Texas W 3X Form in PDF Modify Texas W 3X Here

Texas W 3X Form in PDF

The Texas W- 3X form, provided by the Railroad Commission of Texas, is an essential application for obtaining an extension of the deadline to plug an inactive well. It outlines the process and requirements for both individual and blanket plugging extensions, offering options based on specific criteria such as financial security, participation in approved Enhanced Oil Recovery (EOR) projects, or fulfilling certain testing requirements. To learn more about how to fill out the Texas W-3X form and ensure compliance with state regulations, click the button below.

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The Texas W-3X form serves a significant purpose within the oil and gas industry, specifically addressing the procedural requirements for extending the deadline for plugging an inactive well. Managed by the Railroad Commission of Texas, situated in Austin, this document bridges critical regulatory compliance aspects with industry needs. Its design accommodates operators who seek either blanket or individual extensions, detailing specific provisions for both. Blanket extensions cater to operators managing multiple inactive wells, requiring adherence to one of several options, including demonstrating action towards plugging or reactivating a percentage of inactive wells, providing substantial financial security, or showcasing a publicly traded entity’s compliance with specific financial standards. For individual well extensions, the form outlines eligibility criteria such as abeyance of plugging reports, participation in Enhanced Oil Recovery (EOR) projects, and successful completion of certain well tests, among others. Additionally, the form insists on the inclusion of detailed operator information, well identification, and a certification of truthfulness and accuracy signed by the operator. The Texas W-3X form’s meticulous structure reflects the intricate balance required between regulatory enforcement and the operational flexibility needed by oil and gas operators within Texas.

Texas W 3X Sample

RAILROAD COMMISSION OF TEXAS

Oil and Gas / Admin. Compliance

PO Box 12967

Austin, TX 78711-2967

READ INSTRUCTIONS ON BACK

APPLICATION FOR AN

Form W-3X

EXTENSION OF DEADLINE FOR

(Rev. 08/2019)

PLUGGING AN INACTIVE WELL

 

1.OPERATOR NAME exactly as shown on Form P-5, Organization Report

2.OPERATOR ADDRESS including city, state and zip code

3. OPERATOR P-5 NO.

- 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;

 

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

 

amount of the cost calculation for plugging all inactive wells.

 

 

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.

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 Commission-approved EOR Project.

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 H-15.)

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.

_____________________________________________

_____________________________________________

Signature

Name (print or type)

 

_____________________________________________

______________________

_____________________

Title

Date

Phone No.

Contact Person and Phone Number if different from above: ________________________________________________

Reference: Statewide Rule 15 and 78

Instructions:

File Form W-3X as required by Oil & Gas Statewide Rule 15 (16 Tex. Admin. Code §3.15) to apply for an extension to the deadline to plug an inactive well. All items on this form should be typed or clearly printed in blue or black ink.

Blanket Application for Extensions:

If you are filing Form W-3X to request blanket plugging extensions for all wells that you operate:

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 W-3X.

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 P-5);

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 P-5PB(2), Blanket Performance Bond, a letter of credit on Commission Form P-5LC, Irrevocable Documentary Blanket Letter of Credit, or a cash deposit, in the amount of either the lesser of the cost calculation for plugging all inactive wells or $2 million.

Individual Well Application for Extension:

If you are filing Form W-3X to request a plugging extension for a single well that you operate:

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 W-3X

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.

File Characteristics

Fact Detail
Form Purpose Application for an Extension of Deadline for Plugging an Inactive Well
Form Revision Date August 2019
Administering Body Railroad Commission of Texas, Oil and Gas Division
Application Submission Address PO Box 12967, Austin, TX 78711-2967
Governing Law for Plugging Extensions Oil & Gas Statewide Rule 15 and Statewide Rule 78
Individual Well Extension Requirements Completion of items 1-10, applicable individual well option indication, necessary documentation, and signature
Blanket Extension Requirements Completion of items 1-3, applicable blanket extension option indication, necessary documentation, and signature
Extension Option Examples Plugging or restoration of inactive wells, additional financial security, part of EOR project, successful tests, and escrow fund deposit

Detailed Guide for Writing Texas W 3X

Filling out the Texas W-3X form is a straightforward process but requires attention to detail. The form is used when seeking an extension of the deadline for plugging an inactive well. It's crucial to gather all necessary information and documentation before starting to ensure the process goes smoothly. Follow these steps to accurately fill out the form.

  1. Start by typing or clearly printing the Operator Name in the space provided, exactly as it appears on Form P-5, your Organization Report.
  2. Enter the Operator Address, including the city, state, and zip code.
  3. Fill in the Operator P-5 No., which is your unique identifier.
  4. If applying for a blanket plugging extension for all inactive land wells operated by the entity, skip to steps 5 through 7. If applying for a single well, proceed directly to step 8.
  5. For a blanket extension, indicate the applicable option (A, B, or C) based on your qualifications. Ensure that any necessary supporting documentation is attached.
  6. Sign and date the form at the bottom in the Certification section.
  7. If representing the operator, also print your name, provide your title, date, and a contact phone number.
  8. For an individual well application, complete items 4 through 10, including the Lease Name, Field Name, and other specifics about the well.
  9. Select the applicable individual well extension option (D, E, F, G or H) that applies to your situation.
  10. Attach any necessary supporting documentation required for the selected extension option.
  11. Like with the blanket application, sign and date the form in the Certification section, printing your name, providing your title, date, and contact information.

After completing and double-checking the form for accuracy, it should be filed as directed in the instructions. This form is crucial for operators seeking extensions for plugging inactive wells, and precision in filling it out cannot be understated. Ensuring all information is accurate and all necessary documentation is attached will facilitate a smoother review process.

Common Questions

What is the Texas W-3X Form?

The Texas W-3X Form is an application used by operators to request an extension of the deadline for plugging an inactive oil or gas well. This form is regulated by the Railroad Commission of Texas and is critical for ensuring compliance with Statewide Rule 15.

Who needs to file the Texas W-3X Form?

Operators of inactive oil and gas wells in Texas who wish to extend the deadline for plugging these wells must file the Texas W-3X Form. Both individual well extensions and blanket extensions for all wells operated by an entity can be requested through this form.

What options are available for blanket extensions?

  • Plugging or restoring to active status 10% of the operator’s inactive land wells.
  • For publicly traded entities, filing specific financial documents with the Commission.
  • Providing additional financial security in the amount of the cost calculation for plugging all inactive wells or $2 million, whichever is less.

What options are available for individual well extensions?

  1. Submitting an abeyance of plugging report with the required fee.
  2. Documenting that the well is part of a Commission-approved EOR project.
  3. Successful completion of a fluid level or hydraulic pressure test of the well along with the required fee.
  4. Filing additional financial security for the cost of plugging the well.
  5. Depositing an escrow fund of at least 10% of the cost calculation for plugging the well.

How is the cost calculation for plugging an inactive well determined?

The cost calculation for plugging an inactive well is determined based on the Commission or its delegate's calculation of the cost per foot of well depth plugged. This calculation considers the average actual plugging costs for wells plugged by the Commission in the previous state fiscal year, within the relevant Oil and Gas Division district.

What documentation is needed for a blanket extension request?

Depending on the blanket extension option being utilized, operators may need to include documentation of well plugging/restoration, financial documents for publicly traded entities, or proof of additional financial security.

What are the required supporting documents for an individual well extension request?

Supporting documents for an individual well extension request may include an abeyance of plugging report, evidence of a Commission-approved EOR project, test results for fluid level or hydraulic pressure tests, proof of additional financial security, or an escrow fund deposit.

What is the significance of certifying the Form W-3X?

By certifying the Form W-3X, the operator affirms under penalties prescribed by the Texas Natural Resources Code 91.143 and the Texas Penal Code that the information provided in the application is true, complete, and correct to the best of their knowledge.

How can an operator file the Form W-3X?

Operators can file the Form W-3X by completing the necessary information, attaching any required supporting documents, and sending it to the Railroad Commission of Texas at the provided address. It's important to ensure that all items on the form are typed or clearly printed in blue or black ink.

Common mistakes

Filling out the Texas W-3X form for an extension of the deadline for plugging an inactive well involves detailed instructions that must be carefully followed to avoid mistakes. Here are ten common errors applicants should be wary of:

  1. Incorrect Operator Name: Not using the operator name exactly as shown on Form P-5, Organization Report, can lead to processing delays or application rejection.
  2. Address Errors: Including an incomplete or inaccurate operator address, with missing city, state, or zip code, can hinder timely communication regarding the application.
  3. P-5 Number Omissions: Failing to provide the operator’s P-5 NO. can result in the inability of the regulatory authority to accurately identify the applicant’s existing records or status.
  4. Blanket vs. Individual Options Confusion: Not clearly indicating whether the application is for a blanket extension or for an individual well can lead to processing errors. Each option requires different documentation and checks.
  5. Lease Name Inconsistencies: For individual well extensions, not matching the lease name as shown on the Proration Schedule can cause discrepancies and potential denials.
  6. Field Name Misalignment: Incorrectly listing the field name as shown on the Proration Schedule can disrupt the validation process of the application.
  7. API Number Mistakes: Errors in the API number, including typos or omissions, can prevent accurate well identification.
  8. RRC District NO. Incorrect: Listing an incorrect RRC District Number can lead to the application being routed to the wrong district office, delaying processing.
  9. Financial Security Documentation: Not attaching the required financial security documents or providing insufficient information about the financial arrangements can void the application. This is critical for both blanket and individual well extensions.
  10. Signature and Date: An application without the applicant’s signature, printed name, title, date, and contact information is considered incomplete and will not be processed.

Awareness and careful attention to these common pitfalls when completing the Texas W-3X form can significantly streamline the application process. Applicants are encouraged to review their application thoroughly and consult the instructions on the form to ensure compliance with all requirements. The goal is to secure the necessary extension without needless delays, ensuring that inactive wells are managed responsibly in accordance with Texas regulations.

Documents used along the form

When dealing with the Texas W-3X form, which is an application for an extension of the deadline for plugging an inactive well, various other forms and documents may be required to complete the process effectively. The Railroad Commission of Texas mandates this form under specific conditions outlined in the Statewide Rule 15 and 78. This process ensures that wells are managed responsibly, preserving environmental and public safety. Here are several other essential forms and documents often used together with the Texas W-3X form:

  1. Form P-5, Organization Report: A prerequisite for filing Form W-3X, this form establishes the operator's identity and status to conduct operations within Texas.
  2. Form H-15, Test Well Report: Necessary if conducting a fluid level or hydraulic pressure test for an individual well, as outlined in the W-3X form instructions. It verifies the well's condition.
  3. Abeyance of Plugging Report: This document supports an operator's application for a plugging extension under certain conditions, demonstrating the well's potential future value.
  4. Form P-5PB(2), Blanket Performance Bond: Used when applying for a blanket extension and serves as a form of financial security covering the cost of plugging inactive wells.
  5. Form P-5LC, Irrevocable Documentary Blanket Letter of Credit: Another form of financial security for those seeking a blanket extension, ensuring there are funds available for well plugging.
  6. Commission-approved Enhanced Oil Recovery (EOR) Project Documentation: Required when a well is part of an EOR project and an extension for plugging is being requested.
  7. Uniform Commercial Code Form 1 Financing Statement: For publicly traded entities, this form secures the position of the Railroad Commission of Texas as a secured creditor for funds related to plugging inactive wells.
  8. Cash Deposit Receipt: For operators opting to deposit cash as a form of financial security, a receipt of this transaction is often required.
  9. Professional Engineer or Geoscientist Certification: Accompanies an abeyance of plugging report, certifying the well's future utility and the economic viability of delaying plugging.

Together, these forms and documents build a comprehensive application package for managing inactive wells within Texas. Each has its specific purpose, from establishing operator eligibility and ensuring financial security to providing technical assessments of the wells in question. Proper completion and submission of these forms facilitate a smoother regulatory process, align with legal requirements, and contribute to responsible environmental stewardship.

Similar forms

The Texas W-3X form, which is an application for the extension of the deadline for plugging an inactive well, shares similarities with several other types of documents within regulatory frameworks, particularly those requiring detailed compliance and financial assurance for potential environmental liabilities. One such document is the Federal Environmental Protection Agency (EPA) Form 7530-1, used for the notification of hazardous waste activities. This form, much like the Texas W-3X, requires businesses to provide detailed information about their operations, specifically regarding the handling and disposal of hazardous waste. Both documents serve the purpose of protecting public health and the environment by ensuring proper oversight and documentation of potentially harmful activities.

Another document akin to the Texas W-3X form is the Department of Transportation's (DOT) Hazardous Materials Registration Statement. This document also necessitates that companies disclose significant information about their handling of hazardous materials, including transportation details. While the DOT form focuses on the safe transit of hazardous substances, and the Texas W-3X concentrates on oil and gas well inactivity and plugging, both require operators to provide a form of financial assurance or compliance status. These measures are in place to mitigate any potential risks associated with the activities being reported.

The Bureau of Land Management (BLM) Oil and Gas Lease Bond is also similar to the Texas W-3X form in that it seeks financial security for land use and environmental maintenance. Like the W-3X's requirement for operators to prove financial capability to plug inactive wells, the BLM's bond requirement makes sure that oil and gas extraction activities on leased federal land are conducted responsibly, with adequate financial backing to address any potential damages or required remediations. Both documents serve as a form of assurance to the respective governing bodies that the entity can cover the costs of adhering to environmental standards and rectifying any issues that arise.

Finally, the SEC's Form S-1, a registration statement for new securities to be sold to the public, while seemingly different in content, shares a fundamental similarity with the Texas W-3X form in terms of compliance and disclosure. Companies filing Form S-1 must divulge detailed financial information, risk factors, and plans for the proceeds of the security offering. Similarly, operators submitting the Texas W-3X form must provide specific data regarding their plans and financial capability for well plugging. Both forms serve to inform and protect the interests of stakeholders—be those investors in the case of Form S-1, or the general public and environment in the case of the Texas W-3X—by ensuring transparency and preparedness.

Dos and Don'ts

When filling out the Texas W-3X form, which is an application for an extension of the deadline for plugging an inactive well, attention to detail can significantly impact the success of your application. Compliance with regulatory requirements is crucial in the oil and gas industry, particularly when it involves environmental protection and safety measures such as well plugging. Here are some guidelines to consider:

Things You Should Do:

  1. Read the instructions on the back of the form carefully to ensure compliance with all requirements.
  2. Ensure that the operator's name and address are exactly as shown on Form P-5, the Organization Report, to avoid processing delays due to inconsistencies.
  3. For a blanket plugging extension, complete items 1 through 3, choose the applicable blanket extension option, attach any necessary supporting documentation, and sign and date the form.
  4. If applying for a plugging extension for a single well, accurately complete items 1 through 10, select the appropriate individual well extension option, attach required supporting documentation, and sign and date the form.
  5. When applicable, ensure that any required financial security or additional documentation, such as an abeyance of plugging report or proof of a successful fluid level or hydraulic pressure test, is submitted along with the form.
  6. Use blue or black ink if filling out the form by hand, and make sure all information is clearly legible to avoid errors or misunderstandings.
  7. Verify all information for accuracy and completeness before submission to prevent any penalties or delays due to inaccuracies.

Things You Shouldn't Do:

  • Do not omit any required information or documentation, as this can lead to application rejection or processing delays.
  • Avoid making handwritten changes or using correction fluid on the form; if an error is made, it's best to start with a new form to ensure clarity.
  • Do not underestimate the importance of any item on the form; even seemingly minor details can be critical for regulatory compliance.
  • Resist the temptation to guess or approximate when providing information such as well depth and plugging costs; ensure all figures are accurate and based on the latest data.
  • Do not use any colors of ink other than blue or black, as this may lead to issues with scanning or photocopying the document.
  • Do not forget to sign and date the form, as an unsigned form is considered incomplete and will not be processed.
  • Avoid delaying the submission of your form, especially if nearing a deadline, since late submissions can result in fines or other penalties.

Adherence to these guidelines will help ensure that your Form W-3X is appropriately filled out and processed in a timely manner, facilitating compliance with Texas's oil and gas regulations and contributing to the responsible management of the state's natural resources.

Misconceptions

When navigating the complexities of the Texas W-3X form, which is essential for operators needing an extension to plug an inactive well, it's not uncommon to stumble upon misconceptions. Unraveling these can help clarify the procedure and ensure compliance with the Railroad Commission of Texas. Let's debunk five common misunderstandings:

  • Only for large operators: It's a common belief that the W-3X form is exclusively for large-scale operators with numerous wells. In reality, both large and small operators can apply for extensions to plug inactive wells, whether they're seeking a blanket extension for all their wells or an extension for a specific well.
  • Financial security is always $2 million: While the form mentions a $2 million cap for additional financial security covering the cost of plugging all inactive wells, this figure is not a default amount. The actual required security amount can be less, depending on the cost calculation for plugging the wells, ensuring financial requirements are tailored to each operator's situation.
  • Extensions are automatically granted: Filing a W-3X form doesn't guarantee an extension. The application needs to meet specific criteria, and approval is based on the Railroad Commission’s assessment of the information provided, including any required documentation and the demonstrated future utility or compliance with state-approved projects.
  • One-time application: Another misconception is that once granted, the extension is indefinite or does not need renewal. However, extensions are time-bound, and operators must reapply if they continue to need more time beyond the initially approved period. This ensures wells are either plugged or brought back into active status in a timely manner.
  • Exclusively for economic reasons: While economic factors, such as the cost of plugging a well exceeding its potential future economic value, are crucial in obtaining an extension, they are not the only grounds. Extensions could also be based on technical, environmental, or regulatory considerations, such as participation in a Commission-approved Enhanced Oil Recovery (EOR) project or awaiting results of mandated tests.

Understanding these nuances can make a significant difference in successfully navigating the regulatory landscape surrounding the plugging of inactive wells in Texas. It emphasizes the importance of adhering to the specific procedures and criteria set forth by the Railroad Commission of Texas.

Key takeaways

Filling out and using the Texas W-3X form correctly is crucial for operators looking to extend the deadline for plugging an inactive well. Here are six key takeaways to ensure compliance and to streamline the application process:

  • The form requires the operator's name, address, and P-5 number, which must match those on the Form P-5, Organization Report. This ensures the application is correctly associated with the right operator and their inactive wells.
  • Operators have the option to apply for either a blanket extension for all inactive wells they operate or an extension for a single well. The requirements and documentation vary based on the type of extension being applied for, so it's important to understand the distinctions and provide the appropriate information.
  • For blanket extensions, the operator must have met specific criteria such as having plugged or restored to active status a certain percentage of their inactive wells, or having filed suitable financial security or documentation with the Commission.
  • For individual well extensions, documentation such as abeyance of plugging reports or proof of successful fluid level or hydraulic pressure tests for the specific well must be provided, along with the required filling fees and surcharges.
  • The certification section at the end of the form is a declaration that the information provided is true, complete, and correct, underscoring the legal responsibility of the operator to provide accurate and honest information.
  • Instructions on the form emphasize the importance of following Oil & Gas Statewide Rule 15 for applying for an extension. These rules outline the detailed requirements and conditions under which extensions can be granted, ensuring the operator's compliance with Texas regulations.

Understanding and following these takeaways will help operators navigate the process of applying for plugging extensions for inactive wells in Texas efficiently. It's also advisable to keep abreast of any updates to the regulations or requirements by the Railroad Commission of Texas to ensure ongoing compliance.

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