CHANGING REGULATIONS
The Oklahoma Corporation Commission on Thursday adopted rule changes that could affect the state's oil and natural gas and wind industries
Oklahoma's Corporation Commission on Thursday adopted rules that aim to help it keep track of where temporary lines for transporting produced water are getting used.
The new rule, which now goes to the Legislature and governor for review and approval, requires energy operators to notify the agency of their plans to use temporary lines to transport produced, treated water from recycling or holding reservoirs to well drilling and completion locations.
The rule requires operators to submit a form that provides the commission's Oil and Gas Conservation Division with the name of the service company installing the line, contact information for the firm and the names of the well or wells and lease operators the line will serve.
The form also asks the operator to check a box indicating the request complies with the rule's requirement that operators notify abutting land owners and local authorities of their plans.
That differs from what agency officials initially proposed.
Earlier, the required form included boxes operators were asked to check that indicated whether they had obtained permission from landowners whose properties abut rights of way where lines would be placed and whether they had obtained appropriate permissions and/or approvals from local municipalities or county commissioners.
Operators also will have to provide the division with a completed map or diagram showing the route the line will follow.
Commission spokesman Matt Skinner said previously the agency never proposed creating a new regulatory process that operators must navigate to obtain a permit from the agency before installing temporary lines.
Instead, he said the oil and gas conservation division will use the forms to build an electronic mapping system that all of agency inspectors will have on their computers.
“If there is a problem with any one of these lines, no matter what time of day or night, we will know exactly where to go,” Skinner said. “The basic idea behind this is to know where these lines are and to be able to respond to any problems with those lines.”
Agency officials began working on the rule with local municipal and county officials and oil and gas industry representatives because of controversy that erupted last year when Kingfisher County Commissioners stopped approving permits allowing operators to install temporary lines used to carry produced, treated water within rights of way along county roads and highways.
Their action prompted the Oklahoma Independent Petroleum Association — Oklahoma Oil and Gas Association to challenge their stance by taking a case to the Oklahoma Supreme Court.
A divided court agreed with OIPA-OKOGA's assertion that state law gives the Oklahoma Corporation Commission statutory authority over oil and gas operations.
Chad Warmington, president of OIPA-OKOGA, attended Thursday's hearing where the rule was adopted, but didn't make any comments at the hearing.
Previously, however, he said the organization supported the rule.
“We think it is appropriate for the commission to be notified about the potential for produced water to be running in temporary lines, because they are the regulatory body that would handle any cleanup involving any kind of spill on that,” he said. “It is not a permit as much as it is just a notice the lines will be used. It will help their field offices who are looking at those lines and making sure they aren't leaking.”