Wednesday, April 22, 2020
On April 21, the Railroad Commission of Texas (RRC) continued discussion on the issue of proration, ongoing relief initiatives of the agency, and the formation of a Blue Ribbon Task Force for oil economic recovery.
Chairman Wayne Christian kicked off the discussion by inviting RRC executive director Wei Wang to discuss the various relief and flexibility initiatives that the agency has provided to the state’s oil and gas operators, including deadline extensions for certain requirements/filings, online processing and electronic submissions, and enforcement discretions and waiver considerations.
Next, Christian announced the formation of the Blue Ribbon Task Force for Oil Economic Recovery. This task force is being led by the leadership of the state’s major trade associations including the Texas Oil and Gas Association, The Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners Association, The Permian Basin Petroleum Association, The Panhandle Producers and Royalty Owners Association, and the Texas Pipeline Association.
“I want to challenge the task force to look at every aspect on what can be done at the state level to assist operators and save jobs as we endure these historic circumstances—operations, permitting, timelines, tax policy and deadlines, storage capacity expansion, pipeline capacity, market access barriers, and anything else the task force can think of that will aid the industry in managing through difficulty,” Christian said. “The goal is to save as many jobs, enable operators to survive and return to a robust level as quickly as possible.”
Before closing out the open meeting, the commissioners revisited the issue of proration. Commissioner Ryan Sitton discussed a potential motion to put in place proration contingent on a number of factors, including the actions of other states.
“I agree with Commissioner Sitton that if we are going to take action, time is of the essence,” Christian said. “But I also agree with Commissioner [Christi] Craddick that if we are going to go down this road, it is imperative that our motion be done in a way that is lawful and does not open us up to months of litigation. Neither of these positions are mutually exclusive.”
“As I stated in [a WorldOil article], I have reservations that must be answered before I would consider voting to take Texas down this road,” continued Christian. “With Commissioner Sitton’s goal of a June 1 implementation, I think waiting to vote on the matter until May 5 gives the Commissioners two weeks to get the answers we need, see how other states act, and continue to work on other options in earnest with the federal government.”
SOURCE: The Weekly Propane Newsletter, April 23, 2020. Subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
Chairman Wayne Christian kicked off the discussion by inviting RRC executive director Wei Wang to discuss the various relief and flexibility initiatives that the agency has provided to the state’s oil and gas operators, including deadline extensions for certain requirements/filings, online processing and electronic submissions, and enforcement discretions and waiver considerations.
Next, Christian announced the formation of the Blue Ribbon Task Force for Oil Economic Recovery. This task force is being led by the leadership of the state’s major trade associations including the Texas Oil and Gas Association, The Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners Association, The Permian Basin Petroleum Association, The Panhandle Producers and Royalty Owners Association, and the Texas Pipeline Association.
“I want to challenge the task force to look at every aspect on what can be done at the state level to assist operators and save jobs as we endure these historic circumstances—operations, permitting, timelines, tax policy and deadlines, storage capacity expansion, pipeline capacity, market access barriers, and anything else the task force can think of that will aid the industry in managing through difficulty,” Christian said. “The goal is to save as many jobs, enable operators to survive and return to a robust level as quickly as possible.”
Before closing out the open meeting, the commissioners revisited the issue of proration. Commissioner Ryan Sitton discussed a potential motion to put in place proration contingent on a number of factors, including the actions of other states.
“I agree with Commissioner Sitton that if we are going to take action, time is of the essence,” Christian said. “But I also agree with Commissioner [Christi] Craddick that if we are going to go down this road, it is imperative that our motion be done in a way that is lawful and does not open us up to months of litigation. Neither of these positions are mutually exclusive.”
“As I stated in [a WorldOil article], I have reservations that must be answered before I would consider voting to take Texas down this road,” continued Christian. “With Commissioner Sitton’s goal of a June 1 implementation, I think waiting to vote on the matter until May 5 gives the Commissioners two weeks to get the answers we need, see how other states act, and continue to work on other options in earnest with the federal government.”
SOURCE: The Weekly Propane Newsletter, April 23, 2020. Subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
