Penalties for Violations of Safety and Environmental Rules in Oil and Gas

Summary

This practice note reviews the Texas Penalty Guidelines for Oil and Gas Violations, rule 3.107 (16 Tex. Admin. Code § 3.107), as a model rule for the enforcement of safety and environmental protection rules around oil and gas operations. A key element of any regulatory system is the provisions for what happens when violations of those regulations occur. Rule 3.107 offers guidance for violations and gives the Railroad Commission of Texas (Commission) the right to adjust penalties to fit specific situations. Minimum penalties are listed in the rule giving the Commission room to cite penalties up to the statutory maximum. The rule also gives an operator opportunity to correct a violation before it is referred to legal enforcement. It is important to recognize that each state has its own approach to penalties for violation, and thus the practitioner should become aware of the specifics of the appropriate law if and when a need arises.