1. RAILROAD COMMISSION OF TEXAS OIL & GAS INDUSTRY REGULATORY JURISDICTIONS Gaye Greever McElwainAnn Marie Callery RRC Public OutreachTCEQ Small Business Environmental Assistance Division

2. Overview This presentation is intended to: Provide information on the jurisdictions of the Texas Commission on Environmental Quality (TCEQ) and the Railroad Commission of Texas Clarify which state agency(s) has jurisdiction over what aspect of oil & gas exploration and production activities 2

3. RRC Mission Our mission statement is to serve Texas by our stewardship of natural resources and the environment, our concern for personal and community safety, and our support of enhanced development and economic vitality for the benefit of Texans. 3

4. RRC Main Functions The Commission’s main functions are to: Protect the environment, public safety and correlative rights of mineral interest owners; Prevent waste of natural resources and promote conservation; Assure fair and equitable utility rates in natural gas distribution industries. Applicable to oil, gas and geothermal operations 4

5. The Texas Commission on Environmental Quality strives to protect our state's human and natural resources consistent with sustainable economic development. TCEQ Mission

6. TCEQ Main Functions Clean Air Clean Water Safe Management of Waste

7. Jurisdiction Who regulates oil & gas activity in Texas? The Railroad Commission of Texas (RRC) has PRIMARY regulatory authority over the oil & gas (O&G) industry. 7

8. Jurisdiction Who regulates oil & gas activity in Texas? The Texas Commission on Environmental Quality (TCEQ) is the environmental agency for the state and does have some regulatory responsibility. 8

9. Memorandum of Understanding Codified in RRC Rules 16 TAC 3.30 Jurisdictional agreement between TCEQ & RRC 9

10. Complaints Who handles complaints? In general, complaints for O&G exploration, production, and transportation should be directed to the RRC. 10

11. Who Handles Complaints? Nuisance Odors – TCEQ Noise Complaints – local law enforcement Dust from Public Roads – local gov’t Traffic Complaints – local law enforcement

12. Complaints Who handles complaints? Water Quality Discharges - RRC Private water wells – RRC suspected contamination Public drinking water - TCEQ 12

13. Complaints How to report a complaint: TCEQ – 888-777-3186 – http://www2.tceq.texas.gov/oce/complaint s/index.cfm http://www2.tceq.texas.gov/oce/complaint s/index.cfm

14. Complaints How to report a complaint: RRC 877-228-5740 http://www.rrc.state.tx.us/compliance/compla ints/index.phphttp://www.rrc.state.tx.us/compliance/compla ints/index.php Appropriate District Office 14

15. RRC District Offices Serve as the eyes and ears of RRC regulatory efforts Contact with complaints On call 24/7 to respond to emergencies Ensure oil and gas activities done in accordance with RRC rules & regulations Jurisdiction over specific counties 15

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17. Spills Who handles spills? What is spilled How much is spilled Where it is spilled Determines who is responsible 17

18. Spills Who handles spills? Spills that occur at oil and gas drilling, exploration, development or production sites Spills from RRC permitted O&G waste haulers on public roadways Spills related to the transportation of crude and natural gas by pipeline. RRC 18

19. Spills Who handles spills? Spills of hazardous substances, including refined petroleum products from pipelines or over roadways Spills associated with transportation of crude oil and natural gas, including natural gas liquids, by railcar, tank truck, barge, or tanker TCEQ 19

20. Spills Who handles spills? General Land Office Crude oil that threatens to enter coastal water ways. Texas Parks and Wildlife Impacts to fish and wildlife The Texas Department of Public Safety may be involved in securing incident sites at transportation related spills. 20

21. Air Who regulates air? Flaring and venting of natural gas From the perspective of it being a “waste of natural resources” RRC 21

22. Air Who regulates air? 72 hours after the well test – start of production For non well tested sites, the date equipment is brought on-site TCEQ 22

23. Water Who regulates water? Wastewater at the drilling rig or disposal well site Discharge of oil and gas waste to surface waters of the state – EPA-R6 Authorization required from BOTH RRC and EPA-R6 Typically RRC does not issue storm water discharge permits, but there are exceptions RRC 23

24. Water Who regulates water? Wastewater & storm water from commercial service companies Public Drinking Water and Surface Water Rights TCEQ 24

25. Water On-site Sewage Facilities (OSSF) & Graywater: Temporary housing located on the lease In proximity of the drilling or disposal site RRC 25

26. Water On-site Sewage Facilities (OSSF) Temporary housing located on the lease Elsewhere on the lease TCEQ or Authorized Agent 26

27. Water Graywater Temporary housing located on the lease Elsewhere on the lease TCEQ 27

28. Waste Who regulates waste? Waste generated on-site at the lease specific to the exploration, drilling or production RRC 28

29. Waste Who regulates waste? Residential-like garbage generated anywhere on the lease from living activities/office trailers TCEQ 29

30. County Authority Counties have the ability to enforce the Texas Health & Safety Code (THSC) in unincorporated areas of the county. 30

31. Questions?

32. Contact TCEQ Small Business Environmental Assistance – Hotline – 800-447-2827 – Email – sbap@tceq.texas.govsbap@tceq.texas.gov

33. Anne Marie Callery Small Business Environmental Assistance Division 512-239-2342 annemarie.callery@tceq.texas.gov

34. Contact Information Railroad Commission – Leslie Savage, Chief Geologist – leslie.savage@rrc.state.tx.us leslie.savage@rrc.state.tx.us – 512/463-7308 – Ramon Fernandez, Oil & Gas Division, Deputy Director, Field Operations – ramon.fernandez@rrc.state.tx.us ramon.fernandez@rrc.state.tx.us – 512/463-6827 – Gaye Greever McElwain, Public Outreach – gaye.mcelwain@rrc.state.tx.us gaye.mcelwain@rrc.state.tx.us – 512/463-5126 34