1 / 35

P-5 FILINGS AND FINANCIAL SECURITY

P-5 FILINGS AND FINANCIAL SECURITY. RAILROAD COMMISSION OF TEXAS. PRESENTERS: MARIA CASTRO / JENNIFER GILMORE. TOPICS. P-5 Organization Report Revised September 2011 Financial Assurance Requirements P-5 Filing Fees and Surcharge Surcharge effective May 2012.

trudy
Download Presentation

P-5 FILINGS AND FINANCIAL SECURITY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. P-5 FILINGS AND FINANCIAL SECURITY RAILROAD COMMISSION OF TEXAS PRESENTERS: MARIA CASTRO / JENNIFER GILMORE

  2. TOPICS P-5 Organization Report Revised September 2011 Financial Assurance Requirements P-5 Filing Fees and Surcharge Surcharge effective May 2012

  3. P5 ORGANIZATION REPORT Requirements: Oil & Gas & Pipeline Operators: Natural Resources Code, Sec. 91.142 Oil & Gas Statewide Rules 1 & 78 Master Meter & Distribution Systems (Safety Division): Utilities Code, Sec. 121.201 Pipeline Safety Rule 51/Oil & Gas Rules 1 & 78

  4. SUPPLEMENTAL FORMS P-5O: Officer Listing P-5A: Non-Employee Agent Listing P-5PB(1): Individual Performance Bond P-5PB(2): Blanket Performance Bond P-5LC: Letter of Credit

  5. P-5 Form

  6. Form P-5 (Organization Report)

  7. P-5O Form

  8. Form P-5O (Officer Listing)

  9. P-5A Form

  10. Form P-5A (Non-Employee Agent Listing) Actual Person name not company

  11. Original signature by P-5 officer required

  12. Key Points • Entities requiring SOS registration must be chartered prior to submitting P-5 application. • Organization name must match SOS filings, down to and including punctuation. • IF organization name is longer than 32 characters, abbreviation will be required to accommodate RRC spacing limitations. This will not effect the organization’s chartered name. • Email address is not required, but if provided available to the public. • Officer titles must match plan of organization. EX: 1) Corporation – President, Secretary, Treasurer 2) Limited Partnership – General Partner 3) Limited Liability Company – Manager/Member etc.. • If an officer is a company, must provide officers for listed company. • Only acceptable form of ID for a sole proprietor is a SSN. • All forms of ID are redacted and not available to the public. • P-5 officer signature is required to assign non-employee agent on form P-5A. 13

  13. Financial Requirements • Financial Security required for most organizations. • Option 1 - Individual Performance Bond, Letter of Credit or Cash Deposit • Option 2 - Blanket Performance Bond, Letter of Credit or Cash Deposit

  14. Oil & Gas Non-Well Operators • Exempt if your only operations are: • Master Meter / Gas Distribution Center • Purchaser • Directional Surveyor • Salt Water Hauler • Approved Well Plugger • Approved Cementer for Well Plugging • (Well plugging requires Approval by Fld Ops) • Service company for well stimulation activities • $25,000 if you have any other activities

  15. Option 1 • Individual Performance Bond, Letter of Credit or Cash Deposit • Only available to well operators who have no activity other than wells • Amount determined by multiplying the aggregate depth of all wells (active, inactive, injection, producer, etc.) at $2.00 per foot.

  16. Option 2 • Blanket Performance Bond, Letter of Credit or Cash Deposit • Available to all operators • Amount determined by the total number of wells (active, inactive, injection, producer, etc.) • 1 to 10 wells $25,000 • 11 to 99 wells $50,000 • 100 wells or more $250,000 • For operators without wells who are required to file FA, $25,000.

  17. Bay and Offshore Wells • Statewide Rule §3.78 amended 9-1-2004 to require additional financial security for operators of Bay and Offshore wells • Calculated by Base amount + Entry Level amount + Non-Producing Amount • Presumed Plugging Cost for Bay Well $60,000.00 / Offshore Well $100,000.00

  18. Bay & Offshore Wells • Example: Operator A has 15 wells, of which 8 are bay wells. 4 of these wells are non-producing. • Base: $50,000 • Entry Level: $60,000 • Non-Producing amount: $180,000 • Total: $290,000

  19. Drilling Permits Effective 12-19-05 Statewide Rule 78 amended requiring financial security as a condition of the issuance of permit to drill, recomplete or reenter a well. Required amount: Option 1 or Option 2 Permits cannot be issued to “unbonded” operators.

  20. P-5LC (Letter of Credit)

  21. P-5LC (back page LOC) Effective date MUST be current date.

  22. P-5PB1 and P5PB2 (Individual and Blanket Performance Bonds)

  23. (Back page of P-5PB1 and P-5PB2) Date MUST be affixed by principal.

  24. Filing Fee and Surcharges • Filing fee required for annual P-5 renewals and new P-5 filings • Statewide Rule 78 amended to impose a surcharge of 150% to filing fees • Notification to industry sent out February 2012 • Effective May 1, 2012

  25. P-5 Filing Fee Amount based on the following four components: Number of wells operated 1 – 25 wells $750 26 – 100 wells $1,250 101 wells or more $2,500 Natural Gas Pipelines (one or more): $562.50 Pipelines other than Natural Gas (one or more): $1,562.50 Facilities and/or Service Activities: $500 to $750 (One single fee regardless of quantity or variety) Operator with no activity or a new filer is $750.

  26. Facilities & Service Activities Oil & Gas Regulated activities other than pipelines or wells. $750 if the activities include only: • Pollution Cleanup Contractor, (CLENUP) • Directional Surveyor, (DIRSUR) • Approved Cementer for plugging wells, and/or (PLUGGR) • Moving/Storing Crude or Condensate. (TRANSP) • Approved Cementer for Well Plugging (CEMNTR) $1,250 if the operator has any other Commission-regulated facilities or service activities, including (but not limited to): • Commercial Facility, (COMFAC) • Gas Plant, (GASPLT) • Reclamation Plant, (RECLPL) • Refinery, (REFINE) • Saltwater Disposal P18 authority, and/or (SWDP18) • Waste Hauler authority. (WHAUL) • Service Comp. for Well Stimulation/Hydr. Fracturing Activities (WLSTIM)

  27. Filing fee and Surcharges • Statewide Rule 78 amended to impose a surcharge of 150% to filing fees • Effective May 1, 2012 • Notification to industry sent out February 2012

  28. Auto P-4 Changes Name change P-5 Large acquisitions of property Same Operator change • 25 or more leases • Operator change Auto - Request letter requires signature of previous P-5 officer and acquiring P-5 officer • Same operator change Auto – Letter can be signed by company authorized individual Questions contact: Linda Turk (512) 463-6777 29

  29. RRC Online System • File a SAD (Security Administration Designation) Form • Two types of accounts: • Security Administrator Accounts • Filer Accounts

  30. SAD Form (Security Administrator Designation For Electronic Filing)

  31. SAD Form (Security Administrator Designation For Electronic Filing) Complete address

  32. Legible and correct 6 characters

  33. Helpful Links Railroad Commission Website: http://www.rrc.texas.gov Expanded Website Access (EWA) – P5 Query: http://webapps2.rrc.state.tx.us/EWA/organizationQueryAction.do (data updated nightly) P-5 Renewal Status Query: http://webapps2.rrc.state.tx.us/EWA/inactiveWellStatusQueryAction.do (data updated nightly) HB2259/HB3134 Information (Inactive Well requirements): http://www.rrc.texas.gov/oil-gas/compliance-enforcement/hb2259hb3134-inactive-well-requirements/ RCOnline-Security@rrc.state.tx.us Lost UserID and Password Help https://webapps.rrc.state.tx.us/security/loginHelpAction.do?method=Initialize

  34. Contact Information For any questions the P-5 Unit can be contacted by phone or email. P-5 Main Line (512) 463-6772 P5@rrc.state.tx.us

More Related