Loading...
HomeMy WebLinkAboutMinutes Oil And Gas Advisory Committee - 12/17/1991 ....w MINUTES OIL AND GAS ADVISORY COMMITTEE DECEMBER 17, 1991 PRESENT: Gene Carter, Industry Representative Donald Lewis, Industry Representative Andy Carson, Public Representative Linda Newsom, Industry Representative Jerry Gallagher, Alternate Industry Representative James Conn, Petroleum Superintendent Alison Gallaway, Assistant City Attorney Paul Werner, Water Division James Dodson, Water Division Sherry Smith, Water Division Fermin Munoz, Railroad Commission John Soule, Whiting Petroleum Representative Jerry Hensley, DeNovo Oil and Gas Dennis Curry, Bristol Resources Chairman Carter declared a quorum present, called the meeting to order and asked if there were any deletions or amendments to the minutes of August 27, 1991. There being none, the minutes were approved as written. Mr. Carter called on Mr. Conn to report on the next item on the agenda which was to consider recommending an amendment to City Code Oil and Gas Chapter 35 Section 113 that would prohibit the discharge of produced saltwater into the Nueces River and Nueces Bay. Mr. Conn introduced Paul Werner and James Dodson with the City Water Division and asked that they make their presentation to the Committee. Mr. Werner briefed the Committee on the background of the required fresh water releases. He stated that they have been working with the Texas Water ' Commission on this issue and that samplings have been taken to determine the health of Nueces Bay. As a result, he stated that more frequent fresh water releases have been needed to improve the salinity level. He noted that their initial concern was only the salt water released from the wells and after filing the complaint with the Railroad Commission the complaint has now expanded to include other pollutants in the discharges. Mr. Werner said that the Railroad Commission has held preliminary hearings regarding this issue and on February 5, 1992 they will be having the hearing.. He stated that it is a lengthy process and could continue on. Mr. Dodson located on a map some of the wells in particular that are discharging their brine into Nueces Bay. He said that the salinity levels in Nueces Bay have ranged from 36 to 37 parts - perthousand and that the Texas Water Commission requires a range from 15 to 25 parts per thousand. He said that current reports are being developed on the toxicity of the pollutants associated with the discharges. He stated that the Environmental Protection Agency has regulations that govern the produced waters from wells in offshore waters and inland R,1:. . _ SCANNED fr areas but that there are no regulations in the baysand estuaries which have sensitive environments. He stated that the issue is one that they hope the Railroad Commission will solve. Mr. Carter asked how they arrived at the amount of water being released and Mr. Dodson stated that they are relying on self reporting by the producers to the Railroad Commission. Ms. Newsom asked if there were any other industries discharging into the bay and Mr. Dodson stated that most industries discharge into the inner harbor but that Central Power and Light Plant, Portland Wastewater Treatment Plant and the Allison Plant do discharge into the bay. Mr. Gallagher asked where the salinity tests had been conducted. Mr. Dodson pointed out the locations on a map and stated that the City had contracted with the Blucher Institute for two sites for testing based on the recommendations by the Technical Advisory Committee and subsequently a third site was recommended and now a fourth site is being conducted by Blucher Institute for their own information. Mr. Conn asked if the brine discharges had increased or decreased in the past twenty years. Mr. Dodson stated that they have decreased. Mr. Carson asked how many of the wells shown on the map were in the city jurisdiction. A discussion followed on the city limits and the amount of wells within 467 feet of the city limits. Mr. Carter expressed a concern for regulating wells in our jurisdiction and not being able to regulate the wells outside our jurisdiction that will continue to release saltwater discharges into Nueces Bay. Mr. Gallagher asked ,if it would be within our jurisdiction to control the discharges through required permits and fees. Mr. Conn stated that the City Council asked the Committee to consider this action because they would like to see the fresh water releases discontinued and they wondered if an ordinance amendment would solve this problem. They are also wanting to know the impact this would have on the oil and gas companies . Mr. _Curry, representing Bristol Resources, advised the Committee that they have seven ( 7 ) sites that produce a total of 2, 400 barrels of water and 75 barrels of oil per day. He stated that they were not going to work over any of their other wells until they see the outcome of this issue because it will be to expensive for them to dispose of the saltwater by injection. He stated that the cost is greater in the bay than on land to dispose of saltwater. Mr. Dodson stated that inland producers do not have the option of surface saltwater disposal and they feel they are asking for something that is already being done by --- others . Mr. Conn asked Mr. Dodson if their studies included wells on state tracts and he stated that they were all on private property. A discussion pursued on the discharges of wells in Corpus Christi Bay. Mr. Conn informed the Committee that historically our ordinance extended its jurisdiction to 5,000 feet beyond our city limits, but it became impossible to enforce and was reduced to 467 feet beyond our city limits. A discussion about whether the city saltwater regulations should be reextended to 5, 000 feet followed. Mr. Conn stated that a substantial grace period would need to be allowed if they decided 2 RSL(' to cease allowing surface saltwater disposal to give the operators ample time to obtain permits for injection wells. Ms. Newsom asked if the brine was a major factor in the salinity level and Mr. Dodson stated that it was a factor and would save approximately 6, 000 acre feet a year of fresh water. Mr. Werner stated that samples are being taken every hour now at all four stations so they can determine what other factors contribute to the salinity levels . He also stated that the state government has changed since the building of Choke Canyon dam and it is now more concerned with the environmental aspects. Mr. Gallagher asked if they have been able to see significant changes in salinity levels when there is activity in the bay. Mr. Dodson commented that a workover rig was moved into the bay and reports showed the salinity levels went from 25 parts per thousand to 44 parts per thousand. Mr. Soule, representing Whiting Petroleum, asked the Committee to delay any action until the Railroad Commission ' s findings were complete because he felt they would he getting stricter and will probably be phasing out discharges in the near future. He stated that their preliminary studies have ' indicated that the saltwater discharges have only-a-1% effect on the total salinity. He suggested if the City was unhappy with the results of the Railroad Commission' s_ findings, then it would be appropriate for the City to regulate disposal. Mr. Carter stated that he did not think we had all the factors to make an expert decision and also stated that it takes many months to obtain permits for salt water injection wells. Mr. Gallagher agreed that a grace period needed to be considered if the City Council decides to prohibit the discharges. Mr. Carson motioned for surface discharges to be ceased in a year and included extending our jurisdiction ' to 5,000 feet. Ms . Newsom seconded the motion. The motion failed by the following vote: Mr. Carter, No; Mr. Lewis, No; Ms. Newsom, No; and Mr. Carson, Yes. Mr. Carter suggested €hat the Committee take action in six months if the Railroad Commission hasn' t acted. Mr. Carson motioned that the Committee will take action in six months if the Railroad Commission hasn' t and stated that the preference of the Committee is to cease saltwater disposal in Nueces Bay in the near future. Mr. Lewis seconded the motion, all were in favor and the motion was passed unanimously. Ms. Gallaway asked the Committee if they wanted the City to extend its jurisdiction to 5,000 feet so that the wells discharging into Nueces Bay that are outside the city limits will be included if action is taken in six months and also asked if the 5, 000 feet will be extended to incorporate the entire city limits. Mr. Conn stated if we are extending the jurisdiction for a singular purpose it will only apply in Nueces Bay. A discussion followed and Mr. Carson motioned to recommend that the city jurisdiction be extended to the total extraterritorial jurisdiction and limiting it to apply to Section 35-1 and Section 35-113 and if possible to apply only to the saltwater portion of the City Code. Mr. Lewis seconded the motion, all were in favor and the motion passed. unanimously. " c3 . Bei ,"1 "^ o- w�4• I )1* Mr. Conn notified the Committee that it would be the last meeting for Mr. Carter and Mr. Cardenas and extended his appreciation for their support. He also explained the procedures for applying for appointment on the Committee and said that nominations were to be submitted to the City Secretary' s office. Mr. Conn also informed the Committee that the wells that were the subject of the previous meeting are now in compliance with the City Code. On a motion by Mr. Lewis, seconded by Ms. Newsom, all were in favor and the meeting was adjourned at 3 :10 p.m. • 4 � 1a MINUTE SUMMARY The Oil and Gas Advisory Committee met on December 17 and received comments from the Water Division and Nueces Bay oil and gas well operators regarding saltwater disposal. It was the first time the well operators had been invited to comment on the city' s initiative to have their Nueces Bay saltwater disposal practices prohibited. It was learned from the Water Division that much of the saltwater is produced outside of the city limits in the area north of Nueces Bay. Some of the well operating companies were represented and they stated it would take from six months to one year to convert their disposal program to saltwater injection wells. They also requested that the Railroad Commission be given the opportunity to- impose the regulations since they were experienced with saltwater well injection regulations and a state law would make sure all wells were regulated . The Committee voted unanimously to recommend that the City postpone any action to prohibit saltwater disposal into Nueces Bay for six months -and then review the program for prohibition by the Railroad Commission. They also voted unanimously to recommend that the parameters of , jurisdiction set out in the Oil and Gas Chapter of the City Code be amended so that all applicable wells would be included in any future saltwater disposal prohibition enacted by the City. • SCANNED