Outline
The Texas W-3X form serves a crucial purpose for operators in the oil and gas industry, specifically when it comes to managing inactive wells. This form allows operators to request an extension on the deadline for plugging these wells, which is an important step in ensuring environmental safety and compliance with state regulations. Operators must provide specific information, including their name, address, and P-5 number, as well as details about the well or wells in question. The form offers two main options for extension requests: blanket extensions for all inactive land wells operated by the entity and individual well extensions for specific wells. Each option has its own requirements, such as demonstrating that a certain percentage of inactive wells have been plugged or that financial security has been established. Additionally, operators must certify the accuracy of the information provided, ensuring that they are fully accountable for their claims. Understanding the requirements and processes outlined in the Texas W-3X form is essential for operators aiming to maintain compliance while managing their inactive wells effectively.
Sample - Texas W 3X Form
RAILROAD COMMISSION OF TEXAS
Oil and Gas / Admin. Compliance
PO Box 12967
Austin, TX
READ INSTRUCTIONS ON BACK
APPLICATION FOR AN |
Form |
EXTENSION OF DEADLINE FOR |
(Rev. 08/2019) |
PLUGGING AN INACTIVE WELL |
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1.OPERATOR NAME exactly as shown on Form
2.OPERATOR ADDRESS including city, state and zip code
3. OPERATOR
- If you are applying for a blanket plugging extension for all inactive land wells operated by this entity:
Blanket Extension Options (See Instructions)
AThe filing operator has plugged or restored to active status 10% of the number of inactive land wells operated at the time of the last annual renewal of the operator’s organization report;
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The filing operator is a publicly traded entity and has filed with the Commission documentation naming the operator as “debtor” |
B and the Railroad Commission of Texas as the “secured creditor” and specifies the funds covered by the documents in the |
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amount of the cost calculation for plugging all inactive wells. |
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C |
The filing operator has submitted additional financial security covering the amount of the cost calculation for plugging all |
inactive wells or $2 million, whichever is less. |
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OR
- If you are applying for a plugging extension for a single well:
4.LEASE NAME as shown on Proration Schedule
5.FIELD NAME as shown on Proration Schedule
6. API NUMBER
42-
7. RRC DISTRICT NO.
8. OIL LEASE / GAS ID NO. 9. WELL NO.
10. COUNTY
Individual Well Extension Options (See Instructions)
DThe well identified above is covered by an abeyance of plugging report and the operator has paid the required filing fee and surcharge of $250.00 under Rule 78 and Tex. Nat. Res. Code §81.070 (Please attach the abeyance of plugging report.)
E The well identified above is part of a
The well identified above is not otherwise required by Commission rule or order to conduct a fluid level or hydraulic pressure
Ftest of the well, and the operator has conducted a successful fluid level or hydraulic pressure test of the well and has paid the required filing fee and surcharge of $125.00 under Rule 78 and Tex. Nat. Res. Code §81.070 (The test results must be filed with the Railroad Commission on Form
GThe operator has filed additional financial security in the amount of the cost calculation for plugging the well identified above.
HThe operator has filed an escrow fund deposit in an amount at least equal to 10% of the cost calculation for plugging the well identified above. (In the form of a certified cashier check or currency)
CERTIFICATION: I certify under penalties prescribed by the Texas Natural Resources Code 91.143 and the Texas Penal Code that, to the best of my knowledge, the information given in this application is true, complete, and correct.
_____________________________________________ |
_____________________________________________ |
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Signature |
Name (print or type) |
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_____________________________________________ |
______________________ |
_____________________ |
Title |
Date |
Phone No. |
Contact Person and Phone Number if different from above: ________________________________________________
Reference: Statewide Rule 15 and 78
Instructions:
File Form
Blanket Application for Extensions:
If you are filing Form
1)Complete items 1 through 3;
2)Indicate the applicable blanket extension option;
3)Attach any necessary supporting documentation (see below); and
4)Sign and date the Form
Under Statewide Rule 15(f)(2)(B), blanket plugging extensions require that you file with the Commission one of the following:
1)for all inactive land wells that an operator has operated for more than 12 months, documentation that the operator has plugged or restored to active operation, as defined by Commission rule, 10% of the number of inactive land wells operated at the time of the last annual renewal of the operator's Organization Report (Form
2)if the operator is a publicly traded entity, for all inactive land wells, the operator has filed with the Commission a copy of the operator's federal documents filed to comply with Financial Accounting Standards Board Statement No. 143, Accounting for Asset Retirement Obligations, and an original executed Uniform Commercial Code Form 1 Financing Statement, filed with the Secretary of State, that names the operator as the "debtor" and the Railroad Commission of Texas as the "secured creditor" and specifies the funds covered by the documents in the amount of the cost calculation for plugging all inactive wells; or
3)the filing of a blanket bond on Commission Form
Individual Well Application for Extension:
If you are filing Form
1)Complete items 1 through 10;
2)Indicate the applicable individual well extension option;
3)Attach any necessary supporting documentation (see below); and
4)Sign and date the Form
Under Statewide Rule 15(f)(2)(B), individual well plugging extensions require that you document one of the following:
1)For each inactive land well identified in the application, the operator has paid the required filling fee and surcharge, and the Commission or its delegate has approved an abeyance of plugging report which includes the following certification under the seal of the certifying professional engineer or professional geoscientist: “I hereby certify, that I am a currently licensed professional engineer or professional geoscientist and based on my personal knowledge of the inactive well identified in this report, the well has a future utility based on both 1) a reasonable expectation of economic value in excess of the cost of plugging the well during the period covered by this report; and 2) a reasonable expectation that the well will ultimately be restored to a beneficial use that will prevent waste of oil or gas resources that otherwise would not be produced if the well is plugged. I further certify that I have reviewed the documentation demonstrating the basis for the affirmation of the well’s future utility attached to this application. An abeyance of plugging report filed under Tex. Nat. Res. Code §89.023(a)(3)(B) is valid for a period of not more than five years.”
2)for each inactive land well identified in the application, the operator has filed a statement that the well is part of a Commission- approved EOR project;
3)for each inactive land well identified in the application that is not otherwise required by Commission rule or order to conduct a fluid level or hydraulic pressure test of the well, the operator has conducted a successful fluid level test or hydraulic pressure test of the well and the operator has paid the required filing fee and surcharge;
4)for each inactive land well identified in the application, the Commission or its delegate has approved a supplemental bond, letter of credit, or cash deposit in an amount at least equal to the cost calculation for plugging an inactive land well for each well specified in the application; or
5)for each time an operator files an application for a plugging extension and for each inactive land well identified in the application, the Commission or its delegate has approved an escrow fund deposit in an amount at least equal to 10% of the total cost calculation for plugging an inactive land well.
Cost Calculation for Plugging an Inactive Well:
The cost calculation pursuant to Statewide Rule 15 is the cost, calculated by the Commission or its delegate, for each foot of well depth plugged based on average actual plugging costs for wells plugged by the Commission for the preceding state fiscal year for the Commission Oil and Gas Division district in which the inactive well is located.
Form Information
| Fact Name | Details |
|---|---|
| Governing Law | The Texas W-3X form is governed by Statewide Rule 15 and Rule 78 under the Texas Natural Resources Code. |
| Purpose | This form is used to request an extension of the deadline for plugging an inactive well. |
| Filing Address | Applications must be sent to the Railroad Commission of Texas, PO Box 12967, Austin, TX 78711-2967. |
| Operator Information | Applicants must provide the operator's name, address, and P-5 number as shown on Form P-5. |
| Blanket Extensions | Operators can apply for blanket extensions for all inactive land wells they operate by completing specific items on the form. |
| Individual Well Extensions | For a single well extension, operators must complete items 1 through 10 on the form. |
| Filing Fees | A filing fee of $250 is required for an abeyance of plugging report; $125 for a successful fluid level or hydraulic pressure test. |
| Financial Security | Operators may need to provide additional financial security for plugging costs, capped at $2 million. |
| Certification Requirement | Applicants must certify that the information provided is true, complete, and correct under Texas law. |
| Submission Format | All items on the form should be typed or clearly printed in blue or black ink. |
Detailed Guide for Filling Out Texas W 3X
Filling out the Texas W-3X form is a straightforward process that requires specific information about the operator and the well in question. Ensure that all details are accurate and complete before submission.
- Enter the Operator Name exactly as it appears on Form P-5, Organization Report.
- Provide the Operator Address, including city, state, and zip code.
- Input the Operator P-5 Number.
- If applying for a blanket plugging extension for all inactive land wells, select the applicable option and provide any necessary supporting documentation.
- If applying for a single well extension, fill in the following details:
- Lease Name as shown on the Proration Schedule.
- Field Name as shown on the Proration Schedule.
- API Number (format: 42-XXXXX).
- RRC District Number.
- Oil Lease/Gas ID Number.
- Well Number.
- County.
- Select the applicable individual well extension option and attach any required supporting documentation.
- Sign and date the form, including your printed name and title.
- Provide a contact person and phone number if different from the signer.
After completing the form, review it for accuracy. Once confirmed, submit it to the Railroad Commission of Texas at the specified address. Make sure to keep a copy for your records.
Obtain Answers on Texas W 3X
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What is the purpose of the Texas W-3X form?
The Texas W-3X form is used to apply for an extension of the deadline for plugging an inactive well. Operators can request either a blanket extension for multiple wells or an individual extension for a single well. This form must be submitted to the Railroad Commission of Texas as part of compliance with Statewide Rule 15.
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Who needs to file the W-3X form?
Any operator of an inactive well in Texas is required to file the W-3X form if they seek an extension for plugging that well. This includes both individual operators and publicly traded entities. The operator must provide specific information, such as their name, address, and the details of the wells in question.
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What information is required on the W-3X form?
The form requires various details, including:
- Operator name and address
- P-5 number
- Lease name and field name
- API number and RRC district number
- Well number and county
Additionally, operators must select the appropriate extension option and provide any necessary supporting documentation, such as proof of financial security or results from pressure tests.
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What are the blanket extension options available?
Operators seeking a blanket extension must meet one of the following criteria:
- They have plugged or restored to active status at least 10% of their inactive land wells since the last annual renewal.
- They are a publicly traded entity that has filed specific documentation with the Commission, naming it as the “debtor” and the Railroad Commission as the “secured creditor.”
- They have submitted additional financial security covering the cost of plugging all inactive wells or $2 million, whichever is less.
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What happens if the W-3X form is not filed?
If an operator fails to file the W-3X form or does not meet the requirements for an extension, they may be subject to penalties. The Railroad Commission of Texas can enforce plugging requirements, which could lead to additional costs or legal consequences for the operator. It is crucial for operators to stay compliant to avoid such issues.
Common mistakes
Filling out the Texas W-3X form can be straightforward, but mistakes can lead to delays or denials. One common error is failing to provide the operator name exactly as it appears on Form P-5. This name must match precisely, or the application may be rejected. Ensure that spelling and formatting are consistent.
Another frequent mistake involves the operator address. Applicants often forget to include the complete address, including city, state, and zip code. Omitting any part of this information can cause processing issues. Double-check that every detail is accurate and complete.
Many people overlook the operator P-5 number. This number is crucial for identifying the operator's organization. If you are applying for a blanket plugging extension, ensure that this number is included. Without it, your application may not be considered.
When selecting blanket extension options, applicants sometimes fail to attach necessary supporting documentation. For instance, if you claim to have plugged or restored 10% of inactive wells, you must provide proof. Missing documents can lead to automatic denials, so ensure all required paperwork is included.
Another mistake is related to individual well applications. Applicants may not properly indicate the lease name and field name as shown on the Proration Schedule. This information must be accurate and match the official records. Inaccuracies here can complicate the review process.
Some applicants forget to sign and date the form. This step is essential for certification. An unsigned form is incomplete and cannot be processed. Always review the form before submission to ensure that all required signatures are present.
Lastly, be cautious with the filing fees. Ensure that the correct fees are paid and attached to the application. Inadequate payment can result in delays or rejection. Confirm the amount required for your specific application type and include it with your submission.
Documents used along the form
The Texas W-3X form is an essential document for operators seeking an extension on the deadline to plug inactive wells. However, several other forms and documents often accompany it to ensure compliance with regulations set forth by the Railroad Commission of Texas. Each of these documents serves a specific purpose in the application process, helping to clarify the operator's intentions and compliance status.
- Form P-5: Organization Report - This form provides essential information about the operator's organization, including its name, address, and identification number. It establishes the legal entity responsible for the wells.
- Form H-15: Fluid Level or Hydraulic Pressure Test Results - Required when an operator conducts a fluid level or hydraulic pressure test on a well. This form documents the results and must be submitted to the Railroad Commission to validate the test.
- Abeyance of Plugging Report - This document is necessary when the operator seeks to delay plugging a well. It includes a certification from a licensed professional engineer or geoscientist affirming the well's future utility and must be filed with the W-3X application.
- Performance Bond (Form P-5PB(2)) - A financial guarantee ensuring that the operator will cover the costs associated with plugging the well. This bond is crucial for demonstrating financial responsibility.
- Letter of Credit (Form P-5LC) - Similar to a performance bond, this document provides a financial safety net, allowing the operator to secure funds for plugging the well if necessary.
- Escrow Fund Deposit - Operators may be required to deposit a specified amount into an escrow account as a guarantee for plugging costs. This deposit must be equal to at least 10% of the total cost calculation for plugging the well.
- Uniform Commercial Code Form 1 Financing Statement - This form is necessary for publicly traded entities to establish the Railroad Commission as a secured creditor. It details the financial obligations related to the plugging of inactive wells.
- Commission-Approved EOR Project Documentation - If the well is part of a Commission-approved Enhanced Oil Recovery (EOR) project, the operator must provide documentation to confirm this status, which may exempt the well from certain plugging requirements.
Understanding these accompanying forms and documents is vital for operators navigating the complexities of well management in Texas. Each piece plays a critical role in ensuring compliance with state regulations and safeguarding the environment. Properly completing and submitting these forms can streamline the process and help operators avoid potential penalties.
Similar forms
The Texas W-3X form is used to apply for an extension of the deadline for plugging an inactive well. Several other documents share similarities with the W-3X form in terms of purpose and content. Below is a list of six such documents:
- Form P-5, Organization Report: This form provides essential information about the operator, including the name, address, and identification number. Like the W-3X, it requires accurate operator details for compliance with regulations.
- Form H-15, Fluid Level Test Report: Operators must submit this form if they conduct a fluid level or hydraulic pressure test. Similar to the W-3X, it requires documentation of test results to ensure compliance with safety standards.
- Form P-5PB(2), Blanket Performance Bond: This document serves to guarantee financial responsibility for plugging inactive wells. It parallels the W-3X in its requirement for financial security to support the plugging process.
- Form P-5LC, Irrevocable Documentary Blanket Letter of Credit: Like the W-3X, this form is used to provide financial assurance for plugging costs. Both documents emphasize the need for operators to demonstrate financial capability.
- Abeyance of Plugging Report: This report is required when an operator seeks to delay the plugging of a well. It shares similarities with the W-3X in that both documents require certification from a licensed professional regarding the well's future utility.
- Escrow Fund Deposit Documentation: This documentation is necessary when operators set aside funds for plugging costs. It aligns with the W-3X in its focus on securing financial resources for well plugging obligations.
Dos and Don'ts
When filling out the Texas W-3X form, it is essential to follow certain guidelines to ensure a smooth process. Below are four key things to do and avoid.
- Do fill out the operator name exactly as shown on Form P-5, Organization Report.
- Do provide a complete operator address, including city, state, and zip code.
- Do ensure that all items on the form are typed or clearly printed in blue or black ink.
- Do sign and date the form to certify the accuracy of the information provided.
- Don't leave any required fields blank; incomplete forms may delay processing.
- Don't submit the form without the necessary supporting documentation as outlined in the instructions.
- Don't use any ink color other than blue or black, as this can affect legibility.
- Don't forget to check the specific extension options that apply to your situation before submitting.
Misconceptions
Misconceptions about the Texas W-3X form can lead to confusion and potential delays in the plugging process of inactive wells. Here are five common misunderstandings clarified:
- Only large operators need to file the W-3X form. Many believe that only large oil and gas companies are required to submit this form. In reality, any operator with inactive wells must file the W-3X form to apply for an extension, regardless of the size of their operation.
- The W-3X form is only for blanket extensions. Some think that this form is exclusively for blanket extensions covering all inactive wells. However, it can also be used for individual well extensions, allowing operators to apply for extensions on a case-by-case basis.
- Filing the W-3X form guarantees an extension. There is a misconception that simply submitting the form guarantees an extension for plugging. In truth, operators must meet specific criteria and provide supporting documentation to qualify for an extension.
- All inactive wells are eligible for extension. Many assume that all inactive wells can receive an extension without restrictions. However, certain conditions apply, such as the need for a successful fluid level or hydraulic pressure test, or the well being part of a Commission-approved Enhanced Oil Recovery (EOR) project.
- The W-3X form can be submitted at any time. Some operators believe they can file the W-3X form whenever they wish. In fact, there are deadlines for submitting the form, and operators must be aware of these timelines to avoid penalties or additional fees.
Understanding these misconceptions can help operators navigate the complexities of the Texas W-3X form more effectively. Clarity in the application process not only ensures compliance but also supports responsible management of natural resources.
Key takeaways
Filling out the Texas W-3X form is a crucial step for operators seeking an extension to plug inactive wells. Here are some key takeaways to consider:
- Complete Information Accurately: Ensure that the operator's name, address, and P-5 number are filled out exactly as they appear on Form P-5.
- Choose the Right Extension Option: Determine whether you are applying for a blanket extension for all inactive wells or for a single well. This affects which sections of the form you need to complete.
- Document Requirements: Attach any necessary supporting documents as required by the instructions. Missing documentation can delay your application.
- Understand Fee Structures: Be aware of the required filing fees and surcharges. For example, a $250 fee is needed for an abeyance of plugging report.
- Certification is Key: The form must be signed and dated, certifying that all information is true and correct. This certification is legally binding.
- Stay Informed: Familiarize yourself with Statewide Rule 15 and other relevant regulations to ensure compliance throughout the process.
- Timeliness Matters: Submit the form before the deadline to avoid penalties. Extensions are not granted automatically and require timely action.
By following these takeaways, operators can navigate the process of filling out and using the Texas W-3X form more effectively. Ensuring accuracy and compliance will help in securing the necessary extensions for inactive wells.