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TITLE 16ECONOMIC REGULATION
PART 1RAILROAD COMMISSION OF TEXAS
CHAPTER 3OIL AND GAS DIVISION
RULE §3.1Organization Report; Retention of Records; Notice Requirements

(b) Record requirements. All entities who perform operations which are within the jurisdiction of the Commission shall keep books showing accurate records of the drilling, redrilling, or deepening of wells, the volumes of crude oil on hand at the end of each month, the volumes of oil, gas, and geothermal resources produced and disposed of, together with records of such information on leases or property sold or transferred, and other information as required by Commission rules and regulations in connection with the performance of such operations, which books shall be kept open for the inspection of the Commission or its representatives, and shall report such information as required by the Commission to do so.

(c) Time frame. All organizations shall keep copies of records, forms, and documents which are required to be filed with the Commission, along with the supporting documents referred to in subsection (b) of this section, for a period of three years, or longer if required by another Commission rule, and any such copies may be disposed of at the discretion of such entities after the original records, forms, and documents have been on file with the Commission for the required period, except that particular documents shall be retained beyond the required period and until the resolution of pending Commission regulatory enforcement proceedings if the documents contain information material to the determination of any issues therein. All records, forms, and documents required to be filed with the Commission shall be filed in the same name, exactly as it appears on the organization report.

(d) Organization reports for operators of inactive wells.

  (1) The Commission or its delegate may approve the organization report for an operator of an inactive well if the Commission or its delegate has approved an extension of the deadline for plugging the inactive well.

  (2) The Commission or its delegate may conditionally approve an organization report if:

    (A) the operator assumed responsibility for a well that was inactive at the time of the approval of the operator designation form for the well; and

    (B) the Commission or its delegate approved the operator designation form for the inactive well less than six months prior to the date the operator is required to renew its organization report.

  (3) The Commission or its delegate may revoke conditional approval of an organization report granted under paragraph (2) of this subsection after notice of opportunity for hearing if the operator has failed to meet any of the following requirements within six months after approval of the operator designation form:

    (A) restoration of the well to active status as defined by Commission rule;

    (B) plugging of the well in compliance with a Commission rule or order; or

    (C) obtaining the approval of the Commission or its delegate of an extension of the deadline for plugging an inactive well.

(e) Issuance of permits to organizations without active organization reports.

  (1) Notwithstanding contrary provisions of this section, the Commission or its delegate may issue a permit to an organization or individual that does not have an active organization report or does not ordinarily conduct oil and gas activities when the issuance of such a permit is determined to be necessary to implement a compliance schedule, or to remedy circumstances or a violation of a Commission rule, order, license, permit, or certificate of compliance relating to safety or the prevention of pollution. For permits issued under this subsection, the Commission or its delegate may impose special conditions or terms not found in like permits issued pursuant to other Commission rules. Any organization or individual who requests such a permit shall file an organization report and any other required forms for record-keeping purposes only. The report or form shall contain all information ordinarily required to be submitted to the Commission or its delegate.

  (2) This section shall not limit the Commission's authority to plug or to replug wells or to clean up pollution or unpermitted discharges of oil and gas waste.

(f) Each organization required to file an organization report under subsection (a) of this section or an affiliate of such an organization that performs operations within the jurisdiction of the Commission that files for federal bankruptcy protection shall provide written notice to the Commission of that action not later than the 30th day after the date the organization or the affiliate files for bankruptcy protection by submitting the notice to the Enforcement Section of the Office of General Counsel. All bankruptcy-related notices sent to the Commission shall be submitted in writing to that section. For the purpose of this section, affiliate means an organization that is effectively controlled by another.

(g) Neither the Commission nor its delegate may approve an organization report unless the organization has complied with the state registration requirements of the Secretary of State. A tax dispute with the Comptroller of Public Accounts shall not be a basis for disapproving an organization report.

(h) Pursuant to Texas Natural Resources Code, §91.706(b), if an operator uses or reports use of a well for production, injection, or disposal for which the operator's certificate of compliance has been canceled, the Commission or its delegate may refuse to renew the operator's organization report required by Texas Natural Resources Code, §91.142, until the operator pays the fee required by §3.78(b)(9) of this title (relating to Fees and Financial Security Requirements) and the Commission or its delegate issues the certificate of compliance required for that well.


Source Note: The provisions of this §3.1 adopted to be effective January 1, 1976; amended to be effective January 1, 1981, 5 TexReg 4990; amended to be effective February 22, 1986, 11 TexReg 701; amended to be effective December 7, 1987, 12 TexReg 4411; amended to be effective July 22, 1991, 16 TexReg 3767; amended to be effective July 1, 1992, 17 TexReg 4173; amended to be effective May 22, 2000, 25 TexReg 4512; amended to be effective January 11, 2004, 29 TexReg 359; amended to be effective November 26, 2007, 32 TexReg 8452; amended to be effective September 13, 2010, 35 TexReg 8332; amended to be effective August 27, 2012, 37 TexReg 6538

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