Authored by Madison Schrutka & Isabel Huntsman
The U.S. Environmental Protection Agency (“EPA”) recently announced that it will be taking a hard look at the Texas Railroad Commission’s (“RRC”) enforcement of injection well regulatory practices (or the lack thereof). The RRC is the government agency responsible for regulating the production, exploration, and transportation of natural resources. However, an alleged failure to responsibly regulate such natural resources has created a massive threat to Texas’ drinking water supply.[1] According to nine Texas-based environmental groups, the RRC’s improper regulation of wells used for injecting wastewater and carbon dioxide is responsible for the recent outbreak of well blowouts, sinkholes, and seismic activity across Texas.[2] This has caused disastrous leaks and contamination of water sources. A landowner suffering from the consequences stated:
“The [RRC’s] oversight of unplugged wells and Class II injection has been so atrocious that I have experienced ongoing leaks of saltwater and oil all across and under my land, contaminating my soil and water. The agency’s response to my complaints has been defensive rather than helpful. Our state government should be more responsive to the public’s needs.”[3]
In March 2024, the Commission Shift and Clean Water Action formally petitioned the EPA arguing that the RRC’s neglect to properly comply with the Safe Drinking Water Act is sufficient to repeal the RRC’s primary authority to oversee its Class II injection well program.[4] As an end goal, the petitioners hope that the EPA’s evaluation will generate greater accountability for the RRC and enforce more impenetrable protections for our water resources.[5]
While the Class II injection wells at issue are widely used across the United States, Texas is home to the largest concentration of them.[6] These wells are largely used to dispose of drilling wastewater and to inject carbon dioxide underground for the enhancement of production in active fields. The petitioners argue that despite the RRC’s receipt of reports regarding Class II injection wells being improperly managed, the RRC fails to provide any recourse for Texans repeatedly impacted.[7] Further, the petitioners call attention to the RRC’s failure to evaluate the source of the leaks and blowouts or to involve the public in their well permitting decisions, “which disproportionately impacts low-income and linguistically-isolated communities, and is a textbook example of environmental injustice.”[8]
On May 23, 2024, the EPA responded to the petitioners’ request and announced that a review will be conducted into the RRC’s alleged improper oversight of the program.[9] Meanwhile, the RRC continues to vouch for its compliance with the federal standards and its “long-standing history of regulating underground injection that is protective of the environment and public safety.”[10]
It will be interesting to see what the EPA uncovers from its investigation into the RRC’s regulatory practices, especially now that the RRC has applied for additional authority from the EPA to primarily enforce its own permitting program for injecting and permanently storing carbon dioxide underground.[11] Petitioners complain that the issues already surrounding the RRC’s management of Class II wells raise serious red flags regarding its capability of properly regulating Texas carbon sequestration.[12] This could create yet another hurdle in the Commission’s quest for permitting “primacy” from the EPA for CCUS projects.
[1] Wake-Up Call: Texas faces water contamination threat from injection well mismanagement, Commission Shift (March 8, 2024), https://commissionshift.org/news/wake-up-call-texas-faces-water-contamination-threat-from-injection-well-mismanagement/.
[2] Valerie Volcovici, EPA to review Texas oversight of oil, gas wastewater disposal wells, Reuters (June 21, 2024, 6:27 PM), https://www.reuters.com/sustainability/climate-energy/us-epa-review-texas-oversight-oil-gas-wastewater-disposal-wells-2024-06-21/.
[3] Wake-Up Call, supra note 1.
[4] Volcovici, supra note 2.
[5] Id.
[6] Id.
[7] Id.
[8] Wake-Up Call, supra note 1.
[9] Volcovici, supra note 2.
[10] Id.
[11] Id.
[12] Id.
Isabel focuses on upstream energy title and transactional matters. She clerked with Oliva Gibbs for a year and a half during law school, which provided a solid foundation for her transition to associate attorney at the firm.
Isabel was recognized as the Most Outstanding Student in Oil and Gas and received the ConocoPhillips Energy Studies Award while at the University of Houston Law Center. She is actively involved in the Houston Bar Association (Energy Law Section) and prioritizes staying up to date on the latest legal and industry developments. In her free time, Isabel enjoys playing tennis and reading.