The Railroad Commission of Texas has set forth guidelines for the identification of oil & Gas Wells, Tanks and associated properties under the jurisdiction of the Texas Railroad Commission. In order to provide clarification and a better understanding of these guidelines, we have outlined the requirements for Texas oil and gas lease signs down into easily understandable parts. The following Guidelines apply for wells and oil field properties under the Texas Administrative Code Title 16 (Economic Regulations), Part 1 (Railroad Commission of Texas), Chapter 3 (Oil and Gas Division), Rule 3.3 (Identification of Properties, Wells and Tanks) as follows:
Under Rule 3.3, the following are required to be clearly marked and identified
- - each property that produces crude oil, natural gas or geothermal resources
- - each crude oil, natural gas or geothermal resource well and tank
- - other approved crude oil measuring facilities which do not use tanks
The sign requirements below must be in clearly legible and in English. The height requirement for each letter and number is a minimum of 1 inch.
The first requirement is that a sign needs to be placed at the primary lease or facility entrance which includes the following information:
- - Name of the lease or other common name on file with the TRRC
- - Name of the Operator of Record with the RRC
- - Number of Acres in the property
Additional signs are required at each well site. These lease signs will need to include the following information:
- - name of the property
- - name of the operator
- - the well number
Every property will require additional signage for each crude oil stock tank, remote satellite tank or approved crude oil measuring facility ( if tanks are not used) which include the following:
- - Name of the lease
- - Name of the operator on file with the RRC
- - Total number of acres
- - Texas Railroad Commission lease number of the producing formation
- - If commingled, the commingling permit number is required
- - The Tank number (if more than one tank is used)
For wells which are completed and produced in multiple formations, the wellhead valve and flow line for each formation needs to have a metal tag or painted lettering which shows the following:
Please note* the letters and numbers below do not need to be at least one inch in height.
- - Name of the formation
- - Identifying marker of the completion string or tubing marked “C” for casing, “UT” for upper tubing or “LT” for lower tubing followed by the name of the producing crude oil or natural gas formation.
The information above is interpreted from the Texas Administration Code TAC TITLE 16 PART 1 Chapter 3 Rule 3.3 and may be found using this link. We hope this serves as an easy explanation and guide to understanding the lease sign requirements for texas oil and gas wells.