Published: 10-31-08
3-Day Processing for Expedited Drilling Permits & 7 Days for non-Expedited Permits
AUSTIN — The three Texas Railroad Commissioners announced today that after just four weeks of implementing their drilling permit backlog reduction program the Commission has successfully reduced the processing time for expedited drilling permits to three days and for non-expedited permits to seven days.
In early October the processing times for expedited drilling permits had reached 13 days and up to 40 days for non-expedited drilling permits. At their Sept. 23 conference the commissioners voted to withdraw up to $750000 from the Oilfield Cleanup Fund to address this growing permit backlog. The commissioners also agreed to seek reimbursement to the fund during the upcoming Legislative session.
Commission Chairman Michael L. Williams said We have implemented a three-prong approach to improve permit processing times while maintaining our thorough review process. This approach involves having Commission staff work overtime on Saturdays; redeploying some Commission staff within the agency to the drilling permit section; and hiring outside contractors familiar with our permitting process.
Commissioner Victor Carrillo said “With the recent record energy sector activity in Texas our agency experienced drilling permit application numbers that haven’t been seen since the last energy boom in the 1980s. Even with the current drop in oil and gas prices the Commission anticipates issuing almost 25000 drilling permits this year compared to 19994 drilling permits issued last year. We are very proud of the rapid positive response already achieved and are committed to ensuring that we stay on top of this critically important issue.”
Commissioner Elizabeth Ames Jones said “Drilling permit fees go directly into the Oilfield Cleanup Fund which is used to plug abandoned wells and cleanup abandoned oil and gas sites. This one-time withdrawal of funds will not impact plugging or site cleanups because due to heightened industry activity the fund’s is experiencing high revenues. The estimated revenues for 2008 are $33 million while the estimated fund expenditures for the year are estimated to be about $30 million.”
The commissioners noted the backlog reduction program is a one-time short-term plan to carry the agency over until the 2009-10 Biennium.
During the 2009 Legislative session the Commission will seek to implement a long-term plan to boost staff numbers and salaries. Part of the Commission’s 2010-2011 Legislative Appropriations Request includes $3.8 million to attract and retain personnel.
