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
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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
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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
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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
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P-5 Form
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Form P-5 (Organization Report)
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P-5O Form
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Form P-5O (Officer Listing)
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P-5A Form
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Form P-5A (Non-Employee Agent Listing)
Actual Person name not company
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Original signature by P-5 officer required
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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.
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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
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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
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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
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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
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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
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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
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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
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P-5LC (Letter of Credit)
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P-5LC (back page LOC)
Effective date MUST be current date.
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P-5PB1 and P5PB2
(Individual and Blanket Performance Bonds)
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(Back page of P-5PB1 and P-5PB2)
Date MUST be affixed by principal.
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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
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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.
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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)
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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
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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
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RRC Online System
File a SAD (Security Administration Designation)
Form
Two
types of accounts:
Security Administrator Accounts
Filer Accounts
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SAD Form (Security Administrator Designation For Electronic Filing)
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SAD Form (Security Administrator Designation For Electronic Filing)
Complete address
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Legible and correct
6 characters
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Helpful Links
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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
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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
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Contact Information