The Railroad Commission (RRC) filed exceptions to the ALJ’s Proposal for Decision (PFD) in Docket No. 37408. The docket is Oncor’s application for approval of its proposed CREZ transmission line from the Riley to Bowman stations. The ALJ issued the PFD on February 12, 2010, the RRC filed its exceptions on the 19th. No parties contest Modified Route 20, which the parties agreed to in their settlement of the case.
The RRC exceptions focus on the appropriate way to address the potential impact of the proposed transmission line on active and inactive oil and gas wells. The Riley to Bowman line is located in Archer, Wichita, and Wilbarger Counties, which have dense oil and gas development. It is possible that there are inactive unplugged wells in the proposed right-of-way that cannot be plugged when the transmission line is active.
Oncor contends that it is not necessary to include any language governing wells in the PUC’s final order approving the transmission line. PUC staff agrees with the RRC that additional language is necessary, but proposes language that the RRC contends will place the burden of identification and response on the RRC. The RRC’s position is that the burden of identification and response should be on the utility. The PUC staff language requires the utility to file a map of the proposed transmission line with the RRC. Oncor would not be required to identify any known unplugged wells and is not restricted from constructing a transmission line over an existing oil and gas well even if it is aware of the presence of the well.
The RRC objects that the PUC staff’s language puts the burden on the RRC to plug a well, even if the best response might be a minor deviation of the route to avoid the well. The RRC also objects to the staff’s language as being inconsistent with the Texas Natural Resources Code and Texas Water Code to prevent waste of oil and natural gas resources.
The PUC staff and Oncor will respond to the RRC’s exceptions before the PUC makes its final decision. This issue is important because the PUC’s decision in this case will affect future transmission lines in areas where there is oil and gas development. Any ordering paragraphs approved in this docket likely will become standard ordering paragraphs in those cases.