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UPDATE - Texas RRC to hold May 5 virtual meeting on prorationing

  • 1.  UPDATE - Texas RRC to hold May 5 virtual meeting on prorationing

    Posted 04-30-2020 10:24
    April 29, 2020 -- The Texas Railroad Commission (RRC) has announced it will hold a virtual online Commissioners' Conference on May 5. (https://www.rrc.state.tx.us/covid19/) Agenda items to be discussed include the ongoing prorationing matter as raised by the Motion filed on March 30 by Pioneer Natural Resources U.S.A. Inc. and Parsley Energy Inc. "to determine reasonable market demand for oil in the State of Texas."

    To view the RRC meeting agenda and further information on how to participate, see below:
    https://www.rrc.state.tx.us/media/57506/final-conference-agenda-for-may-5-2020.pdf

    For background information: https://www.forbes.com/sites/anasalhajji/2020/04/13/history-tells-proration-would-cause-chaos-in-the-texas-oil-patch/#211ea9752e5f

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    Russell Cohen
    AAPL Governmental Affairs
    rcohen@landman.org
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  • 2.  RE: UPDATE - Texas RRC to hold May 5 virtual meeting on prorationing

    Posted 04-30-2020 14:00
    April 30 -- Updated information on Texas RRC meeting to consider production cuts:

    Yesterday, the RRC released a copy of their proposed order which would reduce production by 20 percent and levy fines of $1,000 per barrel against violators. As noted by the Houston Chronicle, "The debate has created a rift in the industry with a coalition of smaller producers and environmentalists in favor of production cuts while industry trade associations, larger producers and pipeline operators are staunchly opposed."

    See a copy of the proposed order here: https://assets.documentcloud.org/documents/6879691/RRC-Proposed-Order.pdf

    For further background information: https://www.forbes.com/sites/davidblackmon/2020/04/30/texas-railroad-commission-will-consider-an-oil-production-cut-that-is-too-late-to-matter/#378f15057c99




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    Russell Cohen
    AAPL Governmental Affairs
    rcohen@landman.org
    ------------------------------