| (9) If a certificate of compliance for an oil lease
or gas well has been canceled for violation of one or more Commission
rules, the operator shall submit to the Commission a nonrefundable
fee of $300 for each severance or seal order issued for the well or
lease before the Commission may reissue the certificate pursuant to §3.58
of this title (relating to Certificate of Compliance and Transportation
Authority; Operator Reports) (Statewide Rule 58).
(10) With each application for issuance, renewal, or
material amendment of an oil and gas waste hauler's permit, the applicant
shall submit to the Commission a nonrefundable fee of $100.
(11) With each Natural Gas Policy Act (15 United States
Code §§3301-3432) application, the applicant shall submit
to the Commission a nonrefundable fee of $150.
(12) Hazardous waste generation fee. A person who generates
hazardous oil and gas waste, as that term is defined in §3.98
of this title (relating to Standards for Management of Hazardous Oil
and Gas Waste), shall pay to the Commission the fees specified in §3.98(z).
(13) Inactive well extension fee.
(A) For each well identified by an operator in an application
for a plugging extension based on the filing of an abeyance of plugging
report on Commission Form W-3X, the operator must pay to the Commission
a non-refundable fee of $100.
(B) For each well identified by an operator in an application
for a plugging extension based on the filing of a fluid level or hydraulic
pressure test that is not otherwise required to be filed by the Commission,
the operator must pay to the Commission a non-refundable fee of $50.
(14) Groundwater protection determination letters.
(A) With each individual request for a groundwater
protection determination letter, the applicant shall submit to the
Commission a nonrefundable fee of $100.
(B) With each individual application for an expedited
letter of determination stating the total depth of surface casing
required for a well in accordance with Texas Natural Resources Code, §91.0115(b),
the applicant shall submit to the Commission a nonrefundable fee of
$75, in addition to the fee required by subparagraph (A) of this paragraph.
(15) An operator must make a check or money order for
any of the aforementioned fees payable to the Railroad Commission
of Texas. If the check accompanying an application is not honored
upon presentment, the Commission or its delegate may suspend or revoke
the permit issued on the basis of that application, the allowable
assigned, the exception to a statewide rule granted on the basis of
the application, the certificate of compliance reissued, or the Natural
Gas Policy Act category determination made on the basis of the application.
(16) If an operator submits a check that is not honored
on presentment, the operator shall, for a period of 24 months after
the check was presented, submit any payments in the form of a credit
card, cashier's check, or cash.
(c) Organization Report Fee. An organization report
required by Texas Natural Resources Code, §91.142, shall be accompanied
by a fee as follows:
(1) for an operator of:
(A) not more than 25 wells, $300;
(B) more than 25 but not more than 100 wells, $500;
or
(C) more than 100 wells, $1,000;
(2) for an operator of one or more natural gas pipelines,
$225;
(3) for an operator of one or more of the following
service activities: pollution cleanup contractor; directional surveying;
approved cementer for plugging wells; a cementer of casing strings
or liners; or physically moving or storing crude or condensate, $300;
(4) for an operator of one or more liquids pipelines,
$625;
(5) for an operator of all other service activities,
or facilities, $500;
(6) for an operator with multiple activities, a total
fee equal to the sum of the separate fees applicable to each category
of service activity, facility, pipeline, or number of wells operated
shall be submitted, provided that the total fee for an operator of
wells shall not exceed $1,125; and
(7) for an entity not currently performing operations
under the jurisdiction of the Commission, $300.
(d) Financial security. Except for those operators
exempted under subsection (g)(7) of this section, any person, including
any firm, partnership, joint stock association, corporation, or other
organization, required by Texas Natural Resources Code, §91.142,
to file an organization report with the Commission must also file
financial security in one of the following forms:
(1) an individual performance bond;
(2) a blanket performance bond; or
(3) a letter of credit or cash deposit in the same
amount as required for an individual performance bond or blanket performance
bond.
(e) Forms for financial security and insurance policies.
Operators shall submit well-specific plugging insurance policies,
bonds and letters of credit on forms prescribed by the Commission.
(f) Filing deadlines for financial security and insurance
policies. Operators shall submit required financial security or well-specific
plugging insurance policies at the time of filing an initial organization
report, as a condition of the issuance of a permit to drill, recomplete
or reenter, upon yearly renewal, or as otherwise required under this
section.
(g) Amount of financial security. An operator required
to file financial security under subsection (d) of this section shall
file financial security described in this subsection.
(1) Types and amounts of financial security required.
(A) A person operating one or more wells may file an
individual performance bond, letter of credit, or cash deposit in
an amount equal to the sum of $2.00 for each foot of total well depth
for each well operated, excluding any well bore included in a well-specific
plugging insurance policy.
(B) A person operating one or more wells may file a
blanket bond, letter of credit, or cash deposit to cover all wells
for which a bond, letter of credit, or cash deposit is required in
an amount equal to the sum of the base amount determined by the total
number of wells operated excluding any well bores and/or permits issued
to drill, recomplete, or reenter wells included in a well-specific
plugging insurance policy. A person performing multiple operations
shall be required to file only one blanket bond, letter of credit,
or cash deposit unless the person is operating a commercial facility,
in which case the person also shall comply with the financial security
requirements of subsection (l) of this section. The financial security
amount shall be at least the base amount determined by the total number
of wells operated or $25,000, whichever is greater. After excluding
any well bores and/or permits issued to drill, recomplete or reenter
wells included in a well-specific plugging insurance policy, the base
amount is determined as follows:
(i) The base amount for a person operating 10 or fewer
wells or performs other operations shall be $25,000.
(ii) The base amount for a person operating more than
10 but fewer than 100 wells shall be $50,000.
(iii) The base amount for a person operating 100 or
more wells shall be $250,000.
(2) Additional financial security for bay wells.
(A) All operators of bay wells shall file additional
financial security of no less than $60,000 in addition to any other
financial security that is required under this section for any other
Commission-regulated activities.
(B) For each bay well that is not currently producing
oil or gas and has not produced oil or gas within the past 12 months,
including injection and disposal wells, the operator shall file additional
financial security of $60,000, unless the well bore is included in
a well-specific plugging insurance policy that provides benefits of
at least $60,000. An operator shall not be required to file additional
financial security in addition to the $60,000 amount set under subparagraph
(A) of this paragraph if the operator operates only a single inactive
bay well.
(C) In the case of a bay well that has been inactive
for 12 consecutive months or longer and that is not used for disposal
or injection, the well shall remain subject to the provisions of subparagraph
(B) of this paragraph, regardless of any minimal activity, until the
well has reported production of at least 10 barrels of oil for oil
wells or 100 mcf of gas for gas wells each month for at least three
consecutive months.
(3) Additional financial security for offshore wells.
(A) All operators of offshore wells and operators of
both bay wells and offshore wells shall file additional financial
security of no less than $100,000 in addition to any other financial
security that is required under this section for any other Commission
regulated activities.
Cont'd... |
