and worldwide air pollution-related deaths have fallen 27 years in a row. These are just two examples that show both the economy and environment can flourish concurrently - they are not mutually exclusive.”

    A lifelong conservative businessman, Wayne Christian was elected as our 50th Texas Railroad Commissioner in November 2016. In June of 2019, Christian was elected to lead the agency as Chairman by his fellow commissioners. Prior to his time at the Commission, Christian served seven Sessions in the Texas House of Representatives, accumulating a strong record of standing for free markets and against burdensome regulations. In addition to his duties as Commissioner, Christian was appointed by Governor Greg Abbott to serve as the Official Representative of Texas on the Interstate Oil and Gas Compact Commission. Christian is married to his wife, Lisa, and together they have three daughters, Liza, Lindsey and Lauren.




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