{"id":1511,"date":"2014-05-27T10:51:08","date_gmt":"2014-05-27T15:51:08","guid":{"rendered":"http:\/\/agrilife.org\/texasaglaw\/?p=1511"},"modified":"2026-04-17T15:32:39","modified_gmt":"2026-04-17T20:32:39","slug":"railroad-commission-sides-with-oil-company-against-groundwater-conservation-district","status":"publish","type":"post","link":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/","title":{"rendered":"Railroad Commission Sides with Oil Company Against Groundwater Conservation District"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"color: #800000;\">*This article is not a substitute for the advice of an attorney.*<\/span><\/p>\n<p>Last week, the Texas Railroad Commission heard an important dispute regarding\u00a0whether local groundwater conservation districts have the right to protest disposal well permits.<\/p>\n<p><a href=\"http:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1081 aligncenter\" src=\"http:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well-300x235.jpg\" alt=\"\" width=\"300\" height=\"235\" srcset=\"https:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well-300x235.jpg 300w, https:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well-1024x804.jpg 1024w, https:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well.jpg 1621w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p style=\"text-align: center;\">\u00a0<strong>Background<\/strong><\/p>\n<p>In order to drill a disposal well, a company must obtain a permit from the Railroad Commission of Texas.\u00a0 Frequently,\u00a0local Groundwater Conservation Districts challenge these permits, citing concerns about contamination of groundwater.\u00a0 This is\u00a0particularly true\u00a0in the Eagle Ford Shale region, where some GCDs\u00a0challenge every disposal well petition in their area seeking to require additional safeguards to protect their water supply.<\/p>\n<p>In this particular case, the Gonzales County GCD challenged a permit filed by Marathon Oil Company.\u00a0\u00a0 Specifically, the GCD was concerned that the disposal\u00a0well may contaminate brackish groundwater in the area that may be able to be used for human consumption as desalination technology continues to advance.<\/p>\n<p>Marathon argued that the GCD was not\u00a0allowed to challenge the permit for two reasons.\u00a0 First, Marathon argued that because the proposed disposal well would be located 4 miles outside the Gonzales County GCD&#8217;s jurisdiction, meaning that the GCD had no authority.\u00a0 Second, a much broader argument was made that a GCD was not\u00a0\u00a0&#8220;affected&#8221; by\u00a0a proposed permit and, therefore, had no standing to protest disposal wells before the RRC.<\/p>\n<p style=\"text-align: center;\"><strong>The Law<\/strong><\/p>\n<p>Under Texas law, the Railroad Commission of Texas regulates oil and gas production in the state, including the permitting process for disposal wells.\u00a0\u00a0 Under the Texas Administrative Code, an &#8220;affected person or local government&#8221; may protest a disposal well permit.\u00a0 <em>See<\/em> TAC 3.9(5)(E).\u00a0An &#8220;affected person&#8221; is defined as a person who has suffered or will suffer actual injury or economic damage other than as a member of the general public or as a competitor, including surface owners of property where the well would be located and operators of nearby wells.\u00a0 <em>See id.<\/em><\/p>\n<p>The rules require that\u00a0a party seeking a disposal well permit must provide notice of a permit application\u00a0to certain affected persons\u00a0including the owner of the\u00a0surface tract where the well will be located, operators of wells located within 1\/2 mile of the proposed well, the county clerk where the proposed well would be located,\u00a0and the city clerk if the well will be located in a city.\u00a0 <em>See<\/em> TAC 3.9(5)(A).\u00a0 For commercial disposal wells, affected persons also include the owners of adjoining surface tracts.\u00a0 <em>See <\/em>TAC 3.9(5)(B).\u00a0 Further, in addition to the list above, the Railroad Commission may also determine on a permit-by-permit basis if other classes of persons, such as underground water districts,\u00a0should receive notice of a proposed disposal well permit.\u00a0 <em>See<\/em> TAC 3.9(5)(C).\u00a0 Finally, in order to ensure all affected persons are aware of the proposed well, notice must be published in the newspaper.\u00a0 <em>See<\/em> TAC 3.9(5)(D).<\/p>\n<p style=\"text-align: center;\"><strong>The Decision<\/strong><\/p>\n<p>Initially, a RRC hearing examiner sided with the GCD, finding that it did have standing and should be allowed to challenge Marathon&#8217;s permit application before the GCD.\u00a0 [Read Memorandum\u00a0<a href=\"http:\/\/s3.amazonaws.com\/static.texastribune.org\/media\/documents\/Hrng_Examiner_Memo_to_Commissioners.pdf\">here<\/a>.]<\/p>\n<p>Last Thursday, however, the Railroad Commission found in favor of Marathon Oil.\u00a0\u00a0 The three-person panel found that in this particular case, Gonzales GCD lacked standing because the proposed disposal well was located beyond the district&#8217;s bounds.\u00a0 The Railroad Commission did not, however, reach the issue of whether a GCD would have standing to challenge a permit within the district&#8217;s bounds.\u00a0 The Gonzales County GCD could appeal this decision to the Texas court system if they so desired.\u00a0 For more information, click <a href=\"http:\/\/www.texastribune.org\/2014\/05\/22\/drilling-water-interests-clash-on-disposal\/\">here<\/a>\u00a0and <a href=\"http:\/\/www.law360.com\/articles\/540914\/texas-regulator-greenlights-marathon-injection-well\">here<\/a>.<\/p>\n<p style=\"text-align: center;\"><strong>What Does This Mean?<\/strong><\/p>\n<p style=\"text-align: left;\">This case is just another example of the clash between producing oil and gas and protection Texas groundwater.\u00a0 It is important to realize that this decision was limited in scope to the specific facts in this case.<\/p>\n<p style=\"text-align: left;\">Because the RRC decided only the limited issue of whether a GCD may challenge a disposal well permit where the proposed well is located outside of GCD bounds, this decision will likely have limited impact beyond these specific facts.\u00a0 The RRC was clear that it was not deciding whether a GCD ever had standing to challenge a disposal well permit, and one commissioner stated that were this well located within the district bounds, there would be a &#8220;very different conversation.&#8221;<\/p>\n<p style=\"text-align: left;\">Also, it is important to note that this decision merely means that the Gonzales GCD cannot intervene and protest the Marathon permit request.\u00a0 Other &#8220;affected parties&#8221; may still continue with protests and the RRC will still analyze the permit in accordance with the Commission rules.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>*This article is not a substitute for the advice of an attorney.* Last week, the Texas Railroad Commission heard an important dispute regarding\u00a0whether local groundwater conservation districts have the right to protest disposal well permits. \u00a0Background In order to drill a disposal well, a company must obtain a permit from the Railroad Commission of Texas.\u00a0 Frequently,\u00a0local Groundwater Conservation Districts challenge these permits, citing concerns about contamination of groundwater.\u00a0 This is\u00a0particularly true\u00a0in the Eagle Ford Shale region, where some GCDs\u00a0challenge every disposal well petition in their area seeking to&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2443,"featured_media":1081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-1511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-and-gas-law","category-water-law"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Railroad Commission Sides with Oil Company Against Groundwater Conservation District - Texas Agriculture Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Railroad Commission Sides with Oil Company Against Groundwater Conservation District - Texas Agriculture Law\" \/>\n<meta property=\"og:description\" content=\"*This article is not a substitute for the advice of an attorney.* Last week, the Texas Railroad Commission heard an important dispute regarding\u00a0whether local groundwater conservation districts have the right to protest disposal well permits. \u00a0Background In order to drill a disposal well, a company must obtain a permit from the Railroad Commission of Texas.\u00a0 Frequently,\u00a0local Groundwater Conservation Districts challenge these permits, citing concerns about contamination of groundwater.\u00a0 This is\u00a0particularly true\u00a0in the Eagle Ford Shale region, where some GCDs\u00a0challenge every disposal well petition in their area seeking to... 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Texas Agriculture Law","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/","og_locale":"en_US","og_type":"article","og_title":"Railroad Commission Sides with Oil Company Against Groundwater Conservation District - Texas Agriculture Law","og_description":"*This article is not a substitute for the advice of an attorney.* Last week, the Texas Railroad Commission heard an important dispute regarding\u00a0whether local groundwater conservation districts have the right to protest disposal well permits. \u00a0Background In order to drill a disposal well, a company must obtain a permit from the Railroad Commission of Texas.\u00a0 Frequently,\u00a0local Groundwater Conservation Districts challenge these permits, citing concerns about contamination of groundwater.\u00a0 This is\u00a0particularly true\u00a0in the Eagle Ford Shale region, where some GCDs\u00a0challenge every disposal well petition in their area seeking to... Read More &rarr;","og_url":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/","og_site_name":"Texas Agriculture Law","article_publisher":"https:\/\/www.facebook.com\/texasaglaw","article_published_time":"2014-05-27T15:51:08+00:00","article_modified_time":"2026-04-17T20:32:39+00:00","og_image":[{"width":1621,"height":1274,"url":"https:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well.jpg","type":"image\/jpeg"}],"author":"tiffany.dowelllashmet","twitter_card":"summary_large_image","twitter_creator":"@tiffdowell","twitter_site":"@tiffdowell","twitter_misc":{"Written by":"tiffany.dowelllashmet","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/#article","isPartOf":{"@id":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/"},"author":{"name":"tiffany.dowelllashmet","@id":"https:\/\/agrilife.org\/texasaglaw\/#\/schema\/person\/754aac94b6e8c9d5829c91e8c9ff7626"},"headline":"Railroad Commission Sides with Oil Company Against Groundwater Conservation District","datePublished":"2014-05-27T15:51:08+00:00","dateModified":"2026-04-17T20:32:39+00:00","mainEntityOfPage":{"@id":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/"},"wordCount":762,"commentCount":0,"publisher":{"@id":"https:\/\/agrilife.org\/texasaglaw\/#organization"},"image":{"@id":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/#primaryimage"},"thumbnailUrl":"https:\/\/agrilife.org\/texasaglaw\/files\/2014\/01\/disposal-well.jpg","articleSection":["Oil and Gas Law","Water Law"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/","url":"https:\/\/agrilife.org\/texasaglaw\/2014\/05\/27\/railroad-commission-sides-with-oil-company-against-groundwater-conservation-district\/","name":"Railroad Commission Sides with Oil Company Against Groundwater Conservation District - 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