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RAILROAD COMMISSION OF TEXAS RAILROAD COMMISSION OF TEXAS

RAILROAD COMMISSION OF TEXAS - PowerPoint Presentation

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RAILROAD COMMISSION OF TEXAS - PPT Presentation

P5 FILINGS AND FINANCIAL SECURITY PRESENTERS MARIA CASTRO JENNIFER GILMORE TOPICS P5 Organization Report Revised September 2011 Financial Assurance Requirements P5 Filing Fees and Surcharge ID: 716023

form wells gas amp wells form amp gas security filing rrc required officer amount letter activities performance operators credit

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Slide1

RAILROAD COMMISSION OF TEXAS

P-5 FILINGS AND FINANCIAL SECURITY

PRESENTERS:

MARIA

CASTRO / JENNIFER GILMORESlide2

TOPICS

P-5 Organization Report Revised September 2011

Financial Assurance RequirementsP-5 Filing Fees and Surcharge

Surcharge

effective May 2012

2Slide3

P5 ORGANIZATION REPORT

Requirements: Oil & Gas & Pipeline Operators:

Natural Resources Code, Sec. 91.142Oil & Gas Statewide Rules 1 & 78

Master Meter & Distribution Systems (Safety Division):

Utilities Code, Sec. 121.201

Pipeline Safety Rule 51/Oil & Gas Rules 1 & 78

3Slide4

SUPPLEMENTAL FORMS

P-5O: Officer Listing

P-5A: Non-Employee Agent Listing

P-5PB(1

): Individual Performance Bond

P-5PB(2): Blanket Performance Bond

P-5LC: Letter of Credit

4Slide5

P-5 Form

5Slide6

Form P-5 (Organization Report)

6Slide7

7Slide8

P-5O Form

8Slide9

Form P-5O (Officer Listing)

9Slide10

P-5A Form

10Slide11

Form P-5A (Non-Employee Agent Listing)

Actual Person name not company

11Slide12

Original signature by P-5 officer required

12Slide13

Key Points

Entities requiring SOS registration must be chartered prior to submitting P-5 application.Organization name must match SOS filings, down to and including punctuation.

IF organization name is longer than 32 characters, abbreviation will be required to accommodate RRC spacing limitations. This will not effect the organization’s chartered name. Email address is not required, but if provided available to the public.

Officer titles must match plan of organization. EX: 1)

Corporation

– President, Secretary, Treasurer 2)

Limited Partnership – General Partner 3) Limited Liability Company – Manager/Member etc..If an officer is a company, must provide officers for listed company.Only acceptable form of ID for a sole proprietor is a SSN.All forms of ID are redacted and not available to the public.P-5 officer signature is required to assign non-employee agent on form P-5A.

13Slide14

Financial Requirements

Financial

Security required for most organizations.

Option 1 - Individual Performance Bond, Letter of Credit or Cash Deposit

Option

2 - Blanket Performance Bond, Letter of Credit or Cash

Deposit

14Slide15

Oil & Gas Non-Well

Operators

Exempt if

your

only

operations are

:Master Meter / Gas Distribution Center PurchaserDirectional SurveyorSalt Water Hauler

Approved Well PluggerApproved Cementer for Well Plugging(Well plugging requires Approval by Fld Ops)Service company for well stimulation activities

$25,000 if you have any other activities

15Slide16

Individual Performance Bond, Letter of Credit or Cash Deposit

Only available to well operators who have no activity

other

than

wells

Amount determined by

multiplying the aggregate depth of all wells (active, inactive, injection, producer, etc.) at $2.00 per foot.Option 1

16Slide17

Blanket Performance Bond, Letter of Credit or Cash Deposit

Available to all operators

Amount

determined by the total number of wells (active, inactive, injection, producer, etc.)

1

to 10 wells

$25,00011 to 99 wells $50,000100

wells or more $250,000For operators without wells who are required to file FA, $25,000.Option 2

17Slide18

Bay and Offshore Wells

Statewide Rule §3.78 amended 9-1-2004 to require additional financial security for operators of Bay and Offshore wells

Calculated by Base amount + Entry Level amount + Non-Producing Amount

Presumed Plugging Cost for Bay Well $60,000.00 / Offshore Well $100,000.00

18Slide19

Example: Operator A has 15 wells, of which 8 are bay wells. 4 of these wells are non-producing.

Base

: $50,000

Entry Level: $60,000

Non-Producing amount:

$180,000Total: $290,000Bay & Offshore Wells

19Slide20

Effective 12-19-05 Statewide

Rule

78 amended requiring financial security as

a condition of the issuance of

permit

to drill, recomplete or

reenter a well.Required amount: Option 1 or Option 2Permits cannot be issued to “unbonded” operators.Drilling Permits

20Slide21

P-5LC (Letter of Credit)

21Slide22

P-5LC (back page LOC)

Effective date MUST be current date.

22Slide23

P-5PB1 and P5PB2

(Individual and Blanket Performance Bonds)

23Slide24

(Back page of P-5PB1 and P-5PB2)

Date MUST be affixed by principal.

24Slide25

Filing Fee and Surcharges

Filing fee required for annual P-5 renewals and new P-5

filings

Statewide Rule 78 amended to impose a surcharge of 150% to filing fees

Notification to industry sent out February 2012

Effective May 1, 2012

25Slide26

P-5 Filing Fee

Amount based on the following four components:Number of wells operated

1 – 25 wells

$750

26 – 100

wells

$1,250101 wells or more $2,500Natural Gas Pipelines (one or more): $562.50Pipelines other than Natural Gas (one or more): $1,562.50Facilities and/or Service Activities: $500 to $750

(One single fee regardless of quantity or variety)Operator with no activity or a new filer is $750.

26Slide27

Facilities & Service Activities

Oil & Gas Regulated activities other than pipelines or wells.

$750 if

the activities include only:

Pollution Cleanup Contractor, (CLENUP)

Directional Surveyor, (DIRSUR)

Approved Cementer for plugging wells, and/or (PLUGGR)Moving/Storing Crude or Condensate. (TRANSP)Approved Cementer for Well Plugging (CEMNTR)$1,250 if the operator has any other Commission-regulated facilities or service activities, including (but not limited to):Commercial Facility, (COMFAC)Gas Plant, (GASPLT)

Reclamation Plant, (RECLPL)Refinery, (REFINE)Saltwater Disposal P18 authority, and/or (SWDP18)

Waste Hauler authority. (WHAUL)

Service

Comp. for Well Stimulation/

Hydr

. Fracturing Activities (WLSTIM)

27Slide28

Filing fee and Surcharges

Statewide Rule 78 amended to impose a surcharge of 150% to filing fees

Effective May 1, 2012

Notification to industry sent out February

2012

28Slide29

Auto P-4 Changes

Name change P-5Large acquisitions of propertySame Operator change

25

or more

leases

Operator change Auto - Request

letter requires signature of previous

P-5 officer and acquiring P-5 officer

Same operator change Auto – Letter can be signed by company authorized individual

Questions contact: Linda Turk (512) 463-6777

29Slide30

RRC Online System

File a SAD (Security Administration Designation)

Form

Two

types of accounts:

Security Administrator Accounts

Filer Accounts

30Slide31

SAD Form (Security Administrator Designation For Electronic Filing)

31Slide32

SAD Form (Security Administrator Designation For Electronic Filing)

Complete address

32Slide33

Legible and correct

6 characters

33Slide34

Helpful Links

34

Railroad Commission Website:

http://www.rrc.texas.gov

Expanded Website Access (EWA) – P5 Query:

http://webapps2.rrc.state.tx.us/EWA/organizationQueryAction.do

(data updated nightly)

P-5 Renewal Status Query:

http://webapps2.rrc.state.tx.us/EWA/inactiveWellStatusQueryAction.do

(data updated nightly)

HB2259/HB3134 Information (Inactive Well requirements):

http://www.rrc.texas.gov/oil-gas/compliance-enforcement/hb2259hb3134-inactive-well-requirements/

RCOnline-Security@rrc.state.tx.us

Lost

UserID

and Password Help

https://

webapps.rrc.state.tx.us/security/loginHelpAction.do?method=Initializ

eSlide35

For any questions the P-5 Unit can be contacted by phone or email.

P-5

Main

Line (512) 463-6772

P5@rrc.state.tx.us

35

Contact Information