RRC Proposes Major Overhaul for Water Protection and Oil & Gas Waste Management Rules

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On October 2, 2023, the Railroad Commission of Texas (the “RRC”) made an announcement on changes to Statewide Rule 8, which regulates how oil and gas waste is managed within the state.

The vast majority of oil and gas waste is disposed of in drilling pits. Drilling pits (shown in the image below) are large open hole excavations that are used to dispose of oil and gas waste. This waste contains significant volumes of diesel, salt water and heavy metals and is toxic to the local environment, including ground water, if the drilling pit liner is breached. Recover Inc. (“Recover”) was pleased to see the RRC propose regulation changes that will enhance the protection of ground and surface water when using drilling pits, similar to nearly every other oil and gas jurisdiction. The process of changing the Statewide Rule 8 has entered the public consultation phase and is likely to be enacted in 2024.

Recover is a waste-to-energy technology company that transforms oil and gas waste into a low carbon intensity transportation fuel.

Recover has a shovel ready waste-to-energy project that will be co-located on a landfill in the Permian Basin. The changing regulations will result in a substantial redirection of oil and gas waste from drilling pits, to landfills where Recover will be located. Once this waste has been processed, Recover’s proprietary technology will lead to significant reductions in greenhouse gas emissions.

North American energy producers are global leaders in sustainable development. Recover believes that this regulatory change will be the catalyst to developing a number of new waste-to-energy facilities within the oil and gas industry, reducing greenhouse gas emissions and producing a new clean fuel supply, while generating skilled employment opportunities.