RRC Announces ‘Significant Milestone in Texas’ Energy Sector’

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RRC Announces ‘Significant Milestone in Texas’ Energy Sector’

In a statement posted on its site this week, the Railroad Commission of Texas (RRC) said it has issued its first permit for a deep geo-pressured, geothermal well to Sage Geosystems in Atascosa County. “Located south of San Antonio in the Anaconcho Formation, this well permit marks a significant milestone in Texas’ energy sector as […]

“Located south of San Antonio in the Anaconcho Formation, this well permit marks a significant milestone in Texas’ energy sector as the first deep geo-pressured, geothermal permit issued since the Texas Legislature transferred regulatory authority for these types of wells from the Texas Commission on Environmental Quality to the RRC,” the RRC noted in its statement.

The RRC said in the statement that the well will be utilized in electricity generation by the San Miguel Electric Cooperative to serve its customers. Sage Geosystems has entered into a land use agreement with the cooperative to develop a three-megawatt Geopressured Geothermal System energy storage facility, the RRC added.

In its statement, the RRC said its regulatory framework “ensures that all geothermal projects adhere to rigorous environmental and safety standards while helping develop this emerging industry which has substantial skill and technology overlap with oil and gas industry”.

RRC Executive Director Wei Wang said in the statement, “Texas has been at the forefront of energy regulation and innovation for more than a century, and this transition has streamlined the permitting process for geothermal wells and reinforced the commission’s leadership in emerging energy technologies”.

“We remain dedicated to adapting our regulatory approach to facilitate the growth of new energy technologies while upholding the highest standards of environmental and public safety as we have done for more than a century,” Wang added.

Rigzone has asked the RRC if it anticipates issuing more permits for geothermal wells this year. At the time of writing, the RRC has not responded to Rigzone’s request.

In a statement posted on its site in October 2024, the RRC announced that it had “new proposed rules for public comment to administer legislation in the geothermal energy front in Texas”.

“Senate Bill 786 transfers regulatory authority of closed-loop geothermal injection wells from the Texas Commission on Environmental Quality to the Railroad Commission, allowing the RRC jurisdiction and permitting authority for these types of wells,” the RRC said in that statement.

“The new rules specifically address shallow closed-loop geothermal systems, including the associated injection wells, which are used to heat or cool buildings without conversion to electricity,” it added.

“The RRC is the primary agency that has oversight of injection wells, and transferring regulatory authority for shallow closed-loop geothermal injection wells to the commission will streamline the process for operators who want to drill and operate geothermal injection wells of this type,” it continued.

“The proposed rules require engineering and infrastructure safety measures to ensure protection of groundwater,” the RRC went on to state.

In that statement, the RRC highlighted that the deadline for comments was in November 2024.

The RRC notes on its website that it regulates the exploration, development, and production of geothermal energy and associated resources on public and private land for the purpose of conservation and the protection of correlative rights.

Injection wells used for the production of geothermal or geopressured water and their by-products must be permitted by the RRC prior to beginning injection, the RRC site states. It adds that, as of September 1, 2023, in accordance with Senate Bill 786 of the 88th Legislature, all geothermal wells are under the jurisdiction of the commission, including closed-loop geothermal wells that use the earth as a heat sink to heat or cool a structure.

The RRC also notes on its site that it is the state agency with primary regulatory jurisdiction over the oil and natural gas industry, pipeline transporters, natural gas and hazardous liquid pipeline industry, natural gas utilities, the LP-gas industry, critical natural gas infrastructure, and coal and uranium surface mining operations.

In a statement posted on its site earlier this month, the RRC announced that it issued a total of 666 original drilling permits in January. The total includes 607 to drill new oil or gas wells, six to re-enter plugged wellbores, and 53 for re-completions, the RRC said in the statement.

In a separate statement posted on its site in February, the RRC outlined that the preliminary reported total volume of crude oil in Texas was 119.46 million barrels in November 2024. The RRC noted in its statement that crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate.

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