HB 2259/HB 3134 Enforcement Status
Data as of 09/03/2015
Beginning with Organization Report renewals due July 1, 2012, the Commission began enforcing new requirements associated with inactive wells. The requirements were instituted by the Legislature under HB 2259 (81 st Legislative Session, 2009) and HB 3134 (82 nd Legislative session, 2011).
A major component of the new requirements is the disconnection of electricity and clean-up of surface equipment associated with inactive wells. The requirements are progressive based on how long the well has been inactive: at 12 months, the electricity must be disconnected; at 5 years, all production fluids must be purged from inactive lines and tanks; and at 10 years, the equipment must be removed. Operators certify compliance with this requirement by filing Form W-3C. Currently, W-3Cs have been filed certifying the following:
| Action Taken | Well Counts | ||
|---|---|---|---|
| Electrical Disconnection (required after 12 months of inactivity) | 65,930 | ||
| Purging of production fluids (required after 5 years of inactivity) | 44,605 | ||
| Inactive lines and vessels purged | 41,839 | 93.8% | |
| Well operator owns the surface; purging not required | 2,766 | 6.2% | |
| Equipment Removal (required after 10 years of inactivity) | 36,380 | ||
| Equipment removed (except sign and wellhead control) | 29,137 | 80.1% | |
| Well operator owns the surface; removal not required | 2,649 | 7.3% | |
| Commission-recognized EOR project; removal not required. | 4,594 | 12.6% | |
| Exceptions | 857 | ||
| Total: | 147,772 | ||
(For further information on surface cleanup requirements, see the information on Form W-3C and Commission Statewide Rule 15.)
If an operator fails to comply with the inactive well requirements, the Commission will not approve their annual organization report renewal. Currently, 164 operators are subject to outstanding enforcement orders relating to these inactive well requirements and have had their renewals denied.
Resulting wells now considered Orphans: 2491