MIDLAND, Texas — Changes are coming to the oil and gas industry.
The Railroad Commission of Texas has proposed new rules for waste management in the industry.
It will be the first time in 40 years the rules have changed.
“In 2009, for example, somewhere near 200,000 barrels a day was being produced in the Permian," said Michael Lozano of the Permian Basin Petroleum Association (PBPA).
As production in the Permian Basin has grown significantly in 15 years, so has waste produced with it.
“Being about 6.3 million barrels a day, we’re averaging about anywhere from three to seven barrels of water per day per barrel of oil," Lozano said.
Lozano, who handles government affairs for the PBPA, said new waste management rules have been in the works for years now.
“This rule is one that we’re hoping to work to modernize to work better for our needs and of course the needs of the state," Lozano said. "We have better technologies than we ever have had before and I think in implementing those technologies and being supportive of the rule, we want to make sure that we’re advancing in creating some environmental progress to also coincide with our economic development.”
Some of that economic development comes from the sector of produced water, one of the main forms of waste the new rules will help address.
“Previously, like a said, the rule really considered these operations as obligated of operators because it was a waste stream, it wasn’t a commodity," Lozano said. "And, now with that shift with economics and different markets out there for treatment and recycling, that I think is a huge shift.”
Lozano said the rules are flexible and will create a commercial permitting process, opening more opportunity for operators to innovate in that space.
“By working diligently with the commission and experts across the fields, expanding beneficial reuse has been such a priority for our membership and a priority for the industry, and I think produced water solutions are vital to the health and growth and vitality of the industry – and certainly for the Permian," Lozano said.
With the new rules expected to be adopted before the end of 2024, there is belief behind the benefits they can provide for everyone.
“We know what we want to do and that’s to ensure we protect groundwater, and we’re safe and responsible and mindful of environmental protection," Lozano said. "We always want to prevent waste, we want to make sure that we’re moving product to market, we’re benefitting taxpayers, we’re benefitting the environment – those are priorities to us regardless of the issue – and if we can accomplish those things in any different way that we can, we want to make sure that we’re allowing those.”
The Railroad Commission of Texas provided NewsWest 9 with the following statement about their new proposed waste management rules for the oil and gas industry:
"The proposed amendments are comprehensive rules that address all aspects of management of oil and gas waste including produced water, mud, rock, flowback water, and drill cuttings.
As stated in the press release, the significant overhaul after 40 years in the proposed rules were done to better reflect modern waste management practices and recent advancements in production methods. There are many updated requirements being proposed. For example: a new framework for produced water recycling pits, which are typically very large infrastructure pits and can be used for many years; removing the distinctions between commercial and non-commercial pits and strengthening the requirements for groundwater monitoring and financial security at the waste facilities; locations of disposal pits; and updated requirements for generators and transporters of oil and gas waste, including the documentation of the waste profile.
Public input is important for these proposed rules. The public can submit comments on the proposed rules now and the comment period has been extended to October 15. After the comment period ends, staff will review and incorporate comments." - Railroad Commission of Texas