The Texas W-3X form is an application used to request an extension of the deadline for plugging an inactive well. This form is essential for operators who need additional time to manage their inactive wells in compliance with state regulations. For those seeking to fill out the form, please click the button below.
When filling out the Texas W-3X form, it is essential to follow specific guidelines to ensure your application is processed smoothly. Below is a list of things you should and shouldn't do.
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;
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.
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The Texas W-3X form is essential for operators seeking an extension on the deadline to plug inactive wells. However, several other documents often accompany this form to ensure compliance with regulations and to provide necessary information. Understanding these documents can help streamline the application process and avoid delays.
By familiarizing yourself with these forms and documents, you can better navigate the regulatory landscape surrounding well plugging in Texas. Each document plays a crucial role in ensuring compliance and protecting both the operator and the environment.
Completing the Texas W-3X form requires careful attention to detail, and many individuals make common mistakes that can lead to delays or denials. One frequent error is failing to provide the operator name exactly as it appears on the Form P-5, Organization Report. This discrepancy can create confusion and may result in the application being returned for correction.
Another mistake involves the operator address. It is essential to include the full address, including the city, state, and zip code. Omitting any part of this information can hinder the processing of the application. Additionally, some applicants neglect to enter their operator P-5 number, which is crucial for identifying the operator in the Railroad Commission's records.
When applying for blanket extensions, many individuals forget to indicate the correct blanket extension option. Each option has specific criteria that must be met, and failing to select the appropriate one can lead to an automatic rejection of the request. Similarly, those applying for individual well extensions often overlook the need to complete all items from 1 through 10, which can result in incomplete applications.
Providing insufficient supporting documentation is another common pitfall. For both blanket and individual applications, it is necessary to attach any required documents that support the claims made in the application. Not including these documents can delay the review process significantly.
Furthermore, some applicants fail to sign and date the form. This step may seem minor, but without a signature, the application is not considered valid. Additionally, not providing a contact person and their phone number can complicate communication, especially if the commission has questions regarding the application.
Another mistake is neglecting to pay the required filing fees and surcharges. Each extension option has specific fees associated with it, and failing to include these payments can result in the application being rejected. Moreover, some applicants do not keep copies of their submitted forms and documentation, which can be problematic if there are questions or issues later on.
Lastly, a lack of understanding of the certification requirements can lead to mistakes. Applicants must certify that the information provided is true and complete, and failure to do so can result in penalties. Understanding these requirements is vital for ensuring compliance and avoiding potential legal issues.
Misconceptions about the Texas W-3X form can lead to confusion and potential errors in the application process. Here are six common misconceptions:
Understanding these misconceptions can help operators navigate the application process more effectively and ensure compliance with the Railroad Commission's requirements.
Filling out and using the Texas W-3X form is an important step for operators seeking an extension for plugging inactive wells. Here are some key takeaways to consider:
By following these guidelines, operators can navigate the process of filling out and submitting the Texas W-3X form with confidence.
Completing the Texas W-3X form is a necessary step for operators seeking an extension for plugging inactive wells. Accurate and thorough completion of this form is essential to ensure compliance with state regulations. Following the steps below will help facilitate the process.
After completing the form, ensure all required documents are attached. Submitting the form and accompanying documentation to the Railroad Commission of Texas will initiate the review process. Timely and accurate submission is crucial to avoid penalties or delays in obtaining the extension.