The Texas Railroad Commission (RRC), which oversees the state’s oil and natural gas industries, approved a proposed weatherization rule to help protect Texans during emergencies that could occur any time of the year.
The proposed rule is the latest in a series of regulations to avoid another energy emergency like the February 2021 freeze that left millions of Texans without power, water and heat for days during a deadly storm following the shutdown of an unusually large amount of electric generation and gas pipelines.
The RRC said the proposed rule, approved on June 28, is open for public comment through Aug. 15, after which staff will review comments before commissioners adopt a final rule, which is expected before the end of the summer.
“This is a critical step toward ensuring more production of oil and gas during inclement weather,” RRC Chairman Wayne Christian said in a release.
The weatherization rule covers critical facilities that are on the state’s Electricity Supply Chain Map, which the Public Utility Commission of Texas adopted in April.
Facilities on the map include some oil and gas wells, underground storage facilities, gas processing plants and some gas pipelines.
The proposed rule requires companies to implement measures to ensure their equipment can operate during a weather emergency and to contact the RRC if the facility sustains a weather-related forced outage, among other things.
RRC said it will inspect facilities and impose fines for violations that could reach up to $1 million per day.
“With 1,000 people moving to Texas each day, the long-term solution for our state’s energy needs is to invest and build more cheap, reliable natural gas-fired electric generation,” Christian said.
“Now is the time to end all preferential market treatment and taxpayer subsidies for unreliable, intermittent forms of energy,” Christian said.
Recommended Reading
Exclusive: ‘Regulatory Tsunami’ a Top Priority for American Producers, Says AXPC’s Bradbury
2024-04-22 - Regulatory considerations have significant implications for how oil and gas companies evaluate risk, and it’s a top priority for American energy producers right now, said American Exploration & Production Council CEO Anne Bradbury at CERAWeek by S&P Global.
Global Energy Watch: Corpus Christi Earns Designation as America's Top Energy Port
2024-02-06 - The Port of Corpus Christi began operations in 1926. Strategically located near major Texas oil and gas production, the port is now the U.S.’ largest energy export gateway, with the Permian Basin in particular a key beneficiary.
CERAWeek: Energy Secretary Defends LNG Pause Amid Industry Outcry
2024-03-18 - U.S. Energy Secretary Jennifer Granholm said she expects the review of LNG exports to be in the “rearview mirror” by next year.
US Asks Venture Global LNG to Justify Filing of Confidential Documents
2024-03-13 - The FERC request comes days after Venture Global LNG customers had challenged the company's request for a one-year extension of its startup and urged the regulator to make Venture Global release the confidential commissioning documents.
Israel Says Gas Exports to Egypt, Jordan Rose 25% in 2023
2024-02-26 - Israel said on Feb. 26 that gas supplies to Egypt and Jordan rose by about 25% in 2023.