American Oil and Gas Reporter - January 2015 - 224
Pipeline Permitting
Alliance Questions Rule Amendments
By Danny Boyd
Special Correspondent
the eminent domain provisions in the
Texas Landowner's Bill of Rights.
AUSTIN, TX.-Newly adopted amendments to Texas Railroad Commission
rules could delay pipeline permitting and
construction, and do little to clear up concerns of smaller independents over nondiscriminatory access to intrastate transporters, according to the Texas Alliance of
Energy Producers.
The Railroad Commission announced
Dec. 3 that the three commissioners unanimously adopted amendments to Rule
70, which are designed to clarify how a
pipeline operator may be classified by the
commission as a common carrier contracting to transport crude oil, natural gas or
carbon dioxide for hire.
But with Texas operators often being
forced to flare gas because of a lack of
pipeline capacity, the amendments could
inject further delays in the permitting
process that will cost the entire industry
more time and money, worries Bill
Stevens, Alliance government relations
consultant.
"We want to expedite the permitting
process and pipeline construction as much
as possible, and not introduce new delays,"
Stevens stresses.
The rule amendments take effect on
March 1. They require a pipeline operator to verify its claim to be a common carrier when applying for a T-4 permit to operate a pipeline, or when renewing, amending or cancelling an existing permit, according to an RRC summary.
Permit applications now must contain
additional information, including the classification requested and purpose of the
pipeline or pipeline system as a common
carrier, a gas utility or private line operator, according to the RRC.
Permit applications also must be accompanied by a sworn statement from the
pipeline applicant detailing the facts supporting the classification requested and the
purpose for the pipeline, the commission
says. If applicable, the pipeline operator
must submit documentation such as a contract or tariff for third-party transportation,
along with any other information requested by the RRC, the summary states.
The pipeline T-4 permit, if granted, may
be revoked at any time after a hearing, if
the commission finds the pipeline is not
being operated in accordance with state
laws, and commission rules and regulations, the RRC delineates.
The applicant also must acknowledge
Obligation To Shippers
"The commission's new permitting
procedures for common carrier pipelines
certify a more vibrant, transparent permitting process," RRC Chairwoman Christi
Craddick maintains in a statement.
But the additions do little to provide additional transparency sought by some
smaller independents vying for pipeline
space, Stevens counters. Attempts at legislative remedies have been unsuccessful
thus far, he points out.
"We don't want this to cause delays in
building pipelines," he emphasizes. "We
simply are saying that needs from both
sides of the ledger need to be recognized-from the landowner and the producer/shipper. That is transparency.
"We have called for transparency on
pipeline regulations, tariffs, and entry
and exit points, and have (lobbied) for that
legislatively for years," Stevens adds. "I
don't think we are any further along today.
This really doesn't open that to our satisfaction."
Changes to Rule 70 follow the Texas
Supreme Court's August 2011 decision in
Texas Rice Land Partners v. Denbury
Green Pipeline-Texas LLC, which overturned Texas' legislatively directed procedure for designating common carrier
pipelines, Stevens reviews. He says the Alliance believes the court made it clear that
the critical public use determination required
to exercise eminent domain was a matter for
the courts to decide, and not the RRC.
"The Denbury case was decided strictly on the eminent domain question for the
landowner," Stevens says. "We understand
that. However, if you are going to put a
process in place, whether it be statutory
and legislative or a rule making at the Railroad Commission, pipelines have obligations not only to the landowner on the procedural process to exercise eminent domain, but they also have responsibilities
to the shippers and producers that they
have equal, nondiscriminatory access, if
(the pipeline) is going to be a common carrier.
"We suggest those rules and regulations
should be reiterated by the RRC to the
pipeline when the pipeline indicates it is
a common carrier," he states. "It's a
recognition that the pipeline has this dual
obligation."
Stevens says the amendments could introduce delays in permitting at a time when
224 THE AMERICAN OIL & GAS REPORTER
Texas producers in the Permian Basin and
Eagle Ford plays are being forced to
flare associated gas because they lack
pipeline take-away capacity.
"If the commission was to request additional information from a pipeline, I believe it has 45 days to begin answering,"
Stevens points out. "How long then does
the RRC have to make a decision after
that? We have 30 days initially, then 45
days added to it. How long will it be before the final decision is made?
"We are extending the process instead
of simply requiring an administrative
check of a box, which the commission has
had in the past," he reflects. "We now have
an undetermined amount of time before a
statement of acceptance is issued, perhaps
extending 120 or 150 days. That is a substantial delay."
Unanswered Questions
Additional delays could occur if interested parties-landowners, producers or environmentalists-contest an application,
Stevens muses.
While the RRC may have answers to
the Alliance's concerns, he says uncertainty nevertheless remains about how the
commission will address those issues internally.
The amendments include an openended requirement for pipelines to submit
information to support the classifications
they request, but in comments it filed in
August, the Alliance questioned what
standards or guidelines would be used to
determine what detailed information needed to be submitted, what guidelines the
RRC staff would use to decide whether the
information submitted was sufficient,
whether guidelines would be published as
a rule making, or whether a rule making
was even appropriate, Stevens reviews.
The association also questioned
whether pipelines would have to submit
specific information on how they planned
to comply, including the terms of access
for the public to ship oil, gas, or products,
and the availability of access, he continues. The Alliance questioned how the information would be made known to the
public, the rates and other tariff conditions
that would apply, and the available receipt
and delivery points.
The Alliance also queried whether a
pipeline's implementation would be reviewed at the time of its annual T-4 permit
renewal to determine whether it complied with the statutory requirements, and
whether producers would be given an op-
American Oil and Gas Reporter - January 2015
Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2015
Contents
American Oil and Gas Reporter - January 2015 - Cover1
American Oil and Gas Reporter - January 2015 - Cover2
American Oil and Gas Reporter - January 2015 - 3
American Oil and Gas Reporter - January 2015 - 4
American Oil and Gas Reporter - January 2015 - Contents
American Oil and Gas Reporter - January 2015 - 6
American Oil and Gas Reporter - January 2015 - 7
American Oil and Gas Reporter - January 2015 - 8
American Oil and Gas Reporter - January 2015 - 9
American Oil and Gas Reporter - January 2015 - 10
American Oil and Gas Reporter - January 2015 - 11
American Oil and Gas Reporter - January 2015 - 12
American Oil and Gas Reporter - January 2015 - 13
American Oil and Gas Reporter - January 2015 - 14
American Oil and Gas Reporter - January 2015 - 15
American Oil and Gas Reporter - January 2015 - 16
American Oil and Gas Reporter - January 2015 - 17
American Oil and Gas Reporter - January 2015 - 18
American Oil and Gas Reporter - January 2015 - 19
American Oil and Gas Reporter - January 2015 - 20
American Oil and Gas Reporter - January 2015 - 21
American Oil and Gas Reporter - January 2015 - 22
American Oil and Gas Reporter - January 2015 - 23
American Oil and Gas Reporter - January 2015 - 24
American Oil and Gas Reporter - January 2015 - 25
American Oil and Gas Reporter - January 2015 - 26
American Oil and Gas Reporter - January 2015 - 27
American Oil and Gas Reporter - January 2015 - 28
American Oil and Gas Reporter - January 2015 - 29
American Oil and Gas Reporter - January 2015 - 30
American Oil and Gas Reporter - January 2015 - 31
American Oil and Gas Reporter - January 2015 - 32
American Oil and Gas Reporter - January 2015 - 33
American Oil and Gas Reporter - January 2015 - 34
American Oil and Gas Reporter - January 2015 - 35
American Oil and Gas Reporter - January 2015 - 36
American Oil and Gas Reporter - January 2015 - 37
American Oil and Gas Reporter - January 2015 - 38
American Oil and Gas Reporter - January 2015 - 39
American Oil and Gas Reporter - January 2015 - 40
American Oil and Gas Reporter - January 2015 - 41
American Oil and Gas Reporter - January 2015 - 42
American Oil and Gas Reporter - January 2015 - 43
American Oil and Gas Reporter - January 2015 - 44
American Oil and Gas Reporter - January 2015 - 45
American Oil and Gas Reporter - January 2015 - 46
American Oil and Gas Reporter - January 2015 - 47
American Oil and Gas Reporter - January 2015 - 48
American Oil and Gas Reporter - January 2015 - 49
American Oil and Gas Reporter - January 2015 - 50
American Oil and Gas Reporter - January 2015 - 51
American Oil and Gas Reporter - January 2015 - 52
American Oil and Gas Reporter - January 2015 - 53
American Oil and Gas Reporter - January 2015 - 54
American Oil and Gas Reporter - January 2015 - 55
American Oil and Gas Reporter - January 2015 - 56
American Oil and Gas Reporter - January 2015 - 57
American Oil and Gas Reporter - January 2015 - 58
American Oil and Gas Reporter - January 2015 - 59
American Oil and Gas Reporter - January 2015 - 60
American Oil and Gas Reporter - January 2015 - 61
American Oil and Gas Reporter - January 2015 - 62
American Oil and Gas Reporter - January 2015 - 63
American Oil and Gas Reporter - January 2015 - 64
American Oil and Gas Reporter - January 2015 - 65
American Oil and Gas Reporter - January 2015 - 66
American Oil and Gas Reporter - January 2015 - 67
American Oil and Gas Reporter - January 2015 - 68
American Oil and Gas Reporter - January 2015 - 69
American Oil and Gas Reporter - January 2015 - 70
American Oil and Gas Reporter - January 2015 - 71
American Oil and Gas Reporter - January 2015 - 72
American Oil and Gas Reporter - January 2015 - 73
American Oil and Gas Reporter - January 2015 - 74
American Oil and Gas Reporter - January 2015 - 75
American Oil and Gas Reporter - January 2015 - 76
American Oil and Gas Reporter - January 2015 - 77
American Oil and Gas Reporter - January 2015 - 78
American Oil and Gas Reporter - January 2015 - 79
American Oil and Gas Reporter - January 2015 - 80
American Oil and Gas Reporter - January 2015 - 81
American Oil and Gas Reporter - January 2015 - 82
American Oil and Gas Reporter - January 2015 - 83
American Oil and Gas Reporter - January 2015 - 84
American Oil and Gas Reporter - January 2015 - 85
American Oil and Gas Reporter - January 2015 - 86
American Oil and Gas Reporter - January 2015 - 87
American Oil and Gas Reporter - January 2015 - 88
American Oil and Gas Reporter - January 2015 - 89
American Oil and Gas Reporter - January 2015 - 90
American Oil and Gas Reporter - January 2015 - 91
American Oil and Gas Reporter - January 2015 - 92
American Oil and Gas Reporter - January 2015 - 93
American Oil and Gas Reporter - January 2015 - 94
American Oil and Gas Reporter - January 2015 - 95
American Oil and Gas Reporter - January 2015 - 96
American Oil and Gas Reporter - January 2015 - 97
American Oil and Gas Reporter - January 2015 - 98
American Oil and Gas Reporter - January 2015 - 99
American Oil and Gas Reporter - January 2015 - 100
American Oil and Gas Reporter - January 2015 - 101
American Oil and Gas Reporter - January 2015 - 102
American Oil and Gas Reporter - January 2015 - 103
American Oil and Gas Reporter - January 2015 - 104
American Oil and Gas Reporter - January 2015 - 105
American Oil and Gas Reporter - January 2015 - 106
American Oil and Gas Reporter - January 2015 - 107
American Oil and Gas Reporter - January 2015 - 108
American Oil and Gas Reporter - January 2015 - 109
American Oil and Gas Reporter - January 2015 - 110
American Oil and Gas Reporter - January 2015 - 111
American Oil and Gas Reporter - January 2015 - 112
American Oil and Gas Reporter - January 2015 - 113
American Oil and Gas Reporter - January 2015 - 114
American Oil and Gas Reporter - January 2015 - 115
American Oil and Gas Reporter - January 2015 - 116
American Oil and Gas Reporter - January 2015 - 117
American Oil and Gas Reporter - January 2015 - 118
American Oil and Gas Reporter - January 2015 - 119
American Oil and Gas Reporter - January 2015 - 120
American Oil and Gas Reporter - January 2015 - 121
American Oil and Gas Reporter - January 2015 - 122
American Oil and Gas Reporter - January 2015 - 123
American Oil and Gas Reporter - January 2015 - 124
American Oil and Gas Reporter - January 2015 - 125
American Oil and Gas Reporter - January 2015 - 126
American Oil and Gas Reporter - January 2015 - 127
American Oil and Gas Reporter - January 2015 - 128
American Oil and Gas Reporter - January 2015 - 129
American Oil and Gas Reporter - January 2015 - 130
American Oil and Gas Reporter - January 2015 - 131
American Oil and Gas Reporter - January 2015 - 132
American Oil and Gas Reporter - January 2015 - 133
American Oil and Gas Reporter - January 2015 - 134
American Oil and Gas Reporter - January 2015 - 135
American Oil and Gas Reporter - January 2015 - 136
American Oil and Gas Reporter - January 2015 - 137
American Oil and Gas Reporter - January 2015 - 138
American Oil and Gas Reporter - January 2015 - 139
American Oil and Gas Reporter - January 2015 - 140
American Oil and Gas Reporter - January 2015 - 141
American Oil and Gas Reporter - January 2015 - 142
American Oil and Gas Reporter - January 2015 - 143
American Oil and Gas Reporter - January 2015 - 144
American Oil and Gas Reporter - January 2015 - 145
American Oil and Gas Reporter - January 2015 - 146
American Oil and Gas Reporter - January 2015 - 147
American Oil and Gas Reporter - January 2015 - 148
American Oil and Gas Reporter - January 2015 - 149
American Oil and Gas Reporter - January 2015 - 150
American Oil and Gas Reporter - January 2015 - 151
American Oil and Gas Reporter - January 2015 - 152
American Oil and Gas Reporter - January 2015 - 153
American Oil and Gas Reporter - January 2015 - 154
American Oil and Gas Reporter - January 2015 - 155
American Oil and Gas Reporter - January 2015 - 156
American Oil and Gas Reporter - January 2015 - 157
American Oil and Gas Reporter - January 2015 - 158
American Oil and Gas Reporter - January 2015 - 159
American Oil and Gas Reporter - January 2015 - 160
American Oil and Gas Reporter - January 2015 - 161
American Oil and Gas Reporter - January 2015 - 162
American Oil and Gas Reporter - January 2015 - 163
American Oil and Gas Reporter - January 2015 - 164
American Oil and Gas Reporter - January 2015 - 165
American Oil and Gas Reporter - January 2015 - 166
American Oil and Gas Reporter - January 2015 - 167
American Oil and Gas Reporter - January 2015 - 168
American Oil and Gas Reporter - January 2015 - 169
American Oil and Gas Reporter - January 2015 - 170
American Oil and Gas Reporter - January 2015 - 171
American Oil and Gas Reporter - January 2015 - 172
American Oil and Gas Reporter - January 2015 - 173
American Oil and Gas Reporter - January 2015 - 174
American Oil and Gas Reporter - January 2015 - 175
American Oil and Gas Reporter - January 2015 - 176
American Oil and Gas Reporter - January 2015 - 177
American Oil and Gas Reporter - January 2015 - 178
American Oil and Gas Reporter - January 2015 - 179
American Oil and Gas Reporter - January 2015 - 180
American Oil and Gas Reporter - January 2015 - 181
American Oil and Gas Reporter - January 2015 - 182
American Oil and Gas Reporter - January 2015 - 183
American Oil and Gas Reporter - January 2015 - 184
American Oil and Gas Reporter - January 2015 - 185
American Oil and Gas Reporter - January 2015 - 186
American Oil and Gas Reporter - January 2015 - 187
American Oil and Gas Reporter - January 2015 - 188
American Oil and Gas Reporter - January 2015 - 189
American Oil and Gas Reporter - January 2015 - 190
American Oil and Gas Reporter - January 2015 - 191
American Oil and Gas Reporter - January 2015 - 192
American Oil and Gas Reporter - January 2015 - 193
American Oil and Gas Reporter - January 2015 - 194
American Oil and Gas Reporter - January 2015 - 195
American Oil and Gas Reporter - January 2015 - 196
American Oil and Gas Reporter - January 2015 - 197
American Oil and Gas Reporter - January 2015 - 198
American Oil and Gas Reporter - January 2015 - 199
American Oil and Gas Reporter - January 2015 - 200
American Oil and Gas Reporter - January 2015 - 201
American Oil and Gas Reporter - January 2015 - 202
American Oil and Gas Reporter - January 2015 - 203
American Oil and Gas Reporter - January 2015 - 204
American Oil and Gas Reporter - January 2015 - 205
American Oil and Gas Reporter - January 2015 - 206
American Oil and Gas Reporter - January 2015 - 207
American Oil and Gas Reporter - January 2015 - 208
American Oil and Gas Reporter - January 2015 - 209
American Oil and Gas Reporter - January 2015 - 210
American Oil and Gas Reporter - January 2015 - 211
American Oil and Gas Reporter - January 2015 - 212
American Oil and Gas Reporter - January 2015 - 213
American Oil and Gas Reporter - January 2015 - 214
American Oil and Gas Reporter - January 2015 - 215
American Oil and Gas Reporter - January 2015 - 216
American Oil and Gas Reporter - January 2015 - 217
American Oil and Gas Reporter - January 2015 - 218
American Oil and Gas Reporter - January 2015 - 219
American Oil and Gas Reporter - January 2015 - 220
American Oil and Gas Reporter - January 2015 - 221
American Oil and Gas Reporter - January 2015 - 222
American Oil and Gas Reporter - January 2015 - 223
American Oil and Gas Reporter - January 2015 - 224
American Oil and Gas Reporter - January 2015 - 225
American Oil and Gas Reporter - January 2015 - 226
American Oil and Gas Reporter - January 2015 - 227
American Oil and Gas Reporter - January 2015 - 228
American Oil and Gas Reporter - January 2015 - 229
American Oil and Gas Reporter - January 2015 - 230
American Oil and Gas Reporter - January 2015 - 231
American Oil and Gas Reporter - January 2015 - 232
American Oil and Gas Reporter - January 2015 - 233
American Oil and Gas Reporter - January 2015 - 234
American Oil and Gas Reporter - January 2015 - 235
American Oil and Gas Reporter - January 2015 - 236
American Oil and Gas Reporter - January 2015 - 237
American Oil and Gas Reporter - January 2015 - 238
American Oil and Gas Reporter - January 2015 - 239
American Oil and Gas Reporter - January 2015 - 240
American Oil and Gas Reporter - January 2015 - 241
American Oil and Gas Reporter - January 2015 - 242
American Oil and Gas Reporter - January 2015 - Cover3
American Oil and Gas Reporter - January 2015 - Cover4
http://staging.nxtbook.com/nxtbooks/aogr/201702/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201701/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201612/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201611/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201610/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2016_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201609/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201608/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201607/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201606/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201605/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201604/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201603/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201602/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201601/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201512/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201511/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201510/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201509/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201508/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201507/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201506/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201505/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201504/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201503/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201502/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201501/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201412/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201411/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201410/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201409/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2014_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201408/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201407/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201406/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201405/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201404/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201403/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201402/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201401/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201312/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201311/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201310/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201309/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201308/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201307/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201306/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201305/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201304/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201303/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201302/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201301/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201212/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201211/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201210/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201209/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/2012_pbios/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201208/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201207/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201206/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201205/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201204/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201203/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201202/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201201/stage.php
http://staging.nxtbook.com/nxtbooks/demo/aogr_clone/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201112/stage.php
https://www.nxtbookmedia.com