General Maintenance

General maintenance on several Railroad Commission IT systems will be performed between 7 p.m. on Friday, May 17, 2019 and 7 a.m. on Saturday, May 18, 2019, and 3 p.m. and 7 p.m. on Sunday, May 19, 2019.  During these times some online systems may be unavailable or experience degraded functionality. We appreciate your patience as we work to improve RRC systems and apologize for any inconvenience.

Severance/Seal Orders

Among the Commission's other enforcement methods, the Oil & Gas Division has the authority to cancel an operator's Certificate of Compliance and order that production be shut in at the lease or well level for noncompliance with Commission rules, effectively blocking that operator's ability to sell oil and gas from a lease. Before the operator can resume production, it must correct the violation and pay a statutory fee for restoration of the Certificate of Compliance.

Data as of 11/30/2018

Definition List
Fiscal Year (Sept. 1 - Aug. 31)Notices IssuedResolved without Severance/Seal OrderResolved after Severance/Seal OrderUnresolved NoticesSeverance Fee RevenueSeverance/Seal Orders issued by Fiscal Year
2009 27,657 17,496 63.3% 9,473 34.3% 688 2.5% $1,364,027.00 10,622
2010 24,583 15,513 63.1% 8,284 33.7% 786 3.2% $1,147,375.00 9,077
2011 31,667 20,084 63.4% 10,602 33.5% 981 3.1% $1,261,625.00 11,218
2012 24,083 15,446 64.1% 7,780 32.3% 857 3.6% $1,937,670.00 8,980
2013 32,291 19,905 61.6% 10,528 32.6% 1,858 5.8% $3,058,625.00 11,526
2014 30,378 19,534 64.3% 9,637 31.7% 1,207 4.0% $3,100,525.00 11,539
2015 25,555 16,057 62.8% 8,196 32.1% 1,302 5.1% $2,115,379.50 9,481
2016 21,648 13,457 62.2% 6,243 28.8% 1,948 9.0% $1,619,875.00 8,240
2017 32,520 22,051 67.8% 7,874 24.2% 2,595 8.0% $1,722,908.61 10,284
2018 34,094 22,983 67.4% 6,735 19.8% 4,376 12.8% $2,262,900.00 10,822
10-Yr Average 28,448 18,253 64.2% 8,535 30.0% 1,660 5.8% $1,959,091.01 10,179
 
2019 17,008 7,069 41.6% 475 2.8% 9,464 55.6% $490,100.00 2,606
 
For the 10-year period 2009-2018, 94.2% of violations managed through this process have been resolved. 64.2% of violations were corrected by the operator promptly upon notice with no further action needed by the Commission; another 30.0% were resolved following issuance of a severance/seal order. Compliance is verified by lease/well inspections in the case of field violations, or file review in the case of reporting violations. Where the violation remains unresolved, the Commission will pursue the matter through other appropriate enforcement action.
Note: beginning with FY2016, certified letter data includes notices of severances issued to operators relating to compliance with the inactive well requirements of Statewide Rule 15. While the data related to severance orders issued (and statistics based on post-severance statuses) will not be affected, the number of certified letters issued and of pre-severance statuses will be higher to accurate reflect those processes.

Last Updated: 12/11/2018 4:03:42 PM