This document discusses the Railroad Commission of Texas' (RRC) jurisdiction and authority over oil and gas activities relating to groundwater protection. It outlines RRC's statutory authority to regulate pollution relating to oil and gas exploration, production, and waste. The RRC has primary jurisdiction and responsibility for regulating surface storage and disposal of oil and gas waste, commercial recycling facilities, and injection wells. For injection well permits, the RRC must find that fresh water resources can be protected from pollution with proper safeguards. Groundwater conservation districts can protest injection well applications as affected parties and have interests in surface and subsurface protection measures during oil and gas operations.

1. THE INTERSECTION OF RAILROAD
COMMISSION REGULATION AND
GROUNDWATER PROTECTION
P E T E R T . G R E G G
D U B O I S , B R Y A N T &
C A M P B E L L , L L P

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8. RRC STATUTORY AUTHORITY
Tex. Nat. Res. Code § 81.051 – Jurisdiction over all common carrier pipelines, oil
and gas wells, persons owning or operating pipelines, and persons owning, drilling
or operating oil or gas wells.
Tex. Nat. Res. Code § 91.101 – Authority to control pollution of surface and
subsurface water relating to drilling of oil and gas wells, production of oil and gas,
operation, abandonment, and proper plugging of E&P wells, and discharge,
storage, handling, transportation, reclamation, or disposal of oil and gas waste.
Tex. Water Code § 26.131 - “[S]ole responsibility for the control and disposition of
waste and the abatement and prevention of pollution of surface and subsurface
water resulting from . . . activities associated with the exploration, development,
and production of oil or gas.”
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9. RRC VS. TCEQ JURISDICTION
Memorandum of Understanding
RRC has exclusive jurisdiction over:
Management and disposal of “oil and gas waste”
Discharges from RRC-regulated activities
Class 2 injection wells
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10. RRC VS. TCEQ JURISDICTION
“Oil and Gas Waste”
Waste generated in connection with activities
associated with the exploration, development, and
production of oil or gas or geothermal resources, or
the solution mining of brine.
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11. RRC VS. TCEQ JURISDICTION
“RRC-Regulated Activities”
Activities associated with the exploration,
development, or production of oil, gas, or geothermal
resources, including transportation of crude oil and
natural gas by pipeline, and from solution brine
mining activities.
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12. RRC VS. TCEQ JURISDICTION
Class 2 Injection Wells
 Used to inject fluids associated with oil and
natural gas production. Class II fluids are primarily
brines (salt water) that are brought to the surface
while producing oil and gas.
 Part of EPA’s Underground Injection Control (UIC)
program.
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13. RRC JURISDICTION
Tex. Water Code § 26.131
Responsibility for the control and disposition of waste
and the abatement and prevention of pollution of
surface and subsurface water resulting from . . .
activities associated with the exploration,
development, and production of oil or gas.
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14. Surface Storage & Disposal
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15. SWR 8 - WATER PROTECTION
Statewide Rule 8 (16 Tex. Admin. Code 3.8) – “Water
Protection”
 (b) “No person conducting activities subject to regulation by the
commission may cause or allow pollution of surface or subsurface water
in the state.”
 (d) Pollution Control - Pollution protection measures, including: prohibited
and authorized O&G waste disposal methods, use of pits for E&P
operations, etc.
 (d)(6) Permit Requirements - A permit to use a pit to store oil field fluids
or oil and gas wastes or to dispose of waste may only be issued if “the
commission determines that the disposal will not result in . . . the
pollution of surface or subsurface water.”
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16. Commercial Recycling Facilities
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17. COMMERCIAL RECYCLING
 16 TAC Chapter 4, Subchapter B
 Permit required
 Permit issued only if the storage, handling,
treatment, and/or recycling of oil and gas wastes
and other substances and materials will not result
in . . . the pollution of surface or subsurface water
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18. Injection Wells
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19. INJECTION WELL PERMITS
Tex. Water Code § 27.051, SWR 9, SWR 46
The commission may grant an application for an injection well permit if it
finds:
(1) that the use or installation of the injection well is in the public interest;
(2) that the use or installation of the injection well will not endanger or
injure any oil, gas, or other mineral formation;
(3) that, with proper safeguards, both ground and surface fresh water can
be adequately protected from pollution; and
(4) that the applicant has made a satisfactory showing of financial
responsibility.
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20. INJECTION WELL PERMITS
Public Interest:
 Whether the well will provide needed additional disposal
capacity and an economical and safe means of disposing of
oil and gas waste, thereby increasing the ultimate recovery
of oil and gas and preventing waste.
 Does not include increased truck traffic, perceived safety
threats to the public, diminution of property values and
other general community impacts (Railroad Commission of
Texas v. Texas Citizens for Safe and Clean Water, et al., 336
S.W.3d 619 (2011)).
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21. INJECTION WELL PERMITS
“that, with proper safeguards, both ground and surface fresh water can be
adequately protected from pollution”
 Show that the formations are separated from freshwater formations by impervious beds,
which will give adequate protection to such freshwater formations.
 Evaluate historical seismic events within a circular area of 100 square miles.
 Demonstrate that fluids will be confined if the well is to be located in an area where
conditions exist that may increase the risk that fluids will not be confined to the injection
interval.
 Identify wells that penetrate the proposed disposal zone within a 1/4 mile radius of the
proposed disposal well to determine if all abandoned wells have been plugged in a manner
that will prevent the movement of fluids from the disposal zone into freshwater strata.
 Case and cement the well in compliance with §3.13 of this title (relating to Casing,
Cementing, Drilling, and Completion Requirements) in such a manner that the injected
fluids will not endanger oil, gas, geothermal resources, or freshwater resources.
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22. PERMIT PROCESS
 Hearing on application required if affected person
or local government protests the application.
 “Affected Person” - one who, as a result of the
activity sought to be permitted, has suffered or
may suffer actual injury or economic damage
other than as a member of the general public.
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23. PERMIT PROCESS – AFFECTED PERSON
GCD as “Affected Person”?
Tex. Water Code 36.0015 - Charged with “conserving,
preserving, protecting” aquifer
Local government
Marathon Oil
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24. PROTEST PROCESS – PRACTICALITIES
 Notification limitations
 Protest deadline
 Small window to evaluate potential impacts
 Settlement opportunities
 Hearing cost
 Long-term investment
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25. GCD INTERESTS
Surface:
Siting relative to water resources
Adequate berming around tank battery and other containers
Pit Liners and other land surface covers
Stormwater management
SPCC Plan
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26. GCD INTERESTS
Subsurface:
No injection into USDW
Protective Wellbore
 Surface Casing through USDW (not just UQW)
 long string casing cemented to surface
Sufficient separation between zone of injection and USDW
Absence of conduits to freshwater
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27. GCD INTERESTS
Operational:
Containment freeboard
Injection Pressure
Annulus Pressure
Financial assurance
Housecleaning
Compliance
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28. ONGOING OPERATIONS
Intervention
Show Cause Proceedings:
 1.47(Procedural Rules)
 4.210 (Commercial Recycling)
Enforcement Proceedings
Complaints
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29. QUESTIONS/COMMENTS
Peter T. Gregg
DuBois, Bryant & Campbell, LLP
303 Colorado, Suite 2300
Austin, Texas 78701
512-457-8000
pgregg@dbcllp.com
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