Table of Contents

Vol. 6, No. 2
2nd Quarter 2000

First Online Drilling Permit Filed During Texas Internet Workshop

Burlington Resources recently obtained the first online drilling permit in Texas, using the Electronic Compliance and Approval Process (ECAP). With the typical paper-based permit, it takes 3-5 days (plus mailing time) for processing. Using ECAP, turnaround times of one day are expected. The first permit application took only one hour.

The Texas Railroad Commission (RRC) developed this new Internet-based system with the US Department of Energy (DOE) Office of Fossil Energy providing a grant for one-third of the $2.1 million cost. The pilot project is focusing on electronic filing, review and approval of drilling permits, which comprise about 10 percent of the more than 150,000 compliance permits filed in Texas each year.

The historic online filing was the keynote event in a workshop on “Putting the Internet to Work” organized by the Texas Independent Producers and Royalty Owners Association (TIPRO) under the auspices of PTTC’s Texas region. The May 11th event, held at Infomart in Dallas, included the following speakers on other topics:

• Internet Business-to-Business activity (Tina Allain, Exxon-Mobil)
• Remote Monitoring of Oil & Gas Leases (Mike Robbins, Aurion Technologies)
• Application Service Providers (Jeanne Purdue, Hart’s E&P)
• Tips on Reducing Network Risk (Peter Shipley, OneSecure Labs)
• PTTC Internet Resources (Scott Anderson, TIPRO)

Michael Williams, Chair of the Texas RRC, expects the new system to reduce the cost for each permit filing by $200 or more.The initial ECAP system can only process permits for standard vertical wells. Only authorized users may file drilling payments online, and payment option is currently limited to credit cards. Enhancements of the system for other drilling permit situations and other payment options are coming soon.

A mid-1999 survey of 14 permitting agencies identified faster turnaround/speed as the primary driving force toward electronic filing. Ultimately, the Texas RRC’s vision is to incorporate online filing in other permitting/compliance processes.

The next step is to expand ECAP to include more complex drilling permits, attachments, and reporting capabilities. By September 2001, the system is likely to be integrated with existing geographic information, ultimately adapting the paperless process to the entire regulatory life cycle of oil and gas wells in the state.

The Texas effort is part of a national trend in state oil and gas offices to enable producers and the public to file documents and get access to data via the Internet. California hopes to have its basic e-permitting program online this month.

For more information contact Ned Buratti, Texas RRC, phone 512-475-3706, email ned.buratti@rrc.tx.us or visit www.rrc.state.tx.us.

Alternate contact: Scott Anderson, TIPRO, phone 512-477-4452, email asa@tipro.org.

PTTC Releases Follow-ups to Two Popular Technology Publications

Two publications focusing on case studies and technology insights recently have been released by PTTC’s national office:

• The second issue of Petroleum Technology Digest was jointly released by PTTC and Gulf Publishing Company in May as a supplement to World Oil magazine.
• Volume III of PTTC’s Solutions From the Field is being released in early June. It is a compilation of technology insights from regional workshops either sponsored or co-sponsored by PTTC.

“These latest publications are a tremendous resource for independents seeking technical solutions to their exploration and production problems,” said PTTC Chair Leo A. Schrider, senior vice president of Belden & Blake Corp., North Canton, Ohio. “They provide two more examples of how PTTC has served as the ‘bridge to solutions’ for US independent oil and natural gas producers since 1994,” he said.

The May 2000 issue of the Petroleum Technology Digest highlights six case studies of upstream technologies proven to be cost-effective for US independent oil and natural gas producers. It was mailed to approximately 12,000 subscribers of World Oil in North America, with additional copies sent to independents on PTTC’s Network News mailing list.

Titles of case studies in the 13-page publication are: 

• “Pumping large water volumes revives ‘watered-out’ gas zone” by Yates Petroleum
• “Sound technology and better regulation make field development economical” by Brian Sims, Independent
• “How to cut electrical power costs by 30% with little or no investment” by Drilling & Production Company
• “Alternative artificial lift system improves well profitability” by Renco Energy and Toups Technology Licensing
• “Microbial permeability profile modification extends life of oil field” by Hughes Eastern and Mississippi State University
• “Surface geochemical survey adds exploration confidence” by Oil Producers and Pangea Geochemical

The third volume of Solutions From the Field includes technology summaries of the regional workshops, a list of key words and the main discussion points, as well as contact information for speakers and other contributors.

Solutions From the Field, Volume III is available free from PTTC in both hard copy and through the Internet in the “Communications” section of PTTC’s website (www.pttc.org). At least two new summaries of regional workshops are added to the website each month.

To obtain a free copy of either document, or past issues, contact PTTC at 1101 16th St. NW, Suite 1-C, Washington, DC 20036-4803; phone 1-888-THE-PTTC; e-mail publications@pttc.org.